Question:

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

Question:

The balance sheet of a company is a snapshot of the ______ of the firm at a point in time.

A.

the sources and applications of funds of the company.

B.

expenditure structure

C.

profit structure

D.

income structure

Answer» a. the sources and applications of funds of the company.

Question:

_______ measures the percentage of net income not paid to the shareholders in the form of dividends.

A.

Withholding ratio

B.

Retention ratio

C.

Preservation ratio

D.

Maintenance ratio

Answer» b. Retention ratio

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.