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.Management Sciences
Category: Finance Mcqs
Which of the following statement is CORRECT regarding compound interest?
A. It is the most basic form of calculating interest.
B. It earns profit not only on principal but also on interest.
C. It is calculated by multiplying principal by rate multiplied by time.
D. It does not take into account the accumulated interest for calculation.
Stocks in market portfolio are graphically represented with_____________?
A. Dashed line
B. Straight line
C. Market line
D. Risk line
Standard deviation is 18% and coefficient of variation is 1.5% an expected rate of return will be_____________?
A. 27%
B. 12%
C. 19.50%
D. none of above
Price of an outstanding bond decreases when market rate is_______________?
A. Increased
B. Decreased
C. Earned
D. Never changed
Markets dealing with residential loans, industry real estate loans, agricultural loans and commercial loans are called___________?
A. Residential markets
B. Mortgage markets
C. Agriculture markets
D. Commercial markets
Portfolio which consists of perfectly positive correlated assets having no effect of___________?
A. Negativity
B. Positivity
C. Correlation
D. Diversification
During planning period, a marginal cost for raising a new debt is classified as__________?
A. Debt cost
B. Relevant cost
C. Borrowing cost
D. Embedded cost
In capital asset pricing model, assumptions must be followed including________?
A. No taxes
B. No transaction costs
C. Fixed quantities of assets
D. All of above
A portfolio consists of all stocks in a market is classified as____________?
A. Market portfolio
B. Return portfolio
C. Correlated portfolio
D. Diversified portfolio
Which of the following set of ratios is used to assess a business’s ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time?
A. Liquidity Ratios
B. Leverage Ratios
C. Profitability Ratios
D. Market Value Ratios
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