Finance MCQs

Page No. 15

If market value is greater than book value, then investors for future stock are considered as___________________?


aExperienced

✖


bInexperienced

✖


cPessimistic

✖


dOptimistic

✓


View Answer Optimistic

Stocks which has high book for market ratio are considered as_____________?


aMore risky

✓


bLess risky

✖


cPessimistic

✖


dOptimistic

✖


View Answer More risky

An efficient set of portfolios represented through graph is classified as an__________?


aAttained frontier

✖


bEfficient frontier

✓


cInefficient frontier

✖


dUnattainable frontier

✖


View Answer Efficient frontier

Stocks which has lower book for market ratio are considered as__________?


aOptimistic

✖


bMore risky

✖


cLess risky

✓


dPessimistic

✖


View Answer Less risky

An unsystematic risk which can be eliminated but market risk is the__________?


aAggregate risk

✖


bRemaining risk

✓


cEffective risk

✖


dIneffective risk

✖


View Answer Remaining risk

If book value is greater than market value comparison with investors for future stock are considered as_______________?


aPessimistic

✓


bOptimistic

✖


cExperienced

✖


dInexperienced

✖


View Answer Pessimistic

Difference between actual return on stock and predicted return is considered as___________?


aProbability error

✖


bActual error

✖


cPrediction error

✖


dRandom error

✓


View Answer Random error

Beta reflects stock risk for investors which is usually_________?


aIndividual

✓


bCollective

✖


cWeighted

✖


dLinear

✖


View Answer Individual

Future beta is needed to calculate in most situations is classified as____________?


aHistorical betas

✓


bAdjusted betas

✖


cStandard betas

✖


dVaried betas

✖


View Answer Historical betas

Money lends to corporations by banks is classified as___________?


aEurodollar market deposits

✖


bCommercial loans

✓


cConsumer credit loans

✖


dConsumer credit loans

✖


View Answer Commercial loans

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