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ms3034_2024T3_Q1_NA.pdf

Corporate Finance · Quiz 1 · Sep 2024

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Question 246 NAT · 2.0 marks

In a semantic role labeling evaluation, a model has identified 100 correct semantic roles out of 120 total semantic roles it predicted. What is the precision of the model as a decimal (rounded to two decimal places)?

    A published solution is not available for this question yet.

    Question 248 MCQ · 4.0 marks

    Consider a bond which pays 500 units in 5 years and 1000 units in 10 years. What is the maturity and duration of the bond, respectively?
    1. 10 years, 10 years
    2. 5 years, 5 years
    3. 10 years, 8.33 years
    4. 5 years, 8.33 years

    A published solution is not available for this question yet.

    Question 249 MCQ · 4.0 marks

    [[IMAGE:51aab65707830123_3_0]]
    Source diagram or notation
    1. -15.73%
    2. -18.67%
    3. 15.73%
    4. 18.67%

    A published solution is not available for this question yet.

    Question 250 MCQ · 4.0 marks

    Assume Shyam earns Rs. 10000 in period 1 and Rs 12000 in period 2. He spends his earnings on consumption in period 1 and period 2. The prices of consumption in period 1 and period 2 are the same (equal to 1). If prevailing interest rate is 10% then the slope of the intertemporal budget constraint is
    1. 1.10
    2. 0.91
    3. -0.91
    4. -1.10

    A published solution is not available for this question yet.

    Question 251 MCQ · 4.0 marks

    The current average price level of goods in the economy of Godzilla is 80 units. The prevailing nominal interest rate is 10%. If expected price level in the next period is 90 units, then the real interest rate in the economy is (approximately)
    1. 8.89%
    2. 12.5%
    3. -2.5%
    4. -1.11%

    A published solution is not available for this question yet.

    Question 252 MCQ · 4.0 marks

    A company with a AAA bond rating will command a higher interest rate on its bonds than a company with lesser BBB bond rating.
    1. True
    2. False

    A published solution is not available for this question yet.

    Question 253 MCQ · 4.0 marks

    [[IMAGE:51aab65707830123_4_1]]
    Source diagram or notation
    1. 25%
    2. 20%
    3. 16%
    4. 4%

    A published solution is not available for this question yet.

    Question 254 MCQ · 4.0 marks

    [[IMAGE:51aab65707830123_5_2]]
    Source diagram or notation
    1. 20 units
    2. 64 units
    3. 80 units
    4. 96 units

    A published solution is not available for this question yet.

    Question 255 MCQ · 4.0 marks

    A basis point is equal to
    1. One percent
    2. One-tenth of one percent
    3. One-hundredth of one percent
    4. One-half of one percent

    A published solution is not available for this question yet.

    Question 256 MCQ · 4.0 marks

    What is the term for a graphical representation of the relationship between interest rates and the maturities of debt securities?
    1. GDP growth
    2. Maturity chart
    3. Yield curve
    4. Inflationary expectations

    A published solution is not available for this question yet.

    Question 257 MCQ · 4.0 marks

    What should be the rate of interest per year so that your money triples in 15 years?
    1. 5.42%
    2. 12.50%
    3. 7.60%
    4. 20.00%

    A published solution is not available for this question yet.

    Question 258 MCQ · 4.0 marks

    An investment is expected to yield Rs 3000 in three years, Rs 5000 in 5 years, and Rs 7000 in seven years. What is the present value of this investment if the constant rate of interest is 10% annually? (Rounded off to the nearest integer)
    1. Rs 15000
    2. Rs 11598
    3. Rs 10000
    4. Rs 8951

    A published solution is not available for this question yet.

    Question 259 MCQ · 4.0 marks

    [[IMAGE:51aab65707830123_6_3]]
    Source diagram or notation
    1. Rs 162,209
    2. Rs 189,467
    3. Rs 220,710
    4. Rs 268,754

    A published solution is not available for this question yet.

    Question 260 MCQ · 4.0 marks

    Which of the following statements about bubbles is correct?
    1. A bubble occurs when the fundamental value of a share rises too quickly.
    2. A bubble is less likely to occur in a market where people can easily switch from buying to selling.
    3. Momentum trading strategies make bubbles more likely to occur.
    4. A bubble can never occur in financial markets as trades take place very frequently.

    A published solution is not available for this question yet.

    Question 261 MCQ · 4.0 marks

    Suppose an asset earns an annual interest rate of 8% which is continuously compounded. If asset sells for 100 units today, what will be its value after 2 years?
    1. 108.34
    2. 116.64
    3. 117.35
    4. 121.65

    A published solution is not available for this question yet.

    Question 262 MCQ · 4.0 marks

    What is the present value of a cash flow stream that pays Rs 3000 next year, grows at a rate of 3% per year thereafter and faces a cost of capital of 9% per year?
    1. Rs 100,000
    2. Rs 50,000
    3. Rs 33,333
    4. Rs 9,000

    A published solution is not available for this question yet.

    Question 263 MCQ · 4.0 marks

    You discover an antique in your attic that your father purchased 30 years ago for Rs 400. You auction it and receive Rs 80,000 for this item today. What is the annualized rate of return that you earned?
    1. 6.67%
    2. 11.67%
    3. 19.32%
    4. 26.54%

    A published solution is not available for this question yet.

    Question 264 MCQ · 4.0 marks

    You believe in the power of compounding and decide to save Rs 100 per day by avoiding the junk foods. You deposit the Rs 100 at the end of each day in a bank account that pays 8% annual interest compounded daily. How much money will you have in 5 years, assuming 365 days per years? (use banking convention: daily interest rate = r/365) (Rounded off to the nearest integer)
    1. Rs 182,500
    2. Rs 214,131
    3. Rs 224,365
    4. Rs 254,689

    A published solution is not available for this question yet.

    Question 265 MCQ · 4.0 marks

    The LIC stock is trading at Rs 400 today. LIC is expected to pay dividend of Rs 30 per share next year. If the growth rate of LIC dividend is 4% every year and appropriate rate of return is 10% per year, then according to the Gordon growth model
    1. The LIC stock is underpriced, and an investor should buy LIC shares.
    2. The LIC stock is overpriced, and an investor should buy LIC shares.
    3. The LIC stock is underpriced, and an investor should sell LIC shares.
    4. The LIC stock is overpriced, and an investor should sell LIC shares.

    A published solution is not available for this question yet.

    Question 266 MCQ · 4.0 marks

    Suppose an investment cost 5,000 today and pays off Rs 3,000 in the next year and Rs 4,000 in two years. What is the internal rate of return on this investment?
    1. 24.34%
    2. 40%
    3. 33.33%
    4. 18.56%

    A published solution is not available for this question yet.

    Question 267 MCQ · 4.0 marks

    Which of the following statements is correct regarding internal rate of return (IRR)?
    1. The internal rate of return can be computed for every type of project.
    2. The internal rate of return can never be zero.
    3. Every project has a unique internal rate of return.
    4. The IRR capital budgeting rule may give different answer than the NPV capital budgeting rule.

    A published solution is not available for this question yet.

    Question 268 MCQ · 4.0 marks

    There is a project which requires an initial investment of 500 units today. This project pays off 500 units after 5 years, 500 units after 10 years and 500 units after 15 years. If the prevailing constant interest rate in the economy is 10% then what is the profitability index of the project?
    1. 122.93
    2. 3.56
    3. 1.25
    4. 0.80

    A published solution is not available for this question yet.

    Question 269 MCQ · 4.0 marks

    Consider the following three projects which have initial cost of Rs 1000 today: Project 1: It pays out Rs. 500 next year and Rs 1000 two years from today. Project 2: It pays Rs. 100 starting next year and pays the same amount for 50 years. Project 3: It pays Rs. 4000 five years from today. There are no interim payments. Assume that the prevailing interest rate is 5%. Which project has the least payback period?
    1. Project 1
    2. Project 2
    3. Project 3
    4. All three projects have same payback period.

    A published solution is not available for this question yet.

    Question 270 MCQ · 4.0 marks

    A project earns a total of 50% return in two years. If annual return in the first year is 30%, then what is the annual return in the second year? (Round off to nearest integer)
    1. 30%
    2. 25%
    3. 20%
    4. 15%

    A published solution is not available for this question yet.

    Question 271 MCQ · 4.0 marks

    What is the annualized rate of return of an investment of 100 units that promises to return 200 units in 10 years?
    1. 10%
    2. 7.18%
    3. 5.97%
    4. 3.76%

    A published solution is not available for this question yet.

    Question 272 MCQ · 4.0 marks

    A financial advisor tells you that you can become a millionaire if you start investing early. You start to deposit 25,000 units every year in a savings account which earns 8% annual interest. What is the earliest year at which your account balance reaches a million units? (Assume you don’t make any withdrawals in between)
    1. 40
    2. 25
    3. 19
    4. 15       **LLM** **Section Id :** 64065369323 **Section Number :** 14 **Section type :** Online **Mandatory or Optional :** Mandatory **Number of Questions :** 10

    A published solution is not available for this question yet.