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MCQOPTIONS
This section includes 2436 Mcqs, each offering curated multiple-choice questions to sharpen your Commerce knowledge and support exam preparation. Choose a topic below to get started.
| 1101. |
Size of firm and market or book ratio are variables which are related to |
| A. | remium returns |
| B. | nquoted returns |
| C. | uoted returns |
| D. | tock returns |
| Answer» E. | |
| 1102. |
Probability distribution is classified as normal if expected return lies between |
| A. | + 1 and -1) |
| B. | + 2 and -2) |
| C. | + 3 and -3) |
| D. | + 4 and -4) |
| Answer» B. + 2 and -2) | |
| 1103. |
Coefficient of beta is used to measure stock volatility |
| A. | oefficient of market |
| B. | elative to market |
| C. | rrelative to market |
| D. | ame with market |
| Answer» C. rrelative to market | |
| 1104. |
In portfolio, beta of individual security in portfolio represented as their weighted average is classified as |
| A. | verage of portfolio |
| B. | eta of portfolio |
| C. | eighted portfolio |
| D. | ollective stocks |
| Answer» C. eighted portfolio | |
| 1105. |
According to probability distribution of rates of return, a close outcome to an expected value is shown by |
| A. | alue distribution |
| B. | xpected distribution |
| C. | ore peaked distribution |
| D. | ess peaked distribution |
| Answer» D. ess peaked distribution | |
| 1106. |
Stock which has higher correlation with market tend to have |
| A. | igh beta, less risky |
| B. | ow beta, more risky |
| C. | igh beta, more risky |
| D. | ow beta, less risky |
| Answer» D. ow beta, less risky | |
| 1107. |
A tighter probability distribution shows the |
| A. | igher risk |
| B. | ower risk |
| C. | xpected risk |
| D. | eaked risk |
| Answer» C. xpected risk | |
| 1108. |
An amount invested is Rs 2000 and return is Rs 200 then rate of return would be |
| A. | .10% |
| B. | 0.00% |
| C. | s 1,800.00 |
| D. | s 2,200.00 |
| Answer» C. s 1,800.00 | |
| 1109. |
If stock has a great risk related to it than a required return is |
| A. | igher |
| B. | ower |
| C. | ero |
| D. | ll of above |
| Answer» B. ower | |
| 1110. |
Standard deviation is divided by expected rate of return is used to calculate |
| A. | oefficient of variation |
| B. | oefficient of deviation |
| C. | oefficient of standard |
| D. | oefficient of return |
| Answer» B. oefficient of deviation | |
| 1111. |
Rate of return which considers riskiness and an available returns on investments is classified as |
| A. | onstant dividend |
| B. | onstant rate |
| C. | aximum rate of return |
| D. | inimum acceptable rate of return |
| Answer» E. | |
| 1112. |
Type of stock in which dividends are tied to any particular part of a firm is classified as |
| A. | ividend stock |
| B. | irm part stock |
| C. | ied stock |
| D. | racking stock |
| Answer» E. | |
| 1113. |
Right of common stockholders to purchase additional stock issued by company is classified as |
| A. | ommon right |
| B. | re-emptive right |
| C. | urchase right |
| D. | elling right |
| Answer» C. urchase right | |
| 1114. |
Process in which stockholders transfer right to vote to any other person is classified as |
| A. | roxy |
| B. | ransfer process |
| C. | oting process |
| D. | ssigning right process |
| Answer» B. ransfer process | |
| 1115. |
Stock in small companies, owned by few people but not actively traded is classified as |
| A. | losely held stock |
| B. | argely held stock |
| C. | ttributed stock |
| D. | uccessful stock |
| Answer» B. argely held stock | |
| 1116. |
Paid dividend is Rs 20 and current price is Rs 50 then dividend yield will be |
| A. | 0.00% |
| B. | 0.00% |
| C. | 0.00% |
| D. | 0.00% |
| Answer» B. 0.00% | |
| 1117. |
Constant growth rate is 9.5% and an expected rate of return is 13.5% then expected dividend yield would be |
| A. | 3.00% |
| B. | .42% |
| C. | .00% |
| D. | 4.50% |
| Answer» D. 4.50% | |
| 1118. |
Capital gains yield is multiplied for beginning price to calculate |
| A. | apital gain |
| B. | rowth gain |
| C. | egular yield |
| D. | ariable yield |
| Answer» B. rowth gain | |
| 1119. |
Dividend present value for period of non-constant growth in addition with horizon value is used to calculate |
| A. | tock extrinsic value |
| B. | tock intrinsic value |
| C. | ividend intrinsic value |
| D. | tock intrinsic value |
| Answer» C. ividend intrinsic value | |
| 1120. |
In expected rate of return for constant growth, stock price must grow according to an expected rate and |
| A. | t same price |
| B. | t different price |
| C. | t yielded price |
| D. | t buying price |
| Answer» B. t different price | |
| 1121. |
Preferred dividend is Rs 50 and required rate of return is 2.5% then value of preferred stock would be |
| A. | s 20.00 |
| B. | s 125.00 |
| C. | s 2,000.00 |
| D. | s 52.50 |
| Answer» D. s 52.50 | |
| 1122. |
Method of stock valuation which is multiple of earning per share, book value and net income is classified as |
| A. | tock multiple analysis |
| B. | ividend multiple analysis |
| C. | arket multiple analysis |
| D. | tock and multiple analysis |
| Answer» D. tock and multiple analysis | |
| 1123. |
Stock with large amount of contribution of risk in a diversified portfolio is represented by |
| A. | igh beta and standard deviation |
| B. | igh beta, low standard deviation |
| C. | ow beta, low standard deviation |
| D. | ow beta, low variance |
| Answer» B. igh beta, low standard deviation | |
| 1124. |
Stocks in market portfolio are graphically represented with |
| A. | ashed line |
| B. | traight line |
| C. | arket line |
| D. | isk line |
| Answer» B. traight line | |
| 1125. |
Method and model used to analyze relationship between rates of return and risk is classified as |
| A. | apital asset pricing model |
| B. | ortfolio asset pricing model |
| C. | sset market pricing model |
| D. | ortfolio pricing model |
| Answer» B. ortfolio asset pricing model | |
| 1126. |
An additional desired compensation by investors for assuming an additional risk on investment is classified as |
| A. | isk premium |
| B. | nvestor premium |
| C. | dditional premium |
| D. | ssumed premium |
| Answer» B. nvestor premium | |
| 1127. |
In capital asset pricing model, stock with high standard deviation tend to have |
| A. | ow variation |
| B. | ow beta |
| C. | igh beta |
| D. | igh variation |
| Answer» C. igh beta | |
| 1128. |
An amount invested is Rs 4000 and return is Rs 300 then rate of return will be |
| A. | .30% |
| B. | .70% |
| C. | .50% |
| D. | .08% |
| Answer» D. .08% | |
| 1129. |
Risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as |
| A. | tock risk |
| B. | ortfolio risk |
| C. | iversifiable risk |
| D. | arket risk |
| Answer» D. arket risk | |
| 1130. |
Standard deviation is 18% and coefficient of variation is 1.5% an expected rate of return will be |
| A. | 7.00% |
| B. | 2.00% |
| C. | 9.50% |
| D. | one of above |
| Answer» D. one of above | |
| 1131. |
Correct measure of risk of stock is called |
| A. | lpha |
| B. | eta |
| C. | ariance |
| D. | arket relevance |
| Answer» C. ariance | |
| 1132. |
Expected returns weighted average on assets in portfolio is considered as |
| A. | eighted portfolio |
| B. | xpected return on portfolio |
| C. | oefficient of portfolio |
| D. | xpected assets |
| Answer» C. oefficient of portfolio | |
| 1133. |
Case in which average investors risk aversion is greater than slope of line and risk premium respectively is |
| A. | teeper, greater |
| B. | teeper, smaller |
| C. | teeper, zero |
| D. | oth A and B |
| Answer» B. teeper, smaller | |
| 1134. |
In capital asset pricing model, investors assume that buying and selling activity will |
| A. | ffect stock prices |
| B. | ot affect stock prices |
| C. | ave high taxes |
| D. | igh transaction cost |
| Answer» C. ave high taxes | |
| 1135. |
Formula written as market risk premium divided by standard deviations of returns on market portfolio is used to calculate |
| A. | apital market line |
| B. | ecurity market line |
| C. | ixed market line |
| D. | ariable market line |
| Answer» B. ecurity market line | |
| 1136. |
In arbitrage pricing theory, higher required rate of return is usually paid on stock |
| A. | igher market risk |
| B. | igher dividend |
| C. | ower dividend |
| D. | ower market risk |
| Answer» C. ower dividend | |
| 1137. |
Relationship between total risk of stock, diversifiable risk and market risk is classified as |
| A. | otal risk |
| B. | tandard deviation |
| C. | tandard alpha |
| D. | reynor alpha |
| Answer» B. tandard deviation | |
| 1138. |
First factor in Fama French three factor model is |
| A. | APM stock beta |
| B. | conomic stock beta |
| C. | APM portfolio beta |
| D. | APM realized beta |
| Answer» B. conomic stock beta | |
| 1139. |
Realized and required return for individual stocks are classified as function of fundamental |
| A. | rbitrage factors |
| B. | conomic factors |
| C. | ortfolio factors |
| D. | ealized theory factors |
| Answer» C. ortfolio factors | |
| 1140. |
Riskless rate in addition with risk premium is multiplied by standard deviation of portfolio for using to calculate expected return rate on |
| A. | fficient portfolio |
| B. | nefficient portfolio |
| C. | ttributable portfolio |
| D. | on-attributable portfolio |
| Answer» B. nefficient portfolio | |
| 1141. |
Stock issued by company have lower rate of return because of |
| A. | igh market to book ratio |
| B. | ow book to market ratio |
| C. | ow market to book ratio |
| D. | igh book to market ratio |
| Answer» C. ow market to book ratio | |
| 1142. |
Gross domestic product, world economy strength and level of inflation are factors which is used to determine |
| A. | arket realized return |
| B. | ortfolio realized return |
| C. | ortfolio arbitrage risk |
| D. | rbitrage theory of return |
| Answer» B. ortfolio realized return | |
| 1143. |
Relationship between risk free asset and a single risky asset are always |
| A. | inear |
| B. | on-linear |
| C. | fficient |
| D. | ffective |
| Answer» B. on-linear | |
| 1144. |
All assets are perfectly divisible and liquid in |
| A. | ax free pricing model |
| B. | ost free pricing model |
| C. | apital asset pricing model |
| D. | tock pricing model |
| Answer» D. tock pricing model | |
| 1145. |
In capital asset pricing model, characteristic line is classified as |
| A. | egression line |
| B. | robability line |
| C. | cattered points |
| D. | eighted line |
| Answer» B. robability line | |
| 1146. |
Capital market line reflects an attitude of investors towards risk which is considered as an/a |
| A. | on-aggregate |
| B. | ffective |
| C. | neffective |
| D. | ggregate |
| Answer» E. | |
| 1147. |
Type of relationship exists between an expected return and risk of portfolio is classified as |
| A. | on-linear |
| B. | inear |
| C. | ixed and aggregate |
| D. | on-fixed and non-aggregate |
| Answer» C. ixed and aggregate | |
| 1148. |
Betas that are constantly adjusted to reflect changes in capital structure and firms operations are classified as |
| A. | undamental structure |
| B. | undamental adjustment |
| C. | undamental betas |
| D. | undamental operations |
| Answer» D. undamental operations | |
| 1149. |
Stock issued by company have higher rate of return because of |
| A. | ow market to book ratio |
| B. | igh book to market ratio |
| C. | igh market to book ratio |
| D. | ow book to market ratio |
| Answer» C. igh market to book ratio | |
| 1150. |
Sum of market risk and diversifiable risk are classified as total risk which is equivalent to |
| A. | harpe's alpha |
| B. | tandard alphas |
| C. | lpha's variance |
| D. | ariance |
| Answer» E. | |