Stand Alone Risks Multiple Choice Questions (MCQs) PDF Download - 68

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)

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

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

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

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