Security Analysis And Portfolio Management Set 2
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This set of Security Analysis and Portfolio Management Multiple Choice Questions & Answers (MCQs) focuses on Security Analysis And Portfolio Management Set 2
Q1 | According to Graham, a stock should have a current ratio of at least---
- One
- Two
- Three
- Four
Q2 | --------is the process of combining together various investment assets to obtain optimumreturns with minimum risk.
- Portfolio construction
- Portfolio analysis
- Portfolio evaluation
- Portfolio revision
Q3 | Modern portfolio theory is a contribution by………
- William sharp
- Benchamin Graham
- Stephen Rose
- Harry Markowitz
Q4 | MACD stands for -----
- Managing asset classes for dividend
- Multiple asset class deposit
- Moving average convergence divergence
- Main asset class deposit
Q5 | The concept ’never putting all your eggs in one basket’ is explained in ---
- Markowitz Model
- Sharp single index Model
- Multi Index Model
- APT
Q6 | Who introduced mean variance analysis in portfolio theory?
- William Sharp
- Harry Markowitz
- F.Amling
- Kritzman
Q7 | Unsystematic risk may arise due to the following reason.
- Change in interest rate
- Increase in population
- Employee strike in the company
- Exchange rate fluctuations
Q8 | A higher standard deviation is an indicator of----
- Greater risk and higher potential returns
- Moderate risk and higher potential returns
- Lower risk and higher potential returns
- Greater risk and lower potential returns
Q9 | If the returns of two securities are unrelated, the covariance will be---
- Positive
- Negative
- Zero
- One
Q10 | Portfolios included in the risk return space is called------
- Feasible set
- Efficient portfolio
- High return portfolio
- Risky portfolio
Q11 | The concept efficient frontier is a contribution by----.
- Robert Rhea
- E.GeorgeSchaefer
- Charles H.Dow
- Harry Markowitz
Q12 | A fully diversified portfoliocontains securities which have---
- Only unsystematic risk
- Both systematic and unsystematic risk
- Only systematic risk
- No risk
Q13 | ----- is the measure of risk in the case portfolio with two securities.
- Correlation
- Covariance
- Standard deviation
- Beta
Q14 | Value of Beta above 1 implies---
- Higher risk than the market average
- Less risk than market average
- Less risk than risk free investment
- None of the above
Q15 | CML stands for.
- Convergence Market Line
- Critical Market Line
- Critical Maturity Line
- Capital Market Line
Q16 | ------- is also called characteristic Lines.
- CML
- SML
- Efficient Frontier
- CAL
Q17 | Efficient frontier is situated at -------- boundary of opportunity set.
- North west
- North east
- South west
- South east
Q18 | Arbitrage Pricing Theory was introduced by---
- Charles Dow
- Benchamin Graham
- William sharp
- Stephen S.Rose
Q19 | Which pricing model provides no guidance on the determination of the risk premiumfactor?
- The Multifactor APT
- The CAPM
- Both CAPM &Multifactor APT
- Neither the CAPM nor Multifactor APT
Q20 | . -------- is an example for oscillators.
- ROC
- RSI
- MACD
- All the above
Q21 | The APT differs from CAPM because the APT.
- Places more emphasis on market risk
- Recognizes multiple systematic risk factors
- Recognizes multiple unsystematic risk factors
- Minimizes the importance of diversification
Q22 | ----------- focus more on past price movement of a firm’s stock than on the underlyingdeterminants of future profitability.
- Credit Analysis
- Fundamental Analysis
- Systems Analysis
- Technical Analysis
Q23 | RAPM stands for -----
- Risk Adjustment Performance Matrix
- Risk Adjusted Performance Measure
- Risk return Analysis of portfolio management
- Risk Adjusted portfolio Measure
Q24 | Reward to variability Ratio is----
- Traynor Ratio
- Sharp Ratio
- Jenson Ratio
- Book Market Ratio
Q25 | Reward to volatility Ratio is also called as----
- Treynor Ratio
- Sharp Ratio
- Jenson Ratio
- Book market Ratio