What are the factors which make debentures attractive to investors?
A). They enjoy a high order of priority in the event of liquidation
B). Stable rate of return
C). No risk
D). All of the above
Diversification reduces _________.
A). Interest rate risk
B). Market risk
C). Unique risk
D). Inflation risk
Which of the following characteristics are true, with reference to preference capital?
A). Preference dividend is not tax deductible
B). The claim of preference shareholders is prior to the claim of equity shareholders
C). Preference shareholders are not the owners of the concern
D). All of the above
Asset allocation affects the investor's return by______________.
A). altering the returns on individual assets
B). weighting the portfolio return by the allocation
C). assuring diversification
D). increasing the investor's use of mutual funds
Which of the following methods does a firm resort to avoid dividend payments?
A). Share splitting
B). Declaring bonus shares
C). Rights issue
D). New issue