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July 2021

As the debt ratio increases,

» Security Analysis and Investment Management solved MCQs /
Question:

As the debt ratio increases,

A.

Fewer assets are debt-financed, and the ratio of debt-to-equity increases

B.

Fewer assets are debt-financed, and the ratio of debt-to-equity decreases

C.

More assets are debt-financed, and the ratio of debt-to-equity increases

D.

More assets are debt-financed, and the ratio of debt-to-equity decreases

Answer» c. More assets are debt-financed, and the ratio of debt-to-equity increases

Note: The above multiple-choice question is for all general and Competitive Exams in India. 

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» Security Analysis and Investment Management solved MCQs

The SML depicts the tradeoff between risk and required return for:

» Security Analysis and Investment Management solved MCQs /
Question:

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.

Note: The above multiple-choice question is for all general and Competitive Exams in India. 

The SML depicts the tradeoff between risk and required return for: Read More »

» Security Analysis and Investment Management solved MCQs

One of the reasons a short-term trader has difficulty in beating the market is because of

» Security Analysis and Investment Management solved MCQs /
Question:

One of the reasons a short-term trader has difficulty in beating the market is because of

A.

Risk

B.

Lack of information

C.

Large institutional investors

D.

Commissions

Answer» d. Commissions

Note: The above multiple-choice question is for all general and Competitive Exams in India. 

One of the reasons a short-term trader has difficulty in beating the market is because of Read More »

» Security Analysis and Investment Management solved MCQs

Which of the following statements is false with respect to different features of an efficient market?

» Security Analysis and Investment Management solved MCQs /
Question:

Which of the following statements is false with respect to different features of an efficient market?

A.

Information arbitrage efficiency is said to exist, if the participants do not have any scope to reap abnormal profits using information that is of common knowledge

B.

Fundamental valuation efficiency is said to exist, if the price of an asset is neither undervalued nor overvalued

C.

Full insurance efficiency is said to exist, if participants can adopt hedging as an effective tool against possible risk in future

D.

Allocation efficiency is said to exist, if the market channelizes resources into projects where the marginal efficiency of capital adjusted for risk differences is lowest.

Answer» d. Allocation efficiency is said to exist, if the market channelizes resources into projects where the marginal efficiency of capital adjusted for risk differences is lowest.

Note: The above multiple-choice question is for all general and Competitive Exams in India. 

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» Security Analysis and Investment Management solved MCQs

Managers following a performance management approach to appraisals will usually meet with employees on a _____ basis.

» Performance Management solved MCQs /
Question:

Managers following a performance management approach to appraisals will usually meet with employees on a _____ basis.

A.

weekly

B.

monthly

C.

bi-annual

D.

yearly

Answer» a. weekly

Note: The above multiple-choice question is for all general and Competitive Exams in India. 

Managers following a performance management approach to appraisals will usually meet with employees on a _____ basis. Read More »

» Performance Management solved MCQs

The use of financial leverage by a firm may be measured by the

» Security Analysis and Investment Management solved MCQs /
Question:

The use of financial leverage by a firm may be measured by the

A.

ratio of debt to total assets

B.

firm’s beta coefficient

C.

firm’s retention of earnings

D.

ratio of the price of the firm’s stock price to its earnings

Answer» a. ratio of debt to total assets

Note: The above multiple-choice question is for all general and Competitive Exams in India. 

The use of financial leverage by a firm may be measured by the Read More »

» Security Analysis and Investment Management solved MCQs

‘Influence’ is defined as the ability to ____________ someone to something they would not otherwise have done.

» Management of International Business solved MCQs /
Question:

‘Influence’ is defined as the ability to ____________ someone to something they would not otherwise have done.

A.

Intimidate

B.

Force

C.

Order

D.

Persuade

Answer» a. Intimidate

Note: The above multiple-choice question is for all general and Competitive Exams in India. 

‘Influence’ is defined as the ability to ____________ someone to something they would not otherwise have done. Read More »

» Management of International Business solved MCQs