Top 350+ Solved Security Analysis and Investment Management MCQ Questions Answer
Q. An efficient market reflects:
a. past, current and inferred information.
b. future information.
c. past and current information.
d. current and inferred information.
Q. In which form of the efficient market hypothesis do security prices reflect only past stock price and volume information?
a. weak form.
b. semistrong form.
c. strong form.
d. none of the above.
Q. Which of the following is not a test of semi-strong form efficiency?
a. stock splits.
b. accounting changes.
c. dividend announcements.
d. insider transactions.
Q. An efficient market does not require that:
a. stock prices incorporate all information.
b. all known information be reflected in prices.
c. the adjustments occur very quickly.
d. each adjustment be perfect.
Q. "Filter rules" do not tend to be profitable because of:
a. transaction costs.
b. market volatility.
c. trends in stock prices.
d. the fact that no rules outperform a buy-and-hold strategy, even for short periods.
Q. The random walk hypothesis posits that:
a. historical returns follow a random walk.
b. historical prices follow a random walk.
c. firm size follows a random walk.
d. short-run investment returns are inherently unpredictable.
Q. Positive abnormal returns for corporate insiders constitute a violation of:
a. weak form efficiency.
b. semi-strong form efficiency.
c. strong-form efficiency.
d. none of these.
Q. On the day following big "up days," the DJIA tends to:
a. rise substantially.
b. fall precipitously.
c. rise moderately.
d. none of the above.
Q. Stock market value can deviate from its fundamental value because of strong:
a. earnings news.
b. investor mood.
c. semi-strong form efficiency.
d. data-snooping.
Q. If security prices exhibits semi-strong form of efficiency, one will not gain if he
a. Depicts the prices in the form of charts to identify pattern which will beat the market.
b. Buys stock of a company which has declared a bonus issue or has gone for a stock split
c. Refers to insiders’ advice
d. Both (a) and (b) above.
Q. ___________ market encompasses all securities not traded on national organizedexchanges.
a. Primary
b. Money
c. Capital
d. Over the counter
Q. Which of the following is not a part of systematic risk
a. Economic changes
b. Management capability
c. Political changes
d. Sociological changes
Q. Primarily Inflation gives rise to
a. Market risk
b. Purchasing power risk
c. Business risk
d. Financial risk
Q. Unsystematic risk is known as
a. Non diversifiable risk
b. Total risk
c. Market risk
d. Diversifiable risk