Description : Diversification into many unrelated areas is an example of: A. Risk management B. Good management C. Uncertainty reduction D. Sustainability
Last Answer : Uncertainty reduction
Description : This type of risk is avoidable through proper diversification A. Portfolio risk B. Systematic risk C. Unsystematic risk D. Total risk
Last Answer : c
Description : The tracking error of an optimized portfolio can be expressed in terms of the of the portfolio and thus reveal . A. return; portfolio performance B. total risk; portfolio performance C. beta; portfolio performance D. beta; benchmark risk E. relative return; benchmark risk
Last Answer : D. beta; benchmark risk
Description : Modern portfolio theory …….. the relationship between risk and return a. maximizes b. minimizes c. quantifies d. does not assume
Last Answer : Answer: c
Description : How is diversification related to risk?
Last Answer : What is the answer ?
Description : A manager who is helping a customer return some shoes they purchased last week is dealing with what type of decision? (a) Non-programmed decision ; (b) Uncertainty ; (c) Bounded rationality ; (d) Programmed decision
Last Answer : (d) Programmed decision
Description : What are the different techniques used to offset risk and uncertainty in decision making?
Last Answer : Decision tree analysis, Simulation, Game theory, Probabilistic models
Description : Distinguish between decision under risk and uncertainty?
Last Answer : Making decision for the unknown state is decision under uncertainty Making decisions without considering the consequence is decision under risk.
Description : A situation in which one of two or more risk events will follow an act, but the precise nature of these events may not be known and the probabilities of their occurring cannot be objectively assigned, is ... 1. certainty 2. uncertainty 3. risk 4. risk adversity 5. None of the above.
Last Answer : 2. uncertainty
Description : Globalization can create problems for business because: A. It can result in more competition. B. It reduced vulnerability to political risk and uncertainty when operating abroad. C. It means that they can increase prices. D. All the options given are correct.
Last Answer : All the options given are correct.
Description : Globalization is beneficial for firms because: A. It protects them against foreign competition. B. It cushions them from the effects of events in other countries. C. It opens up new market opportunities. D. It increases the risk and uncertainty of operating in a globalizing world economy.
Last Answer : It opens up new market opportunities.
Description : Value maximization theory fails to address the problem of A.self-serving management. B.risk C.uncertainty D.sluggish growth.
Last Answer : A.self-serving management.
Description : An ________relieves the company of the risk and uncertainty of marketing the securities. a. Underwriter b. Shareholder c. Banker
Last Answer : a. Underwriter
Description : ......................... deals with making sound decisions under conditions of certainty, risk and uncertainty. a. Game theory b. Network analysis c. Decision theory d. None of these
Last Answer : c. Decision theory
Description : ------------ is a condition in which the decision maker chooses a course of action without complete knowledge of the consequences that will follow implementation. (a) Risk ; (b) Uncertainty ; (c) Ambiguity ; (d) Accuracy
Last Answer : (b) Uncertainty ;
Description : Which of the following best expresses the difference between programmed and non-programmed decisions? (a) Occur under certainty or risk; occur under uncertainty or ambiguity (b) Made by managers ... rules cannot be developed (d) Have computer routines developed for them; are not computerized
Last Answer : (c) Handled with decision rules; decision rules cannot be developed
Description : If a manager at Wipro wants to award a contract for printing the company's promotional literature and has obtained quotations from several printers, the manager can select a printer and know with ______ what the printing should cost. (a) Ambiguity ; (b) Risk ; (c) Uncertainty ; (d) Certainty
Last Answer : (d) Certainty
Description : A portfolio comprises of two stocks A and B. Stock A gives a return of 8%and stock B gives a return of 7%. Stock A has a weight of 60% in the portfolio. What is the portfolio return? A. 9% B. 11% C. 10% D. 8%
Last Answer : D. 8%
Description : Most favourable portfolio is proficient portfolio with the A. lowest risk B. highest risk C. highest utility D. least investment
Last Answer : C. highest utility
Description : By what percentage can airbags reduce the risk of dying in a direct frontal crash? a) 30% b) 40% c) 50% d) 60%
Last Answer : a) 30%
Description : By what percentage do seatbelts reduce the risk of death for a person sitting in front seat? a) 40% b) 50% c) 60% d) 70%
Last Answer : b) 50%
Description : To reduce the risk of side effects of local anaesthetic injections; you should follow all of the following EXCEPT: A. Aspirate before injection B. Use the smallest effective volume C. Use the weakest efficient percentage strength D. Inject rapidly
Last Answer : D. Inject rapidly
Description : Consider these two investment strategies: Strategy is the dominant strategy because . A. 1, it is riskless B. 1, it has the highest reward/risk ratio C. 2, its return is at least equal ... sometimes greater D. 2, it has the highest reward/risk ratio E. both strategies are equally preferred
Last Answer : C. 2, its return is at least equal to Strategy 1 and sometimes greater
Description : The correct abbreviation of ROI is __________. a. Risk on investment b. Return on income c. Risk on income d. Return on investment
Last Answer : d. Return on investment
Description : ROI stands for? A. return on income B. risk on investment C. result on investment D. return on investment
Last Answer : D. return on investment
Description : Which of the following is true to Euler’s theorem of factor pricing ? (a) Constant return to scale (b) Static and risk free economy (c) Perfect competition (d) All of the above
Last Answer : (d) All of the above
Description : Rate of interest is 11% and the rate of risk is 9%. The normal rate of return is A 11% B 9% C 20% D 2%
Last Answer : 20%
Description : _________ is a measure of risk-adjusted return a. Simple return b. Standard Deviation c. Beta d. Sharpe Ratio ANS: Sharpe Ratio
Last Answer : ANS: Sharpe Ratio
Description : Which principle tells us that an investor will not invest in an asset if a more attractive substitute exists? a) Principle of alternative b) Principle of expectation c) Principle of substitution d) Principle of risk and return
Last Answer : c) Principle of substitution
Description : Typical parameters used in quantitative methods to estimate discount for lack of marketability include ____________. a) duration of the restriction and risk of the investment b) return of the investment c) dividends paid
Last Answer : a) duration of the restriction and risk of the investment
Description : _______ look for opportunities to take on risk in the hope of making return a. Shareholder b. Hedgers c. Speculators
Last Answer : c. Speculators
Description : A measure of risk per unit of expected return A.standard deviation B . Coefficient of variation C.Correlation coefficient D. Beta
Last Answer : Answer: B
Description : One of the main factors that led to rapid expansion of Indian exports is - (1) Imposition of import duties (2) Liberalization of the economy (3) Recession in other countries (4) Diversification of exports
Last Answer : (4) Diversification of exports Explanation: India has rapidly diversified its exports markets from the traditional export partners towards emerging and developing economies. This has played a crucial ... export markets can be noted from the narrowing dependence on selected economies for exports.
Description : The first step in the process of product promotion refer to a) Diversification b) Identification c) Segmentation d) Advertising
Last Answer : c) Segmentation
Description : When a firm seeks to enter a new market with a completely new product then it is known as a) Product Development b) Product Diversification c) Product Division d) None of these
Last Answer : b) Product Diversification
Description : In this growth strategy, the company may seek new opportunities that have no relation with its current technology, products, or markets. A. Concentric diversification B. Horizontal diversification C. Conglomerate diversification D. None of these options
Last Answer : Conglomerate diversification
Description : In this growth strategy, the company would seek new products that have marketing or technological synergies with existing product lines appealing to a new group of customers. A. Concentric diversification B. Horizontal diversification C. Conglomerate diversification D. None of these options
Last Answer : Concentric diversification
Description : For intensive growth, the company first considers whether it could gain more market share with its current products in their current market, using the following…. A. Market-penetration strategy B. Market development strategy C. Product-development strategy D. Diversification strategy
Last Answer : Market-penetration strategy
Description : Mr. Singh has decided to expand his store hours and offer discounted pricing on his existing line of pet supplies. Which strategy is he considering? A. Market penetration B. Diversification C. Product development D. Promotions
Last Answer : Market penetration
Description : A film company and a music recording company may choose to combine, believing that the result will be more effective than the sum of the two component parts. What term is used for the benefits? A. Synergy B. Diversification C. Integration D. Consolidation
Last Answer : Synergy
Description : What term is used for corporate development beyond current products and markets, but within the capabilities or the value network of the organisation? A. Backward integration B. Related diversification C. Vertical integration D. Divergent diversification
Last Answer : Related diversification
Description : Business Unit Level Strategy decides…. A. ‘How’ to compete in an industry? B. How to create and maintain competitive advantage in selected industry. C. All of these options are correct D. Industry specific diversification strategies
Last Answer : All of these options are correct
Description : Corporate Level Strategy decides… A. ‘How’ to compete in an industry? B. How to create and maintain competitive advantage in selected industry. C. Industry specific diversification strategies. D. None of these two options are correct
Last Answer : None of these two options are correct