FIN630-Old Papers

Question No: 1 ( Marks: 1 ) – Please choose one The price at which a security dealer sells a security is known as: Bid price Market price Offer price Order price Question No: 2 ( Marks: 1 ) – Please choose one __________ is a temporary restriction on program trading in a particular security or market, usually to reduce …

Question No: 1 ( Marks: 1 ) – Please choose one A procedure for valuing the price of a stock by using predicted dividends and discounting them back to present value is known as. ► Dividend Discount Model ► The Residual Earning Model ► None of the given options ► Capital Asset Pricing Model Question No: 2 ( Marks: 1 …

Question No: 1 (Marks: 1) – Please choose one __________ are those stocks whose results are tied with the overall state of the national economy. ► Growth stocks ► Income stocks ► Cyclical stocks ► Blue chip stocks Question No: 2 (Marks: 1) – Please choose one Companies that have capitalization amounts between $500 million and $2billion are known as …

Questions of 3 Marks   Define nonsystematic risk. How it can be reduced? Answer:- Non-systematic (specific) Risk is sometimes referred to as “specific risk”. It’s risk that affects a very small number of assets • An example is news that affects a specific stock such as a sudden strike by employees. • Diversification is the only way to protect you …

Question No: 1 Which one of the following financial instruments represents an ownership share in a corporation? Common stock Bond Prefer red stock Term Finance certificates   Question No: 2 There are ____ broad categories of financial assets 2 3 4 5   Three broad categories of financial assets, viz stocks bonds and cash Stocks refer to equity and equity …