Which of the followings is a major type of risk?
Select one:
a. Equity Price Risk
b. Operational Risk
c. Foreign Exchange Risk
d. Interest Rate Risk
The major risk invloves here is operational risk which could lead to the entire bankruptacy of a firm.
forex and interest rate risks can be mitigated to some extent by taking the hedging positions.
Equity price risk depends on number of factors and one of the major factor is the business profitability which in return also linked to the operations of a company.
Which of the followings is a major type of risk? Select one: a. Equity Price Risk...
10.Which one of the following statements is NOT true? Select one: A. The risk that the lender may not receive payments as promised is called default risk. B. Investors must pay a premium (a higher price) to purchase a security that exposes them to default risk. C. Australian government securities are assumed not have any default risk and are adopted as the best proxy measure for the risk-free rate. D. The greater the risk of an investment, the greater the...
Substitutability is illustrated by which one of the followings? Select one: 0 a. Demand for recreational facilities rises as income increases. O b. Demand for paint increases as the price of housing decreases, c. Demand for coco cola increases as the price of pepsi increases. d. Quantity of housing demanded falls as price of housing falls.
Which is true for a firm's cost of equity: Select one a. It equals risk-free rate plus market risk premium b. It remains unaffected by firm risk c. When based on dividend growth, firm risks are ignored d. It increases as unsystematic firm risk increases
1. Which of the following is NOT a source of financial risk? A. Commodity price fluctuations. B. Equity price fluctuations. C. Exchange rate fluctuations. D. Liquidity fluctuations. E. Interest rate fluctuations
which one of the following is the risk that a firm faces when it opens a facility in a foreign country, given that the exchange rate between the firms home country and this foreign country fluctuates over time? a. international risk b. exchange rate risk. c. political risk. d. purchasing power risk e. diversifiable risk
In India which of the followings is / are not Self-Regulatory Organization? Select one: a. IRDA b. IBA c. AMFI d. FEDAI
Which is true for a firm's overall cost of equity: Select one: a. It is generally less than the firm's after-tax cost of debt b. It is generally less than a leveraged firm's WACC c. It is dependent on growth rate and risk level of the firm d. li is unaffected by changes in the market risk premium Which one of the following is the primary determinant of a firm's cost of capital? Select one: a. Use of Funds b....
Which of the following statement is incorrect? Select one: a. Most of the answers are correct. b. One type of currency control measures is imposing ceilings on direct foreign investment outflows. c. A stable exchange rate, an independent monetary policy, and capital market integration are the three goals of the economic policy makers in any country. d. In a fixed exchange rate system, market forces of supply and demand determine exchange rates. e. A gold standard provides price stability because...
D 7 Which of the followings are effects of the budget deficit Select all that apply Net exports increase The real exchange rate appreciates The real interest rate rises National saving falls 8 Suppose coffee sells for $3/pound in Seattle and $5/pound in Boston, and the transportation between the two cities costs $3/pound. Then there is no arbitrage. True False
Which of the followings is not one of the assumption of the new Keynesian model? Please choose one: a. Prices are flexible. b. wages are sticky c. expectations are rational D. Prices are sticky 2. The IS curve traces out the combinations of the interest rate and aggregate output for which the money market is in equilibrium, and the LM curve traces out the combinations for which the market for goods and services are in equilibrium. Select one of them: Right...