Financial Management - Study Mode

[#141] A growth industry is defined as ____________.
Correct Answer

(D) an industry with average growth higher than the growth of the economy

Explanation

Solution: A growth industry is defined as an industry with average growth higher than the growth of the economy. A growth industry is that sector of an economy which experiences a higher-than-average growth rate as compared to other sectors. Growth industries are often new or pioneer industries that did not exist in the past. Their growth is a result of demand for new products or services offered by companies in the field.

[#142] In BSE shares are divided into_______________.
Correct Answer

(B) three categories

Explanation

Solution: In BSE shares are divided into three categories. Primarily the stocks that are listed in the National Stock Exchange are divided into three different categories on the basis of the market capitalization – large cap, mid cap and the small cap.

[#143] The value of bond depends on ____________.
Correct Answer

(D) all the above

Explanation

Solution: The value of bond depends on the coupon rate, years to maturity and expected yield to maturity.

[#144] _________ is equal to (common shareholders' equity/common shares outstanding).
Correct Answer

(A) book value per share

Explanation

Solution: Book value per share is equal to (common shareholders' equity/common shares outstanding). The term "book value" is a company's assets minus its liabilities and is sometimes referred to as stockholder's equity, owner's equity, shareholder's equity, or simply equity.

[#145] Corner portfolio are calculated where a ___________.
Correct Answer

(C) Security enters or leave

Explanation

Solution: Corner portfolios are portfolios calculated where a security either enters or leave the portfolio.