MCQ on Strategic Financial Management 2

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Objective Questions and Answers of MBA: MCQ on Strategic Financial Management 2

Subject: Objective Questions and Answers of MBA: MCQ on Strategic Financial Management 2

Part 2: List for questions and answers of Strategic Financial Management

 

Q1. Risk of two securities with different expected return can be compared with

a) coefficient of variation

b) Standard deviation of securities

c) Variance of securities

d) None of the above

 

Q2. A portfolio having two risky securities can be turned risk less if

a) The securities are completely positively correlated

b) If the correlation ranges between zero and one

c) the securities are completely negatively correlated

d) None of the above

 

Q3. Efficient frontier comprises of

a) Portfolios that have negatively correlated securities

b) Portfolios that have positively correlated securities

c) Inefficient portfolios

d) efficient portfolios

 

Q4. Efficient portfolios can be defined as those portfolios which for a given level of risk provides

a) maximum return

b) Average return

c) Minimum return

d) None of the above

 

Q5. Capital market line is

a) Capital allocation line of a market portfolio

b) Capital allocation line of a risk free asset

c) both a and b

d) None of the above

 

Q6. Capm accounts for

a) Unsystematic risk

b) systematic risk

c) Both a and b

d) None of the above 

 

Q7. The point of tangency between risk return indifferences curves and efficient frontier highlights

a) optimal portfolio

b) Efficient portfolio

c) Sub-optimal portfolio

d) None of the above

 

Q8. A portfolio comprises two securities and the expected return on them is 12% and 16% respectively. Determine return of portfolio if first security constitutes 40% of total portfolio

a) 12.4%

b) 13.4%

c) 14.4%

d) 15.4%

 

Q9. A risk free security has zero variance

a) true

b) False

 

Q10. Return on any financial asset consists of capital yield and current yield

a) true

b) False

 

Q11. There is no difference between the capital market line and security market line as both the terms are same

a) True

b) false

 

Q12. When the concept of ratio is defined in respected to the items shown in the financial statements, it is termed as

a) accounting ratio

b) Financial ratio

c) Costing ratio

d) None of the above

 

Q13. The definition, “the term accounting ratio is used to describe significant relationship which exist between figures shown in a balance sheet, in a profit and loss account, in a budgetary control system or in a any part of the accounting organization” is given by

a) Biramn and dribin

b) Lord keynes

c) j. Betty

d) None of the above 

 

Q14. The relationship between two financial variables can be expressed in

a) Pure ratio

b) Percentage

c) Rate or time

d) either of the above

 

Q15. Liquidity ratios are expressed in

a) pure ratio form

b) Percentage

c) Rate or time

d) None of the above

 

Q16. When the concept of ratio is defined in respected to the items shown in the financial statements, it is termed as

a) accounting ratio

b) Financial ratio

c) Costing ratio

d) None of the above

 

Q17. The ratio analysis is helpful to management in taking several decisions, but as a mechanical substitute for judgment and thinking, it is worse than useless

a) true

b) False

 

Q18. Profit for the objective of calculating a ratio may be taken as

a) Profit before tax but after interest

b) Profit before interest and tax

c) Profit after interest and tax

d) all of the above

 

Q19. The relationship between two financial variables can be expressed in

a) Pure ratio

b) Percentage

c) Rate or time

d) either of the above

 

Q20. General profitability ratios are based on

a) Investments

b) sales

c) A and b

d) None of the above 

 

Part 2: List for questions and answers of Strategic Financial Management

 

Q1. Answer: a

Q2. Answer: c

Q3. Answer: d

Q4. Answer: a

Q5. Answer: c

Q6. Answer: b

Q7. Answer: a

Q8. Answer: c

Q9. Answer: a

Q10. Answer: a

Q11. Answer: b

Q12. Answer: a

Q13. Answer: c

Q14. Answer: d

Q15. Answer: a

Q16. Answer: a

Q17. Answer: a

Q18. Answer: d

Q19. Answer: d

Q20. Answer: b