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ACCA Financial Management FM Exam Practice Questions 2023 - Part 1

Mary Mary Smith
03 Mar 2023
1 min
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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.



3. Right Answer: C
Explanation:

4. Right Answer: D
Explanation:

5. Right Answer: D
Explanation:

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