**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

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

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