Top 350+ Solved Security Analysis and Investment Management MCQ Questions Answer
Q. Which of the following investment areas is heavily tied to work using mathematical and statistical models?
a. Security analysis
b. Portfolio management
c. Institutional investing
d. Retirement planning.
Q. This type of risk is avoidable through proper diversification.
a. portfolio risk
b. systematic risk
c. unsystematic risk
d. total risk
Q. Liquidity risk
a. The risk that investment bankers normally face
b. Lower for small OTCEI stocks than for large NSE stocks
c. The risk associated with secondary market transactions
d. The risk increases whenever interest rates increase
Q. If interest rates are expected to rise, you would expect
a. Bond prices to fall more than stock prices
b. Bond prices to rise more than stock prices
c. Stock prices to fall more than bond prices
d. Stock prices to rise and bond prices to fall
Q. The one-period rate of return from a stock or bond which may or may not be realized canbe described by using the term
a. Holding-period return.
b. Yield.
c. Random variable
d. Market return
Q. If the dispersion around a security's return is larger
a. The expected return is smaller
b. The standard deviation is smaller
c. The stock's price is higher
d. The security's risk is higher
Q. Who popularized the dividend discount model, which is sometimes referred to by his name?
a. Myron Gordon
b. Frederick Macaulay
c. Harry Markowitz
d. Marshall Blume
Q. A group of mutual funds with a common management are known as:
a. Fund syndicates.
b. Fund conglomerates
c. Fund families.
d. Fund complexes
Q. Markowitz's main contribution to portfolio theory is
a. That risk is the same for each type of financial asset
b. That risk is a function of credit, liquidity and market Factors
c. Risk is not quantifiable
d. Insight about the relative importance of variances and co variances in determining portfolio risk
Q. If the current market price is considered as a basis of CAPM, then what would happen if Actual Market Price < CAPM,
a. stock is undervalued
b. stock is overvalued
c. stock is correctly valued
d. none
Q. What should be the investment decision When CAPM < Expected Return ?
a. Hold
b. Buy
c. Sell
d. Sale later
Q. If the Required rate of Return as per CAPM is 18% and expected return is 12%, what should be the investment decision?
a. Hold
b. Buy
c. Sell
d. Buy later
Q. Which amongst the following is not included in the Phases of Portfolio Management?
a. Security Analysis
b. Capital Market theory
c. Portfolio analysis
d. Portfolio selection
Q. Technical analyst concentrates more on price movements and ignores the fundamentals of the shares:
a. True
b. False
c. Partially true
d. all