The risk of losses on financial investments caused by an adverse price movements

Related Mcqs:

1. The risk of losses caused by flawed or failed processes, policies, systems or events that disrupt business operations is called

   A. Operating Risk
   B. Financial Risk
   C. Debt Risk
   D. Business Risk

   Submitted by: Yasir Alam

2. Sum of market risk and diversifiable risk are classified as total risk which is equivalent to_______________?

   A. Sharpe’s alpha
   B. Standard alpha’s
   C. Alpha’s variance
   D. Variance

3. In a statement of cash flows, a company investing in short-term financial investments and in fixed assets results in______________?

   A. Increased cash
   B. Decreased cash
   C. Increased liabilities
   D. Increased equity

4. An effect of interest rate risk and investment risk on a bond’s yield is classified as_________?

   A. Reinvestment premium
   B. Investment risk premium
   C. Maturity risk premium
   D. Defaulter’s premium

5. An unsystematic risk which can be eliminated but market risk is the__________?

   A. Aggregate risk
   B. Remaining risk
   C. Effective risk
   D. Ineffective risk

6. According to market risk premium, an amount of risk premium depends upon investor______________?

   A. Risk taking
   B. Risk aversion
   C. Market aversion
   D. Portfolio aversion

7. Risk which is caused by events such as strikes, unsuccessful marketing programs and other lawsuits is classified as____________?

   A. Stock risk
   B. Portfolio risk
   C. Diversifiable risk
   D. Market risk

8. Financial security with low degree risk and investment held by businesses is classified as________________?

   A. Treasury bills
   B. Commercial paper
   C. Negotiable certificate of deposit
   D. Money market mutual funds

9. Which of the following is the process of planning and managing a firm‟s long-term investments?

   A. Capital Structuring
   B. Capital Rationing
   C. Capital Budgeting
   D. Working Capital Management

10. The set of projects or set of investments to maximize the firm value is classified as __________?

    A. optimal capital budget
    B. minimum capital budget
    C. maximum capital budget
    D. greater capital budget