Financial Management MCQ Questions and Solutions with Explanations | Commerce

A. Going concern

B. money measurement

C. revenue concept

D. cost concept

A. random diversification

B. correlating diversification

C. Friedman diversification

D. Markowitz diversification

A. falls

B. going

C. constant

D. change

A. dividing standard deviation by expected value

B. calculating the percentage each asset is to the total portfolio value

C. calculating the return of each asset to total portfolio return

D. dividing expected value by the standard deviation

A. larger

B. lower

C. no change

D. fixed

A. probabilities of expected returns of individual assets

B. weight of each individual asset to total portfolio value

C. expected return of each individual asset

D. all of the above must be known in order to determine the expected return of a portfolio

A. fixed

B. variable

C. semi-variable

D. borrowed

A. It is a weighted average only for stock portfolios

B. It can only be positive

C. It can never be above the highest individual return

D. All of the above are true

A. finance policy

B. credit policy

C. profit policy

D. fund policy

A. Market risk

B. Systematic risk

C. Non-diversifiable risk

D. Idiosyncratic risk