(A) beta
(B) return
(C) risk
(D) price
Category: Finance Mcqs
Risk is best judged in
(A) portfolio context
(B) individual security context
(C) both of these
(D) none of these
The spread of possible outcomes of an investment returns is measured by
(A) variance
(B) standard deviation
(C) skewness
(D) kurtosis
Which from the following is the safest investment?
(A) Treasury bills
(B) Government bond
(C) Corporate bond
(D) Stocks
The risk that can be eliminated by diversification is called
(A) specific risk
(B) security risk
(C) market risk
(D) beta
In the principle-agent framework
(A) managers are the principals
(B) directors are the principals
(C) shareholders are the principals
(D) shareholders are the agents
Conflicts between shareholders and managers’ interest is called
(A) management problem
(B) area of the board of directors
(C) risk
(D) agency problem
A firm’s investment decision is also called the
(A) financing decision
(B) capital budgeting decision
(C) liquidity decision
(D) none of these
11. Generally, a corporation is owned by the
I. Managers
II. Board of Directors
III. Stock holders
IV. stake holders
(A) II only
(B) I and II
(C) III only
(D) III and IV
The sale of bonds by a country or a corporation is referred to as the
(A) Investment decision
(B) financing decision
(C) offering loan
(D) capital sturature