Quiznetik
Security Analysis and Portfolio Management | Set 2
1. This type of risk is avoidable through proper diversification
A. Portfolio risk
B. Systematic risk
C. Unsystematic risk
D. Total risk
Correct : C. Unsystematic risk
2. Beta is the slope of
A. The security market line
B. The capital market line
C. a characteristic line
D. The CAPM
Correct : C. a characteristic line
3. A measure of risk per unit of expected return
A. standard deviation
B. Coefficient of variation
C. Correlation coefficient
D. Beta
Correct : B. Coefficient of variation
4. The greater the beta ,the security involved
A. Greater the unavoidable risk
B. Greater the avoidable risk
C. Less the unavoidable risk
D. Less the avoidable Risk .
Correct : A. Greater the unavoidable risk
5. A Statistical measure of the Degree to which two variables move together
A. Coefficient of variation
B. Variance
C. Covariance
D. Certainty equivalent
Correct : C. Covariance
6. The fundamental analysis is a method of finding out
A. Ratio
B. Value of shares
C. Tips
D. Future price of a security
Correct : D. Future price of a security
7. Which analysis provides a simplified picture of price behaviour of a shares
A. Fundamental
B. Technical
C. Ratio
D. Fund flow
Correct : B. Technical
8. Return of investment is determined by
A. Net profit
B. Capital employed
C. Net worth
D. Net profit & capital employed
Correct : D. Net profit & capital employed
9. Which leaverage helps to examine the relationship between EBIT & EPS
A. Operating
B. Financial
C. Combined
D. none
Correct : B. Financial
10. Which leaverage shows the relationship between the revenue in the account of sales and the taxable income
A. Financial
B. Operating
C. Combined
D. none
Correct : C. Combined
11. The stage of start up of an industry .
A. Pioneering
B. Rapid growth
C. Maturity
D. Decline
Correct : A. Pioneering
12. The stage when poor performers start winding up their business
A. Pioneering
B. Rapid growth
C. Maturity
D. Decline
Correct : D. Decline
13. The fundamental analysis is a method of finding out ……
A. ratio
B. Value of shares
C. Tips
D. Future price of security
Correct : D. Future price of security
14. Which analysis provides a simplified picture of price behaviour of a shares
A. Fundamental
B. Technical
C. Financial
D. Any
Correct : B. Technical
15. Return on investment is determined by …
A. Net profit
B. capital employed
C. Net worth
D. Net profit & capital employed
Correct : D. Net profit & capital employed
16. Which theory believes that the investors prefer larger to smaller returns from securities ?
A. modern
B. traditional
C. Markowitz
D. sharpe
Correct : A. modern
17. Modern portfolio theory …….. the relationship between risk and return
A. maximizes
B. minimizes
C. quantifies
D. does not assume
Correct : C. quantifies
18. Which measures the systematic or non -systematic risk of a security ?
A. Beta
B. Variance
C. standard deviation
D. Range
Correct : A. Beta
19. According to CAPM ,the correct measure of risk is termed as ….
A. business risk
B. financial risk
C. Beta coefficient
D. systematic risk
Correct : C. Beta coefficient
20. The market portfolio has a beta of
A. -1.0
B. 2.0
C. 1.0
D. 0.5
Correct : C. 1.0
21. The beta of the risk free asset is
A. -1.0
B. 2.0
C. 1.0
D. 0
Correct : D. 0
22. Capital structure decision should always aim at having debt component in order to
A. Gain tax saying
B. balance of capital structure
C. gain control
D. increase EPS
Correct : D. increase EPS
23. The non produce projects should be financed by
A. debt & equity
B. debt
C. equity
D. retained earning
Correct : D. retained earning
24. If EBIT is less than the financial break even point then
A. + EPS
B. - EPS
C. no effect on EPS
D. cash of debt increase
Correct : B. - EPS
25. An appropriate capital structure is
A. flexible
B. conservator
C. minimum risk of loss of control
D. a,b,c
Correct : D. a,b,c
26. Financial risk involves
A. risk of insolvency
B. risk of variation in expected earning
C. both a& b
D. none of the above
Correct : C. both a& b
27. If ROI is more than cost of debt
A. EPS increase
B. Financial risk increase
C. both a & b
D. none of the above
Correct : C. both a & b
28. Net income approach assume
A. no change in risk
B. no corporate tax
C. both a & b
D. none of the above
Correct : C. both a & b
29. …….analysis is a study based on market emotions and share price movement .
A. Fundamental
B. Moral
C. technical
D. all the above
Correct : C. technical
30. The daily high price is represented on a candlestick chart by the
A. real body
B. trend -line
C. channel
D. shadow
Correct : D. shadow
31. A ……… indicates the general direction in which a security price is headed
A. trend
B. ratio
C. price
D. none of the above
Correct : A. trend
32. A ……average of a stock index is the average level of the index over a given interval of time
A. static
B. moving
C. gross
D. net
Correct : B. moving
33. Market price breaking through the moving average from below is a ……i ndicator
A. Bullish
B. Flat
C. bearish
D. none of the above
Correct : A. Bullish
34. Triple tops & triple bottom are indicators of ….
A. role reversal
B. trend reversal
C. both a & b
D. high volumes
Correct : C. both a & b
35. Increase in odd lot selling as compared to odd lot buying , is a …..indicator
A. bullish
B. bearish
C. both a & b
D. neutral
Correct : A. bullish