finance MCQs – Page 17

Practise multiple-choice questions from finance for competitive examinations and subject revision. Review each marked answer and report any item that may be outdated or unclear.

finance Mcqs
321. The profit margin multiply assets turnover multiply equity multiplier is used to calculate __________?
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A. return on equity

B. return on stock

C. return on turnover

D. return on assets

322. An interest rate which is paid by money borrower and charged by lender is considered as_____________?
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A. Annual rate

B. Periodic rate

C. Annuity rate of return

D. Perpetuity rate of return

323. rate which is divided by compounding periods to calculate periodic rate must be___________________?
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A. Deferred annuity return

B. Semiannual discount rate

C. Nominal rate

D. Annuity return

324. Positive minimum risk portfolio of any security shows that market security sold____________?
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A. Equal to sum of stocks

B. Less than original price

C. Greater than original price

D. Equal to original price

325. Chance of occurrence of any event is classified as_____________?
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A. Event happening

B. Risk

C. Probability

D. Chance

326. Financial security which is tax exempted and issues by state governments to individuals is classified as___________?
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A. Corporate bonds

B. U.S treasury bonds

C. Municipal bonds

D. Mortgages

327. Relevant information about stock market price if it is given, then this price is called______________?
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A. Intrinsic price

B. Extrinsic price

C. Unstable price

D. Market price

328. According to capital asset pricing model assumptions, variances, expected returns and co-variance of all assets are__________?
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A. Identical

B. Not identical

C. Variable

D. Fixed

329. The return on assets is equal 6.7% and equity multiplier is equal to 2.5% then the return on equity will be
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A. 0.0268

B. 0.092

C. 0.00373

D. 0.1675
330. Coefficient of beta is used to measure stock volatility_____________?
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A. Relative to market

B. Same with market

C. Ir-relative to market

D. Coefficient of market

331. An investor who writes stock call options in his own portfolio is classified as__________?
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A. Covered option

B. Undue option

C. Due option

D. Uncovered option

332. In time value of money, nominal rate is_______________?
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A. Not shown on timeline

B. Shown on timeline

C. Multiplied on timeline

D. Divided on timeline

333. An unsystematic risk which can be eliminated but market risk is the__________?
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A. Ineffective risk

B. Aggregate risk

C. Effective risk

D. Remaining risk
334. Process of calculating future value of money from present value is classified as____________?
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A. Discounting

B. Money value

C. Stock value

D. Compounding
335. The cash inflows are the revenues of project and are represented by ___________?
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A. hurdle number

B. positive numbers

C. relative number

D. negative numbers

336. Nominal rate which is quoted to consumers on loans is considered as__________?
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A. Annual percentage rate

B. Local rate of return

C. Annual rate of return

D. Loan rate of return

337. Stocks which has lower book for market ratio are considered as__________?
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A. Optimistic

B. Pessimistic

C. More risky

D. Less risky
338. The price per ratio is divided by cash flow per share ratio, is used for calculating __________?
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A. dividend to stock ratio

B. price to cash flow ratio

C. sales to growth ratio

D. cash flow to price ratio

339. Number of shares outstanding if it is divided by net income for using to calculate___________?
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A. Book value of share

B. Dividends per share

C. Earning per share

D. Market value of shares

340. Stock which has higher correlation with market tend to have__________?
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A. Low beta, more risky

B. High beta, less risky

C. High beta, more risky

D. Low beta, less risky