Quiznetik

Security Analysis and Portfolio Management | Set 1

1. Liquidity risk is :

Correct : C. increases whenever interest rates increases

2. Bond holders usually accept interest payment each.

Correct : B. six months

3. Passive management is also referred to as.......?

Correct : A. index fund management

4. Multifactor asset pricing model that can be used to estimate the ......rate for the valuation of financial asset.

Correct : A. discount

5. Arbitrate pricing theory is an ................. model.

Correct : A. asset pricing

6. CAMP stands for .

Correct : A. capital asset pricing model

7. An asset risk premium is given by :

Correct : A. the asset standard deviation

8. Which of the following is an example of a depreciable asset?

Correct : D. equipment

9. While bond prices fluctuate ,

Correct : A. yeilds are constant

10. To calculate historical (realised) risk and return, use;

Correct : A. ex-post data

11. A price weighted index is an arithmetic mean of

Correct : B. current prices

12. A firm that fails to pay dividends on its preferred stock is said to be ………

Correct : B. in arrears

13. ............... is not a money market instrument.

Correct : C. a treasury bond

14. A bond that has no collateral is called ...................... .?

Correct : B. a debenture

15. The process of addition of more assets in an existing portfolio is called.....?

Correct : A. portfolio revision

16. ------is the amount left over after individual consumption.

Correct : B. Savings

17. --- include “expensive stocks” that offer big rewards but have big risk.

Correct : B. Conservative portfolio

18. Find the odd one.

Correct : D. Tax evasion

19. An investor committed money for very short period expect….

Correct : A. Return from price fluctuation

20. Investment in precious metals are included in ……… asset class.

Correct : C. Real assets

21. The investment process begins with ------

Correct : A. Investment policy

22. Total risk includes---------

Correct : C. Both a and b above

23. Systematic risk includes------

Correct : D. All the above

24. Which among the following statements are true about unsystematic risk?

Correct : C. Both a and b

25. Which among the following is true about systematic risk?

Correct : D. Both a and c

26. According to Graham, a stock should have a current ratio of at least---

Correct : B. Two

27. --------is the process of combining together various investment assets to obtain optimum returns with minimum risk.

Correct : A. Portfolio construction

28. Modern portfolio theory is a contribution by………

Correct : D. Harry Markowitz

29. MACD stands for -----

Correct : C. Moving average convergence divergence

30. The concept ’never putting all your eggs in one basket’ is explained in ---

Correct : A. Markowitz Model

31. Who introduced mean variance analysis in portfolio theory?

Correct : B. Harry Markowitz

32. Unsystematic risk may arise due to the following reason.

Correct : C. Employee strike in the company

33. A higher standard deviation is an indicator of----

Correct : A. Greater risk and higher potential returns

34. If the returns of two securities are unrelated, the covariance will be---

Correct : C. Zero

35. Portfolios included in the risk return space is called------

Correct : A. Feasible set

36. The concept efficient frontier is a contribution by----.

Correct : D. Harry Markowitz

37. A fully diversified portfoliocontains securities which have---

Correct : C. Only systematic risk

38. ----- is the measure of risk in the case portfolio with two securities.

Correct : C. Standard deviation

39. Value of Beta above 1 implies---

Correct : A. Higher risk than the market average

40. CML stands for.

Correct : D. Capital Market Line

41. ------- is also called characteristic Lines.

Correct : B. SML

42. Efficient frontier is situated at -------- boundary of opportunity set.

Correct : A. North west

43. Arbitrage Pricing Theory was introduced by---

Correct : D. Stephen S.Rose

44. Which pricing model provides no guidance on the determination of the risk premium factor?

Correct : A. The Multifactor APT

45. . -------- is an example for oscillators.

Correct : D. All the above

46. The APT differs from CAPM because the APT.

Correct : B. Recognizes multiple systematic risk factors

47. ----------- focus more on past price movement of a firm’s stock than on the underlying determinants of future profitability.

Correct : D. Technical Analysis

48. RAPM stands for -----

Correct : A. Risk Adjustment Performance Matrix

49. Reward to variability Ratio is----

Correct : B. Sharp Ratio

50. Reward to volatility Ratio is also called as----

Correct : A. Treynor Ratio

51. Michel C. Jenson introduced;

Correct : C. Differential return measure

52. Treynor Ratio is calculated using---

Correct : B. Beta

53. When alpha ‘p’ is positive, it shows---

Correct : A. Superior return

54. Which of the following is a defensiveshares?

Correct : B. Beta<1

55. NSE established on---

Correct : D. 1992

56. ------- is a person who believes in lower expected return at reduced risk.

Correct : D. Spreaders

57. Who is the author of the book“Security Analysis and The Intelligent Investor”

Correct : C. Benjamin Graham

58. ---‐--- is putting money at risk by betting on an uncertain outcome with the hope that you might win money.

Correct : B. Gambling

59. Total risk is associated with ----

Correct : A. Standard deviation

60. Which of the following is not related with a bond?

Correct : D. Spot interest rate

61. --------- is the bonds issued at a considerable discount and repaid at par.

Correct : A. Deep discount bond

62. Which of the following is a PSU bond?

Correct : C. Tax free bonds

63. ----- are issued by a group of multinational banks.

Correct : C. Euro bonds

64. YTM is the most widely used measure to know the return on-----

Correct : C. Bonds

65. ------is the discount rate that makes present value of single cash inflow to cost of the bond.

Correct : D. Spot interest rate

66. YTC is used in the case of------- bonds.

Correct : B. Callable bonds

67. Bond price-yield relationship is referred to as -----

Correct : B. Convex

68. Bond pricing theorems was introduced by—

Correct : D. Burton G.Malkiel

69. Bond price will move --------- to market interest changes.

Correct : A. Inversely

70. ------- is a measure of interest rate sensitivity of a bond.

Correct : C. Duration

71. The theory of bond immunisation was introduced by------

Correct : A. Redington

72. ---------- is a hedging method against the risk associated with changes in interest rates.

Correct : C. Bond immunisation

73. Which of the following relates to industry analysis?

Correct : B. Competitive forces

74. Which is the most popular multiplier for valuing shares?

Correct : B. P/E Ratio

75. --------ratio is used to estimate the value of stocks by the investors rather than adopting discounting models.

Correct : C. Price earnings ratio

76. -------is the study of historical stock prices and stock market behaviour to identify recurring pattern.

Correct : B. Technical Analysis

77. Dow Theory relates to---

Correct : A. Primary trend

78. Find the odd one.

Correct : D. Candle sticks

79. Price movements inzigzagfashion with any rise or fall interrupted by counter movements are known as--------

Correct : C. Reactions

80. Which among the following is a market indicator?

Correct : C. Odd-lot-index

81. Random Walk Theory was popularised by----

Correct : A. Burton Malkiel

82. Elliot Wave Theory was introduced in the year----

Correct : B. 1934

83. The oldest approach to common stock selection is-----

Correct : B. Technical Analysis

84. Technical Analysis reflects the idea that stock prices------------

Correct : C. Move in trends

85. Which of the following is a tool in technical analysis to determine whether a security is a good for investment?

Correct : D. Trend lines

86. Line charts are formed by connecting------- of each time frame.

Correct : C. Closing price

87. Triangles are ------ patterns.

Correct : A. Continuation

88. --------movements are typically referred to as bullish and bearish.

Correct : D. Primary

89. Process of selling of shares that is not owned by a person is termed as…

Correct : B. Short-selling

90. At resistance level a technical analysis expect the -----

Correct : A. Demand of a stock to decrease substantially

91. Which of the following represents an upper price limit for a stock, based on the quantity of willing sellers?

Correct : D. Resistance

92. Which of the following do a technical analysis believe is a lower bound on a stock’s price?

Correct : B. Support

93. Barometric approach is used for-----

Correct : A. Economic forecasting

94. Opportunistic model building is also known as-----

Correct : C. Sectorial analysis

95. The last step in fundamental analysis is

Correct : C. Company Analysis

96. Which of the following is a financial investment?

Correct : A. Share

97. Which of the following is tax saving investment?

Correct : C. PPF

98. All personal investing is designed to achieve certain …..

Correct : A. Objective

99. The object of portfolio is to reduce ……by diversification

Correct : B. Risk

100. The fundamental analysis approach has been associated with …..

Correct : A. Uncertainties