art mcqs

What-if technique, which examines changes in results if original prediction would not be achieved is called

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change analysis
original analysis
sensitivity analysis
predicted analysis
✅ The correct answer is C.
Technique that examines changes in results if original prediction would not be achieved is called sensitivity analysis. A sensitivity analysis determines how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

Cost which remains unchanged, in proportion to level total volume of production is classified as

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total cost
infeasible cost
fixed cost
variable cost
✅ The correct answer is C.
Cost which remains unchanged, in proportion to level total volume of production is classified as fixed cost. A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold. Fixed costs are expenses that have to be paid by a company, independent of any specific business activities.

At last day when European and American option can be exercised is classified as

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European date
American date
expiration date
money date
✅ The correct answer is C.
At last day when European and American option can be exercised is classified as expiration date. An expiration date in derivatives is the last day that a derivative, such as options or futures, is valid. On or before this day, investors will have already decided what to do with their expiring position.

In alternative investments, constant cash flow stream is equal to initial cash flow stream in approach which is classified as

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greater annual annuity method
equivalent annual annuity
lesser annual annuity method
zero annual annuity method
✅ The correct answer is B.
In alternative investments, constant cash flow stream is equal to initial cash flow stream in approach which is classified as equivalent annual annuity. The equivalent annual annuity approach is one of two methods used in capital budgeting to compare mutually exclusive projects with unequal lives. The EAA approach calculates the constant annual cash flow generated by a project over its lifespan if it was an annuity.