M C Q s D r i v e

Management Sciences 5307 MCQs [All-Courses]

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Management Sciences focuses on the planning, organizing, leading, and controlling of resources to achieve organizational goals.This subject is highly important for competitive exams, academic study, and professional careers in the business and public sectors.

Risk affects any firm with factors such as war, recessions, inflation and high interest rates is classified as____________?
A Diversifiable risk
B Market risk
C Stock risk
D Portfolio risk
Correct Answer: Market risk
Positive minimum risk portfolio of any security shows that market security sold____________?
A Equal to original price
B Equal to sum of stocks
C Less than original price
D Greater than original price
Correct Answer: Greater than original price
Stock issued by company have lower rate of return because of___________?
A High market to book ratio
B Low book to market ratio
C Low market to book ratio
D High book to market ratio
Correct Answer: Low book to market ratio
In capital asset pricing model, assumptions must be followed including________?
A No taxes
B No transaction costs
C Fixed quantities of assets
D All of above
Correct Answer: All of above
Type of relationship exists between an expected return and risk of portfolio is classified as___________?
A Non-linear
B Linear
C Fixed and aggregate
D Non-fixed and non-aggregate
Correct Answer: Linear
A theory which states that assets are traded at price equal to its intrinsic value is classified as___________________?
A Efficient money hypothesis
B Efficient market hypothesis
C Inefficient market hypothesis
D Inefficient money hypothesis
Correct Answer: Efficient market hypothesis
In capital asset pricing model, characteristic line is classified as____________?
A Regression line
B Probability line
C Scattered points
D Weighted line
Correct Answer: Regression line
Betas tend to move towards 1.0 with passage of time are classified as__________?
A Standard betas
B Varied betas
C Historical betas
D Adjusted betas
Correct Answer: Adjusted betas
All assets are perfectly divisible and liquid in___________?
A Tax free pricing model
B Cost free pricing model
C Capital asset pricing model
D Stock pricing model
Correct Answer: Capital asset pricing model
Stock issued by company have higher rate of return because of______________?
A Low market to book ratio
B High book to market ratio
C High market to book ratio
D Low book to market ratio
Correct Answer: High book to market ratio