Stand Alone Risks MCQ with Answers PDF Download – Test 68

MCQ 336: A range of probability distribution with 95.46% lies within:

1. ( + 1σ and -1σ)
2. ( + 2σ and -2σ)
3. ( + 3σ and -3σ)
4. ( + 4σ and -4σ)

MCQ 337: When two portfolios have identical values and payoffs then it is classified as:

1. binomial parity relationship
2. put parity relationship
3. put option parity relationship
4. put call parity relationship

MCQ 338: The free cash flow is $17000 and the net investment in operating capital is $10000 then the net operating profit after taxes would be:

1. 7000
2. 27000
3. −$27000
4. −$7000

MCQ 339: In market analysis, the market multiple is multiplied by firm earnings before interest, taxes, depreciation and amortization to calculate:

1. market total value
2. firm total value
3. industry value
4. taxes value

MCQ 340: The preferred dividend is divided by preferred stock price multiply by (1-floatation cost) is used to calculate:

1. transaction cost of preferred stock
2. financing of preferred stock
3. weighted cost of capital
4. component cost of preferred stock