JOB MCQS
Scholarships
Finance
1) Which from the following is NOT an example of intangible assets?
: C
2) The following are the examples of financial assets except?
: D
3) The following are important functions of financial markets: I. Source of financing II. Provide liquidity III. Reduce risk IV. Source of informatio
: D
4) The sale of financial assets is also referred to as the
: C
5) The construction of new manufacturing plant is also referred to as the
: D
6) According to the Efficient Market Hypothesis, which from the following is NOT true?
: A
7) According to the weak form of market efficiency __________ past information is included in the stock price.
: B
8) We say about a particular investment that it is risky, because
: C
9) In Finance, risk is calculated by calculating the
: C
10) The sale of bonds by a country or a corporation is referred to as the
: B
11) Generally, a corporation is owned by the I. Managers II. Board of Directors III. Stock holders IV. stake holders
: C
12) A firm’s investment decision is also called the
: B
13) Conflicts between shareholders and managers’ interest is called
: D
14) In the principle-agent framework
: C
15) The risk that can be eliminated by diversification is called
: A
16) The risk that cannot be eliminated by diversification is called
: C
17) Which from the following is the safest investment?
: A
18) The spread of possible outcomes of an investment returns is measured by
: B
19) Risk is best judged in
: A
20) In a well-functioning markets two investments that offer the same payoff must have the same
: D
21) The mixture of debt and equity, used to finance a corporation is also known as
: A
22) The present value of $100 expected in two years from today at a discount rate of 5% is
: D
23) What will be value of $100 after two years, if the interest rate during this period is 5%?
: C
24) Investors require higher return on
: A
25) In a well-functioning capital market if the firm pays no taxes then what is better about borrowing?
: B
26) Corporations can return cash to their shareholders by
: C
27) Which from the following is true about stock repurchases?
: C
28) What should be the goal of a corporation?
: C
29) The money a investor receive for taking on a risk is called
: A
30) An asset that pays a fixed amount of cash each year for a specified number of years is called
: D
31) Net Present Value is calculated as
: C
32) An investment should be accepted if its NPV is
: C
33) The ratio between the amount of profit and investment is called the
: D
34) An investment should be accepted if
: A
35) Governments and corporations issue bonds to
: A
36) Regular interest payment to the bond holders is called
: B
37) At maturity the bond holders get back their principal. The principal is called
: B
38) Any economic resource that can produce economic value to the holder is called
: A
39) A collection of assets held by an investor is called
: D
40) The risk of a well-diversified portfolio depends on the __________ of the securities included in the portfolio.
: B
41) The contribution of an individual security to the risk of a well-diversified portfolio is measured by?
: A
42) The sensitivity of an asset to the market movements is called
: A
43) The average beta of all stocks in a market is
: C
44) If the daily prices of a stock on 20 and 21 January are 90 and 100 respectively, then what is the daily rate of return?
: C
45) According to the MM proposition, dividend policy is
: D
46) In portfolio analysis __________ curves play an important role.
: D
47) If stock prices increases, dividend yield
: B
48) According to residual dividend policy, a firm should pay a dividend of all left over when
: B
49) The value of probability is always between __________ (inclusive).
: B
50) The value of correlation is always between __________ (inclusive).
: C