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

From 271 to 285 of 301

Q. Which type of chart includes daily high price, low price, opening price, and closing price?

a. Bar chart.

b. Candlestick chart.

c. Point-and-figure chart.

d. Moving average chart.

  • b. Candlestick chart.

Q. Which of the following contains the real body?

a. Point-and-figure chart.

b. Bar chart.

c. Moving average chart.

d. Candlestick chart.

  • d. Candlestick chart.

Q. When Maurice Kendall examined the patterns of stock returns in 1953 he concluded that the stock market was __________. Now, these random price movements are believed to be _________.

a. inefficient; the effect of a well-functioning market

b. efficient; the effect of an inefficient market

c. inefficient; the effect of an inefficient market

d. efficient; the effect of a well-functioning market

  • a. inefficient; the effect of a well-functioning market

Q. A hybrid strategy is one where the investor

a. uses both fundamental and technical analysis to select stocks.

b. selects the stocks of companies that specialize in alternative fuels.

c. selects some actively-managed mutual funds on their own and uses an investment advisor to select other actively-managed funds.

d. maintains a passive core and augments the position with an actively managed portfolio.

  • d. maintains a passive core and augments the position with an actively managed portfolio.

Q. __________ focus more on past price movements of a firm's stock than on the underlying determinants of future profitability.

a. Credit analysts

b. Fundamental analysts

c. Systems analysts

d. Technical analysts

  • d. Technical analysts

Q. _________ above which it is difficult for the market to rise.

a. A book value is a value

b. A resistance level is a value

c. A support level is a value

d. A book value and a resistance level are values

  • b. A resistance level is a value

Q. _________ below which it is difficult for the market to fall.

a. An intrinsic value is a value

b. A resistance level is a value

c. A support level is a value

d. An intrinsic value and a resistance level are values

  • c. A support level is a value

Q. Studies of stock price reactions to news are called

a. reaction studies.

b. event studies.

c. drift studies.

d. both reaction studies and drift studies.

  • b. event studies.

Q. In the Treynor-Black model

a. Portfolio weight are sensitive to large alpha values which can lead to infeasible long or short position for many portfolio managers.

b. Portfolio weight are not sensitive to large alpha values which can lead to infeasible long or short position for many portfolio managers.

c. Portfolio weight are sensitive to large alpha values which can lead to the optimal portfolio for most portfolio managers.

d. Portfolio weight are not sensitive to large alpha values which can lead to the optimal portfolio for most portfolio managers.

  • a. Portfolio weight are sensitive to large alpha values which can lead to infeasible long or short position for many portfolio managers.

Q. Benchmark portfolio risk is defined as

a. the return difference between the portfolio and the benchmark

b. the variance of the return of the benchmark portfolio

c. the variance of the return difference between the portfolio and the benchmark

d. the variance of the return of the actively-managed portfolio

  • c. the variance of the return difference between the portfolio and the benchmark
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