Financial management

41. A portfolio consists of all stocks in a market is classified as

market portfolio
return portfolio
correlated portfolio
diversified portfolio

Detailed SolutionA portfolio consists of all stocks in a market is classified as

42. Tracking stock of company is also classified as

target stock
dividend stock
firm part stock
tied stock

Detailed SolutionTracking stock of company is also classified as

43. Which of the following is correct?

CL = OL + FL
CL = OL - FL
OL = OL × FL
OL = OL ÷ FL

Detailed SolutionWhich of the following is correct?

44. Which of the following is not true for MM Model?

Share price goes up if dividend is paid
Share price goes down if dividend is not paid
Market value is unaffected by Dividend policy
All of the above

Detailed SolutionWhich of the following is not true for MM Model?

45. Current value of stock included in portfolio is subtracted from current option price to calculate

future value of stock
present value of portfolio
future value of portfolio
present value of stock

Detailed SolutionCurrent value of stock included in portfolio is subtracted from current option price to calculate

46. Value of stock is Rs 1000 and current value of portfolio is Rs 1500 then obligation to cover call option will be

Rs 6,667.00
Rs 2,500.00
Rs 2,000.00
Rs 500.00

Detailed SolutionValue of stock is Rs 1000 and current value of portfolio is Rs 1500 then obligation to cover call option will be

47. Beta measures the ________.

Investment risk rate
Financial risk
Market risk
Market and finance risk

Detailed SolutionBeta measures the ________.

48. Financial planning starts with the preparation of:

Master Budget
Cash Budget
Balance Sheet
None of the above

Detailed SolutionFinancial planning starts with the preparation of:

49. A project whose cash flows are more than capital invested for rate of return then net present value will be

positive
independent
negative
zero

Detailed SolutionA project whose cash flows are more than capital invested for rate of return then net present value will be

50. Profitability index in capital budgeting is used for

negative projects
relative projects
evaluate projects
earned projects

Detailed SolutionProfitability index in capital budgeting is used for

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