Security Analysis And Portfolio Management Set 5
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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 5
Q1 | This type of risk is avoidable through proper diversification
- Portfolio risk
- Systematic risk
- Unsystematic risk
- Total risk
Q2 | Beta is the slope of
- The security market line
- The capital market line
- a characteristic line
- The CAPM
Q3 | A measure of risk per unit of expected return
- standard deviation
- Coefficient of variation
- Correlation coefficient
- Beta
Q4 | The greater the beta ,the security involved
- Greater the unavoidable risk
- Greater the avoidable risk
- Less the unavoidable risk
- Less the avoidable Risk .
Q5 | A Statistical measure of the Degree to which two variables move together
- Coefficient of variation
- Variance
- Covariance
- Certainty equivalent
Q6 | The fundamental analysis is a method of finding out
- Ratio
- Value of shares
- Tips
- Future price of a security
Q7 | Which analysis provides a simplified picture of price behaviour of a shares
- Fundamental
- Technical
- Ratio
- Fund flow
Q8 | Return of investment is determined by
- Net profit
- Capital employed
- Net worth
- Net profit & capital employed
Q9 | Which leaverage helps to examine the relationship between EBIT & EPS
- Operating
- Financial
- Combined
- none
Q10 | Which leaverage shows the relationship between the revenue in the account of sales and the taxable income
- Financial
- Operating
- Combined
- none
Q11 | The stage of start up of an industry .
- Pioneering
- Rapid growth
- Maturity
- Decline
Q12 | The stage when poor performers start winding up their business
- Pioneering
- Rapid growth
- Maturity
- Decline
Q13 | The fundamental analysis is a method of finding out ……
- ratio
- Value of shares
- Tips
- Future price of security
Q14 | Which analysis provides a simplified picture of price behaviour of a shares
- Fundamental
- Technical
- Financial
- Any
Q15 | Return on investment is determined by …
- Net profit
- capital employed
- Net worth
- Net profit & capital employed
Q16 | Which theory believes that the investors prefer larger to smaller returns from securities ?
- modern
- traditional
- Markowitz
- sharpe
Q17 | Modern portfolio theory …….. the relationship between risk and return
- maximizes
- minimizes
- quantifies
- does not assume
Q18 | Which measures the systematic or non -systematic risk of a security ?
- Beta
- Variance
- standard deviation
- Range
Q19 | According to CAPM ,the correct measure of risk is termed as ….
- business risk
- financial risk
- Beta coefficient
- systematic risk
Q20 | The market portfolio has a beta of
- -1.0
- 2.0
- 1.0
- 0.5
Q21 | Capital structure decision should always aim at having debt component in order to
- Gain tax saying
- balance of capital structure
- gain control
- increase EPS
Q22 | The non produce projects should be financed by
- debt & equity
- debt
- equity
- retained earning
Q23 | If EBIT is less than the financial break even point then
- + EPS
- - EPS
- no effect on EPS
- cash of debt increase
Q24 | An appropriate capital structure is
- flexible
- conservator
- minimum risk of loss of control
- a,b,c