Top 150+ Solved Security Analysis and Portfolio Management MCQ Questions Answer
Q. Who introduced mean variance analysis in portfolio theory?
a. William Sharp
b. Harry Markowitz
c. F.Amling
d. Kritzman
Q. Unsystematic risk may arise due to the following reason.
a. Change in interest rate
b. Increase in population
c. Employee strike in the company
d. Exchange rate fluctuations
Q. A higher standard deviation is an indicator of----
a. Greater risk and higher potential returns
b. Moderate risk and higher potential returns
c. Lower risk and higher potential returns
d. Greater risk and lower potential returns
Q. If the returns of two securities are unrelated, the covariance will be---
a. Positive
b. Negative
c. Zero
d. One
Q. Portfolios included in the risk return space is called------
a. Feasible set
b. Efficient portfolio
c. High return portfolio
d. Risky portfolio
Q. The concept efficient frontier is a contribution by----.
a. Robert Rhea
b. E.GeorgeSchaefer
c. Charles H.Dow
d. Harry Markowitz
Q. A fully diversified portfoliocontains securities which have---
a. Only unsystematic risk
b. Both systematic and unsystematic risk
c. Only systematic risk
d. No risk
Q. ----- is the measure of risk in the case portfolio with two securities.
a. Correlation
b. Covariance
c. Standard deviation
d. Beta
Q. Value of Beta above 1 implies---
a. Higher risk than the market average
b. Less risk than market average
c. Less risk than risk free investment
d. None of the above
Q. CML stands for.
a. Convergence Market Line
b. Critical Market Line
c. Critical Maturity Line
d. Capital Market Line
Q. Efficient frontier is situated at -------- boundary of opportunity set.
a. North west
b. North east
c. South west
d. South east
Q. Arbitrage Pricing Theory was introduced by---
a. Charles Dow
b. Benchamin Graham
c. William sharp
d. Stephen S.Rose
Q. Which pricing model provides no guidance on the determination of the risk premiumfactor?
a. The Multifactor APT
b. The CAPM
c. Both CAPM &Multifactor APT
d. Neither the CAPM nor Multifactor APT