Finance

1) Which from the following is NOT an example of intangible assets?

2) The following are the examples of financial assets except?

3) The following are important functions of financial markets: I. Source of financing II. Provide liquidity III. Reduce risk IV. Source of informatio

4) The sale of financial assets is also referred to as the

5) The construction of new manufacturing plant is also referred to as the

6) According to the Efficient Market Hypothesis, which from the following is NOT true?

7) According to the weak form of market efficiency __________ past information is included in the stock price.

8) We say about a particular investment that it is risky, because

9) In Finance, risk is calculated by calculating the

10) The sale of bonds by a country or a corporation is referred to as the

11) Generally, a corporation is owned by the I. Managers II. Board of Directors III. Stock holders IV. stake holders

12) A firm’s investment decision is also called the

13) Conflicts between shareholders and managers’ interest is called

14) In the principle-agent framework

15) The risk that can be eliminated by diversification is called

16) The risk that cannot be eliminated by diversification is called

17) Which from the following is the safest investment?

18) The spread of possible outcomes of an investment returns is measured by

19) Risk is best judged in

20) In a well-functioning markets two investments that offer the same payoff must have the same

21) The mixture of debt and equity, used to finance a corporation is also known as

22) The present value of $100 expected in two years from today at a discount rate of 5% is

23) What will be value of $100 after two years, if the interest rate during this period is 5%?

24) Investors require higher return on

25) In a well-functioning capital market if the firm pays no taxes then what is better about borrowing?

26) Corporations can return cash to their shareholders by

27) Which from the following is true about stock repurchases?

28) What should be the goal of a corporation?

29) The money a investor receive for taking on a risk is called

30) An asset that pays a fixed amount of cash each year for a specified number of years is called

31) Net Present Value is calculated as

32) An investment should be accepted if its NPV is

33) The ratio between the amount of profit and investment is called the

34) An investment should be accepted if

35) Governments and corporations issue bonds to

36) Regular interest payment to the bond holders is called

37) At maturity the bond holders get back their principal. The principal is called

38) Any economic resource that can produce economic value to the holder is called

39) A collection of assets held by an investor is called

40) The risk of a well-diversified portfolio depends on the __________ of the securities included in the portfolio.

41) The contribution of an individual security to the risk of a well-diversified portfolio is measured by?

42) The sensitivity of an asset to the market movements is called

43) The average beta of all stocks in a market is

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?

45) According to the MM proposition, dividend policy is

46) In portfolio analysis __________ curves play an important role.

47) If stock prices increases, dividend yield

48) According to residual dividend policy, a firm should pay a dividend of all left over when

49) The value of probability is always between __________ (inclusive).

50) The value of correlation is always between __________ (inclusive).