The rate of return, which is made up of risk free and business risk element is known as _____________?

Related Mcqs:

1. The rate of return to cover a risk of investment and decrease in purchasing power, as a result of inflation is known as _________?

   A. nominal rate of return
   B. accrual accounting rate of return
   C. real rate of return
   D. required rate of return

2. The rate of required return to cover the risk of investment, in absence of inflation is classified as ____________?

   A. real rate of return
   B. required rate of return
   C. nominal rate of return
   D. none of above

3. If the real rate is 16% and an inflation rate is 8%, then the nominal rate of return will be __________?

   A. 27.28%
   B. 25.28%
   C. 22.28
   D. 21.28

4. An investment is multiplied to required rate of return, to calculate: _____________?

   A. congruent cost of investment
   B. transfer cost of investment
   C. operating cost of investment
   D. imputed cost of investment

5. The return on investment is also known as _____________?

   A. accrual accounting rate of return
   B. accounting rate of return
   C. nominal rate of return
   D. both a and b

6. If the nominal rate is 26% and the inflation rate is 12%, then the real rate can be __________?

   A. 13.75%
   B. 11.65%
   C. 12.50%
   D. 13.50%

7. The project’s expected monetary loss or gain by discounting all cash outflows and inflows, using required rate of return is classified as _________?

   A. net present value
   B. net future value
   C. net discounted value
   D. net recorded cash value

8. The cash flows method, used by net present value method and internal rate of return are ___________?

   A. vertical cash flows
   B. discounted cash flows
   C. lean cash flows
   D. future cash flows

9. If the required rate of return is 12% and the per unit cost of units purchased is $35, then the relevant opportunity cost of capital will be ____________?

   A. $6.20
   B. $7.20
   C. $4.20
   D. $5.20

10. If the required rate of return is 13%, operating income is $375000 and the total investment is $2650000, then the residual income would be ____________?

    A. $30,500
    B. $20,500
    C. $25,500
    D. $32,500