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This set of Investment Management Multiple Choice Questions & Answers (MCQs) focuses on Investment Management Set 4

Q1 | Book value = asset + ……………..
  • capital
  • liability
  • current asset
  • current liability
Q2 | ROE stands for ……………….
  • rate of equity
  • rate of earning
  • . return on equity
  • none of these
Q3 | Defective practice is one of the ……………fundamental of analysis
  • tool
  • criticism
  • advantages
  • none of these
Q4 | . ROE is calculated by dividing……….by book value
  • net income
  • gross income
  • cost
  • all of these
Q5 | Which of the following is not a tool of fundamental analysis
  • price to sale ratio
  • price to earnings ratio
  • price to purchase ratio
  • none of these
Q6 | This is stock valuation method that uses financial data to predict price movement
  • company analysis
  • fundamental analysis
  • technical analysis
  • none of these
Q7 | Funtamntal analysis is …………….
  • time consuming
  • time saving
  • expensive
  • none of these
Q8 | The underwriting commission in the case of debentures cannot exceed
  • 1 percentage
  • 3.5 percentage
  • 5 percentage
  • 2.5 percentage
Q9 | The cheapest method of selling new securities is
  • sale through clearing houses
  • direct sales to public through prospects
  • right issue
  • stock exchange placing
Q10 | The first exchange was to set up in India was in
  • delhi
  • chennai
  • mumbai
  • kolkata
Q11 | A ---------is not a speculator in the stock exchange
  • bull
  • bear
  • stag
  • broker
Q12 | A - ---- expects a fall in the prices of securities in the near future
  • bull
  • bear
  • stag
  • broker
Q13 | The most important function of the new issues market is to provide
  • direction to the flow of capital
  • liquidity to the securities
  • facilities for conversion of savings into investments
  • an opportunity for new entrepreneurs to succeed
Q14 | The first exchange was set up in the in the year
  • 1847
  • 1875
  • 1905
  • 1923
Q15 | Which of the following represents components of the organized sector of the capital market?
  • stock exchange
  • commercial banks
  • investors
  • all the above
Q16 | The new issue market pertains to
  • second hand securities
  • new securities
  • new as well as second hand securities
  • only trail launches into the market
Q17 | Trading securities beyond the official trading hours of the stock exchange is called
  • hammering
  • margin trading
  • short trading
  • kerb trading
Q18 | The gilt-edged market refers to the market for
  • govt and semi govt securities
  • industrial securities
  • shares and debentures
  • public limited company securities
Q19 | First mutual fund of India is
  • reserve bank of india
  • state bank of india
  • unit trust of india
  • government of india
Q20 | Mutual fund schemes can be operated by
  • assets management company
  • public sector banks
  • financial institutions
  • any of these
Q21 | Regulation authority of stock exchange is
  • indian companies act
  • stock exchange act
  • securities contact(regulation) act
  • all of the above
Q22 | When a bear find it difficult to meet his commitments immediately, he is called a
  • stag
  • lame duck
  • lame bear
  • lame bull
Q23 | The securities contract (regulation )act came into force with effect from
  • 1949
  • 1954
  • 1956
  • 1957
Q24 | Following is the largest mutual fund business in India
  • unit trust of india
  • state bank of india
  • canara bank
  • tata
Q25 | What denotes the acquisition of a right to purchase securities?
  • put option
  • call option
  • double option
  • none of the above