Top 350+ Solved Investment Management MCQ Questions Answer
Q. The major player in the Indian money market is
a. co operative banks
b. indigenous banks
c. commercial banks
d. reserve bank of india
Q. A person appointed by a stock broker to assist him in the business of securities trading is called
a. sub broker
b. commission broker
c. authorized clerk
d. tarawaniwala
Q. Political constancy is chief aspect concerning
a. Exchange risk
b. Systematic risk
c. Non-systematic risk
d. Country risk
Q. In the stock-price beta estimation for the Coca-Cola Company, the dependent variable isthe:
a. Return on Coca-Col
b. Price of Coca-Cola stock.
c. Return on the S&P 500.
d. Value of the S&P 500 Index.
Q. If the beta of a stock is 1.8 and the overall market declines 20%, the expected return is:
a. -36%
b. -18%.
c. -20%.
d. -28%
Q. Total risk for common stocks is:
a. The sum of systematic risk and diversifiable risk.
b. Measured by beta.
c. The sum of market risk and systematic risk.
d. The sum of diversifiable risk and unsystematic risk
Q. The tracking error of an optimized portfolio can be expressed in terms of the ____________ of the portfolio and thus reveal ____________.
a. Return; portfolio performance
b. Total risk; portfolio performance
c. Beta; portfolio performance
d. Beta; benchmark risk
Q. Shares which are not affected by market movements are known as:
a. Offensive shares
b. Growth shares
c. Defensive shares
d. Income shares
Q. Exposure indicates
a. Sensitivity to changes in risk
b. Sensitivity to changes in asset prices
c. Sensitivity to changes in portfolio
d. Sensitivity to changes in assets
Q. Which of the following securities is most liquid?
a. Money market instruments
b. Capital market instruments
c. Gilt-edged securities
d. Index Futures
Q. Which of the following goals will be considered by the individuals who invest in upcoming companies and wait till the companies to grow and then harvest their profits and move on to other company?
a. Short-term high priority goals
b. Money making goals
c. Long-term high priority goals
d. Lower priority goals
Q. A purely passive strategy is defined as
a. One that uses only index funds.
b. One that allocates assets in fixed proportions that do not vary with market conditions.
c. One that is mean-variance efficient.
d. Both A and B.
Q. An industry in the expansion stage of its life cycle is indicated by its
a. Low P/E Ratio.
b. High P/E Ratio.
c. High Dividend Pay-Out Ratio
d. High Default
Q. Which of the following is true of municipal government debt?
a. It pays more interest than corporate debt.
b. It is often purchased by individuals with high incomes.
c. It is exempt from estate taxation.
d. It is not subject to interest rate risk.