Author name: Administrator

726. Calculation of formula in common stock valuation does not include

intrinsic value
dividend of stockholder
number of stock issued
expected growth rate
✅ The correct answer is C.
Calculation of formula in common stock valuation does not include number of stock issued. Common stock valuation is the process of determining the value of a share of stock in a company. The holder of one share in a company that has one million shares outstanding is actually the owner of one-millionth of the company; the value of that share should represent that percentage of the company’s worth.

728. In capital market line, risk of efficient portfolio is measured by its

standard deviation
variance
aggregate risk
ineffective risk
✅ The correct answer is A.
In capital market line, risk of efficient portfolio is measured by its standard deviation. The standard deviation is a statistic that measures the dispersion of a dataset relative to its mean and is calculated as the square root of the variance.

729. Pick out the correct sentence from the flowing ones.

Family floater policy does not cover parents
Family floater is for self and spouse only
Family floater policy covers self, spouse, parents and dependants
Uncle and aunt can be covered in a family floater
✅ The correct answer is C.
Family floater policy covers self, spouse, parents and dependants. A family floater covers all the family members under one single plan. The sum insured is fixed and gets exhausted as and when any member avails medical services and makes a claim. The members coverable under a family floater can be the policyholder and his/her parents, spouse and children.

731. Function used to measure decline in labour hours per unit as units of production increases is called

fixed curve
learning curve
linear curve
mixed curve
✅ The correct answer is B.
Function used to measure decline in labour hours per unit as units of production increases is called learning curve. A learning curve is a concept that graphically depicts the relationship between the cost and output over a defined period of time, normally to represent the repetitive task of an employee or worker.

733. An annual rate of 16% if quoted by credit card issuer usually a bank is classified as

loan rate of return
local rate of return
annual percentage rate
annual rate of return
✅ The correct answer is C.
An annual rate of 16% if quoted by credit card issuer usually a bank is classified as annual percentage rate. An annual percentage rate (APR) is the annual rate charged for borrowing or earned through an investment. APR is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan.

735. Higher level of production leads to

higher repair cost
higher setup cost
lower repair cost
higher setup cost
✅ The correct answer is A.
Higher level of production leads to higher repair cost.

737. A discount rate which equals to present value of TV to project cost present value is classified as

negative internal rate of return
modified internal rate of return
existed internal rate of return
relative rate of return
✅ The correct answer is B.
A discount rate which equals to present value of TV to project cost present value is classified as modified internal rate of return. The internal rate of return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.
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