Financial Management

✅ The correct answer is C.
On August 31, 1957, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act.

✅ The correct answer is A.
Rate of interest which is usually discussed by investors whenever rate of return is discussed is classified as yield to maturity. Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until it matures. Yield to maturity is considered a long-term bond yield but it is expressed as an annual rate.

✅ The correct answer is B.
Left side of balance sheet states the liabilities. A standard company balance sheet has two sides: assets, on the left and financing, which itself has two parts, liabilities and ownership equity, on the right. Balance sheets are usually presented with assets in one section and liabilities and net worth in the other section with the two sections “balancing”.

✅ The correct answer is A.
In expected rate of return for constant growth, dividends are expected to grow but with the constant rate. The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR).

✅ The correct answer is C.
If interest rates rises, you would expect liquidity risk to also rise. Liquidity is the ability of a firm, company, or even an individual to pay its debts without suffering catastrophic losses.

✅ The correct answer is B.
Formula written as 0.67(Historical Beta) + 0.35(1.0) is used to calculate adjusted betas. The Adjusted Beta is an estimate of a security’s future Beta. Adjusted Beta is initially derived from historical data, but modified by the assumption that a security’s true Beta will move towards the market average, of 1, over time.

✅ The correct answer is C.
Type of options that permit bond holder to buy stocks at stated price are classified as warrants. Warrants are a derivative that give the right, but not the obligation, to buy or sell a security most commonly an equity at a certain price before expiration. The price at which the underlying security can be bought or sold is referred to as the exercise price or strike price.

✅ The correct answer is D.
Hewlett-Packard and Microsoft are examples of corporation. Microsoft (NASDAQ:MSFT) and Hewlett-Packard Enterprise (NYSE:HPE) recently unveiled Cloud Productivity and Mobility Solution Offerings (CPM), which will integrate HPE’s consulting services with Microsoft services within Windows 10. HPE will integrate its consulting services into Microsoft’s SaaS (software as a service) platforms, including Office 365, Skype for Business, Dynamics CRM, and Enterprise Mobility Suite.

✅ The correct answer is D.
The relevant risk for a well-diversified portfolio is market risk. Market risk is the possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets in which he or she is involved.

✅ The correct answer is D.
The growth in book value per share shows the growth in reserves. Book value of equity per share indicates a firm’s net asset value (total assets – total liabilities) on a per-share basis.