The municipal bonds public offering is often made through the ___________?
Ainsurance companies
Bstock exchange
Cindex banking firm
Dcommercial banking firm
Correct answer
D. commercial banking firm
Explanation
commercial banking firm is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
342FinanceMedium
Correct measure of risk of stock is called?
ABeta
BAlpha
CVariance
DMarket relevance
Correct answer
A. Beta
Explanation
Beta is a measure of a stock’s volatility in relation to the overall market. It indicates how much a stock’s price is expected to move relative to movements in the market. A beta greater than 1 means the stock is more volatile than the market, while a beta less than 1 means it is less volatile.
Here is a brief explanation of the other options:
A. Alpha: This measures the excess return of an investment relative to the return of a benchmark index. It indicates the performance of a stock or portfolio in excess of the market.
C. Variance: This measures the dispersion of a set of returns for a stock or portfolio. While it indicates the volatility of returns, it is not as commonly used specifically for stock market risk as beta.
D. Market relevance: This term is not a standard financial metric used to measure risk.
343FinanceMedium
In capital budgeting, the term of bond which has great sensitivity to interest rates is __________?
Aexternal term bonds
Binternal term bonds
Cshort-term bonds
Dlong-term bonds
Correct answer
D. long-term bonds
Explanation
long-term bonds is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
344FinanceMedium
The price earnings ratio and price by cash flow ratio are classified as __________?
Aequity ratios
Breturn ratios
Cmarket value ratios
Dmarginal ratios
Correct answer
C. market value ratios
Explanation
market value ratios is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
345FinanceMedium
In calculation of net cash flow, depreciation and amortization are treated as________?
ANon-cash charges
BNon-cash revenues
CIncome expenses
DCurrent liabilities
Correct answer
A. Non-cash charges
Explanation
Non-cash charges is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
346FinanceMedium
The financial instruments such as treasury bonds and notes have
Awider price fluctuations
Bless price fluctuations
Cwider cost fluctuations
Dlesser cost fluctuations
Correct answer
A. wider price fluctuations
Explanation
wider price fluctuations is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
347FinanceMedium
In estimating value of cash flows, the compounded future value is classified as its _________?
Arelative value
Bquit value
Cexisted value
Dterminal value
Correct answer
D. terminal value
Explanation
terminal value is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
348FinanceMedium
Price of an outstanding bond increases when market rate___________?
ANever changes
BEarned
CDecreases
DIncreases
Correct answer
C. Decreases
Explanation
Decreases is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
349FinanceMedium
The bonds issued for longer term and must be sold in the country whose currency is not used in denomination of bonds are classified as __________?
AEurobonds
Bintrabank bonds
Cinterbank bonds
DAustralian bonds
Correct answer
A. Eurobonds
Explanation
Eurobonds is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
350FinanceMedium
Coefficient of variation is used to identify an effect of__________?
AReturn
BDeviation
CBoth A and B
DRisk
Correct answer
C. Both A and B
Explanation
Both A and B is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Finance MCQs with Answers and Explanations - Page 35 | Academy of Pakistan