Top 150+ Solved Fundamentals of Investment MCQ Questions Answer
Q. The fall in the interest rate is good to the stock market because
a. money may flow from bond market to stock market
b. corporate houses can borrow at easy terms
c. investors can invest with borrowed funds
d. all of these
Q. The price earnings ratio of a stock reflects
a. the growth of the company
b. the market mood for the company’s stock
c. the earnings retained and invested in the company.
d. none of these
Q. This fund is one that is available for subscription all through the year.
a. Open ended fund
b. closed ended fund
c. growth fund
d. income fund
Q. This fund is open for subscription only during a specified period
a. Open ended fund
b. closed ended fund
c. growth fund
d. income fund
Q. These funds are stocks funds that invest in stocks with the potential for long term capitalappreciation
a. Open ended fund
b. closed ended fund
c. growth fund
d. income fund
Q. The aim of this fund is to provide regular and steady income to investor.
a. Open ended fund
b. closed ended fund
c. growth fund
d. income fund
Q. Stock mutual funds also sometimes called
a. Open ended fund
b. closed ended fund
c. growth fund
d. equity fund
Q. Credit rating is mandatory
a. Equity shares
b. preference shares
c. debentures
d. all of the above
Q. Systematic risk is also known as
a. Unavoidable risk
b. unique risk
c. avoidable risk
d. financial risk
Q. Unsystematic risk is also known as
a. Unavoidable risk
b. unique risk
c. avoidable risk
d. both b and c
Q. Investor can build a risk free portfolio, when two assets have ---------correlation
a. Perfect positive
b. zero
c. perfect negative
d. partial correlation
Q. A set of securities held by an individual investor is called --------
a. Portfolio
b. group
c. collection
d. bundle
Q. Which of the following helps in reduction of risk in portfolio management?
a. Derivation
b. dispersion
c. distribution
d. diversification