

Management Sciences MCQs
These Management Sciences MCQs are for public service commission exams and BBA, and MBA students to prepare for their examinations. All MCQs are prepared after having a look at past papers of public service commission examinations held from time to time. These Management Science questions are very important for all types of tests conducted by FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, STS, ETEA, and other testing agencies of Pakistan.
All assets are perfectly divisible and liquid in___________?
A: Tax free pricing model
B: Cost free pricing model
C: Capital asset pricing model
D: Stock pricing model
Capital asset pricing model
Betas tend to move towards 1.0 with passage of time are classified as__________?
A: Standard betas
B: Varied betas
C: Historical betas
D: Adjusted betas
Adjusted betas
In capital asset pricing model, characteristic line is classified as____________?
A: Regression line
B: Probability line
C: Scattered points
D: Weighted line
Regression line
A theory which states that assets are traded at price equal to its intrinsic value is classified as___________________?
A: Efficient money hypothesis
B: Efficient market hypothesis
C: Inefficient market hypothesis
D: Inefficient money hypothesis
Efficient market hypothesis
Type of relationship exists between an expected return and risk of portfolio is classified as___________?
A: Non-linear
B: Linear
C: Fixed and aggregate
D: Non-fixed and non-aggregate
Linear
In capital asset pricing model, assumptions must be followed including________?
A: No taxes
B: No transaction costs
C: Fixed quantities of assets
D: All of above
All of above
Stock issued by company have lower rate of return because of___________?
A: High market to book ratio
B: Low book to market ratio
C: Low market to book ratio
D: High book to market ratio
Low book to market ratio
Positive minimum risk portfolio of any security shows that market security sold____________?
A: Equal to original price
B: Equal to sum of stocks
C: Less than original price
D: Greater than original price
Greater than original price
Risk affects any firm with factors such as war, recessions, inflation and high interest rates is classified as____________?
A: Diversifiable risk
B: Market risk
C: Stock risk
D: Portfolio risk
Market risk
An analysis of decision making of investors and managers is classified as_________?
A: Riskier finance
B: Behavioral finance
C: Premium finance
D: Buying finance
Behavioral finance
