Financial management Archives - Page 5 of 112 - MCQ and Quiz for Exams

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 Ã FL

OL = OL Ã· 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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