<<12345678910111213141516171819202122232425262728293031323334353637383940>> 1. When dealing with cross currency transactions, what should be considered for currency conversion rates?Spot rateForward contract rateCurrent exchange rateFuture exchange rateQuestion 1 of 40 2. What is the rate used for contracting for a future date in foreign currency transactions?Spot rateForward contract rateCurrent exchange rateFuture exchange rateQuestion 2 of 40 3. How much can an individual annually send under the Liberalised Remittance Scheme (LRS) in India?USD 1,00,000USD 2,00,000USD 2,50,000USD 3,00,000Question 3 of 40 4. What principle does an investor usually follow for a reasonable and steady return?LeverageDiversificationSpeculationAgglomerationQuestion 4 of 40 5. 3 In long-term investments, what may result in higher risk due to uncertainty in the political or economic field?DiversificationSpeculationCapital appreciationBarriersQuestion 5 of 40 6. In efficient management of foreign portfolio, what does it heavily depend on?SpeculationAsset allocationDiversificationLeverageQuestion 6 of 40 7. What is a way to hedge against exchange rate fluctuations based on planned acquisitions or exits?CAPMADRETFGDRQuestion 7 of 40 8. Which of the following is a direct investment channel for international investment?American Depository Receipts (ADRs)Exchange-Traded Funds (ETFs)Mutual fundsGlobal Depository Receipts (GDRs)Question 8 of 40 9. Which method is used for pricing a particular security or investment product?CAPMAPTBetaMarket Risk PremiumQuestion 9 of 40 10. What does Beta measure in finance?Co-variance with the marketVolatility of a securityCo-variance with the industryMarket risk premiumQuestion 10 of 40 11. What is the formula for calculating the Cost of Equity in CAPM?rf + BL × (rm - rf)rf - BL × (rm - rf)rf × (rm - BL)rf × (rm + BL)Question 11 of 40 12. Which factor affects the Market Risk Premium in CAPM?Inflation rateRisk-free rateExpected returnDividend yieldQuestion 12 of 40 13. What is the underlying assumption of CAPM regarding future cash flows?They are accurately forecastedThey are not relevantThey are uncertainThey are constantQuestion 13 of 40 14. Which approach converts all project cash flows into the home currency (rupee)?Spot rate approachForward contract approachHome currency approachForeign currency approachQuestion 14 of 40 15. In the Foreign Currency Approach, how are project cash flows discounted?Using the domestic risk-adjusted discount rateUsing the foreign currency discount rateUsing the spot rateUsing the forward contract rateQuestion 15 of 40 16. What factors does the Arbitrage Pricing Theory (APT) consider to calculate expected asset returns?Security returns and market returnsMacroeconomic factors and variablesInterest rates onlyDividend yields onlyQuestion 16 of 40 17. Which of the following is not an international investment option?Global Mutual FundsNational Pension Scheme (NPS)American Depository Receipts (ADRs)Exchange-Traded Funds (ETFs)Question 17 of 40 18. What does the Cost of Equity (re) in CAPM represent?Expected return on the marketRisk-free rateExpected return on the investmentExpected dividend yieldQuestion 18 of 40 19. What is the measure of volatility or systemic risk compared to the market in CAPM?BetaAlphaGammaDeltaQuestion 19 of 40 20. What does GDP stand for in the context of Arbitrage Pricing Theory (APT)?Gross Domestic ProductGlobal Development PotentialGeneral Demand PreferenceGeneral Dynamic PricingQuestion 20 of 40 21. What does ADR stand for in international investment options?American Depository ReceiptsAsset Deposit RatioAsset Development RateAmerican Dividend ReturnQuestion 21 of 40 22. Which investment option allows for online investing through intermediaries?Mutual fundsExchange-Traded Funds (ETFs)American Depository Receipts (ADRs)Global Depository Receipts (GDRs)Question 22 of 40 23. What does CAPM stand for in finance?Capital Asset Pricing ModelCapital Allocation Process ManagementCost and Profitability Analysis ModelComprehensive Asset Pricing MethodQuestion 23 of 40 24. What does the Beta measure in the CAPM formula?Volatility or systemic risk compared to the marketExpected return on the marketRisk-free rateExpected return on the investmentQuestion 24 of 40 25. What does the Asset Pricing Theory (APT) use to calculate expected asset returns?Macroeconomic factors and variablesSecurity returns onlyMarket returns onlyMicroeconomic factors and variablesQuestion 25 of 40 26. Which approach uses the actual/estimated spot rate to convert cash flows to the home currency?Home currency approachForeign currency approachSpot rate approachForward contract approachQuestion 26 of 40 27. In the Foreign Currency Approach, what is used to convert the present value of discounted cash flows into the home currency?Forward contract rateSpot rateRisk-adjusted discount rateFuture exchange rateQuestion 27 of 40 28. What is the measure of co-variance between the rate of return on a company's stock and the return on the overall market in finance?BetaAlphaDeltaGammaQuestion 28 of 40 29. Which of the following is NOT a direct investment channel for international investment?American Depository Receipts (ADRs)Exchange-Traded Funds (ETFs)Foreign Direct InvestingGlobal Mutual FundsQuestion 29 of 40 30. What does the Market Risk Premium represent in the CAPM formula?The difference between expected return and the risk-free rateThe expected return on an investmentThe expected rate of return on a risk-free investmentThe difference between the market return and the risk-free rateQuestion 30 of 40 31. What is the primary assumption underlying the CAPM regarding future cash flows?Future cash flows are accurately forecastedFuture cash flows are constantFuture cash flows are irrelevantFuture cash flows are uncertainQuestion 31 of 40 32. What does APT stand for in finance?Arbitrage Pricing TheoryAsset Pricing TheoryAsset Portfolio TestArbitrage Pricing TestQuestion 32 of 40 33. Which of the following is NOT an international investment option?American Depository Receipts (ADRs)Global Depository Receipts (GDRs)National Pension Scheme (NPS)Exchange-Traded Funds (ETFs)Question 33 of 40 34. What does the Beta measure in finance?Volatility or systemic risk compared to the marketMarket risk premiumRisk-free rateExpected return on the marketQuestion 34 of 40 35. In the Foreign Currency Approach, what is used to convert the present value of discounted cash flows into the home currency?Forward contract rateSpot rateRisk-adjusted discount rateFuture exchange rateQuestion 35 of 40 36. Which factor is NOT considered in the Arbitrage Pricing Theory (APT) for calculating expected asset returns?Interest ratesMacroeconomic factors and variablesSecurity returnsMarket returnsQuestion 36 of 40 37. What is the measure of volatility or systemic risk compared to the market in CAPM?BetaAlphaDeltaGammaQuestion 37 of 40 38. Which approach converts all project cash flows into the home currency (rupee)?Spot rate approachForward contract approachHome currency approachForeign currency approachQuestion 38 of 40 39. In the Foreign Currency Approach, how are project cash flows discounted?Using the domestic risk-adjusted discount rateUsing the foreign currency discount rateUsing the spot rateUsing the forward contract rateQuestion 39 of 40 40. What does the Cost of Equity (re) in CAPM represent?Expected return on the marketRisk-free rateExpected return on the investmentExpected dividend yieldQuestion 40 of 40 Loading...