Financial Management MCQ (Multiple Choice Questions)

Q1 Which decisions of the firm are guided by risk-return trade off? a. Logistics b. Distribution c. Financial d. None of these Q2 Present value of a perpetuity is equal to: a. A/i b. i/A c. A*i d. A+i Q3 CAPM stands for: a. Capital Asset Pricing Model b. Current Asset Pricing Model c. Capital Asset Predictor Model d. Current Asset Predictor Model Q4 What is the beta of market portfolio? a. 0 b. 1 c. 2 d. 3 Q5 Unsystematic risk is also known as .... a. Systematic risk b. Market risk c. Unique risk d. None of these Q6 Which curve reflects the relationship among yields to maturity bonds and their maturities? a. Yield b. Demand c. Supply d. Interest Q7 Par value can also be named as.... a. Face value b. Redemption value c. Market value d. All of these Q8 Which theory is used for estimating expected returns from assets? a. Wage theory

b. Bargaining theory c. Jungle theory d. Arbitrage Pricing theory Q9 Who's formula is this P= DIV + r(EPS-DIV)/k for market price of shares? ___ _____________ k k a. Walter's b. Gorden's c. Adam d. None of this Q10 Which principle focus on increasing value of the shareholders in the organization? a. CAPM b. P/E c. SWM d. EPS