Binomial approach quiz questions, binomial approach MCQs with answers, financial management test prep 46 to learn finance courses for business administration degree online. Financial options and applications in corporate finance quiz questions and answers, binomial approach multiple choice questions (MCQs) to practice finance test with answers for online colleges and universities courses. Learn binomial approach MCQs, investment returns calculations, financial options, risk in portfolio context, binomial approach test prep for accounting certifications.

Learn binomial approach test with multiple choice question (MCQs): second step in binomial approach of option pricing is to define range of values, with choices at expiration, at buying date, at exchange closing time, and at exchange opening time for business degree online classes. Learn financial options and applications in corporate finance questions and answers for problem-solving, merit scholarships assessment test for accounting certifications.

Binomial Approach Quiz

MCQ: Second step in binomial approach of option pricing is to define range of values

1. at expiration
3. at exchange closing time
4. at exchange opening time

A

Risk in Portfolio Context Quiz

MCQ: Risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as

1. stock risk
2. portfolio risk
3. diversifiable risk
4. market risk

C

Financial Options Quiz

MCQ: An increase in value of option leads to low present value of exercise cost only if it has

1. low volatility
2. interest rates are high
3. interest rates are low
4. high volatility

B

Investment Returns Calculations Quiz

MCQ: An amount invested is \$4000 and dollar return is \$300 then rate of return will be

1. 4300
2. 3700
3. 0.075
4. 0.00075

C

Risk in Portfolio Context Quiz

MCQ: In capital asset pricing model, stock with high standard deviation tend to have

1. low variation
2. low beta
3. high beta
4. high variation

B