Top 350+ Solved Security Analysis and Investment Management MCQ Questions Answer
Q. The two types of investments that provide the highest and lowest yields in the Ibbotson study of Stocks, Bonds, Bills and Inflation are
a. Large company stocks; U.S. treasury bills
b. Large company stocks; Long-term government bonds
c. Small company stocks; U.S. Treasury bills
d. Small company stocks; preferred stock
Q. Which of the following is not a form of a financial asset?
a. Commercial paper
b. Commodity futures
c. Warrants
d. Personal residence
Q. Historically, the real rate of return in the U.S. economy has been
a. 1-2%
b. 2-3%
c. 3-4%
d. 4-5%
Q. Which of the following is not a form of real asset?
a. Rare paintings
b. Baseball cards
c. Diamonds
d. Real estate
Q. Under the Economic Growth and Tax Reconciliation Act of 2001, when will estate taxes be eliminated?
a. 2008
b. 2009
c. 2010
d. 2019
Q. Program trading decreases market efficiency by exaggerating price discrepancies between the cash and futures markets
a. True
b. False
c. all
d. none
Q. Most favourable portfolio is proficient portfolio with the
a. lowest risk
b. highest risk
c. highest utility
d. least investment
Q. Ambiguity introduced by way by which organization finances its investments is
a. country risk
b. liquidity risk
c. financial risk
d. business risk
Q. If generally interest rates in nation increase, a corporate bond with a fixed interest rate will usually
a. increase in value
b. remain unchanged
c. decrease in value.
d. be returned to corporation.
Q. In the stock-price beta estimation for the Coca-Cola Company, the dependent variable is the:
a. return on Coca-Col
b. price of Coca-Cola stock.
c. return on the S&P 500.
d. value of the S&P 500 Index.
Q. If the beta of a stock is 1.8 and the overall market declines 20%, the expected return is:
a. -36%
b. -18%.
c. -20%.
d. -28%
Q. The SML depicts the tradeoff between risk and required return for:
a. inefficient portfolios.
b. all assets.
c. efficient portfolios.
d. individual securities only.
Q. In the stock-price beta estimation for the Coca-Cola Company, the independent variable is the:
a. value of the S&P 500 Index.
b. return on the S&P 500.
c. return on Coca-Cola.
d. price of Coca-Cola stock.
Q. The chance of loss due to fluctuations in the stock market is:
a. market risk.
b. interest rate risk.
c. business risk.
d. inflation risk.