Test
TOPIC 2
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Preguntas del test (7)
1Which of the following would be the BEST motivator for outsourcing information technology (IT) systems?
- AInternal IT resources are stretched
- BIT is regarded as a core strategic need
- CThere is high risk of compromising confidentiality of information held on the IT system.
- DThere is high risk of the cost of systems maintenance compromising other business objectives.
2Reducing risk without any impact on business cash flows is most likely to
- ADecrease investors' required rate of return
- BDecrease the Enterprise Value
- CDecrease the PV of expected future business cash flows
- DIncrease the cost of capital
3Under CAPM, diversifiable risk: ( two answers )
- AIs also referred to as systematic risk. (systematic risk: affect all sectors)
- BIs a sector-specific but NOT firm-specific
- CIs unavoidable for most businesses
- DAffects share prices
4Which of the following statements is true?
- ARisk seeking investors expect a positive correlation between risk and expected return.
- BRisk is an inevitable result of being in business
- CMinimising all risk should be a key objective for all firms
5For a retail company, the possible loss of sales due to heavy snow forecast next week is best described as:
- ARisk
- BVolatility
- CUncertainty
- DPre-transactio exposure
6Lower borrowing interest costs will usually be achieved by:
- AIncreasing gearing
- BAccepting restrictive loan covenants
- CBootstrapping
- DActively pursuing riskier business rather than higher return
- EMaking a special dividend payment
7The average risk free interest is 2%. The FTSE world index returned minus1% last year, and similar poor equity returns are forecast for the coming year. Over the longer term, it is expected that the market risk premium will be 6%.
A company has a beta of one. Under CAPM, the company's cost of equity is?- AMinus 1%
- B1%
- C3%
- D3.5%
- E8%
Información
- Descripción
- FRM FRM Test sobre TOPIC 2, creado por f.yafai el 26/10/2013.
- Autor
- f.yafai
- Idioma
- English
- Visitas
- 26
- Historial
- Creado el 26 oct 2013 · actualizado el 19 feb 2016
- Etiquetas
- Valoración
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