Rate of required return to cover risk of investment in absence of inflation is classified as

A. real rate of return
B. required rate of return
C. nominal rate of return
D. none of above
✅ The correct answer is option A.
Rate of required return to cover risk of investment in absence of inflation is classified as real rate of return. A real rate of return is the annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external factors.

In financial transactions, risk that there will be no profit in selling of this asset is classified as

A. price risk
B. profit risk
C. selling risk
D. financial risk
✅ The correct answer is option A.
In financial transactions, risk that there will be no profit in selling of this asset is classified as price risk. Price risk is the potential for the decline in the price of an asset or security relative to the rest of the market. It excludes market risk, or the potential for an entire market to go down in value. As such, price risk is the component of investing risk that can be reduced with diversification.

Swot Analysis is done to know the

A. strengths
B. Threats and strengths
C. Weaknesses and opportunities
D. Threats, strengths Weaknesses and opportunities
✅ The correct answer is option D.
Swot Analysis is done to know the Threats, strengths Weaknesses and opportunities. SWOT Analysis is a simple but useful framework for analyzing your organization’s strengths, weaknesses, opportunities, and threats. It helps you to build on what you do well, to address what you’re lacking, to minimize risks, and to take the greatest possible advantage of chances for success.

International business has grown rapidly in recent decades for all the following reasons EXCEPT

A. rapid expansion of technology
B. liberalization of governmental policies on cross-border movement of trade and resources
C. development of institutions to support and facilitate international trade
D. increased cost of labor in both the lesser-developed and developing countries
✅ The correct answer is option D.
International business has grown rapidly in recent decades for all the following reasons EXCEPT increased cost of labor in both the lesser-developed and developing countries. International business encompasses all commercial activities that take place to promote the transfer of goods, services, resources, people, ideas, and technologies across national boundaries.

Yield on subordinated bonds as compared to non-subordinated bonds is considered as

A. highly risky and higher yields
B. highly risky and lower yields
C. less risky and higher yields
D. less risky and lower yields
✅ The correct answer is option A.
Yield on subordinated bonds as compared to non-subordinated bonds is considered as highly risky and higher yields. Subordinated debentures are thus also known as junior securities. In the case of borrower default, creditors who own subordinated debt will not be paid out until after senior bondholders are paid in full.

If cost is eliminated, then reducing perceived usefulness that customers can obtain by using market offering will come under

A. designed-in costs
B. locked-in costs
C. value added cost
D. non-value added cost
✅ The correct answer is option C.
If cost is eliminated, then reducing perceived usefulness that customers can obtain by using market offering will come under value added cost. A value added cost is incurred when an asset is consumed in order to increase the value of goods or services to the consumer.

Markowitz efficient hypothesis initiated in

A. 1958
B. 1959
C. 1961
D. 1960
✅ The correct answer is option D.
Markowitz efficient hypothesis initiated in 1960. Harry Markowitz model (HM model), also known as Mean-Variance Model because it is based on the expected returns (mean) and the standard deviation (variance) of different portfolios, helps to make the most efficient selection by analyzing various portfolios of the given assets.

Eurobonds are issued by financial firms to

A. avoid taxes
B. avoid interest hike
C. avoid high floating rate
D. avoid portfolio issues
✅ The correct answer is option A.
Eurobonds are issued by financial firms to avoid taxes. A eurobond is denominated in a currency other than the home currency of the country or market in which it is issued. These bonds are frequently grouped together by the currency in which they are denominated, such as eurodollar or euroyen bonds.

The purpose of using simulation technique is to.

A. Imitate a real-world situation
B. Understand properties & operating characteristics of complex real-life problems
C. Reduce the cost of experiment on a model of real situation
D. All of the above
✅ The correct answer is option D.
The purpose of using simulation technique is to Imitate a real-world situation, Understand properties & operating characteristics of complex real-life problems and Reduce the cost of experiment on a model of real situation.

________ of the letter consists of main message.

A. Heading
B. Body
C. Greeting
D. Closing
✅ The correct answer is option B.
Body of the letter consists of main message. Here, more than anywhere else, the general principle of communication applies: say it clearly and succinctly, so that the reader will understand the message properly and quickly. Letters are normally single-spaced, with one blank line left between paragraphs.