Ques No.1: The normalized version of covariance is called
Ques No.2: 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?
Ques No.3: In the beginning, some companies receive equity investment from wealthy individuals. The wealthy individuals are called
Ans: Angel Investors
Ques No.4: Firms that invest in new companies as they try to grow are called
Ans: Venture capital firms
Ques No.5: 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?
Ques No.6: What is volatility if the duration of a bond is 4 years and yield to maturity is 8%?
Ques No.7: The success of a new company critically depends on
Ques No.8: Companies go public in order to
Ans: Raise more cash
Ques No.9: Companies go public with the help of
Ques No.10: If beta of a stock is________then it tends to amplify the overall market movement.
Ans: greater than 1