Business Finance - Practice Test

(A) Factoring

(B) Trade credit

(C) Retained earnings

(D) Debentures

(C) Retained earnings

(A) A portfolio's expected return is a simple weighted average of expected returns of the individual securities comprising the portfolio

(B) A portfolio's standard deviation of return is a simple weighted average of individual security return standard deviations

(C) The square root of a portfolio's standard deviation of return equalsits variance

(D) The square root of a portfolio's standard deviation of return equalsits coefficient of variation

(A) A portfolio's expected return is a simple weighted average of expected returns of the individual securities comprising the portfolio

(A) Equity shares are not easily saleable

(B) Equity shares do not provide a fixed dividend rate

(C) Generally, the face value of equity shares is less than the face value of debentures

(D) Equity shares havehigh risk than debts

(D) Equity shares havehigh risk than debts

(A) the lessor's tax rate is lower than the lessee's

(B) the lessor's tax rate is higher than the lessee's

(C) the lessor's tax rate is equal to the lessee's

(D) a lease can not be beneficial to both parties

(B) the lessor's tax rate is higher than the lessee's

(A) Only 1

(B) Both 1 and 2

(C) Only 2

(D) None of the above

(D) None of the above

Business Finance - Study Mode