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math & puzzles Online Quiz - 1

Description: math & puzzles Online Quiz - 1
Number of Questions: 20
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Tags: math & puzzles
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A: I am older than B.B: I am older than C.C: I am older than A.If B is telling lie, who is the youngest and the oldest (respectively)?

  1. B and C

  2. C and B

  3. B and either A or C

  4. Data Insufficient


Correct Option: A
  1. A tells the truth and B lies

  2. B tells the truth and A lies

  3. Both A and B are telling the truth

  4. Statements are wrong as they are Contradictory


Correct Option: D

An analyst has calculated the following ratios for a company: Number of days of receivables 48 Number of days of inventory 37 Number of days of payables 28 The cash conversion cycle for the company is closest to:

  1. 57 days

  2. 85 days

  3. 113 days

  4. 65


Correct Option: A

AI Explanation

To answer this question, we need to understand the concept of the cash conversion cycle (CCC). The CCC measures the time it takes for a company to convert its resources into cash flow. It is calculated by adding the number of days of inventory and the number of days of receivables and subtracting the number of days of payables.

Given: Number of days of receivables: 48 Number of days of inventory: 37 Number of days of payables: 28

To calculate the cash conversion cycle (CCC), we use the following formula:

CCC = Number of days of inventory + Number of days of receivables - Number of days of payables

Substituting the given values, we get:

CCC = 37 + 48 - 28 CCC = 57

Therefore, the cash conversion cycle for the company is closest to 57 days.

The correct answer is A.

  1. less liquidity and less emphasis on capital appreciation

  2. more liquidity and less emphasis on capital appreciation.

  3. less liquidity and greater emphasis on capital appreciation

  4. none of the above


Correct Option: B

Which of the following statements regarding the Markowitz efficient frontier is least likely to be correct? The optimal portfolio for:

  1. an investor is the portfolio that lies on the efficient frontier and provides her with the greatest level of utility.

  2. an investor is found at the point of tangency between the efficient frontier and an investor’s highest utility curve.

  3. a more risk-averse investor will lie inside the efficient frontier but will lie outside the efficient frontier for a less risk-averse investor.

  4. none of the above


Correct Option: C

AI Explanation

To answer this question, let's go through each option to understand why it is correct or incorrect:

Option A) The optimal portfolio for an investor is the portfolio that lies on the efficient frontier and provides her with the greatest level of utility.

This option is correct. The efficient frontier represents a set of portfolios that offer the highest expected return for a given level of risk. The optimal portfolio for an investor is the one that maximizes their utility (satisfaction) based on their risk and return preferences. Therefore, this statement is likely to be correct.

Option B) The optimal portfolio for an investor is found at the point of tangency between the efficient frontier and an investor’s highest utility curve.

This option is correct. The point of tangency between the efficient frontier and an investor's highest utility curve represents the optimal portfolio for that investor. This is where the investor's risk and return preferences align with the available investment opportunities on the efficient frontier.

Option C) A more risk-averse investor will lie inside the efficient frontier but will lie outside the efficient frontier for a less risk-averse investor.

This option is incorrect. A more risk-averse investor will actually lie on a lower portion of the efficient frontier, where portfolios have lower expected returns but also lower levels of risk. A less risk-averse investor will lie on a higher portion of the efficient frontier, where portfolios have higher expected returns but also higher levels of risk. Therefore, this statement is least likely to be correct.

Option D) None of the above.

This option is incorrect because option C is least likely to be correct.

The correct answer is C. This option is least likely to be correct because it incorrectly states that a more risk-averse investor will lie inside the efficient frontier but will lie outside the efficient frontier for a less risk-averse investor.

  1. positive correlation of commodities with unexpected inflation

  2. positive correlation of commodities with stock and bond investments.

  3. positive volatility of commodities relative to stock and bond investments

  4. none of the above


Correct Option: A
  1. 1

  2. 2

  3. Both 1 and 2

  4. None of Them


Correct Option: C
Explanation:

To solve this problem, the user needs to know the capacities of each can and how to divide the milk among the cans to obtain the desired quantities.

Statement 1: It is possible to have 6 litres of milk each in can A and can B. To obtain 6 litres of milk in can A and can B, we can follow the following steps:

  • Pour 6 litres of milk from can C into can A.
  • Pour 4 litres of milk from can A into can B.
  • Pour 2 litres of milk from can C into can A.
  • Pour 4 litres of milk from can A into can B.

After following these steps, can A will have 4 litres of milk, can B will have 6 litres of milk, and can C will have 10 litres of milk. Therefore, statement 1 is true.

Statement 2: It is possible to have 8 litres of milk each in can B and can A. To obtain 8 litres of milk in can A and can B, we can follow the following steps:

  • Pour 10 litres of milk from can C into can B.
  • Pour 2 litres of milk from can B into can A.
  • Pour 4 litres of milk from can C into can B.
  • Pour 2 litres of milk from can B into can A.

After following these steps, can A will have 4 litres of milk, can B will have 8 litres of milk, and can C will have 12 litres of milk. Therefore, statement 2 is true.

Since both statements are true, the answer is:

The Answer is: C. Both 1 and 2.

A company has just issued $5 million of mandatory redeemable preferred shares with a par value of $100 per share and a 7 percent dividend. The issue matures in 5 years. Which of the following statements is least likely correct? The company’s:

  1. Debt/Total capital ratio will improve.

  2. interest coverage ratio will deteriorate.

  3. preferred shareholders will rank below debt holders should the company file for bankruptcy.

  4. none of the above


Correct Option: A
Explanation:

To answer this question, let's go through each option to understand why it is correct or incorrect:

Option A) Debt/Total capital ratio will improve. This option is incorrect because when the company issues preferred shares, it increases its total capital. As a result, the debt/total capital ratio will actually deteriorate, not improve.

Option B) Interest coverage ratio will deteriorate. This option is correct. The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. When the company issues preferred shares with a fixed dividend, it adds an additional fixed expense to its financial obligations. This can reduce the company's ability to cover its interest expenses and therefore lead to a deterioration in the interest coverage ratio.

Option C) Preferred shareholders will rank below debt holders should the company file for bankruptcy. This option is correct. In the event of bankruptcy, debt holders have a higher priority in receiving their claims compared to preferred shareholders. Debt holders have a legal claim on the assets of the company and are typically paid first before any distributions are made to preferred shareholders.

Option D) None of the above. This option is incorrect because option A is least likely to be correct, as explained above.

The correct answer is A) Debt/Total capital ratio will improve. This option is least likely to be correct because issuing preferred shares increases total capital and therefore deteriorates the debt/total capital ratio.

Therefore, the correct answer is A) Debt/Total capital ratio will improve.

A father said to his son, "I was as old as you are at the present at the time of your birth". If the father's age is 38 years now, the son's age five years back was:

  1. 14

  2. 19

  3. 33

  4. 38


Correct Option: A
  1. Strike price.

  2. Variability of the stock price.

  3. Option's time to maturity.

  4. All of the above.


Correct Option: D

An accurate clock shows 8 o'clock in the morning. Through how may degrees will the hour hand rotate when the clock shows 2 o'clock in the afternoon?

  1. 144*

  2. 150*

  3. 168*

  4. 180*


Correct Option: D

How many of the following numbers are divisible by 132 ?264, 396, 462, 792, 968, 2178, 5184, 6336

  1. 4

  2. 5

  3. 6

  4. 7


Correct Option: A
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