3. __________ security is known as variable income security.
A) Debentures. B) Preference shares. C) Equity shares. D) None of these.
4. Risk-return trade off implies_____________.
A) Increasing the portfolio of the firm through increased production. B) Not taking any loans which increases the risk. C) Not granting credit to risky customers. D) Taking decision in such a way which optimizes the balance between risk and return.
5. The major benefit of diversification is to____________.
A) Increase the expected return. B) Increase the size of the investment portfolio C) Reduce brokerage commissions. D) Reduce the expected risk.
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