Multiple choice question

Question 1

Which type of firm dominates the economy throughout the world in terms of the total revenue generated?

1. Partnerships
2. Non for profit organisations
3. Corporations
4. Sole traders

Question 2

What do we mean when we say that money has time value?

1. A dollar today is worth more than a dollar today
2. Money is more valuable if you receive it at the time you need to spend it
3. Both (a) and (b)
4. None of the above

Question 3

Which of the following investors normally have the right to vote at a companys Annual General Meeting?

1. Ordinary shareholders
2. Preference shareholders
3. Debtholders
4. Both (a) and (b)

Question 4

Which of the following groups of features of a Treasury bond never changes over the life of the bond?

1. Price, yield and face value
2. Coupon rate, face value and maturity date
3. Coupon rate, price and face value
4. Face value, term to maturity and coupon rate

Question 5

Which types of assets are usually easiest to value?

1. Real Assets
2. Financial Assets
3. Tangible Assets
4. Intangible assets
5. Question 7a
6. a share has a beta of 1.2. The risk-free rate of return is 4.0% and the expected return on the market is 10.3%. What is the expected return of the share?
7. 16.40%
8. 15.79%
9. 15.36%
10. 11.56%

Question 6 Consider the following return distributions. Investment A Investment B If Kim is a risk-averse investor, which of these investments would she choose? A. B. C. D. Kim would always choose Investment A Kim would always choose Investment B Kim would be indifferent between Investments A and B We cannot say which investment would be preferred without more information regarding Kim's attitude towards risk