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This set of Investment Management Multiple Choice Questions & Answers (MCQs) focuses on Investment Management Set 5

Q1 | Who does “blue chip “denotes
  • shares likely to yield agreed return
  • shares listed in the stock exchanges
  • shares guaranteed by the government
  • shares consistently yielding high returns
Q2 | Financial derivatives are mainly used for
  • speculative activity
  • creating more risk
  • hedging risk
  • earning income
Q3 | The instrument that are marked to the market are
  • forward
  • future
  • swaps
  • options
Q4 | In an option contract, if the option can be exercised only at the time of maturity, it is called
  • double option
  • american option
  • put option
  • european option
Q5 | The predetermined price at which an underlying assets has to be bought or sold in an optioncontract is called
  • option price
  • exercise price
  • spot price
  • future price
Q6 | A combination of forwards by two counterparties with opposite but matching needs is called
  • swap
  • option
  • forward
  • future
Q7 | Mutual fund are very popular in
  • u.s.a
  • u.k
  • japan
  • india
Q8 | The pattern of investment of a mutual fund is oriented fixed income yielding securities under
  • growth fund scheme
  • income fund scheme
  • balanced fund scheme
  • money market mutual fund scheme
Q9 | In India ,the company which actually deals with the corpus of the mutual fund is called
  • sponsor company
  • trustee company
  • asset management company
  • mutual fund company
Q10 | Find out the odd one
  • commercial paper
  • share certificate
  • certificate of deposits
  • treasury bills
Q11 | This fund is one that is available for subscription all through the year.
  • open ended fund
  • closed ended fund
  • growth fund
  • income fund
Q12 | This fund is open for subscription only during a specified period
  • open ended fund
  • closed ended fund
  • growth fund
  • income fund
Q13 | These funds are stocks funds that invest in stocks with the potential for long term capitalappreciation
  • open ended fund
  • closed ended fund
  • growth fund
  • income fund
Q14 | The aim of this fund is to provide regular and steady income to investor.
  • open ended fund
  • closed ended fund
  • growth fund
  • income fund
Q15 | Stock mutual funds also sometimes called
  • open ended fund
  • closed ended fund
  • growth fund
  • equity fund
Q16 | Mutual funds are
  • open ended fund
  • closed ended fund
  • both a and b
  • none of the above
Q17 | Uti-64 is a
  • open ended fund
  • closed ended fund
  • both a and b
  • none of the above
Q18 | Credit rating is mandatory
  • equity shares
  • preference shares
  • debentures
  • all of the above
Q19 | Systematic risk is also known as
  • unavoidable risk
  • unique risk
  • avoidable risk
  • financial risk
Q20 | Unsystematic risk is also known as
  • unavoidable risk
  • unique risk
  • avoidable risk
  • both b and c
Q21 | Investor can build a risk free portfolio, when two assets have ---------correlation
  • perfect positive
  • zero
  • perfect negative
  • partial correlation
Q22 | A set of securities held by an individual investor is called --------
  • portfolio
  • group
  • collection
  • bundle
Q23 | Which of the following helps in reduction of risk in portfolio management?
  • derivation
  • dispersion
  • distribution
  • diversification
Q24 | The risk in portfolio is measured through the
  • weighted average of standard deviations
  • weighted average of variance
  • variance co-variance matrix
  • correlation
Q25 | If an investment assures a fixed return in the future, then the standard deviation of return will be
  • 0
  • 1
  • greater than one
  • less than one