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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