Top 350+ Solved Security Analysis and Investment Management MCQ Questions Answer

From 241 to 255 of 301

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

  • c. Semi-strong form efficient

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

  • 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

  • a. It connects closing prices from one period to the next

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

  • a. To identify trend changes at an early stage and maintain investment posture till the trend has reversed

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

  • a. Company-industry-economy approach

Q. ________ ratio is the ratio of net profit to the sales.

a. Net Profit

b. Gross profit

c. Operating profit

d. Expense

  • a. Net Profit

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

  • b. Over priced

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

  • c. Both under priced and over priced

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

  • b. Retention ratio

Q. Prices of stocks usually move in trends.

a. False

b. True

c. none

d. all

  • b. True

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

  • c. Liquidity

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

  • b. Municipal bonds
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