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.
| 1501. |
*$_Long-term equity anticipation security is usually classified as? |
| A. | short-term options |
| B. | long-term options |
| C. | short money options |
| D. | yearly call |
| Answer» C. short money options | |
| 1502. |
*$_In stock option, a little chance exists for large gain on stock when price of stock? |
| A. | have volatile movement |
| B. | moves freely |
| C. | rarely moves |
| D. | stays same |
| Answer» D. stays same | |
| 1503. |
*$_Market value of option which is out-of-money is? |
| A. | greater than zero |
| B. | equal to zero |
| C. | lesser than zero |
| D. | equal to one |
| Answer» B. equal to zero | |
| 1504. |
*$_Value of stock is Rs 1000 and current value of portfolio is Rs 1500 then obligation to cover call option will be? |
| A. | Rs 6,667.00 |
| B. | Rs 2,500.00 |
| C. | Rs 2,000.00 |
| D. | Rs 500.00 |
| Answer» E. | |
| 1505. |
*$_When two portfolios have identical values and payoffs then it is classified as? |
| A. | binomial parity relationship |
| B. | put parity relationship |
| C. | put option parity relationship |
| D. | put call parity relationship |
| Answer» E. | |
| 1506. |
*$_A type of contract in which contract holder has right to sell an asset at specific period for predetermining price is classified as? |
| A. | option |
| B. | written contract |
| C. | determined contract |
| D. | featured contract |
| Answer» B. written contract | |
| 1507. |
*$_In financial planning, most high option price will lead to? |
| A. | longer option period |
| B. | smaller option period |
| C. | lesser price |
| D. | higher price |
| Answer» B. smaller option period | |
| 1508. |
*$_In weighted average cost of capital, rising in interest rate leads to? |
| A. | increase in cost of debt |
| B. | increase capital structure |
| C. | decrease in cost of debt |
| D. | decrease capital structure |
| Answer» B. increase capital structure | |
| 1509. |
*$_Stock selling price is Rs 35, expected dividend is Rs 5 and expected growth rate is 8% then cost of common stock would be? |
| A. | 40.00% |
| B. | 22.29% |
| C. | 14.28% |
| D. | 80.00% |
| Answer» C. 14.28% | |
| 1510. |
*$_Dividend per share is Rs 18 and sell it for Rs 122 and floatation cost is Rs 4 then component cost of preferred stock will be? |
| A. | 15.25% |
| B. | 0.1525 times |
| C. | 15.25 |
| D. | 0.15% |
| Answer» B. 0.1525 times | |
| 1511. |
*$_An attempt to make correction by adjusting historical beta to make it closer to an average beta is classified as? |
| A. | adjusted stock |
| B. | adjusted beta |
| C. | adjusted coefficient |
| D. | adjusted risk |
| Answer» C. adjusted coefficient | |
| 1512. |
*$_If future return on common stock is 14% and rate on T-bonds is 5% then current market risk premium will be? |
| A. | 19.00% |
| B. | 9.00% |
| C. | Rs 9 |
| D. | Rs 19 |
| Answer» C. Rs 9 | |
| 1513. |
*$_Rate of return which considers riskiness and an available returns on investments is classified as? |
| A. | constant dividend |
| B. | constant rate |
| C. | maximum rate of return |
| D. | minimum acceptable rate of return |
| Answer» E. | |
| 1514. |
*$_Stock with large amount of contribution of risk in a diversified portfolio is represented by? |
| A. | high beta and standard deviation |
| B. | high beta, low standard deviation |
| C. | low beta, low standard deviation |
| D. | low beta, low variance |
| Answer» B. high beta, low standard deviation | |
| 1515. |
*$_Standard deviation is 18% and coefficient of variation is 1.5% an expected rate of return will be? |
| A. | 27.00% |
| B. | 12.00% |
| C. | 19.50% |
| D. | none of above |
| Answer» D. none of above | |
| 1516. |
*$_Stock in small companies, owned by few people but not actively traded is classified as? |
| A. | closely held stock |
| B. | largely held stock |
| C. | attributed stock |
| D. | successful stock |
| Answer» B. largely held stock | |
| 1517. |
*$_Dividend present value for period of non-constant growth in addition with horizon value is used to calculate? |
| A. | stock extrinsic value |
| B. | stock intrinsic value |
| C. | dividend intrinsic value |
| D. | stock intrinsic value |
| Answer» C. dividend intrinsic value | |
| 1518. |
*$_Price of stock that companies observe in financial markets is called? |
| A. | market price |
| B. | intrinsic price |
| C. | extrinsic price |
| D. | fundamental price |
| Answer» B. intrinsic price | |
| 1519. |
*$_Financial markets include? |
| A. | primary markets |
| B. | capital markets |
| C. | physical asset markets |
| D. | all of above |
| Answer» E. | |
| 1520. |
*$_Business owned by a single person in unincorporated way is called? |
| A. | proprietorship |
| B. | personal business |
| C. | Private Corporation |
| D. | personal ownership |
| Answer» B. personal business | |
| 1521. |
*$_An unlimited liability for business debts and less capital for growth are limitations of? |
| A. | proprietorship |
| B. | personal business |
| C. | Private Corporation |
| D. | personal ownership |
| Answer» B. personal business | |
| 1522. |
*/*_The amount of the temporary working capital __________.? |
| A. | keeps on fluctuating from time to time |
| B. | remains constant for all times |
| C. | financed through long term services |
| D. | none of the above. |
| Answer» B. remains constant for all times | |
| 1523. |
*/*____________ shifts the weights of securities in the portfolio to take advantage of areas that is expected to do relatively better than other areas.? |
| A. | portfolio management |
| B. | market timing |
| C. | momentum strategy |
| D. | sector rotation |
| Answer» E. | |
| 1524. |
*/*_Miller- Orr Model is suitable in those circumstances when the__________.? |
| A. | demand for cash is steady |
| B. | demand for cash is not steady |
| C. | carry cost and transaction cost are to be kept at minimum |
| D. | demand for cash is variable |
| Answer» B. demand for cash is not steady | |
| 1525. |
*/*_Market risk is best measured by the____________.? |
| A. | alpha |
| B. | beta |
| C. | standard deviation |
| D. | coefficient of variation |
| Answer» C. standard deviation | |
| 1526. |
*/*_If an investor searches for patterns in security returns by examining various techniques applied to a set of data, this is known as__________.? |
| A. | fundamental analysis |
| B. | technical analysis |
| C. | data mining |
| D. | random-walk theory |
| Answer» C. data mining | |
| 1527. |
*/*_The market value of the firm is the result of __________.? |
| A. | dividend decisions |
| B. | working capital decisions |
| C. | capital budgeting decisions |
| D. | trade-off between cost and risk |
| Answer» E. | |
| 1528. |
*/*_Having defined working capital as current assets, it can be further classified according to __________.? |
| A. | Financing method and time |
| B. | rate of return and financing method |
| C. | time and rate of return |
| D. | components and time |
| Answer» E. | |
| 1529. |
*/*_I modern investment analysis, the risk for a stock is related to its_____________.? |
| A. | leverage factor |
| B. | standard deviation |
| C. | beta coefficient |
| D. | coefficient of variation |
| Answer» D. coefficient of variation | |
| 1530. |
*/*_Cost of capital is the ______ rate of return expected by the investor.? |
| A. | minimum |
| B. | maximum |
| C. | expected |
| D. | marginal |
| Answer» D. marginal | |
| 1531. |
*/*_Long -term solvency is indicated by? |
| A. | Liquidity ratio |
| B. | Debt-equity ratio |
| C. | Return coverage ratio |
| D. | Both a and b |
| Answer» C. Return coverage ratio | |
| 1532. |
*/*___________ are a way U. S. investors can invest in foreign companies.? |
| A. | ADRs |
| B. | IRAs |
| C. | SDRs |
| D. | GNMAs |
| Answer» B. IRAs | |
| 1533. |
*/*_Total common equity divided by common shares outstanding which is used to calculate? |
| A. | book value of share |
| B. | market value of shares |
| C. | earning per share |
| D. | dividends per share |
| Answer» B. market value of shares | |
| 1534. |
*/*_Rate charged by bank 12.5% on credit loans and 3% semi-annually on instalment loans is considered as? |
| A. | periodic rate |
| B. | perpetuity rate of return |
| C. | annual rate |
| D. | annuity rate of return |
| Answer» B. perpetuity rate of return | |
| 1535. |
*/*_An annual rate of 16% if quoted by credit card issuer usually a bank is classified as? |
| A. | loan rate of return |
| B. | local rate of return |
| C. | annual percentage rate |
| D. | annual rate of return |
| Answer» D. annual rate of return | |
| 1536. |
*/*_In weighted average cost of capital, a company can affect its capital cost through? |
| A. | policy of capital structure |
| B. | policy of dividends |
| C. | policy of investment |
| D. | all of above |
| Answer» E. | |
| 1537. |
*/*_Net income and depreciation is Rs 313,650,000 and common shares outstanding are 55,000,000 then cash flow per share would be? |
| A. | Rs 5.70 |
| B. | Rs 6.70 |
| C. | Rs 7.70 |
| D. | Rs 8.70 |
| Answer» B. Rs 6.70 | |
| 1538. |
*/*_Procedure of finding present values in time value of money is classified as? |
| A. | compounding |
| B. | discounting |
| C. | money value |
| D. | stock value |
| Answer» C. money value | |
| 1539. |
*/*_Until word of preferred is used, an equity in balance sheet is treated as? |
| A. | common equity |
| B. | preferred equity |
| C. | due equity |
| D. | common perpetuity |
| Answer» B. preferred equity | |
| 1540. |
*/*_In calculation of time, value of money, ''N ''represents? |
| A. | number of payment periods |
| B. | number of investment |
| C. | number of instalments |
| D. | number of premium received |
| Answer» B. number of investment | |
| 1541. |
*/*_Stated value of bonds or face value is considered as? |
| A. | state value |
| B. | par value |
| C. | bond value |
| D. | per value |
| Answer» C. bond value | |
| 1542. |
*/*_In call provision, it is stated that company will pay to issue an amount? |
| A. | higher than par value |
| B. | lower than par value |
| C. | equal to par value |
| D. | zero to par value |
| Answer» B. lower than par value | |
| 1543. |
*/*_Bond that has been issued in very recent timing is classified as? |
| A. | mature issue |
| B. | earning issue |
| C. | new issue |
| D. | recent issue |
| Answer» D. recent issue | |
| 1544. |
*/*_Bonds with deferred call have protection which is classified as? |
| A. | provision protection |
| B. | provision protection |
| C. | deferred protection |
| D. | call protection |
| Answer» E. | |
| 1545. |
*/*_Price of an outstanding bond decreases when market rate is? |
| A. | increased |
| B. | decreased |
| C. | earned |
| D. | never changed |
| Answer» B. decreased | |
| 1546. |
*/*_A premium which reflects possibility of issuer who does not pay principal amount of bonds is called? |
| A. | seasoned risk premium |
| B. | nominal risk premium |
| C. | default risk premium |
| D. | quoted risk premium |
| Answer» D. quoted risk premium | |
| 1547. |
*/*_Specific day at which bond value is repaid can be considered as? |
| A. | valued date |
| B. | repayment date |
| C. | payment date |
| D. | maturity date |
| Answer» E. | |
| 1548. |
*/*_According to top rating agencies S&P triple-A and double-A rating bonds are classified as an? |
| A. | extremely discounted |
| B. | extremely safe |
| C. | extremely risky |
| D. | extremely inflated |
| Answer» C. extremely risky | |
| 1549. |
*/*_While calculating the weighted average cost of capital, market value weights are preferred because ____________.? |
| A. | Book value weights are historical in nature |
| B. | This is in conformity with the definition of cost of capital as the investors minimum required rate of return |
| C. | Book value weights fluctuate violently |
| D. | Market value weights are fairly consistent over a period of time. |
| Answer» B. This is in conformity with the definition of cost of capital as the investors minimum required rate of return | |
| 1550. |
*/*_Traditional theorists believe that.? |
| A. | there exists an optimal capital structure |
| B. | no optimal capital structure |
| C. | equal optimal capital structure |
| D. | 100% debt financial organizations |
| Answer» B. no optimal capital structure | |