Finance

Finance
The value of correlation is always between ———- (inclusive)?
–1 and 0
0 and 1
–1 and 1
none of these
Author: rikazzz Comment
Finance
A company’s agreement with the underwriter include?
spread
greenshoe option
A and B
whiteshoe option
Author: rikazzz Comment
Finance
A firm’s investment decision is also called the?
financing decision
capital budgeting decision
liquidity decision
none of these
Author: rikazzz Comment
Finance
In the beginning, some companies receive equity investment from wealthy individuals. The wealthy individuals are called?
angel investors
corporate investors
venture capitalists
venture capital firms
Author: rikazzz Comment
Finance
The value of a financial derivative depends on the?
maturity
duration
forward interest rate
underlying
Author: rikazzz Comment
Finance
At maturity the bond holders get back their principal. The principal is called?
coupon
face value
yield
return
Author: rikazzz Comment
Finance
Suppose our portfolio consists of two stocks A and B. What should be the correlation between them so that we have no risk in our portfolio?
–1
0
1
risk cannot be eliminated
Author: rikazzz Comment
Finance
Conflicts between shareholders and managers’ interest is called?
management problem
area of the board of directors
risk
agency problem
Author: rikazzz Comment
Finance
The price of a stock is $100, and there are 40% chances that it would be $95 and 60% chances that it would be $115 the next year. What is the expected return?
5%
6%
7%
7.5%
Author: rikazzz Comment
Finance
What is volatility if the duration of a bond is 4 years and yield to maturity is 8%?
3.1%
3.4%
3.7%
4.0%
Author: rikazzz Comment

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