Standard deviation can be used to measure
A. | Risk of an investment |
B. | Return of an investment |
C. | Both (A) & (B) |
D. | None of (A) and (B). |
Option: A Explanation : Click on Discuss to view users comments. |
Capital Budgeting Decisions are based on
A. | Incremental Profit |
B. | Incremental Cash Flows |
C. | Incremental Assets |
D. | Incremental Capital. |
Option: B Explanation : Click on Discuss to view users comments. |
Intrinsic Value of a 'out of money' call option is equal to
A. | Premium |
B. | Zero |
C. | Spot Price |
D. | Strike Price |
Option: B Explanation : Click on Discuss to view users comments. |
If no information is available, the General Rule for valuation of stock for balance sheet is
A. | Replacement Cost |
B. | Realizable Value |
C. | Historical Cost |
D. | Standard Cost. |
Option: C Explanation : Click on Discuss to view users comments. |
If the intrinsic value of a share is less than the market price, which of the most reasonable?
A. | That shares have lesser degree of risk |
B. | That market is over valuing the shares |
C. | That the company is high dividend paying |
D. | That market is undervaluing the share |
Option: B Explanation : Click on Discuss to view users comments. |