Business Finance - Study Mode

[#401] 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.
Correct Answer

(C) 14.4%

[#402] Which of the following methods does not consider the profitability of the whole life of the project?
Correct Answer

(A) Payback period method

[#403] Which of the following is not an indication a lease is a finance lease?
Correct Answer

(B) The lease term is for a short part of the economic life of the asset

[#404] Dividends are earnings for shareholders and they expect reasonable earnings from their
Correct Answer

(B) investments

[#405] Which of the following combination is suitably attributed to the statement that stakeholders should expect a fair return on their investment? (i) Optimization of Profit (ii) Social Responsibility of Business (iii) Competition Theory of Business (iv) Walter's Theory
Correct Answer

(C) Only (i) and (ii)