Security Analysis And Portfolio Management Set 1
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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 1
Q1 | Liquidity risk is :
- is risk investment bankers face.
- is lower for small OTC
- increases whenever interest rates increases
- is risk associated with secondary market transactions
Q2 | Bond holders usually accept interest payment each.
- 1 year
- six months
- 2 months
- 2 years
Q3 | Passive management is also referred to as.......?
- index fund management
- index folio management
- interest free management
- none of these
Q4 | Multifactor asset pricing model that can be used to estimate the ......ratefor the valuation of financial asset.
- discount
- interest
- expense
- risk
Q5 | Arbitrate pricing theory is an ................. model.
- asset pricing
- risk evaluation
- bond pricing
- none of these
Q6 | CAMP stands for .
- capital asset pricing model
- capital assessment pricing model
- capital asset placement model
- none of these
Q7 | An asset risk premium is given by :
- the asset standard deviation
- the assets expected returns
- expected return per unit of standard deviation
- the excess of the assets expected return over the riskless rates
Q8 | Which of the following is an example of a depreciable asset?
- land
- cash
- account receivable
- equipment
Q9 | While bond prices fluctuate ,
- yeilds are constant
- coupon are constant
- the spread between yeilds is constant
- short term bond prices fluctuate even more
Q10 | To calculate historical (realised) risk and return, use;
- ex-post data
- mean and variance of expected return
- probability distribution of possible states
- ex- ante data
Q11 | A price weighted index is an arithmetic mean of
- future prices
- current prices
- quarter prices
- none of these
Q12 | A firm that fails to pay dividends on its preferred stock is said to be ………
- insolvent
- in arrears
- in sufferable
- delinquent
Q13 | ............... is not a money market instrument.
- cerftificates of deposit
- a treasury bill
- a treasury bond
- commercial paper
Q14 | A bond that has no collateral is called ...................... .?
- collable bond
- a debenture
- a junk bond
- a mortgage
Q15 | The process of addition of more assets in an existing portfolio is called.....?
- portfolio revision
- portfolio addition
- portfolio exchanging
- none of these
Q16 | ------is the amount left over after individual consumption.
- Investment
- Savings
- Surplus
- Money.
Q17 | --- include “expensive stocks” that offer big rewards but have big risk.
- The patient portfolio
- Conservative portfolio
- Aggressive portfolio
- Efficient portfolio
Q18 | Find the odd one.
- Risk
- Return
- Safety
- Tax evasion
Q19 | An investor committed money for very short period expect….
- Return from price fluctuation
- Dividend
- Benefit from both price variation and dividend
- None of these
Q20 | Investment in precious metals are included in ……… asset class.
- Liquid assets
- Financial assets
- Real assets
- Monetary assets
Q21 | The investment process begins with ------
- Investment policy
- Security analysis
- Portfolio construction
- Fundamental analysis
Q22 | Total risk includes---------
- Systematic risk only
- Unsystematic risk only
- Both a and b above
- Only diversifiable risks
Q23 | Systematic risk includes------
- Market risk
- Interest rate risk
- Purchasing power risk
- All the above
Q24 | Which among the following statements are true about unsystematic risk?
- It is diversifiable
- It is company specific
- Both a and b
- a only
Q25 | Which among the following is true about systematic risk?
- It is not diversifiable
- a only
- Its measure is Beta
- Both a and c