MCQs4All - Finance Collection

Finance MCQs for NTS, FPSC, CSS, PPSC, PMS, UTS, FTS, OTS, Accounting, MBA, BBA of past papers

Question. An efficient market hypothesis states in which all public or private information is reflected in current market prices is classified as
  1. market efficiency
  2. semi strong efficiency
  3. weak form efficiency
  4. strong form efficiency
Question. An efficient set of portfolios represented through graph is classified as an
  1. attained frontier
  2. efficient frontier
  3. inefficient frontier
  4. unattained frontier
Question. An estimation by marginal investor, a higher expected return is earned on
  1. more riskier securities
  2. less riskier securities
  3. less premium
  4. high premium
Question. An excess of actual price of option over an exercise value of option is classified as
  1. time value options
  2. actual options
  3. estimated options
  4. optional pricing
Question. An exercise of option in future and part of option call value depends specifically on
  1. PV of exercising cost
  2. FV of exercising cost
  3. PV of cost volatility
  4. FV of cost volatility
Question. An expected dividend yield is 5.5% and expected rate of return is 11.5% then constant growth rate would be
  1. 0.0209
  2. −$6%
  3. 0.175
  4. 0.06
Question. An expected dividend yield is 7.5% and an expected rate of return is 15.5% then constant growth rate will be
  1. 0.22
  2. 0.08
  3. 0.23
  4. 0.0206
Question. An expected dividend yield is subtracted from an expected rate of return which is used to calculate
  1. specialized growth rate
  2. capital gains yield
  3. casual growth yield
  4. past growth rate
Question. An expected final stock price is $45 and an original investment is $25 then an expected capital gain will be
  1. 75
  2. −$75
  3. −$20
  4. 20
Question. An expected final stock price is $70 and an expected capital gain is $25 then an original investment would be
  1. 45
  2. −$45
  3. 95
  4. −$95
Question. An expected rate of return is denoted by
  1. e-bar
  2. r-bar
  3. r-hat
  4. e-hat
Question. An expected rate of return is subtracted from capital gains yield to calculate
  1. expected dividend yield
  2. capital earnings
  3. casual growth
  4. specialized growth rate
Question. An income available for shareholders after deducting expenses and taxes from revenues is classified as
  1. net income
  2. net earnings
  3. net expenses
  4. net revenues