MGT201 Quiz

Question # 1 of 10
Which of the following costs would be considered a fixed cost?Select correct option:Raw materialsDepreciationBad-debt lossesProduction labor
Question # 2 of 10
Expected Portfolio Return = ___________.
Select correct option:rP * = xA rA + xB rBrP * = xA rA - xB rBrP * = xA rA / xB rBrP * = xA rA * xB rB
Question # 3 of 10
Why markets and market returns fluctuate?
Select correct option:
Because of political factorsBecause of social factorsBecause of socio-political factorsBecause of macro systematic factors
Question # 4 of 10
Which of the following can be used to calculate the risk of the larger portfolio?
Select correct option:Standard deviationEPS approachMatrix approachGordon’s Approach
Question # 5 of 10
Which of the following market in finance is referred to the market for short-term government and corporate debt securities?
Select correct option:
Money marketCapital marketPrimary marketSecondary market
Question # 6 of 10
Which of the following would be considered a cash-flow item from an "operating" activity?
Select correct option:
Cash outflow to the government for taxesCash outflow to shareholders as dividendsCash inflow to the firm from selling new common equity sharesCash outflow to purchase bonds issued by another company
Question # 8 of 10
A 5-year annuity due has periodic cash flows of Rs.100 each year. If the interest rate is 8 percent, the present value of this annuity is closest to which of the following equations?
Select correct option:
(Rs.100)(PVIFA at 8% for 4 periods) + Rs.100(Rs.100)(PVIFA at 8% for 4 periods)(1.08)(Rs.100)(PVIFA at 8% for 6 periods) - Rs.100Can not be found from the given information
Question # 9 of 10
Which of the following is correct regarding the opportunity cost of capital for a project?
Select correct option:
The opportunity cost of capital is the return that investors give up by investing in the project rather than in securities of equivalent risk.Financial managers use the capital asset pricing model to estimate the opportunity cost of capitalThe company cost of capital is the expected rate of return demanded by investors in a companyAll of the given options