701. Quick asset does not include ____________.
A.Government bonds.
B.Book debts.
C.Advance for supply of raw materials.
D.Inventories.

702. Long term finance is required for ______________.
A.Current assets.
B.Fixed assets.
C.Intangible assets.
D. None of these.

703. Financial leverage can be measured in ___________________.
A.Stock term.
B.Flow term.
C.Both (a) and (b).
D.None of these.

704. Current ratio of a concern is 1, its net working capital will be _________.
A.Positive.
B.Neutral.
C.Negative.

705. Risk-return trade off implies_____________.
A.Increasingthe portfolio of the firm through increased production.
B.Not taking any loans which increases the risk.
C.Not granting credit to risky customers.
D.Taking decision in such a way which optimizes the balance between risk and return

706. _____________ is a specific risk factor.
A.Market risk.
B.Inflation risk.
C.Interest rate risk.
D.Financial risk.

707. _____________ is not a diversifiable or specific risk factor.
A.Company strike.
B.Bankruptcy of a major supplier.
C.Deathof a key company officer.
D.Industrial recession.

708. Mr.Anil purchased 100 stocks of futura informatics ltd, for Rs.21 on March 15, sold for Rs.35 on March 14 next year. In the company paid a dividend of Rs.2.50 per share, themAnils holding period return is______________.
A.11.90%.
B.45.40%.
C.66.70%.
D.78.60%.

709. The major benefit of diversification is to____________.
A.Increase the expected return.
B.Increase the size of the investment portfolio.
C.Reduce brokerage commissions.
D.Reduce the expected risk.

710. The risk free rate of return is 8% the expected rate of return on market portfolio is15% the beta of eco boards equity stock is 1.4.the required rate on eco boards equity is__________________.
A.15.4%.
B.16.8%.
C.17.2%.
D.17.8%.

NOTE
IF YOU THINK ANY OF THE MCQ ABOVE IS WRONG.
PLEASE COMMENT WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION IN COMMENT BOX.
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