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3 years ago

One primary focus of substantive tests in the finance and investment cycle is on:

1 answer:

3 0

This Finance Test is designed to help you assess your knowledge on important finance concepts, terminology definitions, and frequently used calculations. We strongly encourage any students who are planning or are beginning their FMVA certification program to take this test to determine whether you will need to take the prerequisite finance courses including Reading Financial Statements, Introduction to Corporate Finance, and Math for Corporate Finance. This is also a useful resource for employers to examine the technical knowledge of the candidates during a finance interview.

If you pass this test with 80% or above (16 questions or more), it is likely that you have a strong background in finance and are good to go ahead with our core courses!

Finance Test Questions

1. The concept of present value relates to the idea that*

The discount rate is always higher when you invest now than in the future

The discount rate is always higher when you invest in the future than now

The money you have now is worth less today than an identical amount you would receive in the future

The money you have now is worth more today than an identical amount you would receive in the future

2. The formula for calculating future value (FV) is*

FV = PV/(1+r)^n

FV = PV/(1+r)*n

FV = PV x (1+r)^n

FV = PV x (1+r)*n

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What is a firm's gross profit? A. the difference between sales revenues and cash expenditures associated with those sales B. t

miv72 [106K]

Answer:

B. The difference between sales revenues and the costs associated with those sales

Explanation:

The amount of profit made by the company after deducting the total costs which have been incurred in the making and the selling of the product is said to be gross profit. The gross profit is calculated by subtracting the amount of revenue and the cost of the goods sold. Fixed cost is not included in the gross profit. It includes only variable costs.

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3 years ago

What is it about incentive systems that makes them so attractive to leaders attempting to implement organizational change

sveticcg [70]

Answer:

Incentive systems are so attractive to leaders who attempt to implement organizational change because they are powerful tools that can influence and motivate workers to embrace organizational change.

Explanation:

Incentive systems promote and encourage specific workers' actions or behavior. They are particularly used in businesses to motivate employees to adopt certain behaviors during a change transition by management. Studies have shown that if correct incentive systems are correctly selected, implemented, and monitored, they can increase team performance by an average of 44 percent. This improved performance makes incentive systems attractive to leaders who are implementing organizational changes.

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3 years ago

You have a portfolio that is equally invested in Stock F with a beta of 1.08, Stock G with a beta of 1.45, and the market. What

Aliun [14]

Answer:

1.265

Explanation:

According to the situation, the solution of the beta of portfolio is as follows

Beta portfolio = (weightage of investment F × beta F) + (proportion of investment G ×beta G)

Beta protfolio = (0.5 × 1.08) + (0.5 × 1.45)

= 0.54 + 0.725

= 1.265

Hence, the beta of your portfolio is 1.265 by applying the above formula

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4 years ago

Suppose Musashi and Rina are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix

natulia [17]

Answer:

a) Dominant strategy is for Rina to choose Right.

b) Musashi chooses left and Rina chooses right

Explanation:

As per the data given in the question,

a).

A winning strategy is the tactic a player selects regardless of the tactic other player selects.

When Rina selects left, Musashi selects right because (7>4)

When Rina selects right, Musashi selects left because (6>4)

When Musashi selects left, Rina selects right because (6>1)

When Musashi selects left, Rina selects right because (7>6)

So only dominant strategy is for Rina to choose Right

In a Nash equilibrium, the players decide their strategies taking in consideration other strategy.

Hence, Musashi chooses left and Rina chooses right, (payoff: 6,1)

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3 years ago

Which account would you have a debit card linked to?

yulyashka [42]

D) checking account

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3 years ago