MCQOPTIONS
Saved Bookmarks
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.
| 51. |
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 |
| Answer» B. Less risk than market average | |
| 52. |
---------- is a hedging method against the risk associated with changes in interest rates. |
| A. | Macaules duration |
| B. | Bond convexity |
| C. | Bond immunisation |
| D. | Effective duration |
| Answer» D. Effective duration | |
| 53. |
--------movements are typically referred to as bullish and bearish. |
| A. | Secondary |
| B. | Daily |
| C. | Major |
| D. | Primary |
| Answer» E. | |
| 54. |
----- is the measure of risk in the case portfolio with two securities. |
| A. | Correlation |
| B. | Covariance |
| C. | Standard deviation |
| D. | Beta |
| Answer» D. Beta | |
| 55. |
The APT differs from CAPM because the APT. |
| A. | Places more emphasis on market risk |
| B. | Recognizes multiple systematic risk factors |
| C. | Recognizes multiple unsystematic risk factors |
| D. | Minimizes the importance of diversification |
| Answer» C. Recognizes multiple unsystematic risk factors | |
| 56. |
Which among the following is a market indicator? |
| A. | Oscillators |
| B. | MACD |
| C. | Odd-lot-index |
| D. | Moving average |
| Answer» D. Moving average | |
| 57. |
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 |
| Answer» D. Exchange rate fluctuations | |
| 58. |
............... is not a money market instrument. |
| A. | cerftificates of deposit |
| B. | a treasury bill |
| C. | a treasury bond |
| D. | commercial paper |
| Answer» C. a treasury bond | |
| 59. |
Which of the following is a tool in technical analysis to determine whether a security isa good for investment? |
| A. | The Price earnings ratio |
| B. | Balance sheet |
| C. | Income statement |
| D. | Trend lines |
| Answer» E. | |
| 60. |
YTM is the most widely used measure to know the return on----- |
| A. | Equity |
| B. | Derivatives |
| C. | Bonds |
| D. | Preference shares |
| Answer» D. Preference shares | |
| 61. |
An asset risk premium is given by : |
| A. | the asset standard deviation |
| B. | the assets expected returns |
| C. | expected return per unit of standard deviation |
| D. | the excess of the assets expected return over the riskless rates |
| Answer» B. the assets expected returns | |
| 62. |
Liquidity risk is : |
| A. | is risk investment bankers face. |
| B. | is lower for small OTC |
| C. | increases whenever interest rates increases |
| D. | is risk associated with secondary market transactions |
| Answer» D. is risk associated with secondary market transactions | |
| 63. |
Line charts are formed by connecting------- of each time frame. |
| A. | Average price |
| B. | Highest of the day |
| C. | Closing price |
| D. | Lowest of the day |
| Answer» D. Lowest of the day | |
| 64. |
The concept efficient frontier is a contribution by----. |
| A. | Robert Rhea |
| B. | E.GeorgeSchaefer |
| C. | Charles H.Dow |
| D. | Harry Markowitz |
| Answer» E. | |
| 65. |
Total risk includes--------- |
| A. | Systematic risk only |
| B. | Unsystematic risk only |
| C. | Both a and b above |
| D. | Only diversifiable risks |
| Answer» D. Only diversifiable risks | |
| 66. |
According to Graham, a stock should have a current ratio of at least--- |
| A. | One |
| B. | Two |
| C. | Three |
| D. | Four |
| Answer» C. Three | |
| 67. |
The investment process begins with ------ |
| A. | Investment policy |
| B. | Security analysis |
| C. | Portfolio construction |
| D. | Fundamental analysis |
| Answer» B. Security analysis | |
| 68. |
-------is the study of historical stock prices and stock market behaviour to identifyrecurring pattern. |
| A. | Fundamental Analysis |
| B. | Technical Analysis |
| C. | Economy Analysis |
| D. | Industry Analysis |
| Answer» C. Economy Analysis | |
| 69. |
CAMP stands for . |
| A. | capital asset pricing model |
| B. | capital assessment pricing model |
| C. | capital asset placement model |
| D. | none of these |
| Answer» B. capital assessment pricing model | |
| 70. |
------- is a measure of interest rate sensitivity of a bond. |
| A. | YTM |
| B. | HTC |
| C. | Duration |
| D. | Current yield |
| Answer» D. Current yield | |
| 71. |
--------- is the bonds issued at a considerable discount and repaid at par. |
| A. | Deep discount bond |
| B. | Callable bond |
| C. | Floating rate note |
| D. | Junk bonds |
| Answer» B. Callable bond | |
| 72. |
------- is also called characteristic Lines. |
| A. | CML |
| B. | SML |
| C. | Efficient Frontier |
| D. | CAL |
| Answer» C. Efficient Frontier | |
| 73. |
Which is the most popular multiplier for valuing shares? |
| A. | EPS/ stock price |
| B. | P/E Ratio |
| C. | Constant growth mode |
| D. | One year holding model |
| Answer» C. Constant growth mode | |
| 74. |
Bond holders usually accept interest payment each. |
| A. | 1 year |
| B. | six months |
| C. | 2 months |
| D. | 2 years |
| Answer» C. 2 months | |
| 75. |
Bond pricing theorems was introduced by— |
| A. | Harry Markowitz |
| B. | Kritzman |
| C. | F.Amling |
| D. | Burton G.Malkiel |
| Answer» E. | |
| 76. |
--- include “expensive stocks” that offer big rewards but have big risk. |
| A. | The patient portfolio |
| B. | Conservative portfolio |
| C. | Aggressive portfolio |
| D. | Efficient portfolio |
| Answer» C. Aggressive portfolio | |
| 77. |
Treynor Ratio is calculated using--- |
| A. | Standard deviation |
| B. | Beta |
| C. | Alpha |
| D. | Both Alpha and Beta |
| Answer» C. Alpha | |
| 78. |
The oldest approach to common stock selection is----- |
| A. | Fundamental Analysis |
| B. | Technical Analysis |
| C. | Random walk Analysis |
| D. | Value Analysis |
| Answer» C. Random walk Analysis | |
| 79. |
Which among the following is true about systematic risk? |
| A. | It is not diversifiable |
| B. | a only |
| C. | Its measure is Beta |
| D. | Both a and c |
| Answer» E. | |
| 80. |
NSE established on--- |
| A. | 1875 |
| B. | 1785 |
| C. | 1990 |
| D. | 1992 |
| Answer» E. | |
| 81. |
The theory of bond immunisation was introduced by------ |
| A. | Redington |
| B. | F.Amling |
| C. | Burton G.Malkiel |
| D. | Kritzman |
| Answer» B. F.Amling | |
| 82. |
. -------- is an example for oscillators. |
| A. | ROC |
| B. | RSI |
| C. | MACD |
| D. | All the above |
| Answer» E. | |
| 83. |
MACD stands for ----- |
| A. | Managing asset classes for dividend |
| B. | Multiple asset class deposit |
| C. | Moving average convergence divergence |
| D. | Main asset class deposit |
| Answer» D. Main asset class deposit | |
| 84. |
To calculate historical (realised) risk and return, use; |
| A. | ex-post data |
| B. | mean and variance of expected return |
| C. | probability distribution of possible states |
| D. | ex- ante data |
| Answer» B. mean and variance of expected return | |
| 85. |
The last step in fundamental analysis is |
| A. | Economic Analysis |
| B. | Industry Analysis |
| C. | Company Analysis |
| D. | Technical Analysis |
| Answer» D. Technical Analysis | |
| 86. |
Which of the following is an example of a depreciable asset? |
| A. | land |
| B. | cash |
| C. | account receivable |
| D. | equipment |
| Answer» E. | |
| 87. |
Which of the following is not related with a bond? |
| A. | Dividend |
| B. | Residential maturity |
| C. | ESOP |
| D. | Spot interest rate |
| Answer» E. | |
| 88. |
Process of selling of shares that is not owned by a person is termed as… |
| A. | Hedging |
| B. | Short-selling |
| C. | Broking |
| D. | Quoting |
| Answer» C. Broking | |
| 89. |
An investor committed money for very short period expect…. |
| A. | Return from price fluctuation |
| B. | Dividend |
| C. | Benefit from both price variation and dividend |
| D. | None of these |
| Answer» B. Dividend | |
| 90. |
Which of the following is a PSU bond? |
| A. | Cumulative Interest bonds |
| B. | Step up bonds |
| C. | Tax free bonds |
| D. | Monthly return bonds |
| Answer» D. Monthly return bonds | |
| 91. |
--------ratio is used to estimate the value of stocks by the investors rather than adoptingdiscounting models. |
| A. | Price to sales ratio |
| B. | Price to book ratio |
| C. | Price earnings ratio |
| D. | Dividend pay-out ratio |
| Answer» D. Dividend pay-out ratio | |
| 92. |
While bond prices fluctuate , |
| A. | yeilds are constant |
| B. | coupon are constant |
| C. | the spread between yeilds is constant |
| D. | short term bond prices fluctuate even more |
| Answer» B. coupon are constant | |
| 93. |
Which of the statements is/are false regarding Arbitrage Pricing Theory (APT)?I. APT assumes that return on any asset can be expressed as a linear function of a set of market factors or indexes. II. The arbitrage price line indicates relation between unsystematic risk and the expected return of an asset. III. While deriving the APT model, APT assumes that the error term can be reduced to zero through appropriate diversification. |
| A. | Only (I) above |
| B. | Only (II) above |
| C. | Only (III) above |
| D. | Both (I) and (II) above |
| Answer» C. Only (III) above | |
| 94. |
What is the price of a stock estimated to pay a dividend of Rs.60 next year, if the dividend growth rate is 5% and the appropriate discount rate is 8%? |
| A. | Rs.18 |
| B. | Rs.19 |
| C. | Rs.20 |
| D. | Rs.21 |
| Answer» D. Rs.21 | |
| 95. |
The market portfolio has a beta of |
| A. | 0. |
| B. | 1. |
| C. | -1. |
| D. | 0.5. |
| Answer» C. -1. | |
| 96. |
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 |
| Answer» B. efficient; the effect of an inefficient market | |
| 97. |
Standard deviation and beta both measure risk, but they are different in that |
| A. | beta measures both systematic and unsystematic risk. |
| B. | beta measures only systematic risk while standard deviation is a measure of total risk. |
| C. | beta measures only unsystematic risk while standard deviation is a measure of total risk. |
| D. | beta measures both systematic and unsystematic risk while standard deviation measures only systematic risk. |
| Answer» C. beta measures only unsystematic risk while standard deviation is a measure of total risk. | |
| 98. |
The SML depicts the tradeoff between risk and required return for: |
| A. | inefficient portfolios. |
| B. | all assets. |
| C. | efficient portfolios. |
| D. | individual securities only. |
| Answer» B. all assets. | |
| 99. |
The investor of a high-yielding utility can expect |
| A. | Slow growth in earnings |
| B. | Slow growth in the stock price |
| C. | Slow growth in the stock price with a fast growth in earnings |
| D. | Both a and b |
| Answer» E. | |
| 100. |
Indenture is a |
| A. | A detailed securities contract |
| B. | Abbreviated version of a securities contract |
| C. | Abbreviated version of a debt contract |
| D. | A detailed bond contract |
| Answer» C. Abbreviated version of a debt contract | |