The expected return on the market is 10 percent, and the risk-free rate is 6 percent. Risk-Free Asset: • An asset with zero standard deviation • Zero correlation with all other risky assets • Provides the risk-free rate of return (RFR) • Will lie on the vertical axis of a portfolio graph • The existence of a risk-free asset resulted in deriving a capital market line (CML) that became the relevant frontier • The covariance of the risk-free asset with any risky asset or portfolio will always equal zero. Note that you do not need this feature to use this site. People take risk in different levels and it is believed that high risk projects bring more return. Your browser either does not support scripting or you have turned scripting off. 1,000 in the bank at a nominal interest rate of 6 percent, you will have Rs. b. Do t-bills promise a completely risk-free return? A. Scrip. a) Binding. Home; Accounting for Managers Advertising and Sales Promotion Behavioural and Allied Sciences Brand Management Business Communication Business Economics Business Environment Business Ethics and Governance Business Law Business … Business Studies MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. ANSWER: a) Coefficient of variation . B. Get Certified! MCQs on Financial Management Financial Management is a study of planning, designing, directing and managing the economic activity such as the utilization of capital and acquisition of the firm. Try the following multiple choice questions to test your knowledge of this chapter. Suppose that the inflation rate during the year is also 6 percent. Multiple choice Questions on Entrepreneurship Management. Leave a Reply Cancel reply. Answer choices in this exercise appear in a different order each time the page. Break-even Analysis - Part 4 - MCQs with answers, Break-even Analysis - Part 5 - MCQs with answers. … c) Opportunity and structure cost. The Clear Answers and Start Over feature requires scripting to function. ____________dividend promises to pay shareholders at future date. Site Navigation; Navigation for MCQ the ability of the … [Skip Breadcrumb Navigation]: [Skip Breadcrumb Navigation] Home: MCQ: No Frames Version MCQ. Mcq Added by: Muhammad Atif Khattak. Try the following multiple choice questions to test your knowledge of this chapter. There are a lot of things that people assess before they decide to invest in a project and this signifies an element of risk of making less money than intended. Financial Management Multiple Choice Questions and Answers (MCQs)-Arshad Iqbal 2019-05-17 "Financial Management Multiple Choice Questions and Answers (MCQs): Quizzes & Practice Tests with Answer Key" provides mock tests for competitive exams to solve 732 MCQs. Risk is defined as uncertainties resulting in: a) Adverse outcome, adverse in relation to planned objectives or expectations b) Adverse variation of profitability or outright losses (financial risk) c) Both (a) & (b) d) None of these 2. Your browser either does not support scripting or you have turned scripting off. Free PDF Download of CBSE Business Studies Multiple Choice Questions for Class 12 with Answers Chapter 9 Financial Management. MBA MCQ.com Search. Agency cost consists of. Section B – ALL 15 questions are compulsory and … Because of this, the answer choices will NOT appear in a different order each time the page is loaded, though that is mentioned below. Answer: Investment return measures the financial results of an investment. Risk and Return Relationship in Financial Management The relationship between risk and required return was introduced. 1,060 at the end of the year. MCQ ON RISK MANAGEMENT 1. This activity contains 10 questions. 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