Top 350+ Solved Security Analysis and Investment Management MCQ Questions Answer
Q. Under ________ EMH investors cannot earn abnormal/superior profits on securities on a consistent basis.
a. Weak-form efficient
b. Strong form efficient
c. Semi-strong form efficient
d. all
Q. Which are the popular types of orders placed through an online trading account?
a. Limit orders
b. Market orders
c. Stop loss order
d. All of the above
Q. What are the features of line charts?
a. It connects closing prices from one period to the next
b. It connects low prices from one period to the next
c. It connects high prices from one period to the next
d. None of the above
Q. What is the art of technical analysis?
a. To identify trend changes at an early stage and maintain investment posture till the trend has reversed
b. To know the type of security to invest in.
c. To know the under and over priced shares.
d. None of the above
Q. What is Bottom-Up approach also known as?
a. Company-industry-economy approach
b. Economy -industry-Company approach
c. Industry-economy-Company approach
d. Company -economy-industry approach
Q. ________ ratio is the ratio of net profit to the sales.
a. Net Profit
b. Gross profit
c. Operating profit
d. Expense
Q. A security is said to be ________ if its current market price is over its intrinsic value.
a. Under priced
b. Over priced
c. Rightly priced
d. all
Q. The objective of fundamental analysis for a security in a market is to identify either it is:
a. Under priced
b. Over priced
c. Both under priced and over priced
d. None of the above
Q. _______ measures the percentage of net income not paid to the shareholders in the form of dividends.
a. Withholding ratio
b. Retention ratio
c. Preservation ratio
d. Maintenance ratio
Q. The ability of the investor to convert an investment into cash in a short period of time is called
a. Short-term orientation
b. Low investment risk
c. Liquidity
d. Capital appreciation
Q. Wealthy investors may prefer the favorable tax treatment of investments such as
a. Corporate bonds
b. Municipal bonds
c. Common stock
d. Preferred stock
Q. What is the rate of return on a share of common stock that increased in value from $40 to $50?
a. 5%
b. 10%
c. 20%
d. 25%