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MCQs

Total Questions : 131 | Page 13 of 14 pages
Question 121. Choice of correlation coefficient is between
  1.    0 to 1
  2.    0 to 2
  3.     -1 to +1
  4.     -1 to 3
 Discuss Question
Answer: Option C. -> -1 to +1
Answer: (c). -1 to +1
Question 122. The stock market theory which states that stocks are in equilibrium and impossible for investors to beat the market is classified as an
  1.    inefficient market hypothesis
  2.    efficient market hypothesis
  3.    efficient stock hypothesis
  4.    inefficient stock hypothesis
 Discuss Question
Answer: Option B. -> efficient market hypothesis
Answer: (b).efficient market hypothesis
Question 123. The growth in earnings per share is primarily resultant of the growth in
  1.    dividends
  2.    asset value
  3.    fundamental value
  4.    yearly value
 Discuss Question
Answer: Option A. -> dividends
Answer: (a).dividends
Question 124. An efficient market hypothesis states all public information which is reflected in current market prices is classified as
  1.    weak form efficiency
  2.    strong form efficiency
  3.    market efficiency
  4.    semi strong efficiency
 Discuss Question
Answer: Option D. -> semi strong efficiency
Answer: (d).semi strong efficiency
Question 125. In expected rate of return for constant growth, the capital gains is divided by capital gains yield to calculate
  1.    returning price
  2.    ending price
  3.    beginning price
  4.    regular price
 Discuss Question
Answer: Option C. -> beginning price
Answer: (c).beginning price
Question 126. The stock which has fixed payments and failure of payments which do not lead to bankruptcy is classified as
  1.    common stock
  2.    preferred stock
  3.    bonds equity
  4.    common shares
 Discuss Question
Answer: Option B. -> preferred stock
Answer: (b).preferred stock
Question 127. If an expected final stock price is $85 and an original investment is $70 then the value of expected capital gain would be
  1.    15
  2.    −$15
  3.    155
  4.    −$155
 Discuss Question
Answer: Option A. -> 15
Answer: (a).15
Question 128. The third step in calculating value of stock with non-constant growth rate is to find
  1.    p.v of expected dividends
  2.    f.v of expected dividends
  3.    p.v of intrinsic rate
  4.    f.v of intrinsic rate
 Discuss Question
Answer: Option A. -> p.v of expected dividends
Answer: (a).p.v of expected dividends
Question 129. The beginning price is $25 and the capital gains yield is 5% then the capital gain would be
  1.    50
  2.    1.25
  3.    50 times
  4.    23.75
 Discuss Question
Answer: Option B. -> 1.25
Answer: (b).1.25
Question 130. The dividend will grow at non-constant rate for N periods and the periods such as N is classified as
  1.    growth date
  2.    terminal date
  3.    horizon date
  4.    both b and c
 Discuss Question
Answer: Option D. -> both b and c
Answer: (d).both b and c

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