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Sunday, January 3, 2010

FIN622_Offline_Quiz

 FIN622 Quiz


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Question 01

 

Fill in the blanks.                                                                

 

  1. Portfolio a group of assets in which investor has investment or a combination of securities of investment.
  2. Investment in coca cola and in Compaq is very variable. But on many occasion a decline in the value of one stock was canceled by a rise in the prices of the other. Therefore there was an opportunity to reduce your risk by Diversification.
  3. Systematic Risk is measured by Beta Coefficient or Beta.
  4. Two components of gains are Capital Gains like Price Appreciation and Income like Dividends.
  5. Investors care about the Expected Return and Risk of their Portfolio Assets. Overall Risk of Portfolio is measured byStandard Deviation.

 

Question 02

 

Choose the best option among the following:                                                        

 

  1. Diversification eliminates unique risk. But there is some risk that diversification can not eliminates. This is called as:
    1. Market Risk
    2. Systematic Risk
    3. Unsystematic Risk
    4. All of the given options

 

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  1. _____________ arises due to internal factors.
    1. Hard Rationing
    2. Soft Rationing
    3. Single period rationing
    4. All of the given options

 

  1. _____________ is a technique which indicates how much a project's NPV will change in response to a given change in an input variable, other things held constant.
    1. Break Even Analysis
    2. Degree of Operating Leverage
    3. Sensitivity analysis
    4. Scenario analysis

 

  1. Which of the following is advance tool of Project Evaluation?
    1. Net Present value NPV
    2. Internal Rate of Return IRR
    3. Pay Back Period Method
    4. Sensitivity analysis

 

  1. In case of more than one project, the project with ______ NPV can be undertaken.
    1. Low
    2. Higher
    3. Moderate
    4. zero

 

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