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.
| 1851. |
_ In capital asset pricing model, assumptions must be followed including$? |
| A. | no taxes |
| B. | no transaction costs |
| C. | fixed quantities of assets |
| D. | all of above |
| Answer» E. | |
| 1852. |
_ Risk which is caused by events such as strikes, unsuccessful marketing programs and other lawsuits is classified as$? |
| A. | stock risk |
| B. | portfolio risk |
| C. | diversifiable risk |
| D. | market risk |
| Answer» D. market risk | |
| 1853. |
_ A portfolio consists of all stocks in a market is classified as$? |
| A. | market portfolio |
| B. | return portfolio |
| C. | correlated portfolio |
| D. | diversified portfolio |
| Answer» B. return portfolio | |
| 1854. |
_ In investment returns, a received amount is subtracted from an invested amount which is used to calculate$? |
| A. | dollar received |
| B. | dollar return |
| C. | dollar invested |
| D. | return percentage |
| Answer» C. dollar invested | |
| 1855. |
_ An expected rate of return is denoted by$? |
| A. | e-bar |
| B. | r-bar |
| C. | r-hat |
| D. | e-hat |
| Answer» D. e-hat | |
| 1856. |
__Riskless rate in addition with risk premium is multiplied by standard deviation of portfolio for using to calculate expected return rate on__ |
| A. | efficient portfolio |
| B. | inefficient portfolio |
| C. | attributable portfolio |
| D. | non-attributable portfolio |
| Answer» B. inefficient portfolio | |
| 1857. |
__In arbitrage pricing theory, higher required rate of return is usually paid on stock__ |
| A. | higher market risk |
| B. | higher dividend |
| C. | lower dividend |
| D. | lower market risk |
| Answer» C. lower dividend | |
| 1858. |
__Negative minimum risk portfolio of any security shows that market security sold__ |
| A. | less than original price |
| B. | greater than original price |
| C. | equal to original price |
| D. | equal to sum of stocks |
| Answer» B. greater than original price | |
| 1859. |
__An average return of portfolio divided by its standard deviation is classified as__ |
| A. | Jensen's alpha |
| B. | Treynor's variance to volatility ratio |
| C. | Sharpe's reward to variability ratio |
| D. | Treynor's reward to volatility ratio |
| Answer» D. Treynor's reward to volatility ratio | |
| 1860. |
__Betas that are constantly adjusted to reflect changes in capital structure and firms operations are classified as__ |
| A. | fundamental structure |
| B. | fundamental adjustment |
| C. | fundamental betas |
| D. | fundamental operations |
| Answer» D. fundamental operations | |
| 1861. |
__All assets are perfectly divisible and liquid in__ |
| A. | tax free pricing model |
| B. | cost free pricing model |
| C. | capital asset pricing model |
| D. | stock pricing model |
| Answer» D. stock pricing model | |
| 1862. |
__Second step in determining efficient portfolios is to consider efficient subset from set of__ |
| A. | attainable portfolios |
| B. | unattainable portfolios |
| C. | attributable portfolios |
| D. | non-attributable portfolio |
| Answer» B. unattainable portfolios | |
| 1863. |
__In capital market line, risk of efficient portfolio is measured by its__ |
| A. | standard deviation |
| B. | variance |
| C. | aggregate risk |
| D. | ineffective risk |
| Answer» B. variance | |
| 1864. |
__If profit margin = 4.5% and total assets turnover = 1.8% then return on assets DuPont equation would be__ |
| A. | 2.50% |
| B. | 8.10% |
| C. | 0.40% |
| D. | 4.00% |
| Answer» C. 0.40% | |
| 1865. |
__An annual estimated costs of assets uses up every year are included__ |
| A. | depreciation and amortization |
| B. | net sales |
| C. | net profit |
| D. | net income |
| Answer» B. net sales | |
| 1866. |
__Payments if it is made at end of each period such as an end of year is classified as__ |
| A. | ordinary annuity |
| B. | deferred annuity |
| C. | annuity due |
| D. | Both A and B |
| Answer» E. | |
| 1867. |
__Securities with less predictable prices and have longer maturity time is considered as__ |
| A. | cash equivalents |
| B. | long-term investments |
| C. | inventories |
| D. | short-term investments |
| Answer» E. | |
| 1868. |
__If common shares outstanding are 50,000,000 and book value per share is Rs 19.92 then total common equity will be__ |
| A. | Rs 996,000,000.00 |
| B. | Rs 995,000,000.00 |
| C. | Rs 992,000,000.00 |
| D. | Rs 991,000,000.00 |
| Answer» B. Rs 995,000,000.00 | |
| 1869. |
__In calculation of net cash flow, deferred tax payments are classified as__ |
| A. | non-cash revenues |
| B. | non-cash charges |
| C. | current liabilities |
| D. | income expense |
| Answer» C. current liabilities | |
| 1870. |
__A formula such as net income available to common stockholders divided by common equity is used to calculate__ |
| A. | return on earning power |
| B. | return on investment |
| C. | return on common equity |
| D. | return on interest |
| Answer» D. return on interest | |
| 1871. |
__Company low earning power and high interest cost cause financial changes which have__ |
| A. | high return on equity |
| B. | high return on assets |
| C. | low return on assets |
| D. | low return on equity |
| Answer» C. low return on assets | |
| 1872. |
_An indication in a way that variance of y-variable is explained by x-variable which is shown as$? |
| A. | degree of dispersion is one |
| B. | degree of dispersion is two |
| C. | degree of dispersion is three |
| D. | degree of dispersion is four |
| Answer» B. degree of dispersion is two | |
| 1873. |
_First step in binomial approach of option pricing is to$? |
| A. | define ending price of stock |
| B. | define beginning price of stock |
| C. | define range of values |
| D. | define domain of values |
| Answer» B. define beginning price of stock | |
| 1874. |
_Tendency of people to blame failure on bad luck but given tribute of success to themselves is classified as$? |
| A. | self-attribution bias |
| B. | self-success bias |
| C. | self-failure bias |
| D. | self-condition bias |
| Answer» B. self-success bias | |
| 1875. |
_Slope coefficient of beta is classified statistically significant if its probability is$? |
| A. | greater than 5% |
| B. | equal to 5% |
| C. | less than 5% |
| D. | less than 2% |
| Answer» D. less than 2% | |
| 1876. |
_Variability of stock price, option term to maturity and risk free rate are dependents of$? |
| A. | price of an option |
| B. | expiry of an option |
| C. | exercise of an option |
| D. | estimation of an option |
| Answer» B. expiry of an option | |
| 1877. |
_Which of the following characteristics are true, with reference to preference capital?$? |
| A. | Preference dividend is not tax deductible |
| B. | The claim of preference shareholders is prior to the claim of equity shareholders |
| C. | Preference shareholders are not the owners of the concern |
| D. | All of the above |
| Answer» E. | |
| 1878. |
_The expected return on an investment in stock is___________.$? |
| A. | the expected dividend payments |
| B. | the anticipated capital gains |
| C. | the sum of expected dividends and capital gains |
| D. | less than the realized return |
| Answer» D. less than the realized return | |
| 1879. |
_Which of the following factors influence(s) the capital structure of a business entity?$? |
| A. | Bargaining power with the suppliers |
| B. | Demand for the product of the company |
| C. | Technology adopted |
| D. | Adequate of the assets to meet any sudden spurt in demand |
| Answer» D. Adequate of the assets to meet any sudden spurt in demand | |
| 1880. |
_Most financial advisors are registered with the Securities and Exchange Commission as_______________.$? |
| A. | registered representatives |
| B. | registered investor advisors |
| C. | registered financial planners |
| D. | registered securities consultants |
| Answer» D. registered securities consultants | |
| 1881. |
_The Markowitz model identifies the efficient set of portfolios, which offers the ____________.$? |
| A. | highest return for any given level of risk or the lowest risk for any given level of return |
| B. | least-risk portfolio for a conservative, middle-aged investor |
| C. | long-run approach to wealth accumulation for a young investor |
| D. | risk-free alternative for risk-averse investors |
| Answer» B. least-risk portfolio for a conservative, middle-aged investor | |
| 1882. |
_In BSE shares are divided into_______________.$? |
| A. | two categories |
| B. | three categories |
| C. | four categories |
| D. | five categories |
| Answer» C. four categories | |
| 1883. |
_________________ factors lead to activity of stock market.$? |
| A. | Money supply |
| B. | Per capita income |
| C. | Unemployment rate |
| D. | Manufacturing and Trade |
| Answer» B. Per capita income | |
| 1884. |
_A technique uses in comparative analysis of financial statement is$? |
| A. | graphical analysis |
| B. | preference analysis |
| C. | common size analysis |
| D. | returning analysis |
| Answer» D. returning analysis | |
| 1885. |
_The overall capitalization rate and the cost of debt remain constant for all degrees of leverage. This is pronounced by __________.$? |
| A. | Traditional approach |
| B. | Net operating income approach |
| C. | Net income approach |
| D. | MM approach |
| Answer» D. MM approach | |
| 1886. |
_Over the Counter Exchange of India was started after the role model of_________.$? |
| A. | NASAQ |
| B. | JASAQ |
| C. | NASDAQ& JASDAQ |
| D. | NSE |
| Answer» D. NSE | |
| 1887. |
_Operating Leverage is the response of changes in __________$? |
| A. | EBIT to the changes in sales |
| B. | EPS to the changes in EBIT |
| C. | Production to the changes in sales |
| D. | None of the above |
| Answer» B. EPS to the changes in EBIT | |
| 1888. |
_Which of the following is the assumption of the MM model on dividend policy?$? |
| A. | The firm is an all-equity firm |
| B. | The investments of the firm are financed solely by retained earnings |
| C. | The firm has an infinite life |
| D. | None of the above |
| Answer» D. None of the above | |
| 1889. |
_Pricing model approach in which it is assumed that stock price can have one of two values of stock is classified as$? |
| A. | valued approach |
| B. | marketability approach |
| C. | stock approach |
| D. | binomial approach |
| Answer» E. | |
| 1890. |
_According to Black Scholes model, call option is well exercised on its$? |
| A. | mid buying date |
| B. | expiry date |
| C. | buying date |
| D. | mid selling date |
| Answer» C. buying date | |
| 1891. |
_Rate of return (in percentages) is consists of$? |
| A. | capital gain yield interest yield |
| B. | return yield + stable yield |
| C. | return yield + instable yield |
| D. | par value + market value |
| Answer» B. return yield + stable yield | |
| 1892. |
_According to exercise value and option price, market value of option will be zero when$? |
| A. | stock price is maximum |
| B. | option price is zero |
| C. | stock price is zero |
| D. | stock price is minimum |
| Answer» D. stock price is minimum | |
| 1893. |
_Input call parity relationship, present value of exercise price is added to call option which is equal to$? |
| A. | put option stock |
| B. | call option + stock |
| C. | call option + market price |
| D. | put option + market price |
| Answer» B. call option + stock | |
| 1894. |
_Market in which bonds are traded over-the-counter than in an organized exchange is classified as$? |
| A. | organized markets |
| B. | trade markets |
| C. | counter markets |
| D. | bond markets |
| Answer» E. | |
| 1895. |
_An exercise of option in future and part of option call value depends specifically on$? |
| A. | PV of exercising cost |
| B. | FV of exercising cost |
| C. | PV of cost volatility |
| D. | FV of cost volatility |
| Answer» B. FV of exercising cost | |
| 1896. |
_Current option price is added to present value of portfolio for calculating$? |
| A. | future value of portfolio |
| B. | current value of stock |
| C. | future value of stock |
| D. | present value of portfolio |
| Answer» C. future value of stock | |
| 1897. |
_In binomial approach of option pricing model, last step for finding an option is$? |
| A. | price hike |
| B. | price value |
| C. | put price |
| D. | call price |
| Answer» E. | |
| 1898. |
_Present value of portfolio is Rs 1300 and current value of stock in portfolio is Rs 2300 then current option price will be$? |
| A. | Rs 3,600.00 |
| B. | Rs 1,000.00 |
| C. | Rs 1,250.00 |
| D. | Rs 1,500.00 |
| Answer» C. Rs 1,250.00 | |
| 1899. |
_In financial planning, formula MAX [current price of stock-strike price, 0] is used to calculate$? |
| A. | option return rate |
| B. | exercise value |
| C. | option value |
| D. | stock value |
| Answer» C. option value | |
| 1900. |
_An increase in value of option leads to low present value of exercise cost only if it has$? |
| A. | low volatility |
| B. | interest rates are high |
| C. | interest rates are low |
| D. | high volatility |
| Answer» C. interest rates are low | |