Financial Calculations and Investment Analysis Quiz

Test your knowledge on compound interest, CAPM, ratios, NPV, and more with these investment analysis questions!

#1

Which of the following represents the present value of a future cash flow?

Future value
Net present value
Discounted cash flow
Expected value
#2

In finance, what does the term 'CAPM' stand for?

Capital Asset Pricing Model
Cost Accounting and Profit Management
Certified Advanced Portfolio Management
Continuous Automated Performance Monitoring
#3

Which of the following is NOT a type of financial ratio?

Liquidity ratio
Efficiency ratio
Market ratio
Mass ratio
#4

What does the term 'EBITDA' represent in finance?

Earnings Before Interest, Taxes, Depreciation, and Amortization
Expenditure Before Income, Taxes, Depreciation, and Amortization
Equity-Based Income Tracking and Development Assessment
Enterprise Business Investment Tracking and Dividend Analysis
#5

Which of the following measures the efficiency of a company's use of its assets to generate revenue?

Asset turnover ratio
Leverage ratio
Liquidity ratio
Profitability ratio
#6

What is the formula for calculating the dividend yield?

Dividend yield = Dividend / Current price
Dividend yield = Current price / Dividend
Dividend yield = Dividend * Current price
Dividend yield = Dividend + Current price
#7

Which of the following is used to measure a company's profitability over a specific period?

EBITDA
ROA
ROE
Gross profit margin
#8

What does CAGR stand for in finance?

Compound Annual Growth Rate
Comprehensive Asset Growth Ratio
Cost Analysis and Growth Return
Current Asset Gross Return
#9

Which financial statement reports a company's revenues and expenses over a specific period?

Balance sheet
Income statement
Cash flow statement
Statement of retained earnings
#10

What is the formula for calculating the earnings per share (EPS) of a company?

EPS = Net income / Total assets
EPS = Net income / Number of outstanding shares
EPS = Dividend / Current price
EPS = Total revenue / Total assets
#11

What is the formula to calculate compound interest?

P = R * T
P = A / (1 + r/n)^(nt)
P = A * r * T
P = A + I
#12

Which of the following is a measure of the systematic risk of a security?

Alpha
Beta
Standard deviation
R-squared
#13

What is the purpose of a stock split?

To increase the price per share
To decrease the number of outstanding shares
To decrease the market capitalization
To increase the number of outstanding shares
#14

What does ROE stand for in finance?

Return on Equity
Rate of Exchange
Risk of Endorsement
Relative Operating Efficiency
#15

What is the formula for calculating the future value of an investment?

FV = PV * (1 + r)^n
FV = PV / (1 + r)^n
FV = PV * r * n
FV = PV + I
#16

What does the term 'IRR' stand for in finance?

Interest Rate Risk
Internal Rate of Return
Investment Risk Reduction
Income Revenue Ratio
#17

What is the formula for calculating the present value of an annuity?

PV = PMT / r
PV = PMT * (1 - (1 + r)^-n) / r
PV = PMT * r
PV = PMT + I
#18

What does P/E ratio stand for in finance?

Profit to Earnings ratio
Price to Equity ratio
Price to Earnings ratio
Profit to Equity ratio
#19

What is the formula for calculating the net present value (NPV) of an investment?

NPV = CF / r
NPV = CF / (1 + r)^n
NPV = CF * r * n
NPV = CF + I
#20

What does the term 'PEAD' stand for in finance?

Price Earnings Analysis and Determination
Post-Earnings Announcement Drift
Portfolio Evaluation and Development
Price Expectations and Determinants
#21

What does the Sharpe Ratio measure in finance?

Market volatility
Risk-adjusted return
Market liquidity
Investment duration
#22

Which of the following is NOT a component of the DuPont Analysis?

Profit margin
Asset turnover
Inventory turnover
Leverage ratio
#23

Which of the following is used to evaluate the performance of a mutual fund?

NAV
EPS
PE Ratio
Alpha
#24

Which of the following is used to measure the volatility of a security or portfolio relative to the overall market?

Alpha
Beta
R-squared
Standard deviation
#25

Which of the following is a measure of a company's liquidity?

Quick ratio
Debt-to-equity ratio
Current ratio
Asset turnover ratio

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