Profitability Index MCQ with Answers PDF – Download Test 54

MCQ 266: The modified rate of return and modified internal rate of return with exceed cost of capital if the net present value is:

1. positive
2. negative
3. zero
4. one

MCQ 267: According to capital asset pricing model assumptions, the investors will borrow unlimited amount of capital at any given:

1. identical and fixed returns
2. risk free rate of interest
3. fixed rate of interest
4. risk free expected return

MCQ 268: The real risk-free rate is applicable when it is expected that there will be:

1. high inflation
2. low inflation
3. no inflation
4. none of above

MCQ 269: In calculation of betas, an adjusted betas are highly dependent on historical:

1. unadjusted betas
2. adjusted historical betas
3. fundamental historical betas
4. fundamental varied betas

MCQ 270: In weighted average capital, the capital structure weights estimation does not rely on the value of:

1. investors equity
2. market value of equity
3. book value of equity
4. stock equity