MGT201 Quiz 1 Solution and Discussion
-
Which of the following statements is true for “Portfolio Diversification”?
-
The ____________ presents a company’s financial position at the specified date.
-
@zareen said in MGT201 Quiz 1 Solution and Discussion:
The ____________ presents a company’s financial position at the specified date.
balance sheet
The balance sheet presents a company’s financial position at the end of a specified date. Some describe the balance sheet as a “snapshot” of the company’s financial position at a point (a moment or an instant) in time. -
Long term debt and corporate stocks is the financial instrument of which of the following market?
-
@zareen said in MGT201 Quiz 1 Solution and Discussion:
Long term debt and corporate stocks is the financial instrument of which of the following market?
Markets. News. Company News · Markets News · Trading News · Political News · Trends … These assets can be cash, a contractual right to deliver or receive cash … OTC is a market or process whereby securities–that are not listed on … Short-term debt-based financial instruments last for one year or less.
-
“Which of the following is FALSE about Perpetuity?” MGT201
-
When the bond approaches its maturity, the market value of the bond approaches to which of the following?
-
@zareen said in MGT201 Quiz 1 Solution and Discussion:
When the bond approaches its maturity, the market value of the bond approaches to which of the following?
Intrinsic value
Book value
Par value (Correct)
Historic cost -
Which of the following refers to the risk associated with interest rate uncertainty?
Select correct option: -
@zareen said in MGT201 Quiz 1 Solution and Discussion:
Which of the following refers to the risk associated with interest rate uncertainty?
Select correct option:Default risk premium (Correct)
Sovereign Risk Premium
Market risk premium
Maturity risk premium -
When the zero coupon bond approaches to its maturity, the market value of the bond approaches to which of the following?
Select correct option: -
@zareen said in MGT201 Quiz 1 Solution and Discussion:
When the zero coupon bond approaches to its maturity, the market value of the bond approaches to which of the following?
Select correct option:Intrinsic value
Book value (Correct)
Par value
Historic cost -
What is difference between shares and bonds?
Select correct option:
Bonds are representing ownership whereas shares are not
Shares are representing ownership whereas bonds are not (Correct)
Shares and bonds both represent equity
Shares and bond both represent liabilities -
Effective interest rate is different from nominal rate of interest because:
Select correct option:Nominal interest rate ignores compounding
Nominal interest rate includes frequency of compounding (Correct)
Periodic interest rate ignores the effect of inflation
All of the given options -
Which of the following refers to a highly competitive market where good business ideas are taken up immediately?
-
@zareen said in MGT201 Quiz 1 Solution and Discussion:
Which of the following refers to a highly competitive market where good business ideas are taken up immediately?
Capital market
Efficient market (Correct)
Money market
Real asset market