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Finance → Corporate Finance Online Test MCQs from 56 to 60

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**56.** Suppose our portfolio consists of two stocks A and B. What should be the correlation between them so that we have no risk in our portfolio?

(A) –1

(B) 0

(C) 1

(D) risk cannot be eliminated

**57.** In the beginning, some companies receive equity investment from wealthy individuals. The wealthy individuals are called

(A) angel investors

(B) corporate investors

(C) venture capitalists

(D) venture capital firms

**58.** Firms that invest in new companies as they try to grow are called

(A) spinning

(B) underwriters

(C) venture capitalists

(D) venture capital firms

**59.** An investor will receive $5,000 and $10,000 after one and two years from today respectively. If the interest rate during this period is 10% then what is the present value of this cash flow?

(A) $12000

(B) $12450

(C) $12810

(D) $13705

**60.** What is volatility if the duration of a bond is 4 years and yield to maturity is 8%?

(A) 3.1%

(B) 3.4%

(C) 3.7%

(D) 4.0%

**ANSWERS: CORPORATE FINANCE ONLINE TEST MCQS**

56. (A) –1

57. (A) angel investors

58. (D) venture capital firms

59. (C) $12810

60. (C) 3.7%