finance mcqs

If you’re looking for assistance with financial management and preparing for accounting exams, Gurumcqs has over 2000 Finance MCQs with detailed explanations. The Finance MCQs section includes important questions related to financial management, financial accounting for finance and accounting Jobs, and Business Finance. These MCQs cover various topics such as Finance Basics, Time Value of Money, Future Value, Present Value, Future Annuity, Shares, Risk & Return, Capital Budgeting, General Financial Rules, Working Capital Management, financial accounting, and more. Additionally, you can also find software engineering MCQs questions and answers on the platform.

101. According to capital asset pricing model assumptions, quantities of all assets are______________?

A. Given and fixed
B. Not given and fixed
C. Not given and variable
D. Given and variable

102. According to capital asset pricing model assumptions, variances, expected returns and co-variance of all assets are__________?

A. Identical
B. Not identical
C. Fixed
D. Variable

103. 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

104. 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

105. 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

106. In capital asset pricing model, characteristic line is classified as____________?

A. Regression line
B. Probability line
C. Scattered points
D. Weighted line

107. 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

108. 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

109. 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

110. 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

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