Detailed SolutionAn average inflation rate which is expected over life of security is classified as
Financial management
inflation premium
off season premium
nominal premium
required premium
Answer is Right!
Answer is Wrong!
512. A premium which reflects possibility of issuer who does not pay principal amount of bonds is called
seasoned risk premium
nominal risk premium
default risk premium
quoted risk premium
Answer is Right!
Answer is Wrong!
513. Constant growth model would not be used in condition if growth rate is
greater than dividend paid
equal to realized rate of return
less than realized rate of return
Answer is Right!
Answer is Wrong!
Detailed SolutionConstant growth model would not be used in condition if growth rate is
514. Size of firm and market or book ratio are variables which are related to
premium returns
unquoted returns
quoted returns
stock returns
Answer is Right!
Answer is Wrong!
Detailed SolutionSize of firm and market or book ratio are variables which are related to
515. Third factor in Fama French three factor model is ratio which is classified as
book to market ratio
market to book ratio
company to industry ratio
stock to portfolio ratio
Answer is Right!
Answer is Wrong!