Financial Management

✅ The correct answer is C.
It can never be above the highest individual return is true regarding the expected return of a portfolio. The expected return for an investment portfolio is the weighted average of the expected return of each of its components.

✅ The correct answer is D.
Of all stocks in a portfolio, required rate of return is classified as market portfolio. A market portfolio is a theoretical bundle of investments that includes every type of asset available in the world financial market, with each asset weighted in proportion to its total presence in the market.

✅ The correct answer is D.
In weighted average cost of capital, a company can affect its capital cost through policy of capital structure, policy of dividends and policy of investment

✅ The correct answer is B.

✅ The correct answer is B.
An annuity with an extended life is classified as perpetuity. A perpetuity is an annuity that has no end, or a stream of cash payments that continues forever. There are few actual perpetuities in existence.

✅ The correct answer is A.
A loan that is repaid on monthly, quarterly and annual basis in equal payments is classified as amortized loan. An amortized loan is a loan with scheduled periodic payments that are applied to both principal and interest.

✅ The correct answer is B.
In capital asset pricing model, investors assume that buying and selling activity will not affect stock prices. The Capital Asset Pricing Model (CAPM) describes the relationship between systematic risk and expected return for assets, particularly stocks. CAPM is widely used throughout finance for pricing risky securities and generating expected returns for assets given the risk of those assets and cost of capital.

✅ The correct answer is D.
Investment bankers perform the following role market new stock and bond issues for firms B. provide advice to the firms as to market conditions, price, etc C. design securities with desirable properties. An investment banker is an individual who often works as part of a financial institution and is primarily concerned with raising capital for corporations, governments, or other entities.

✅ The correct answer is A.
According to capital asset pricing model assumptions, variances, expected returns and covariance of all assets are identical. The Capital Asset Pricing Model ( CAPM) describes the relationship between systematic risk and expected return for assets, particularly stocks.

✅ The correct answer is B.
A type of project whose cash flows would not depend on each other is classified as independent projects. A project whose acceptance or rejection is independent of the acceptance or rejection of other projects.