MGT201 Mid and Final Term Past Solved Paper


@zaasmi said in MGT201 Mid and Final Term Past Solved Paper:
Where there is single period capital rationing, what is the most sensible way of making investment decisions?
Select correct option:
Choose all projects with a positive NPV
Group projects together to allocate the funds available and select the group of projects with the highest NPV
Choose the project with the highest NPV
Calculate IRR and select the projects with the highest IRRsGroup projects together to allocate the funds available and select the group of projects with the highest NPV

Where there is single period capital rationing, what is the most sensible way of making investment decisions?
Select correct option:
Choose all projects with a positive NPV
Group projects together to allocate the funds available and select the group of projects with the highest NPV
Choose the project with the highest NPV
Calculate IRR and select the projects with the highest IRRs

@zaasmi said in MGT201 Mid and Final Term Past Solved Paper:
_______ means expanding the number of investments which cover different kinds of stocks.
Select correct option:
Diversification
Standard deviation
Variance
CovarianceDiversification means expanding the number of investments which cover different kinds of stocks.

_______ means expanding the number of investments which cover different kinds of stocks.
Select correct option:
Diversification
Standard deviation
Variance
Covariance

@zaasmi said in MGT201 Mid and Final Term Past Solved Paper:
How dividend yield on a stock is similar to the current yield on a bond?
Select correct option:
Both represent how much each security’s price will increase in a year
Both represent the security’s annual income divided by its price
Both are an accurate representation of the total annual return an investor can expect to earn by owning the security
Both are quarterly yields that must be annualizedBoth represent the security’s annual income divided by its price

How dividend yield on a stock is similar to the current yield on a bond?
Select correct option:
Both represent how much each security’s price will increase in a year
Both represent the security’s annual income divided by its price
Both are an accurate representation of the total annual return an investor can expect to earn by owning the security
Both are quarterly yields that must be annualized

@zaasmi said in MGT201 Mid and Final Term Past Solved Paper:
Which of the following statements regarding covariance is correct?
Select correct option:
Covariance always lies in the range 1 to +1
Covariance, because it involves a squared value, must always be a positive number (or zero)
Low covariances among returns for different securities leads to high portfolio risk
Covariances can take on positive, negative, or zero valuesCovariances can take on positive, negative, or zero values

Which of the following statements regarding covariance is correct?
Select correct option:
Covariance always lies in the range 1 to +1
Covariance, because it involves a squared value, must always be a positive number (or zero)
Low covariances among returns for different securities leads to high portfolio risk
Covariances can take on positive, negative, or zero values

@zaasmi said in MGT201 Mid and Final Term Past Solved Paper:
Which of the following is similar between Return on investment and Payback period techniques of Capital budgeting?
Select correct option:
Involvement of interest rate while making calculations
Do not account for time value of money
Tricky and complicated methods
All of the given optionsDo not account for time value of money

Which of the following is similar between Return on investment and Payback period techniques of Capital budgeting?
Select correct option:
Involvement of interest rate while making calculations
Do not account for time value of money
Tricky and complicated methods
All of the given options

@zaasmi said in MGT201 Mid and Final Term Past Solved Paper:
What is a legal agreement, also called the deed of trust, between the corporation issuing bonds and the bondholders that establish the terms of the bond issue?
Select correct option:
Indenture
Debenture
Bond
Bond trusteeIndenture

What is a legal agreement, also called the deed of trust, between the corporation issuing bonds and the bondholders that establish the terms of the bond issue?
Select correct option:
Indenture
Debenture
Bond
Bond trustee

@zaasmi said in MGT201 Mid and Final Term Past Solved Paper:
Which of the following costs would be considered a fixed cost?
Depreciation costs would be considered a fixed cost

Which of the following costs would be considered a fixed cost?
Select correct option:
Raw materials
Depreciation
Baddebt losses
Production labor

@zaasmi said in MGT201 Mid and Final Term Past Solved Paper:
Which of the following is NOT the type of Hybrid organizations?
Sole Proprietorship is not a type of Hybrid organizations