Top 350+ Solved Security Analysis and Investment Management MCQ Questions Answer
Q. Empirical research concludes that betas for:
a. individual securities and large portfolios are unstable.
b. individual securities and large portfolios are stable.
c. large portfolios are unstable.
d. individual securities are unstable.
Q. Future on fixed Income securities are known as
a. Stock Index futures
b. Interest rate futures
c. Mutual fund futures
d. Stock market futures
Q. Serials bonds are
a. Large bond issues carrying fixed maturity date
b. Small bond issues carrying many maturity dates.
c. Small bond issues carrying single maturity date.
d. Large bond issues carrying many maturity dates.
Q. Indenture is a
a. A detailed securities contract
b. Abbreviated version of a securities contract
c. Abbreviated version of a debt contract
d. A detailed bond contract
Q. Tax sheltered variable annuity is
a. A device for availing tax exemption in an Investment
b. A device for avoiding tax payment
c. A device deferring the payment of federal income taxes
d. A device for earning tax deduction.
Q. REITs stand for
a. Real estate investment trades
b. Real estate investing trades
c. Real estate investment trusts
d. Real estate investment trusts
Q. The person within the brokerage office with whom an investor will have the most contact is
a. Authorized representative
b. Registered representative
c. Authorized person
d. Registered authority
Q. The commission received by investment banker is known as
a. Additive
b. Differential
c. Difference
d. Increment
Q. The __________ is the indicated dividend divided by the closing price of the stock.
a. Income
b. Share
c. Yield
d. Earning
Q. __________ refers to the highest priced transaction for an issue on a particular day.
a. Close
b. High
c. Large
d. Net change
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. Which statement is not true regarding the market portfolio?
a. It includes all publicly traded financial assets.
b. It lies on the efficient frontier.
c. All securities in the market portfolio are held in proportion to their market values.
d. It is the tangency point between the capital market line and the indifference curve.
Q. As diversification increases, the total variance of a portfolio approaches ____________.
a. 0
b. 1
c. The variance of the market portfolio
d. Infinity
Q. The Security Risk Evaluation book published by Merrill Lynch uses the __________ as a proxy for the market portfolio.
a. Dow Jones Industrial Average
b. Dow Jones Transportation Average
c. S&P 500 Index
d. Wilshire 5000