MCQOPTIONS
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MCQOPTIONS
This section includes 42 Mcqs, each offering curated multiple-choice questions to sharpen your Master of Commerce (MDotcom) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Multifactor asset pricing model that can be used to estimate the ......rate for the valuation of financial asset. |
| A. | discount |
| B. | interest |
| C. | expense |
| D. | risk |
| Answer» B. interest | |
| 2. |
Price movements inzigzagfashion with any rise or fall interrupted by counter movements are known as-------- |
| A. | Trend Reversal |
| B. | Consolidation |
| C. | Reactions |
| D. | Penetration |
| Answer» D. Penetration | |
| 3. |
Which of the following is a tool in technical analysis to determine whether a security is a good for investment? |
| A. | The Price earnings ratio |
| B. | Balance sheet |
| C. | Income statement |
| D. | Trend lines |
| Answer» E. | |
| 4. |
Which of the following represents an upper price limit for a stock, based on the quantity of willing sellers? |
| A. | Candle |
| B. | Trend line |
| C. | Support |
| D. | Resistance |
| Answer» E. | |
| 5. |
Which of the following do a technical analysis believe is a lower bound on a stock s price? |
| A. | Candle |
| B. | Support |
| C. | Trend line |
| D. | Resistance |
| Answer» C. Trend line | |
| 6. |
Which of the following is tax saving investment? |
| A. | Fixed deposit |
| B. | Shares |
| C. | PPF |
| D. | Post office saving |
| Answer» D. Post office saving | |
| 7. |
Which of the following is a financial investment? |
| A. | Share |
| B. | Farm house |
| C. | Car |
| D. | T. V. Set |
| Answer» B. Farm house | |
| 8. |
This type of risk is avoidable through proper diversification |
| A. | Portfolio risk |
| B. | Systematic risk |
| C. | Unsystematic risk |
| D. | Total risk |
| Answer» D. Total risk | |
| 9. |
All personal investing is designed to achieve certain .. |
| A. | Objective |
| B. | Investment |
| C. | Risk |
| D. | Returns |
| Answer» B. Investment | |
| 10. |
A measure of risk per unit of expected return |
| A. | standard deviation |
| B. | Coefficient of variation |
| C. | Correlation coefficient |
| D. | Beta |
| Answer» C. Correlation coefficient | |
| 11. |
Return of investment is determined by |
| A. | Net profit |
| B. | Capital employed |
| C. | Net worth |
| D. | Net profit & capital employed |
| Answer» E. | |
| 12. |
A Statistical measure of the Degree to which two variables move together |
| A. | Coefficient of variation |
| B. | Variance |
| C. | Covariance |
| D. | Certainty equivalent |
| Answer» D. Certainty equivalent | |
| 13. |
Which leaverage shows the relationship between the revenue in the account of sales and the taxable income |
| A. | Financial |
| B. | Operating |
| C. | Combined |
| D. | none |
| Answer» D. none | |
| 14. |
The greater the beta ,the security involved |
| A. | Greater the unavoidable risk |
| B. | Greater the avoidable risk |
| C. | Less the unavoidable risk |
| D. | Less the avoidable Risk . |
| Answer» B. Greater the avoidable risk | |
| 15. |
Which leaverage helps to examine the relationship between EBIT & EPS |
| A. | Operating |
| B. | Financial |
| C. | Combined |
| D. | none |
| Answer» C. Combined | |
| 16. |
The stage of start up of an industry . |
| A. | Pioneering |
| B. | Rapid growth |
| C. | Maturity |
| D. | Decline |
| Answer» B. Rapid growth | |
| 17. |
The stage when poor performers start winding up their business |
| A. | Pioneering |
| B. | Rapid growth |
| C. | Maturity |
| D. | Decline |
| Answer» E. | |
| 18. |
Which analysis provides a simplified picture of price behaviour of a shares |
| A. | Fundamental |
| B. | Technical |
| C. | Financial |
| D. | Any |
| Answer» C. Financial | |
| 19. |
The fundamental analysis is a method of finding out |
| A. | ratio |
| B. | Value of shares |
| C. | Tips |
| D. | Future price of security |
| Answer» E. | |
| 20. |
Return on investment is determined by |
| A. | Net profit |
| B. | capital employed |
| C. | Net worth |
| D. | Net profit & capital employed |
| Answer» E. | |
| 21. |
According to CAPM ,the correct measure of risk is termed as . |
| A. | business risk |
| B. | financial risk |
| C. | Beta coefficient |
| D. | systematic risk |
| Answer» D. systematic risk | |
| 22. |
Which theory believes that the investors prefer larger to smaller returns from securities ? |
| A. | modern |
| B. | traditional |
| C. | Markowitz |
| D. | sharpe |
| Answer» B. traditional | |
| 23. |
Modern portfolio theory .. the relationship between risk and return |
| A. | maximizes |
| B. | minimizes |
| C. | quantifies |
| D. | does not assume |
| Answer» D. does not assume | |
| 24. |
The beta of the risk free asset is |
| A. | -1.0 |
| B. | 2.0 |
| C. | 1.0 |
| D. | 0 |
| Answer» E. | |
| 25. |
Capital structure decision should always aim at having debt component in order to |
| A. | Gain tax saying |
| B. | balance of capital structure |
| C. | gain control |
| D. | increase EPS |
| Answer» E. | |
| 26. |
An appropriate capital structure is |
| A. | flexible |
| B. | conservator |
| C. | minimum risk of loss of control |
| D. | a,b,c |
| Answer» E. | |
| 27. |
The non produce projects should be financed by |
| A. | debt & equity |
| B. | debt |
| C. | equity |
| D. | retained earning |
| Answer» E. | |
| 28. |
If ROI is more than cost of debt |
| A. | EPS increase |
| B. | Financial risk increase |
| C. | both a & b |
| D. | none of the above |
| Answer» D. none of the above | |
| 29. |
.analysis is a study based on market emotions and share price movement . |
| A. | Fundamental |
| B. | Moral |
| C. | technical |
| D. | all the above |
| Answer» D. all the above | |
| 30. |
Financial risk involves |
| A. | risk of insolvency |
| B. | risk of variation in expected earning |
| C. | both a& b |
| D. | none of the above |
| Answer» D. none of the above | |
| 31. |
A indicates the general direction in which a security price is headed |
| A. | trend |
| B. | ratio |
| C. | price |
| D. | none of the above |
| Answer» B. ratio | |
| 32. |
Net income approach assume |
| A. | no change in risk |
| B. | no corporate tax |
| C. | both a & b |
| D. | none of the above |
| Answer» D. none of the above | |
| 33. |
The daily high price is represented on a candlestick chart by the |
| A. | real body |
| B. | trend -line |
| C. | channel |
| D. | shadow |
| Answer» E. | |
| 34. |
A average of a stock index is the average level of the index over a given interval of time |
| A. | static |
| B. | moving |
| C. | gross |
| D. | net |
| Answer» C. gross | |
| 35. |
Market price breaking through the moving average from below is a i ndicator |
| A. | Bullish |
| B. | Flat |
| C. | bearish |
| D. | none of the above |
| Answer» B. Flat | |
| 36. |
Increase in odd lot selling as compared to odd lot buying , is a ..indicator |
| A. | bullish |
| B. | bearish |
| C. | both a & b |
| D. | neutral |
| Answer» B. bearish | |
| 37. |
Triple tops & triple bottom are indicators of . |
| A. | role reversal |
| B. | trend reversal |
| C. | both a & b |
| D. | high volumes |
| Answer» D. high volumes | |
| 38. |
If EBIT is less than the financial break even point then |
| A. | + EPS |
| B. | - EPS |
| C. | no effect on EPS |
| D. | cash of debt increase |
| Answer» C. no effect on EPS | |
| 39. |
The fundamental analysis approach has been associated with .. |
| A. | Uncertainties |
| B. | Certainties |
| C. | Ratios |
| D. | Balance sheet |
| Answer» B. Certainties | |
| 40. |
The object of portfolio is to reduce by diversification |
| A. | Return |
| B. | Risk |
| C. | Uncertainty |
| D. | Percentage |
| Answer» C. Uncertainty | |
| 41. |
Which pricing model provides no guidance on the determination of the risk premium factor? |
| A. | The Multifactor APT |
| B. | The CAPM |
| C. | Both CAPM &Multifactor APT |
| D. | Neither the CAPM nor Multifactor APT |
| Answer» B. The CAPM | |
| 42. |
Which measures the systematic or non -systematic risk of a security ? |
| A. | Beta |
| B. | Variance |
| C. | standard deviation |
| D. | Range |
| Answer» B. Variance | |