Question 2b: "The increase in the risk-premium of all stocks, irrespective of
their beta is the same when risk aversion increases" Comment with
The security's beta is a function of the correlation of the security's returns wi
INTRODUCTION TO FINANCIAL MANAGEMENT
1. Introduction to financial management : Evolution. Meaning. Importance. Scope and objective of
financial management. Conflicts in principles of profits V/S Value Maximization
2. Capital Budgeting : Nature of investme
b) What statistical test should you use?
Ans b. Binomial test
A one sample binomial test allows us to test whether the proportion of successes on a two-level categorical dependent variable
significantly differs from a hypothesized value. For example, usin
Food Mania is a chain of fast food restaurants located in major metropolitan areas in the south. Sales have been growing
very slowly for the last two years. Management has decided to add some new items to the menu, but first they want to know more
5. Describe the appropriate target population and the sampling frame in each of the following situations:
a) The manufacturer of a new cereal brands want to conduct in home product usage test in Chicago.
b) A national chain store wants to determine the sh
After receiving some complaints from readers, your campus newspaper decides to redesign its front page. Two new formats B
and C were developed and tested against the current format, A. A total of 75 students were randomly selected and 25 students
b research design is appropriate) What kind of? Why?
A.b. Questionnaire: It can used to know the preference of the customer to get the feedback from customers and appropriate to
make the changes according to customers need. Questionnaire is a best method
What are the degrees of freedom associated with the test statistic?
Ans C). Instatistics, the number ofdegrees of freedomis the number of values in the final calculation of a statistic that are free to
vary. Estimates of statistical parameters can be base
Question 4a: Define various concepts of cost of capital. Explain the
procedure of calculating weighted average cost of capital.
Concepts of Cost of Capital:
a) All source of finance have its own cost. Out of long source finance, equity mode of
1. Law of Contract - 1872
a) Nature of Contract b) Classification of Contracts
c) Offer & Acceptance d) Capacities of Parties to Contract
e) Free Consent f) Consideration
g) Legality of Object g) Agreement declared Void
i) Performance of Contract j) Disch