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z Medical Questions

Your Question
Question No: 1
Which one of the following motives refers to the need for holding cash to satisfy normal disbursement and collection activities associated with a firm s ongoing operations?
a)Speculative motive
b)Transaction motive
c)Precautionary motive
d)Personal motive

Question No: 2
What would be the standard deviation of returns for an investment that has a variance of 0.008 ?
0.08944
0.09101
0.09487
0.10521

Question No: 3
Which of the following statement is INCORRECT regarding financial leverage ?
a)Financial leverage can dramatically alter the payoffs to the shareholders.
b)Financial leverage refers to the extent to which a firm relies on the debt.
c)Financial leverage must affect the overall cost of capital in any condition.
d)Financial leverage may not affect the overall cost of capital.

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