Binomial Approach Multiple Choice Questions (MCQ) PDF - 144

MCQ 716: The present value of portfolio $850 and the current option price $1620 then the value of stock included in portfolio would be

1. 0.019
2. 1.9
3. 770
4. 2470

MCQ 717: The coupon payment is calculated with the help of interest rate, then this rate considers as

1. payment interest
2. par interest
3. coupon interest
4. yearly interest rate

MCQ 718: In capital asset pricing model, the assumptions must be followed including

1. no taxes
2. no transaction costs
3. fixed quantities of assets
4. all of the above

MCQ 719: The value of stock is $900 and the required rate of return is 30% then the preferred dividend will be

1. 270
2. 27000
3. 90
4. 90

MCQ 720: The stock with large amount of contribution of risk in a diversified portfolio is represented by

1. high beta and standard deviation
2. high beta, low standard deviation
3. low beta, low standard deviation
4. low beta, low variance