Author name: Administrator

265. Traditional theorists believe that.

A) there exists an optimal capital structure
B) no optimal capital structure
C) equal optimal capital structure
D) 100% debt financial organizations
✅ ANSWER: A
Traditional theorists believe that there exists an optimal capital structure. An optimal capital structure is the objectively best mix of debt, preferred stock, and common stock that maximizes a company’s market value while minimizing its cost of capital.

267. Standard deviation is divided by expected rate of return is used to calculate

A) coefficient of variation
B) coefficient of deviation
C) coefficient of standard
D) coefficient of return
✅ ANSWER: A
Standard deviation is divided by expected rate of return is used to calculate coefficient of variation. The coefficient of variation (CV) is a statistical measure of the dispersion of data points in a data series around the mean.

269. Re-order level is calculated as:

A) Maximum consumption x Maximum re-order period
B) Minimum consumption x Minimum re-order period
C) 1/2 of (Minimum + Maximum consumption)
D) Maximum level – Minimum level
✅ ANSWER: A
Re-order level is calculated as Maximum consumption x Maximum re-order period. To calculate the reorder level, multiply the average daily usage rate by the lead time in days for an inventory item.

271. An average return of portfolio divided by its coefficient of beta is classified as

A) Sharpe’s reward to variability ratio
B) treynor’s reward to volatility ratio
C) Jensen’s alpha
D) treynor’s variance to volatility ratio
✅ ANSWER: B
An average return of portfolio divided by its coefficient of beta is classified as treynor’s reward to volatility ratio. The Treynor ratio, also known as the reward-to-volatility ratio, is a performance metric for determining how much excess return was generated for each unit of risk taken on by a portfolio.

273. Which is evidence of contract?

A) Policy document
B) Prospectus
C) Proposal form
D) FPR
✅ ANSWER: A
Policy document is evidence of contract. Policy document is a detailed document and it is the Evidence of the insurance contract which mentions all the terms and conditions of the insurance.

246. A joint cost allocation method is based on relative value of total sales, at point of split off is classified as

A) sales value at split off method
B) joint costs at split off point method
C) joint products value at split off method
D) main product cost at split off method
✅ ANSWER: A
A joint cost allocation method is based on relative value of total sales, at point of split off is classified as sales value at split off method. The split-off point is the point at which joint production stops and processing for separate products begins.

249. If the dispersion around a security’s return is larger ____________.

A) the expected return is smaller
B) the standard deviation is smaller
C) the stock’s price is higher
D) the security’s risk is higher
✅ ANSWER: D
If the dispersion around a security’s return is larger the security’s risk is higher. A security risk assessment identifies, assesses, and implements key security controls in applications.
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