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This set of Investment Management Multiple Choice Questions & Answers (MCQs) focuses on Investment Management Set 3

Q1 | These funds are stock funds that invest in stocks with the potential for long term capitalappreciation.
  • open end fund
  • closed end fund
  • growth fund
  • income fund
Q2 | The aim of this fund is to provide regular and steady income to investors
  • open end fund
  • closed end fund
  • growth fund
  • income fund
Q3 | Stock mutual funds also sometimes called
  • open end fund
  • closed end fund
  • growth fund
  • equity fund
Q4 | Each contract is custom designed, and hence is unique in terms of contract size, expiration dateand asset type and quality.
  • forward contract
  • future contract
  • options
  • none of the above
Q5 | These contracts are standardized and hence traded in stock exchanges.
  • forward contract
  • future contract
  • options
  • none of the above
Q6 | The credit risk of future is -------- than that of forwards:
  • lower
  • higher
  • average
  • none of the above
Q7 | The buyer or holder of the option purchases the right from the seller for a consideration called;
  • remuneration
  • premium
  • discount
  • none of these
Q8 | This option gives the holder or buyer , the right to buy specified quantity of the underlying asset ata specified price on or before a specified time.
  • call option
  • put option
  • main option
  • none of the above
Q9 | This option gives the holder or buyer, the right to sell specified quantity of the underlying asset at aspecified price on or before a specified time.
  • call option
  • put option
  • main option
  • none of the above
Q10 | These are instruments, which give a fixed rate of interest for a fixed period of maturity.
  • debts
  • equities
  • mutual funds
  • virtual office
Q11 | This pools money from investors and invest in different securities
  • debts
  • equities
  • mutual funds
  • virtual office
Q12 | An investor becomes the owner of a company to the extent of the capital invested by him
  • debts
  • equities
  • mutual fund
  • virtual office
Q13 | Which of the following I not an Indian index
  • sensex
  • nasdaq
  • nifty
  • none of the above
Q14 | Find the odd one from the following
  • nasdaq
  • dow jones
  • nyse
  • nifty
Q15 | Holders of fixed income securities are…… of the issuer
  • debtor
  • creditor
  • owner
  • supplier
Q16 | Treasury bills are actually a class of;
  • securities of companies
  • central government securities
  • equities
  • none of the above
Q17 | These bonds are issued at a discount and repaid at a face value.
  • zero coupon bond
  • debentures
  • equity share
  • none of the above
Q18 | This is the interest rate that every debenture /bond carries on its face value and is fixed at the timeof issue
  • current yield
  • coupon rate
  • market rate
  • none of the above
Q19 | The return on the instrument is held till its maturity is known as
  • current yield
  • coupon rate
  • ytm
  • none of the above
Q20 | Fundamental analysis is a …………….method that uses financial &economic analysis to predictthe movement of stock price.
  • sale valuation method
  • stock valuation method
  • purchase valuation method
  • all of the above
Q21 | Industrial growth is a type of …………….
  • economic analysis
  • industrial analysis
  • company analysis
  • none of these
Q22 | .Which of the following is not a stage of business cycle
  • recovery
  • depression
  • boom
  • inflation
Q23 | ……………….is generally described as homogenous of companies
  • business
  • profession
  • industry
  • group of company
Q24 | . EPS = ……………. / outstanding share
  • gross profit
  • net-earning
  • net loss
  • capital employed
Q25 | …………… = stock price/ EPS
  • price to earnings ratio
  • price to sale ratio
  • eps
  • none of these