MCQOPTIONS
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MCQOPTIONS
This section includes 411 Mcqs, each offering curated multiple-choice questions to sharpen your Operating System knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Reward to volatility Ratio is also called as---- |
| A. | Treynor Ratio |
| B. | Sharp Ratio |
| C. | Jenson Ratio |
| D. | Book market Ratio |
| Answer» B. Sharp Ratio | |
| 2. |
Triangles are ------ patterns. |
| A. | Continuation |
| B. | Reversal |
| C. | Support and resistance |
| D. | None of the above |
| Answer» B. Reversal | |
| 3. |
Arbitrate pricing theory is an ................. model. |
| A. | asset pricing |
| B. | risk evaluation |
| C. | bond pricing |
| D. | none of these |
| Answer» B. risk evaluation | |
| 4. |
Arbitrage Pricing Theory was introduced by--- |
| A. | Charles Dow |
| B. | Benchamin Graham |
| C. | William sharp |
| D. | Stephen S.Rose |
| Answer» E. | |
| 5. |
Passive management is also referred to as.......? |
| A. | index fund management |
| B. | index folio management |
| C. | interest free management |
| D. | none of these |
| Answer» B. index folio management | |
| 6. |
Portfolios included in the risk return space is called------ |
| A. | Feasible set |
| B. | Efficient portfolio |
| C. | High return portfolio |
| D. | Risky portfolio |
| Answer» B. Efficient portfolio | |
| 7. |
Modern portfolio theory is a contribution by……… |
| A. | William sharp |
| B. | Benchamin Graham |
| C. | Stephen Rose |
| D. | Harry Markowitz |
| Answer» E. | |
| 8. |
A firm that fails to pay dividends on its preferred stock is said to be ……… |
| A. | insolvent |
| B. | in arrears |
| C. | in sufferable |
| D. | delinquent |
| Answer» C. in sufferable | |
| 9. |
Total risk is associated with ---- |
| A. | Standard deviation |
| B. | Beta |
| C. | Alpha |
| D. | Correlation |
| Answer» B. Beta | |
| 10. |
--------is the process of combining together various investment assets to obtain optimumreturns with minimum risk. |
| A. | Portfolio construction |
| B. | Portfolio analysis |
| C. | Portfolio evaluation |
| D. | Portfolio revision |
| Answer» B. Portfolio analysis | |
| 11. |
Which of the following is a defensiveshares? |
| A. | Beta>1 |
| B. | Beta<1 |
| C. | Beta=1 |
| D. | Beta=0 |
| Answer» C. Beta=1 | |
| 12. |
Systematic risk includes------ |
| A. | Market risk |
| B. | Interest rate risk |
| C. | Purchasing power risk |
| D. | All the above |
| Answer» E. | |
| 13. |
The process of addition of more assets in an existing portfolio is called.....? |
| A. | portfolio revision |
| B. | portfolio addition |
| C. | portfolio exchanging |
| D. | none of these |
| Answer» B. portfolio addition | |
| 14. |
Random Walk Theory was popularised by---- |
| A. | Burton Malkiel |
| B. | Redington |
| C. | Charles Dow |
| D. | F.Amling |
| Answer» B. Redington | |
| 15. |
Dow Theory relates to--- |
| A. | Primary trend |
| B. | Short term trend |
| C. | Seasonal pattern |
| D. | Intermediate trend |
| Answer» B. Short term trend | |
| 16. |
If the returns of two securities are unrelated, the covariance will be--- |
| A. | Positive |
| B. | Negative |
| C. | Zero |
| D. | One |
| Answer» D. One | |
| 17. |
------is the discount rate that makes present value of single cash inflow to cost of thebond. |
| A. | Current yield |
| B. | YTC |
| C. | YTM |
| D. | Spot interest rate |
| Answer» E. | |
| 18. |
At resistance level a technical analysis expect the ----- |
| A. | Demand of a stock to decrease substantially |
| B. | Demand of a stock increase substantially |
| C. | Supply of a stock to Increase substantially |
| D. | Supply of a stock decrease substantially |
| Answer» B. Demand of a stock increase substantially | |
| 19. |
Who introduced mean variance analysis in portfolio theory? |
| A. | William Sharp |
| B. | Harry Markowitz |
| C. | F.Amling |
| D. | Kritzman |
| Answer» C. F.Amling | |
| 20. |
Opportunistic model building is also known as----- |
| A. | Econometric model building |
| B. | Mathematical model building |
| C. | Sectorial analysis |
| D. | Anticipatory surveys |
| Answer» D. Anticipatory surveys | |
| 21. |
----------- focus more on past price movement of a firm’s stock than on the underlyingdeterminants of future profitability. |
| A. | Credit Analysis |
| B. | Fundamental Analysis |
| C. | Systems Analysis |
| D. | Technical Analysis |
| Answer» E. | |
| 22. |
------is the amount left over after individual consumption. |
| A. | Investment |
| B. | Savings |
| C. | Surplus |
| D. | Money. |
| Answer» C. Surplus | |
| 23. |
A fully diversified portfoliocontains securities which have--- |
| A. | Only unsystematic risk |
| B. | Both systematic and unsystematic risk |
| C. | Only systematic risk |
| D. | No risk |
| Answer» D. No risk | |
| 24. |
CML stands for. |
| A. | Convergence Market Line |
| B. | Critical Market Line |
| C. | Critical Maturity Line |
| D. | Capital Market Line |
| Answer» E. | |
| 25. |
Barometric approach is used for----- |
| A. | Economic forecasting |
| B. | Trend prediction |
| C. | Price estimation |
| D. | Dividend forecasting |
| Answer» B. Trend prediction | |
| 26. |
Which of the following represents an upper price limit for a stock, based on the quantityof willing sellers? |
| A. | Candle |
| B. | Trend line |
| C. | Support |
| D. | Resistance |
| Answer» E. | |
| 27. |
A bond that has no collateral is called ...................... .? |
| A. | collable bond |
| B. | a debenture |
| C. | a junk bond |
| D. | a mortgage |
| Answer» C. a junk bond | |
| 28. |
---‐--- is putting money at risk by betting on an uncertain outcome with the hope thatyou might win money. |
| A. | Investment |
| B. | Gambling |
| C. | Financing |
| D. | Portfolio |
| Answer» C. Financing | |
| 29. |
RAPM stands for ----- |
| A. | Risk Adjustment Performance Matrix |
| B. | Risk Adjusted Performance Measure |
| C. | Risk return Analysis of portfolio management |
| D. | Risk Adjusted portfolio Measure |
| Answer» B. Risk Adjusted Performance Measure | |
| 30. |
Who is the author of the book“Security Analysis and The Intelligent Investor” |
| A. | John Maynard Keynes |
| B. | Kritzman |
| C. | Benjamin Graham |
| D. | Harry Markowitz |
| Answer» D. Harry Markowitz | |
| 31. |
When alpha ‘p’ is positive, it shows--- |
| A. | Superior return |
| B. | Neutral performance |
| C. | Worst performance |
| D. | None of the above |
| Answer» B. Neutral performance | |
| 32. |
Price movements inzigzagfashion with any rise or fall interrupted by countermovements are known as-------- |
| A. | Trend Reversal |
| B. | Consolidation |
| C. | Reactions |
| D. | Penetration |
| Answer» D. Penetration | |
| 33. |
Technical Analysis reflects the idea that stock prices------------ |
| A. | Move upward over time |
| B. | Move inversely over time |
| C. | Move in trends |
| D. | Move randomly |
| Answer» D. Move randomly | |
| 34. |
Multifactor asset pricing model that can be used to estimate the ......ratefor the valuation of financial asset. |
| A. | discount |
| B. | interest |
| C. | expense |
| D. | risk |
| Answer» B. interest | |
| 35. |
The concept ’never putting all your eggs in one basket’ is explained in --- |
| A. | Markowitz Model |
| B. | Sharp single index Model |
| C. | Multi Index Model |
| D. | APT |
| Answer» B. Sharp single index Model | |
| 36. |
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 |
| Answer» B. Moderate risk and higher potential returns | |
| 37. |
Elliot Wave Theory was introduced in the year---- |
| A. | 1949 |
| B. | 1934 |
| C. | 1926 |
| D. | 1926 |
| Answer» C. 1926 | |
| 38. |
Investment in precious metals are included in ……… asset class. |
| A. | Liquid assets |
| B. | Financial assets |
| C. | Real assets |
| D. | Monetary assets |
| Answer» D. Monetary assets | |
| 39. |
Efficient frontier is situated at -------- boundary of opportunity set. |
| A. | North west |
| B. | North east |
| C. | South west |
| D. | South east |
| Answer» B. North east | |
| 40. |
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 |
| Answer» B. The CAPM | |
| 41. |
Which of the following relates to industry analysis? |
| A. | Infrastructure facilities |
| B. | Competitive forces |
| C. | Interest rate |
| D. | Market share |
| Answer» C. Interest rate | |
| 42. |
Bond price-yield relationship is referred to as ----- |
| A. | Concave |
| B. | Convex |
| C. | Linear |
| D. | Rectangular hyperbola |
| Answer» C. Linear | |
| 43. |
------- is a person who believes in lower expected return at reduced risk. |
| A. | Hedgers |
| B. | Arbitrageurs |
| C. | Speculators |
| D. | Spreaders |
| Answer» E. | |
| 44. |
Michel C. Jenson introduced; |
| A. | Reward to variability ratio |
| B. | Reward to volatility Ratio |
| C. | Differential return measure |
| D. | Price book ratio |
| Answer» D. Price book ratio | |
| 45. |
Bond price will move --------- to market interest changes. |
| A. | Inversely |
| B. | Positively |
| C. | Constant |
| D. | Randomly |
| Answer» B. Positively | |
| 46. |
Which of the following do a technical analysis believe is a lower bound on a stock’sprice? |
| A. | Candle |
| B. | Support |
| C. | Trend line |
| D. | Resistance |
| Answer» C. Trend line | |
| 47. |
Reward to variability Ratio is---- |
| A. | Traynor Ratio |
| B. | Sharp Ratio |
| C. | Jenson Ratio |
| D. | Book Market Ratio |
| Answer» C. Jenson Ratio | |
| 48. |
YTC is used in the case of------- bonds. |
| A. | Irredeemable |
| B. | Callable bonds |
| C. | Redeemed on maturity |
| D. | Convertible |
| Answer» C. Redeemed on maturity | |
| 49. |
Which among the following statements are true about unsystematic risk? |
| A. | It is diversifiable |
| B. | It is company specific |
| C. | Both a and b |
| D. | a only |
| Answer» D. a only | |
| 50. |
----- are issued by a group of multinational banks. |
| A. | Domestic bonds |
| B. | Foreign bonds |
| C. | Euro bonds |
| D. | Junk bonds |
| Answer» D. Junk bonds | |