In this post, students you will read about Financial Management MCQs With Answers we hope this informative post will help you so don’t forget to read completely if you want to complete your Financial Management MCQs preparation for the final term exams only.
These multiple-choice questions are handwritten and well organized and taken from the final term syllabus only so don’t try them for the Financial Management midterm exams. Students you know these mcqs are solved with the help of Microsoft AI which is available on Whatsapp so you can check before preparation be a few mcqs are conceptual.
Financial Management Solved MCQs
| Post Topic | Solved MCQs |
| Book Code | MGT201 |
| Midterm/Final Term | Final Term |
| University | VU – Virtual University |
Financial Management MCQs With Answers
1: Standard deviation measured the possible deviation of actual return from the mean
False
True
The extent to which independent variables jointly explain the dependent variable can be
estimates with the value of
R square
Error term
p-value
t stat value
Which of the following refers to the mutual relationship between two variables or stocks?
Dispersion
Correlation
Covariance
Variance
The additional factor that differentiates the three-factor and four-factor models is the momentum
True
False
Investor’s return can never be ZERO even on ZERO risk
True
False
All of the following can be stock beta values, EXCEPT:
More than 1
Equal to 1
Less than 1
Less than 0
CAPM model is used for describing the relationship between:
Systematic risk and expected return
Systematic risk and actual return.
Unsystematic risk and expected return
Unsystematic risk and actual return
Followings are the other names of unsystematic risk, EXCEPT:
Specific risk
Residual risk
Unique risk
Controllable risk
Time Risk and return are two interrelated concepts that is why it is difficult to study both concepts separately
True
False
The correct abbreviation of the CAPM model is:
Capital Asset Purchasing Model
Capital Asset Purchasing Method
Capital Asset Pricing Method.
Capital Asset Pricing Model
Followings are the other names of unsystematic risk, EXCEPT:
Residual risk
Controllable risk
Specific risk
Unique risk
Which of the following measures can be used to calculate the individual’s stock risk?
Mean
Median
Standard deviation
Mode
Time Left A famous phrase “not putting your all eggs in one basket” refers to which of the following concepts?
Risk
Equity
Return
Diversification
Standard deviation measured the possible deviation of actual return from the mean
False
True
For calculating the portfolio beta, the beta of each company is multiplied by the company’s percentage of investment
False
True
The contribution margin can be determined by using a formula.
Contribution margin = Sales per unit / Variable cost per unit
Contribution margin = Sales per unit + Variable cost per unit
Contribution margin = Sales per unit – Variable cost per unit
Contribution margin = Sales per unit * Variable cost per unit
What will be the contribution margin per unit if the sales price is Rs. 20 per unit, the variable cost is Rs.8 per unit and the fixed cost is Rs. 50,000?
Rs. 20
Rs. 28
Rs. 12
None of the given options
What will be the contribution margin ratio if the sales price is Rs. 25 per unit, the variable cost is Rs.12 per unit and the company is producing 50000 units?
52%
50%
48%
None of the given options
Credit rating helps to determine:
Profit margin
Creditworthiness
All of the given options
Credit period
Which of the following is the source of cash for the companies?
All of the given options
Loan from a bank
Sale of company’s assets
Sales of the company
Credit rating helps to determine:
Creditworthiness
Credit period
All of the given options
Profit margin
In an aggressive approach to working capital management, the profit is maximum and the cost of financing is minimum.
False
True
Cash budget includes all EXCEPT:
Receipts
Payments
Surplus or Deficit
Reserves
Which of the following represents stock in trade?
Work in Process
Raw material
All of the given options
Finished Goods