Top 350+ Solved Security Analysis and Investment Management MCQ Questions Answer
Q. Graphical presentation of CAPM is known as
a. Capital asset line
b. Pricing line
c. Assets pricing line
d. Security market line
Q. __________ is defined as the nth root of the product resulting from multiplying a series of returns together.
a. Arithmetic mean
b. Geometric mean
c. Harmonic mean
d. None of the above
Q. An order to buy or sell at the most advantageous price obtainable after the order is represented in the trading crowd.
a. Scale order
b. Sell ‘plus’ order
c. Market order
d. Day order.
Q. __________ refers to capitalize on downward movement in stock prices.
a. Long selling
b. small selling
c. Large selling
d. Short selling
Q. ___________ is a device to overcome the uncertainty connected with a stop order.
a. Stop limit order
b. Stay limit order
c. Halt limit order
d. End limit order
Q. ___________ is a function of the operating conditions faced by a firm and the variability these conditions inject into operating income and expected dividends.
a. Market risk
b. Business risk
c. Interest rate risk
d. Systematic risk
Q. A top down analysis of a firm starts with ____________.
a. the relative value of the firm
b. the absolute value of the firm
c. the domestic economy
d. the global economy
Q. The most widely used monetary tool is ___________.
a. altering the discount rate
b. altering the reserve requirements
c. open market operations
d. altering marginal tax rates
Q. The "real", or inflation-adjusted, exchange rate, is
a. the balance of trade.
b. the budget deficit.
c. the purchasing power ratio.
d. unimportant to the U. S economy.
Q. The "normal" range of price-earnings ratios for the S&P500 Index is
a. between 2 and 10.
b. between 5 and 15.
c. less than 8.
d. between 12 and 25
Q. A peak is ________.
a. a transition from an expansion in the business cycle to the start of a contraction
b. a transition from a contraction in the business cycle to the start of an expansion
c. a depression that lasts more than three years.
d. only something used by farmers to feed pigs and not an investment term
Q. A long-term movement of prices, lasting from several months to years is called _________.
a. a minor trend
b. a primary trend
c. an intermediate trend
d. trend analysis
Q. Two popular moving average periods are
a. 90-day and 52 week
b. 180-day and three year
c. 180-day two year
d. 200-day and 53 week
Q. The most extreme form(s) of the Efficient Market Hypothesis (EMH) is
a. Weak form
b. Semi-Strong form
c. Super Strong form
d. Near Strong form