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This set of Mutual Fund Management Multiple Choice Questions & Answers (MCQs) focuses on Mutual Fund Management Set 7
Q1 | A …………… risk in a mutual fund refers to a situation when the issuer of a stock is unable to maketimely payment of interest and principal to the investors.
- Business
- Credit
- Capital
- Scheme
Q2 | …………….. risk refers to the investor losing the money invested in mutual funds.
- Business
- Credit
- Capital
- Scheme
Q3 | …………….. risk refers to a risk that affects the entire country or a particular region or a certainindustry.
- Market
- Credit
- Capital
- Scheme
Q4 | ……………… risk refers to a risk when there is political changes or change in investment policy of thegovernment.
- Market
- Credit
- Political
- Scheme
Q5 | ……………………. Ratio determines how the return of the scheme has compensated and investor forthe risk he has taken.
- Treynor
- Sharpe
- Sortino
- Information
Q6 | The risk of losing money invested in mutual funds is called …………
- Capital risk
- scheme risk
- credit risk
- market risk
Q7 | ……………….. ratio is a measure of the risk-adjusted return of a financial security or asset orportfolio.
- Treynor
- Sharpe
- Sortino
- Information
Q8 | Returns from non-equity funds are treated as long term capital gains if investments are held for morethan ……………….
- 4 years
- 2 years
- 3 years
- 5 years
Q9 | NAV is declared everyday by deducting ……………. expenses
- Recurring
- Transaction
- Exit load
- Entry load
Q10 | ……………….. ratio is the percentage of total assets that are spent to run a mutual fund
- Treynor
- Sharpe
- Expense
- Information
Q11 | …………. provides in detail scheme wise information about income and expenditure of mutual fund.
- Balance Sheet
- Revenue Statement
- Cash Flow Statement
- Fund Flow Statement
Q12 | The returns earned from mutual funds are taxed under the head ……………..
- Income from House Property
- Salary Income
- Income from Capital gains
- Income from other sources
Q13 | When a security is not traded on any recognized stock exchange for a period of …. days prior to thevaluation date, the scrip must be treated as a “non-traded “security.
- 30 days
- 40 days
- 45 days
- 60 days
Q14 | ………….. ratio is the percentage of total assets that are spent to run a mutual fund.
- expense
- income
- Profit
- Turnover
Q15 | Equity related schemes are ………….. risky when compared to debt debt schemes.
- less
- equally
- more
- Cannot say
Q16 | The accounting year for mutual funds ends on ……… of each year.
- 31st December
- 31st March
- 30th September
- 1st April
Q17 | ……………….. of a mutual fund is the price at which units are bought or sold by investor.
- CP
- SP
- NAV
- NPV
Q18 | In ………………………. Investors buy shares of Companies who have announced bonus issues, andsubsequently sell the original holding at a loss once the stock becomes ex-bonus.
- Dividend stripping
- Bonus stripping
- Capital stripping
- Asset stripping
Q19 | ……………. is a measure of the volatility of a particular fund in comparison to the market as a whole
- Beta
- R-squared
- Standard deviation
- Alpha
Q20 | ……………….. measures the dispersion in return.
- Beta
- R-squared
- Standard deviation
- Alpha
Q21 | CAGR stands for …………………
- Calculated Annual Growth Rate
- Compounded Annual Growth Rate
- Changed Annual Growth Rate
- Changed Annual Grown Rate
Q22 | ………………… are simply the annual gains that an investment has earned over a specific period oftime.
- Annualized Return
- Absolute Return
- Holding period return
- None of the above
Q23 | The performance of a scheme is reflected in its ……………..
- Net asset value
- Face Value
- NPV
- AMC
Q24 | …………………. is a myth about Mutual Fund Investment in India.
- Small amount is needed to invest in Mutual Funds
- Higher NAV is better
- Demat account is compulsory to invest in Mutual funds
- Big amount is needed to invest in Mutual Funds
Q25 | Abridged version of OD is called …………..
- OD
- NFO
- KIM
- CD