FIN622 Quiz
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Question 01
Fill in the blanks.
- Portfolio a group of assets in which investor has investment or a combination of securities of investment.
- 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.
- Systematic Risk is measured by Beta Coefficient or Beta.
- Two components of gains are Capital Gains like Price Appreciation and Income like Dividends.
- 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:
- Diversification eliminates unique risk. But there is some risk that diversification can not eliminates. This is called as:
- Market Risk
- Systematic Risk
- Unsystematic Risk
- All of the given options
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- _____________ arises due to internal factors.
- Hard Rationing
- Soft Rationing
- Single period rationing
- All of the given options
- _____________ 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.
- Break Even Analysis
- Degree of Operating Leverage
- Sensitivity analysis
- Scenario analysis
- Which of the following is advance tool of Project Evaluation?
- Net Present value NPV
- Internal Rate of Return IRR
- Pay Back Period Method
- Sensitivity analysis
- In case of more than one project, the project with ______ NPV can be undertaken.
- Low
- Higher
- Moderate
- zero
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