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.Management Sciences
Category: Finance Mcqs
Variability for expected returns for projects is classified as___________?
A. Expected risk
B. Stand-alone risk
C. Variable risk
D. Returning risk
Net present value, profitability index, payback and discounted payback are methods to______________?
A. Evaluate cash flow
B. Evaluate projects
C. Evaluate budgeting
D. Evaluate equity
In capital market line, risk of efficient portfolio is measured by its____________?
A. Standard deviation
B. Variance
C. Aggregate risk
D. Ineffective risk
In weighted average cost of capital, capital components are funds that usually offer by____________?
A. Stock market
B. Investors
C. Capitalist
D. Exchange index
First step in calculation of net present value is to find out_________?
A. Present value of equity
B. Future value of equity
C. Present value cash flow
D. Future value of cash flow
The effect of purchasing power or inflation on present value is important because _________?
A. It increases the real value of cash flows received in the future
B. It reduces the real value of cash flows received in the future
C. It has no effect on real value of cash flow received in the future
D. None of these
Bond which is offered below its face value is classified as______________?
A. Present value bond
B. Original issue discount bond
C. Coupon issued bond
D. Discounted bond
Difference between actual return on stock and predicted return is considered as___________?
A. Probability error
B. Actual error
C. Prediction error
D. Random error
Real interest rate and real cash flows do not include_____________?
A. Equity effects
B. Debt effects
C. Inflation effects
D. Opportunity effects
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