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[USA] CURRENT AFFAIRS MCQ COMMERECE Set 2

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1. In a well-functioning markets two investments that offer the same payoff must have the same




2. The mixture of debt and equity, used to finance a corporation is also known as




3. The present value of $100 expected in two years from today at a discount rate of 5% is




4. What will be value of $100 after two years, if the interest rate during this period is 5%?




5. Investors require higher return on




6. In a well-functioning capital market if the firm pays no taxes then what is better about borrowing?




7. Corporations can return cash to their shareholders by




8. Which from the following is true about stock repurchases?




9. What should be the goal of a corporation?




10. The money a investor receive for taking on a risk is called




11. An asset that pays a fixed amount of cash each year for a specified number of years is called




12. Net Present Value is calculated as




13. An investment should be accepted if its NPV is




14. The ratio between the amount of profit and investment is called the




15. An investment should be accepted if




16. Governments and corporations issue bonds to




17. Regular interest payment to the bond holders is called




18. At maturity the bond holders get back their principal. The principal is called




19. Any economic resource that can produce economic value to the holder is called




20. A collection of assets held by an investor is called




21. The risk of a well-diversified portfolio depends on the __________ of the securities included in the portfolio.




22. The contribution of an individual security to the risk of a well-diversified portfolio is measured by?




23. The sensitivity of an asset to the market movements is called




24. The average beta of all stocks in a market is




25. In portfolio analysis __________ curves play an important role.




26. According to the MM proposition, dividend policy is




27. If stock prices increases, dividend yield




28. According to residual dividend policy, a firm should pay a dividend of all left over when




29. The value of probability is always between __________ (inclusive).




30. The value of correlation is always between __________ (inclusive).




31. If two firms in the same line of business merge together, it is called __________ merger.




32. If two firms at different stages of production merge together, it is called __________ merger




33. If two firms in unrelated line of business merge together, it is called __________ merger.




34. The measure for calculating how much two random variable change together is called




35. The normalized version of covariance is called




36. Suppose our portfolio consists of two stocks A and B. What should be the correlation between them so that we have no risk in our portfolio?




37. In the beginning, some companies receive equity investment from wealthy individuals. The wealthy individuals are called




38. Firms that invest in new companies as they try to grow are called




39. An investor will receive $5,000 and $10,000 after one and two years from today respectively. If the interest rate during this period is 10% then what is the present value of this cash flow?




40. The success of a new company critically depends on




41. Companies go public in order to




42. Companies go public with the help of




43. If beta of a stock is __________ then it tends to amplify the overall market movement.




44. he relationship between short and long term interest rates is called __________ of interest rates.




45. Financial managers are interested in __________ when see bond market




46. Underwriters are also called




47. Which from the following is not the role of an underwriter?




48. Risk __________ with the duration of bond.




49. The difference between the public-offer price and the price paid by the underwriter is called




50. The underwriters receive their payments in the shape of