McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Business Administration (MBA) .
Chapters
| 51. |
If the beta of a stock is 1.8 and the overall market declines 20%, the expected return is: |
| A. | -36% |
| B. | -18%. |
| C. | -20%. |
| D. | -28% |
| Answer» A. -36% | |
| 52. |
Total risk for common stocks is: |
| A. | the sum of systematic risk and diversifiable risk. |
| B. | measured by beta. |
| C. | the sum of market risk and systematic risk. |
| D. | the sum of diversifiable risk and unsystematic risk |
| Answer» A. the sum of systematic risk and diversifiable risk. | |
| 53. |
The SML depicts the tradeoff between risk and required return for: |
| A. | inefficient portfolios. |
| B. | all assets. |
| C. | efficient portfolios. |
| D. | individual securities only. |
| Answer» A. inefficient portfolios. | |
| 54. |
Alpha is: |
| A. | the intercept of the SML line. |
| B. | the intercept of the CML line. |
| C. | the actual excess return on a portfolio during one peri |
| Answer» B. the intercept of the CML line. | |
| 55. |
In the stock-price beta estimation for the Coca-Cola Company, the independent variable is the: |
| A. | value of the S&P 500 Index. |
| B. | return on the S&P 500. |
| C. | return on Coca-Cola. |
| D. | price of Coca-Cola stock. |
| Answer» D. price of Coca-Cola stock. | |
| 56. |
The chance of loss due to fluctuations in the stock market is: |
| A. | market risk. |
| B. | interest rate risk. |
| C. | business risk. |
| D. | inflation risk. |
| Answer» B. interest rate risk. | |
| 57. |
Empirical research concludes that betas for: |
| A. | individual securities and large portfolios are unstable. |
| B. | individual securities and large portfolios are stable. |
| C. | large portfolios are unstable. |
| D. | individual securities are unstable. |
| Answer» A. individual securities and large portfolios are unstable. | |
| 58. |
Future on fixed Income securities are known as |
| A. | Stock Index futures |
| B. | Interest rate futures |
| C. | Mutual fund futures |
| D. | Stock market futures |
| Answer» D. Stock market futures | |
| 59. |
Serials bonds are |
| A. | Large bond issues carrying fixed maturity date |
| B. | Small bond issues carrying many maturity dates. |
| C. | Small bond issues carrying single maturity date. |
| D. | Large bond issues carrying many maturity dates. |
| Answer» B. Small bond issues carrying many maturity dates. | |
| 60. |
Indenture is a |
| A. | A detailed securities contract |
| B. | Abbreviated version of a securities contract |
| C. | Abbreviated version of a debt contract |
| D. | A detailed bond contract |
| Answer» B. Abbreviated version of a securities contract | |
| 61. |
Tax sheltered variable annuity is |
| A. | A device for availing tax exemption in an Investment |
| B. | A device for avoiding tax payment |
| C. | A device deferring the payment of federal income taxes |
| D. | A device for earning tax deduction. |
| Answer» D. A device for earning tax deduction. | |
| 62. |
REITs stand for |
| A. | Real estate investment trades |
| B. | Real estate investing trades |
| C. | Real estate investment trusts |
| D. | Real estate investment trusts |
| Answer» C. Real estate investment trusts | |
| 63. |
The person within the brokerage office with whom an investor will have the most contact is |
| A. | Authorized representative |
| B. | Registered representative |
| C. | Authorized person |
| D. | Registered authority |
| Answer» C. Authorized person | |
| 64. |
The commission received by investment banker is known as |
| A. | Additive |
| B. | Differential |
| C. | Difference |
| D. | Increment |
| Answer» B. Differential | |
| 65. |
The __________ is the indicated dividend divided by the closing price of the stock. |
| A. | Income |
| B. | Share |
| C. | Yield |
| D. | Earning |
| Answer» B. Share | |
| 66. |
__________ refers to the highest priced transaction for an issue on a particular day. |
| A. | Close |
| B. | High |
| C. | Large |
| D. | Net change |
| Answer» C. Large | |
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