A. Low volatility
B. Interest rates are high
C. Interest rates are low
D. High volatility
Related Mcqs:
- A discount rate which is equal to the present value of TV to the project cost present value is classified as _________?
A. negative internal rate of return
B. modified internal rate of return
C. existed internal rate of return
D. relative rate of return - Current option price is added to present value of portfolio for calculating_________?
A. Future value of portfolio
B. Current value of stock
C. Future value of stock
D. Present value of portfolio - Greater value of option, larger span of time value is usually results in__________?
A. Shorter call option
B. Longer call option
C. Longer put option
D. Shorter put option - Relationship between Economic Value Added (EVA) and Net Present Value (NPV) is considered as____________?
A. Valued relationship
B. Economic relationship
C. Direct relationship
D. Inverse relationship - Process of calculating future value of money from present value is classified as____________?
A. Compounding
B. Discounting
C. Money value
D. Stock value - An increasing in interest rate leads to decline in value of__________?
A. Junk bonds
B. Outstanding bonds
C. Standing bonds
D. Premium bonds - Present value of future cash flows is divided by an initial cost of project to calculate_______?
A. Negative index
B. Exchange index
C. Project index
D. Profitability index - Modified rate of return and modified internal rate of return with exceed cost of capital if net present value is____________?
A. Positive
B. Negative
C. Zero
D. One - In weighted average cost of capital, rising in interest rate leads to_________________?
A. Increase in cost of debt
B. Increase capital structure
C. Decrease in cost of debt
D. Decrease capital structure - The relationship between Economic Value Added (EVA) and the Net Present Value (NPV) is considered as _________?
A. valued relationship
B. economic relationship
C. direct relationship
D. inverse relationship
