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State whether the following statements are True or False :

@ Economic Value Added (EVA) is equal to after-tax operating profits of a firm less the
cost of funds used to finance investments

Gi) In wealth maximisation perspective, “Measuring benefits in terms of cash flows avoids
the ambiguity associated with accounting profits”
(A) Statement (i) is true and Statement (ii) is false
(B) Statement (i) is false and Statement (ii) is true
(C) Both Statements are False
(D) Both Statements are True

The Statistical Measure of risk of an asset is :
(^) Range (B) Standard Deviation
(C) Mean (D) Mode

Which one is NOT a primary motive for maintaining cash balance?
(A) Investment Motive (B) Transaction Motive

(C) Precautionary Motive (D) Speculative Motive

State whether the following statements are True or False :

@ European Call option can be exercised at any time up to expiration.

(ii) Call option entitles the holder the right but not the obligation to buy securities.
(^) Both statements are False

(B) Both statements are True
(C) Statement (i) is False and Statement (ii) is True

(D) Statement (i) is True and Statement (ii) is False

“Bird-in-hand Argument” on dividend theory was developed by :
(^) Modigliani-Miller (B) James E. Walter
(C) Richardson (D) M. Gordon

Which one among the following is NOT a money market instrument?
(^) National Savings Certificate (B) Certificate of Deposit
(C) Commercial Paper (D) Treasury Bill

In an efficient market correlation coefficient between stock returns for two non-overlapping
period is :

(A) Positive and large (B) Negative and large

(C) Positive and Small (D) Zero

5 193/2023
[P.T.0.]