Business Finance MCQs

Which of the following items is a model describing the relationship between risk and expected return (in this model the expected return is equal to the risk-free return plus a premium based on the systematic risk of the security)?

A contract that requires the investor to sell securities on a future date is called a

Which of the following statements is/are incorrect?

When supplier extend credit to the buyer, it is called

The degree of super-leverage would be calculated by

Forward contracts are risky because they

When domestic currency appreciates, it benefits . . . . . . . . and harms . . . . . . . .

Match the following. List-I List-II a. Depreciation funds 1. Its use has increased in recent years due to use of trade squeeze b. Provision for taxation 2. Some authors do not accept them as a source of funds, but it is not reasonable c. Accrued expenses 3. It can be used during the intermittent period d. Trade credit 4. The firm can postpone the payment of expenses for short periods

The beta factor is a measure of systematic risk. It means the element of risk cannot be avoided by