Spring Semester 2016 FIN 622 (Corporate Finance) Quiz No.


Question Description:

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HI, please find attachment for details and information. Thanks Corporate Finance – FIN622 Spring 2016.doc Spring Semester 2016 FIN 622 (Corporate Finance) Quiz No. 01 Please read the following before attempting QUIZ: Instructions carefully This quiz consists of 5 Multiple Choice Questions (MCQ’s) and 5 fill in the blanks carrying 1 mark each. Quiz 01 covers lesson No.01-16 Last date for submission of QUIZ is 7/5/2016 Read questions carefully and select the most appropriate answer for each MCQ. Avoid selecting two choices for one MCQ. The double choices will be marked zero. Make sure that you upload the quiz files before due date. No quiz file will be accepted through E-mail after due date. Cheating or copying is strictly prohibited; No credit will be given to copied files. No quiz file will be replaced, once uploaded on LMS under any condition. Spring Semester 2016 FIN 622 (Corporate Finance) Quiz No. 01 Total marks: 10 Question 01 Fill in the blanks. (1×5) 1. __________ a group of assets in which investor has investment or a combination of securities of investment. 2. Investment in coca cola and in Compaq is very variable. But on many occasion a decline in the value of one stock was canceled by a rise in the prices of the other. Therefore there was an opportunity to reduce your risk by _____________ 3. Systematic Risk is measured by _________________ 4. Two components of gains are ______________ like Price Appreciation and Income like Dividends. 5. Investors care about the Expected Return and Risk of their Portfolio Assets. Overall Risk of Portfolio is measured by __________________. Question 02 Choose the best option among the following: (1×5) 1. Diversification eliminates unique risk. But there is some risk that diversification can not eliminates. This is called as: a. Market Risk b. Systematic Risk c. Unsystematic Risk d. All of the given options 2. _____________ arises due to internal factors. a. Hard Rationing b. Soft Rationing c. Single period rationing d. All of the given options Spring Semester 2016 FIN 622 (Corporate Finance) Quiz No. 01 3. _____________ is a technique which indicates how much a project’s NPV will change in response to a given change in an input variable, other things held constant. a. Break Even Analysis b. Degree of Operating Leverage c. Sensitivity analysis d. Scenario analysis 4. Which of the following is advance tool of Project Evaluation? a. Net Present value NPV b. Internal Rate of Return IRR c. Pay Back Period Method d. Sensitivity analysis 5. In case of more than one project, the project with ______ NPV can be undertaken. a. Low b. Higher c. Moderate d. zero Read more

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