Financial Management - Study Mode
[#281] The price to book value ratio tends to be close for_____________.
Correct Answer
(B) banks
Explanation
Solution: The price to book value ratio tends to be close for banks. Price-to-book value (P/B) is the ratio of market value of a company's shares (share price) over its book value of equity. The book value of equity, in turn, is the value of a company's assets expressed on the balance sheet.
[#282] The return after the pay off period is not considered in case of __________.
Correct Answer
(A) Payback period method
Explanation
Solution: The return after the pay off period is not considered in case of Payback period method. Payback period is the time in which the initial outlay of an investment is expected to be recovered through the cash inflows generated by the investment. It is one of the simplest investment appraisal techniques.
[#283] ___________ shifts the weights of securities in the portfolio to take advantage of areas that is expected to do relatively better than other areas.
Correct Answer
(D) sector rotation
Explanation
Solution: Sector rotation shifts the weights of securities in the portfolio to take advantage of areas that is expected to do relatively better than other areas. Sector rotation is a theory of stock market trading patterns. In this context, a sector is understood to mean a group of stocks representing companies in similar lines of business.
[#284] Depreciation is include in costs in case of __________.
Correct Answer
(B) Accounting rate
Explanation
Solution: Depreciation is include in costs in case of Accounting rate. Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account for declines in value. Businesses depreciate long-term assets for both tax and accounting purposes.
[#285] The central issue of efficient markets concerns______________.
Correct Answer
(B) information
Explanation
Solution: The central issue of efficient markets concerns information.