Financial Management - Study Mode

[#791] Which of the following is not a spontaneous source of short-term funds?
Correct Answer

(C) Provision for dividend

[#792] Trading on Equity is:
Correct Answer

(B) May be beneficial

[#793] Capital Budgeting is a part of:
Correct Answer

(A) Investment Decision

[#794] Stock portfolio with lowest book for market ratios is considered as
Correct Answer

(D) L portfolio

Explanation

Solution: Stock portfolio with lowest book for market ratios is considered as L portfolio.

[#795] A measure which is not included in Fama French Three-Factor model is
Correct Answer

(D) risk premium

Explanation

Solution: A measure which is not included in Fama French Three-Factor model is risk premium. The Fama-French three-factor model is an expansion of the capital asset pricing model (CAPM) CAPM formula shows the return of a security is equal to the risk-free return plus a risk premium, based on the beta of that security. The model is adjusted for outperformance tendencies.