51. The money a investor receive for taking on a risk is called
(A) risk premium
(B) risk free rate
(C) option value
(D) arbitrage
52. An asset that pays a fixed amount of cash each year for a specified number of years is called
(A) perpetuity
(B) dividend
(C) liquidity
(D) annuity
53. Net Present Value is calculated as
(A) cash inflow – cash outflow
(B) cash outflow – cash inflow
(C) PV of cash inflow – PV of cash outflow
(D) PV of cash outflow – PV of cash inflow
54. An investment should be accepted if its NPV is
(A) 0
(B) 1
(C) positive
(D) negative
55. The ratio between the amount of profit and investment is called the
(A) NPV
(B) opportunity cost
(C) risk premium
(D) rate of return
(A) Rate of Return > Opportunity Cost
(B) Rate of Return < Opportunity Cost
(C) Rate of Return = Opportunity Cost
(D) A, B and C are irrelevant
(A) borrow money
(B) lend money
(C) both A and B
(D) none of these
58. Regular interest payment to the bond holders is called
(A) principal
(B) coupon
(C) face value
(D) yield
59. At maturity the bond holders get back their principal. The principal is called
(A) coupon
(B) face value
(C) yield
(D) return
60. Any economic resource that can produce economic value to the holder is called
(A) asset
(B) return
(C) maturity
(D) yield