NTS/NTS CURRENT AFFAIRS FINANCE MCQ SET 1 Sample Test,Sample questions

Question:
According to residual dividend policy, a firm should pay a dividend of all left over when

1.zero NPV projects have been funded

2.positive NPV projects have been funded

3.projects with IRR equal to risk-free interest rate have been funded

4.projects with IRR greater than risk-free interest rate have been funded


Question:
According to the MM proposition, dividend policy is

1.correlated

2.under-performed

3.relevant

4.irrelevant


Question:
An investor will receive $5,000 and $10,000 after one and two years from today respectively. If the interest rate during this period is 10% then what is the present value of this cash flow?

1.$12000

2.$12450

3.$12810

4.$13705


Question:
Companies go public in order to

1.avoid taxes

2.reduce management cost

3.raise more cash

4.get merge


Question:
Companies go public with the help of

1.venture capital firms

2.underwriters

3.shareholders

4.A, B and C


Question:
Financial managers are interested in __________ when see bond market.

1.yield to maturity

2.duration

3.volatility

4.term structure


Question:
Firms that invest in new companies as they try to grow are called

1.spinning

2.underwriters

3.venture capitalists

4.venture capital firms


Question:
If beta of a stock is __________ then it tends to amplify the overall market movement.

1.0

2.1

3.greater than 1

4.between 0 and 1


Question:
If stock prices increases, dividend yield

1.also increases

2.decreases

3.remains same

4.increases to one and a half


Question:
If the daily prices of a stock on 20 and 21 January are 90 and 100 respectively, then what is the daily rate of return?

1.9.90%

2.10.10%

3.11.11%

4.12.12%


Question:
If two firms at different stages of production merge together, it is called __________ merger.

1.horizontal

2.vertical

3.straight

4.conglomerate


Question:
If two firms in the same line of business merge together, it is called __________ merger.

1.horizontal

2.vertical

3.straight

4.conglomerate


Question:
If two firms in unrelated line of business merge together, it is called __________ merger.

1.horizontal

2.vertical

3.straight

4.conglomerate


Question:
In portfolio analysis __________ curves play an important role.

1.circle

2.ellipse

3.parabola

4.hyperbola


Question:
In the beginning, some companies receive equity investment from wealthy individuals. The wealthy individuals are called

1.angel investors

2.corporate investors

3.venture capitalists

4.venture capital firms


Question:
Rights issues are for

1.managers

2.directors

3.existing shareholders

4.new shareholders


Question:
Risk __________ with the duration of bond.

1.remains same

2.increases

3.decreases

4.multiplied


Question:
Suppose our portfolio consists of two stocks A and B. What should be the correlation between them so that we have no risk in our portfolio?

1.1

2.0

3.1

4.risk cannot be eliminated


Question:
The difference between the public-offer price and the price paid by the underwriter is called

1.underpricing

2.spread

3.commission

4.margin


Question:
The measure for calculating how much two random variable change together is called

1.variance

2.covariance

3.skewness

4.kurtosis


Question:
The normalized version of covariance is called

1.regression

2.correlation

3.cross-section

4.spread


Question:
The relationship between short and long term interest rates is called __________ of interest rates.

1.yield to maturity

2.duration

3.volatility

4.term structure


Question:
The success of a new company critically depends on

1.managers

2.board of directors

3.shareholders

4.venture capitalists


Question:
The underwriters receive their payments in the shape of

1.underpricing

2.spread

3.commission

4.margin


Question:
The value of correlation is always between __________ (inclusive).

1.1 and 0

2.0 and 1

3.1 and 1

4.none of these


Question:
The value of probability is always between __________ (inclusive).

1.1 and 0

2.0 and 1

3.1 and 1

4.none of these


Question:
Underwriters are also called

1.bookrunner

2.venture capitalists

3.subscribers

4.angel investors


Question:
What is the real rate of interest if nominal rate is 10% and inflation rate is 5%?

1.4.30%

2.4.80%

3.5.30%

4.5.80%


Question:
What is volatility if the duration of a bond is 4 years and yield to maturity is 8%?

1.3.10%

2.3.40%

3.3.70%

4.4.00%


Question:
Which from the following is not the role of an underwriter?

1.They provide procedural and financial advice

2.They buy the issue

3.They resell the issue to the public

4.They provide funds to the corporation


More MCQS

  1. NTS MCQ SET 1
  2. NTS MCQ SET 2
  3. NTS COMPUTER MCQ SET 1
  4. NTS COMPUTER MCQ SET 2
  5. NTS COMPUTER MCQ SET 3
  6. NTS COMPUTER MCQ SET 4
  7. NTS MATHEMATICS MCQ SET 1
  8. NTS COMPUTER MCQ SET 5
  9. NTS GENERAL KNOWLEDEGE MCQ SET 1
  10. NTS GENERAL KNOWLEDEGE MCQ SET 2
  11. NTS GENERAL KNOWLEDGE MCQ SET 3
  12. NTS CURRENT AFFAIRS MCQ SET 1
  13. NTS CURRENT AFFAIRS MCQ SET2
  14. NTS GENERAL KNOWLEDGE MCQ SET 4
  15. NTS PAKISTAN CURRENT AFFAIRS MCQ SET 1
  16. NTS PAKISTAN CURRENT AFFAIRS MCQ SET 2
  17. NTS PAKISTAN CURRENT AFFAIRS MCQ SET 3
  18. NTS PKISTAN CURRENT AFFAIRS MCQ SET 4
  19. NTS PAKISTAN CURRENT AFFAIRS MCQ SET 5
  20. NTS PAKISTAN CURRENT AFFAIRS SET 6
  21. NTS PAKISTAN CURRENT AFFAIRS SET 8
  22. NTS BIOLOGY CURRENT AFFAIRS SET 1
  23. NTS BIOLOGY CURRENT AFFAIRS SET 2
  24. NTS BIOLOGY CURRENT AFFAIRS SET 3
  25. NTS BIOLOGY CURRENT AFFAIRS SET 4
  26. NTS CURRENT AFFAIRS EDUCATION MCQ SET 1
  27. NTS CURRENT AFFAIRS ACCOUNTING MCQ SET 1
  28. NTS CURRENT AFFAIRS EDUCATION MCQ SET 2
  29. NTS CURRENT AFFAIRS EDUCATION MCQ SET 3
  30. NTS CURRENT AFFAIRS ACCOUNTING SET 2
  31. NTS CURRENT AFFAIRS ECONOMIC MCQ SET 1
  32. NTS CURRENT AFFAIRS ECONOMIC MCQ SET 2
  33. NTS CURRENT AFFAIRS FINANCE MCQ SET 1
  34. NTS CURRENT AFFAIRS FINANCE MCQ SET 2
  35. NTS CURRENT AFFAIRS BOTONY MCQ SET 1
  36. NTS CURRENT AFFAIRS BOTONY MCQ SET 2
  37. NTS CURRENT AFFAIRS BOTONY MCQ SET 2
  38. NTS CURRENT AFFAIRS FINANCE MCQ SET 3
  39. NTS GENERAL KNOWLEDGE PAKISTAN SET 1
Search
R4R Team
R4Rin Top Tutorials are Core Java,Hibernate ,Spring,Sturts.The content on R4R.in website is done by expert team not only with the help of books but along with the strong professional knowledge in all context like coding,designing, marketing,etc!