MCQOPTIONS
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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.
| 1451. |
Savings accounts are___________ but are not__________.%! |
| A. | negotiable; liquid |
| B. | marketable; liquid |
| C. | liquid; personal |
| D. | liquid; marketable |
| Answer» E. | |
| 1452. |
Net working capital is the excess of current asset over ____________.%! |
| A. | Current liability |
| B. | Net liability |
| C. | Total payable |
| D. | Total liability |
| Answer» B. Net liability | |
| 1453. |
The company’s average cost of capital is ____________.%! |
| A. | the average cost of equity shares and debentures |
| B. | the average cost of equity preference shares |
| C. | the average cost of shares and all sources of long-term funds |
| D. | the average cost of short term funds |
| Answer» D. the average cost of short term funds | |
| 1454. |
Present value takes _________.%! |
| A. | Discounting rate |
| B. | Compounding rate |
| C. | Inflation rate |
| D. | Deflation rate |
| Answer» B. Compounding rate | |
| 1455. |
When a company uses increased fixed cost for production, this is an example of what type of leverage.%! |
| A. | operating leverage |
| B. | financial leverage |
| C. | variable cost leverage |
| D. | combined leverage |
| Answer» B. financial leverage | |
| 1456. |
A company having easy access to the capital markets can follow a ____________ dividend policy%! |
| A. | liberal |
| B. | formal |
| C. | strict |
| D. | Varying |
| Answer» B. formal | |
| 1457. |
First factor in Fama French three factor model is%! |
| A. | CAPM stock beta |
| B. | economic stock beta |
| C. | CAPM portfolio beta |
| D. | CAPM realized beta |
| Answer» B. economic stock beta | |
| 1458. |
In capital asset pricing model, investors assume that buying and selling activity will%! |
| A. | affect stock prices |
| B. | not affect stock prices |
| C. | have high taxes |
| D. | high transaction cost |
| Answer» C. have high taxes | |
| 1459. |
Stocks which has high book for market ratio are considered as%! |
| A. | more risky |
| B. | less risky |
| C. | pessimistic |
| D. | optimistic |
| Answer» B. less risky | |
| 1460. |
Sum of market risk and diversifiable risk are classified as total risk which is equivalent to%! |
| A. | Sharpe's alpha |
| B. | standard alphas |
| C. | alpha's variance |
| D. | variance |
| Answer» E. | |
| 1461. |
Capital market line reflects an attitude of investors towards risk which is considered as an/a%! |
| A. | non-aggregate |
| B. | effective |
| C. | ineffective |
| D. | aggregate |
| Answer» E. | |
| 1462. |
Gross domestic product, world economy strength and level of inflation are factors which is used to determine%! |
| A. | market realized return |
| B. | portfolio realized return |
| C. | portfolio arbitrage risk |
| D. | arbitrage theory of return |
| Answer» B. portfolio realized return | |
| 1463. |
Two alternative expected returns are compared with help of%! |
| A. | coefficient of variation |
| B. | coefficient of deviation |
| C. | coefficient of standard |
| D. | coefficient of return |
| Answer» B. coefficient of deviation | |
| 1464. |
In expected future returns, tighter probability distribution shows risk on given investment which is%! |
| A. | smaller |
| B. | greater |
| C. | less risky |
| D. | highly risky |
| Answer» B. greater | |
| 1465. |
Past realized rate of return in period t is denoted by%! |
| A. | t bar r |
| B. | t hat r |
| C. | r hat t |
| D. | r bar t |
| Answer» E. | |
| 1466. |
Beta coefficient is used to measure market risk which is an index of%! |
| A. | coefficient risk volatility |
| B. | market risk volatility |
| C. | stock market volatility |
| D. | portfolio market portfolio |
| Answer» D. portfolio market portfolio | |
| 1467. |
Required return is 11% and premium for risk is 8% then risk free return will be%! |
| A. | 3.00% |
| B. | 19.00% |
| C. | 0.72% |
| D. | 1.38% |
| Answer» B. 19.00% | |
| 1468. |
According to capital asset pricing model assumptions, investors will borrow unlimited amount of capital at any given%! |
| A. | identical and fixed returns |
| B. | risk free rate of interest |
| C. | fixed rate of interest |
| D. | risk free expected return |
| Answer» C. fixed rate of interest | |
| 1469. |
A model which regresses return of stock against return of market is classified as%! |
| A. | regression model |
| B. | market model |
| C. | error model |
| D. | risk free model |
| Answer» C. error model | |
| 1470. |
Return on assets = 6.7% and equity multiplier = 2.5% then return on equity will be%! |
| A. | 16.75% |
| B. | 2.68% |
| C. | 0.37% |
| D. | 9.20% |
| Answer» B. 2.68% | |
| 1471. |
Statement of cash flows are included%! |
| A. | operating activities |
| B. | investing activities |
| C. | financing activities |
| D. | all of above |
| Answer» E. | |
| 1472. |
Value of net income is Rs 124,500,000 and common shares outstanding are Rs 60,000,000 then earning per share will be%! |
| A. | Rs 2.75 |
| B. | Rs 0.48 |
| C. | Rs 2.08 |
| D. | Rs 2.80 |
| Answer» D. Rs 2.80 | |
| 1473. |
Purchase cost of assets over its useful life is classified as%! |
| A. | appreciation |
| B. | depreciation |
| C. | appreciated assets |
| D. | appreciated liabilities |
| Answer» C. appreciated assets | |
| 1474. |
Security present value is Rs 100 and future value is Rs 150 after 10 years and value of 'I = interest rate' will be%! |
| A. | 4.14% |
| B. | 0.59% |
| C. | 0.69% |
| D. | 0.79% |
| Answer» B. 0.59% | |
| 1475. |
Rate of return that an investment provides its investor is classified as%! |
| A. | investment return rate |
| B. | internal rate of return |
| C. | international rate of return |
| D. | intrinsic rate of return |
| Answer» C. international rate of return | |
| 1476. |
Total assets divided common equity is a formula uses for calculating%! |
| A. | equity multiplier |
| B. | graphical multiplier |
| C. | turnover multiplier |
| D. | stock multiplier |
| Answer» B. graphical multiplier | |
| 1477. |
An equation in which total assets are multiplied to profit margin is classified as%! |
| A. | du DuPont equation |
| B. | turnover equation |
| C. | preference equation |
| D. | common equation |
| Answer» B. turnover equation | |
| 1478. |
*$_In arbitrage pricing theory, required returns are functioned of two factors which have? |
| A. | dividend policy |
| B. | market risk |
| C. | historical policy |
| D. | Both A and B |
| Answer» E. | |
| 1479. |
*$_Beta reflects stock risk for investors which is usually? |
| A. | individual |
| B. | collective |
| C. | weighted |
| D. | linear |
| Answer» B. collective | |
| 1480. |
*$_High portfolio return is 6.5% and low portfolio return is 3.0% then HML portfolio will be? |
| A. | 2.16% |
| B. | 9.50% |
| C. | 3.50% |
| D. | 0.4615 times |
| Answer» D. 0.4615 times | |
| 1481. |
*$_Difference between actual return on stock and predicted return is considered as? |
| A. | probability error |
| B. | actual error |
| C. | prediction error |
| D. | random error |
| Answer» E. | |
| 1482. |
*$_Current value of stock including in portfolio is subtracted from present value of portfolio to calculate? |
| A. | last month option price |
| B. | last year option price |
| C. | current option price |
| D. | future option price |
| Answer» D. future option price | |
| 1483. |
*$_What are the factors which make debentures attractive to investors?? |
| A. | They enjoy a high order of priority in the event of liquidation |
| B. | Stable rate of return |
| C. | No risk |
| D. | All of the above |
| Answer» E. | |
| 1484. |
*$_If the dispersion around a security's return is larger ____________.? |
| A. | the expected return is smaller |
| B. | the standard deviation is smaller |
| C. | the stock's price is higher |
| D. | the security's risk is higher |
| Answer» E. | |
| 1485. |
*$_Which of the following ratios is not affected by the financial structure and the tax rate of a company?? |
| A. | Net profit margin |
| B. | Earning power |
| C. | Earnings per share |
| D. | Capitalization rate |
| Answer» D. Capitalization rate | |
| 1486. |
*$_Underlying all investments is the trade-off between_________.? |
| A. | expected return and actual return |
| B. | low risk and high risk |
| C. | actual return and high risk |
| D. | expected return and risk |
| Answer» E. | |
| 1487. |
*$_Which of the following is not normally one of the reasons for a change in an investor's circumstances?? |
| A. | Change in market conditions |
| B. | Change in legal considerations |
| C. | Change in time horizon |
| D. | Change in tax circumstances |
| Answer» C. Change in time horizon | |
| 1488. |
*$__________ is equal to (common shareholders' equity/common shares outstanding).? |
| A. | book value per share |
| B. | liquidation value per share |
| C. | market value per share |
| D. | Tobin's Q |
| Answer» B. liquidation value per share | |
| 1489. |
*$_In the weekly efficient market, the stock price reflects.? |
| A. | the company's financial performance |
| B. | the past price of the scrip |
| C. | the demand for the scrip |
| D. | the past price and traded volumes |
| Answer» E. | |
| 1490. |
*$_Price per share is Rs 30 and an earning per share is Rs 3.5 then price for earning ratio would be? |
| A. | 8.57 times |
| B. | 8.57% |
| C. | 0.11 times |
| D. | 11.00% |
| Answer» B. 8.57% | |
| 1491. |
*$_Which of the following is not an assumption in the Miller & Modigliani approach?? |
| A. | There are no transaction costs |
| B. | Securities are infinitely divisible |
| C. | Investors have homogeneous expectations |
| D. | All the firms pay tax on their income at the same rate |
| Answer» E. | |
| 1492. |
*$_The Accounting period cycle of NSE is___________.? |
| A. | Wednesday to next Tuesday |
| B. | Tuesday to next Wednesday |
| C. | Monday to next Friday |
| D. | Wednesday to next Wednesday |
| Answer» B. Tuesday to next Wednesday | |
| 1493. |
*$_Walters model on dividend policy assumes that.? |
| A. | the firm offers an increasing amount of dividend per share at a given level of price per share |
| B. | the firm has a finite life |
| C. | the cost of capital of the firm is variable |
| D. | equal to current assets plus current liabilities including bank borrowings |
| Answer» E. | |
| 1494. |
*$_Which of the following short term securities is inappropriate for an individual, desiring funds for financial emergencies?? |
| A. | treasury bills |
| B. | certificates of deposit |
| C. | financial futures |
| D. | savings accounts |
| Answer» D. savings accounts | |
| 1495. |
*$_In financial planning, a higher strike price leads to call option? |
| A. | price is higher |
| B. | rate is lower |
| C. | price is lower |
| D. | rate is higher |
| Answer» D. rate is higher | |
| 1496. |
*$_In option pricing, an increasing in option price due to? |
| A. | time of expiry increases |
| B. | time of expiry decreases |
| C. | exchange time increases |
| D. | exchange time decreases |
| Answer» B. time of expiry decreases | |
| 1497. |
*$_If market interest rate fall below coupon rate then bond will be sold? |
| A. | below its par value |
| B. | above its par value |
| C. | equal to return rate |
| D. | seasoned price |
| Answer» C. equal to return rate | |
| 1498. |
*$_At last day when European and American option can be exercised is classified as? |
| A. | European date |
| B. | American date |
| C. | expiration date |
| D. | money date |
| Answer» D. money date | |
| 1499. |
*$_Value of stock is Rs 250 and call option obligation is Rs 100 then current value of portfolio would be? |
| A. | Rs 125.00 |
| B. | Rs 150.00 |
| C. | Rs 350.00 |
| D. | Rs 2.50 |
| Answer» C. Rs 350.00 | |
| 1500. |
*$_An effect of interest rate risk and investment risk on a bond's yield is classified as? |
| A. | reinvestment premium |
| B. | investment risk premium |
| C. | maturity risk premium |
| D. | defaulter's premium |
| Answer» D. defaulter's premium | |