A. investment bank
B. insurance firm
C. reissuing firm
D. reselling firm
Related Mcqs:
- In firm commitment underwriting, the securities issued are then sold to investors at relatively __________?
A. higher price
B. lower price
C. indexed price
D. commercial price - 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 - 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 - An unsystematic risk which can be eliminated but market risk is the__________?
A. Aggregate risk
B. Remaining risk
C. Effective risk
D. Ineffective risk - 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 - Risk affects any firm with factors such as war, recessions, inflation and high interest rates is classified as____________?
A. Diversifiable risk
B. Market risk
C. Stock risk
D. Portfolio risk - A firm has paid out Rs. 150,000 as dividends from its net income of Rs. 250,000. What is the retention ratio for the firm?
A. 12%
B. 25%
C. 40%
D. 60% - A firm reports total liabilities of Rs. 300,000 and owner’s equity of Rs. 500,000. What would be the total worth of the firm’s assets?
A. Rs. 300,000
B. Rs. 500,000
C. Rs. 800,000
D. Rs. 1100,000 - The bond which is used as insurer to protect investors against the interest rate risk, is classified as ___________?
A. zero coupon treasury notes
B. zero coupon treasury bonds
C. One payment bonds
D. zero treasurer bonds - The reason of default risk on municipal bonds is because of ___________?
A. economic recession
B. economically indexed
C. not economically indexed
D. active trading
