791. If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective rate of interest will be:
A. 10% per annum
B. 10.10 per annum
C. 10.25%per annum
D. 10.38% per annum

793. Mr. X takes a loan of Rs 50,000 from HDFC Bank. The rate of interest is 10% per annum. The first installment will be paid at the end of year 5. Determine the amount of equal annual installments if Mr. X wishes to repay the amount in five installments.
A. Rs 19500
B. Rs 19400
C. Rs 19310
D. None of the above

794. If nominal rate of return is 10% per annum and annual effective rate of interest is 10.25% per annum, determine the frequency of compounding:
A. 1
B. 2
C. 3
D. None of the above

795. Present value tables for annuity cannot be straight away applied to varied stream of cash flows.
A. True
B. False

796. Heterogeneous cash flows can be made comparable by
A. Discounting technique
B. Compounding technique
C. Either a or b
D. None of the above

797. Risk of two securities with different expected return can be compared with:
A. Coefficient of variation
B. Standard deviation of securities
C. Variance of Securities
D. None of the above

798. A portfolio having two risky securities can be turned risk less if
A. The securities are completely positively correlated
B. If the correlation ranges between zero and one
C. The securities are completely negatively correlated
D. None of the above

799. Efficient frontier comprises of
A. Portfolios that have negatively correlated securities
B. Portfolios that have positively correlated securities
C. Inefficient portfolios
D. Efficient portfolios

800. Efficient portfolios can be defined as those portfolios which for a given level of risk provides
A. Maximum return
B. Average return
C. Minimum return
D. None of the above

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