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Master of Business Administration (MBA)

A situation in which the joint moves of two firms can determine how much money each firm can make or lose can be explained using the story of:

Question:

A situation in which the joint moves of two firms can determine how much money each firm can make or lose can be explained using the story of:

A.

The Trojan Horse

B.

The Icarus Paradox

C.

The Prisoner’s Dilemma

D.

The Icarus Dilemma

Answer» d. The Icarus Dilemma

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

A situation in which the joint moves of two firms can determine how much money each firm can make or lose can be explained using the story of: Read More »

» Management of International Business solved MCQs

At the prevailing environment, the Capital Market Line (CML) equation for a portfolio is given as E(ri),% = 8 + 0.36 ?i The ex-ante SML equation for the same portfolio i is E(ri),% = 8 + 5.50 ?i Therefore, the variance of market portfolio is approximately

Question:

At the prevailing environment, the Capital Market Line (CML) equation for a portfolio is given as E(ri),% = 8 + 0.36 ?i The ex-ante SML equation for the same portfolio i is E(ri),% = 8 + 5.50 ?i Therefore, the variance of market portfolio is approximately

A.

30(%)2

B.

64(%)2

C.

126(%)2

D.

233(%)2

Answer» d. 233(%)2

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

At the prevailing environment, the Capital Market Line (CML) equation for a portfolio is given as E(ri),% = 8 + 0.36 ?i The ex-ante SML equation for the same portfolio i is E(ri),% = 8 + 5.50 ?i Therefore, the variance of market portfolio is approximately Read More »

» Security Analysis and Investment Management solved MCQs

What is the expected return of a zero-beta security?

Question:

What is the expected return of a zero-beta security?

A.

The market rate of return.

B.

Zero rate of return.

C.

A negative rate of return.

D.

The risk-free rate.

Answer» d. The risk-free rate.

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

What is the expected return of a zero-beta security? Read More »

» Security Analysis and Investment Management solved MCQs

According to Porter, dealing with the paradox of premature commitment versus not enough commitment involves some kind of:

Question:

According to Porter, dealing with the paradox of premature commitment versus not enough commitment involves some kind of:

A.

Trade-off

B.

Lock-in

C.

Lock-out

D.

Diversification

Answer» c. Lock-out

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

According to Porter, dealing with the paradox of premature commitment versus not enough commitment involves some kind of: Read More »

» Management of International Business solved MCQs

Which of the following statements is false about the Security Market Lines (SML)?

Question:

Which of the following statements is false about the Security Market Lines (SML)?

A.

SML represents normal trade-off between return and risk

B.

The vertical distance of the security‘s plot on the graph from the SML is called the security‘s alpha

C.

SML is same as the characteristic line for any security

D.

Ex-post SMLs are used to evaluate the performance of portfolio managers

Answer» c. SML is same as the characteristic line for any security

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

Which of the following statements is false about the Security Market Lines (SML)? Read More »

» Security Analysis and Investment Management solved MCQs

According to the Capital Asset Pricing Model (CAPM), the expected return of a well- diversified portfolio with abeta of 1.0 and positive ex-ante alpha (a) is

Question:

According to the Capital Asset Pricing Model (CAPM), the expected return of a well- diversified portfolio with abeta of 1.0 and positive ex-ante alpha (a) is

A.

The risk-free rate, rf

B.

ß (rœ r)mf

C.

Between rand rmf

D.

r+ a

Answer» d. r+ a

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

According to the Capital Asset Pricing Model (CAPM), the expected return of a well- diversified portfolio with abeta of 1.0 and positive ex-ante alpha (a) is Read More »

» Security Analysis and Investment Management solved MCQs

Knowledge that is known to a specific set of people who understand what particular references mean, whereas people outside of that group don’t know what they mean is known as:

Question:

Knowledge that is known to a specific set of people who understand what particular references mean, whereas people outside of that group don’t know what they mean is known as:

A.

Clique knowledge

B.

Elite knowledge

C.

Cultural knowledge

D.

Symbolic knowledge

Answer» d. Symbolic knowledge

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

Knowledge that is known to a specific set of people who understand what particular references mean, whereas people outside of that group don’t know what they mean is known as: Read More »

» Management of International Business solved MCQs

In a private limited company, the maximum number ofmembers are limited to:

Question:

In a private limited company, the maximum number ofmembers are limited to:

A.

20

B.

50

C.

100

D.

200

Answer» b. 50

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

In a private limited company, the maximum number ofmembers are limited to: Read More »

» Security Analysis and Investment Management solved MCQs

The corporate governance structure of a company reflects the individual companies’

Question:

The corporate governance structure of a company reflects the individual companies’

A.

Cultural and economic system.

B.

Legal and business system.

C.

Social and regulatory system.

D.

All of the above.

Answer» a. Cultural and economic system.

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

The corporate governance structure of a company reflects the individual companies’ Read More »

» Management of International Business solved MCQs

Which statement is not true regarding the Capital Market Line (CML)?

Question:

Which statement is not true regarding the Capital Market Line (CML)?

A.

The CML is the line from the risk-free rate through the market portfolio.

B.

CML is the best attainable capital allocation line.

C.

The CML is also called the security market line.

D.

The CML always has a positive slope.

Answer» c. The CML is also called the security market line.

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

Which statement is not true regarding the Capital Market Line (CML)? Read More »

» Security Analysis and Investment Management solved MCQs