TECNO aN CST, Risk of two Securities with ditter Period ih ent expected return can be a) Coefficient of variationy— §) Standard deviation of securities ¢) Variance of Securities None of the above ortfolio having two risky securities can be turned risk less The securities are completely positively correlated b) If the correlation ranges between zero and one c) The securities are completely negatively correlated.~ ) None of the above Efficient portfolios can be defined as those portfolios which for a given level of risk provides a) Maximum return y~ : b) Average return c) Minimum return d) None of the above: Capital market line is: a) Capital allocation line of a market portfolio b) Capital allocation line ofa risk free asset ce) Botha and b a d) None of the above CAPM accounts for: ) Unsystematic riskSteg ' b 4) 50. Which model » a) Markowitz 5) Single Index ©) MM. Approach d) Traditional > but dy 51. CAPM stands for: : B Capital assets Products method 5 ue Pricing model, = e alization assets of produc 4) None of the Above. ust make 52. Risk can be measured by be a) Specific b). Technical ¢) Systematic -— d) Financial 33. Bonds give the bondholders an option to exchange each bond for a specified at shares of common stock of the team. a) Preference b) Irredeemable c) Redeemable d) Convertible 84, Risk is the possibility that borrowers repay debt ahead of schedule. s a) Liquidity 1 of secur b) Inflation et acti! ¢) Prepayment ~~ d) Investment is 1 55, ae of the following is not a common risk factor’ a) Market Risk — = b) Promotional Risk ~~ c) Interest Rate Risk be tion Risk ves more cal _ d) Inflatio ing chart gives ™ i 3s| 56. Which of the following up line chart? ' a) Line , b) Histogram CH iGe 1 Nobel Series 3 relates return to a single factor? ie using data. ities whid details thant a regular4| Nabel Series, isk return indifferences ¢ 6. The point of tangency between risk 5 Cry wh and efficient frontier highlights: sho a) Optirial portfolio a) b) Efficient portfolio b) c) Sub-optimal portfolio a} d) None of the above d) 7. A portfolio comprises tvo securities and the ce pesien retry 3. Th on them is 12% and 16% respectively, Determine return 9 ex] portfolio if first security constitutes 40% of total portfolio, a) a) 12.4% b) 13.4% b) c) 14.4% d) 15.4% ¢) 8. The value of a bond and debenture is d) a) Present value of interest payments it gets 14. TI b) Present value of contractual payments it gets till maturity, ~ a) c) Present value of redemption amount b) d) None of the above 3) 9. Required rate of return>Coupon rate, the bond will be valued d) at 15. TI a) Premium fa b) Par value a) ©) Discount~— b) d) None of the above 9) 10. If the coupon rate is constant, the value of bond when close 0 4) maturity will be 16. Ty a) Issued value be b) Par value a) ©) Redemption value\~ b) d) Allof the above. 9) 11. A bond is said to be issued at premium when 0 » a) Coupon rate>Required returns V~ 7 b) Coupon rate=Required returns ar c) Coupon rate a) b d)-ayone of the aboveIR ey Suny % Pecteg |. nn 5 tun tun | n Tportfolig NH ma turity — will be valued | when close to 4 when thhe concept of y Pe ‘yown in the financial « a) Accounting ratio V= b) Financial ratio ¢) Costing ratio {) None of the above bel Series | 5 ted 10 the items he relationship be reel in: P Between two financial Variables can be a) Pure ratio b) Percentage c) Rate or time 4) Either of the above ~— : ee pet that pay coupon interest are classified as b) Payment bond ¢) Coupon bond ~— d) Interest bond The type of bond whose present value is lesser than that of its face value is classified as a) Discount — b) Premium c) Coupon! d) Interest 16. The type of bond for which the bonds pre bond face value is classified as a) Coupon b) Interest ©) Discount isi 4) Premium ~ : ty as a collate , The type of bon ds that have tangible prope? Are classified as 4) Collateral security b) Cor ‘ notes mmercial trust certifical® - sent value Is greater6 | Nobel Series ave vio 18, Th ‘i ; bo) Rat es + The object of portfolio is to reduce ......by diversification ) yale © a) Return ee b) Riske— ane. ©) Uncertainty d) Percentage 19. The fundamental analysis approach has been associated wig] 16 a) Uncertainties — b) Certainties ©) Ratios o) ® - 4) Balance sheet jy Fund flo 20. This type of risk is avoidable through proper diversification | a) Portfolio risk a b) Systematie-risk ; c) Unsystematic risk ~~ oles d) Total risk c) 21. Beta is the slope of d) Net prof a) The security market line 38, The funda b) The capital market line a) Ratio ¢) acharacteristic line — 4) The CAPM Pima 22. A measure of risk per unit of expected return c) Tips a) Standard deviation d) Future b) Coefficient of variation ~~ 29. Which ana c) Correlation coefficient ofa shares d) Beta 23) The grestey the betasihe security involved a) Fundar b) Techni a) Greater the unavoidable riska~— b) Greater the avoidable risk ®) Financ c) Less the unavoidable risk d) Any d) Less the avoidable Risk . Which the 24, A Statistical measure of the Degree to which two variables m® teturns fr 30, together a) a) Coefficient of variation b) passe b) Variance °) Tadit &) |) Ue variance ¢) Mark S| a) Certainty equivalent25. 26. 27. 28. 29. The fundamental anal. a) Ratio b) Value of shares c) Tips d) Future price of security Which analysis provides a eee ofa shares a) Fundamental b) Technical — ce) Ratio ud) Fund flow Nobel Series |7 Ysis is a method of finding out plified picture of price behaviour Return of investment is determined by a) Net profit b) Capital employed c) Net worth d) Net profit & capital employed \—~ The fundamental analysis is a method of finding out ...... a) Ratio b) Value of share c) Tips 4) Future price of security j Which analysis provides 4 simplified picture of price behavior of a shares a) Fundamental b) Technical ¢) Financial d) Any Which theory believes t returns from securities 2 a) Modern ~~ hat the investors prefer larger to smaller ha' b) Traditional | 4 irkowitz |; Sharpe8 | Nobel Series 31. Modern portfolio theory «the relationship between yg and return a) Maximizes b) Minimizes ¢) Quantities. d) Does not assume 2. Which measures the systematic or non -systematic risk yf security? of a) Beta v b) Standard deviation c) Variance d) Range 33. According to CAPM ,the correct measure of risk is termed ag a) Business risk b) Financial risk c) Beta coefficient~~ d) Systematic risk 34. ......analysis is a study based on market emotions and share price movement . a) Fundamental b) Technical ©) Mora d) All the above 35, The oldest approach to common stock selection is: a) Fundamental analysis b) Technical analysis 7” ¢) Random walk analysis d) Value anal 36. Technical analysis reflects the idea that stock prices: 4) Move upward over time. b) Move inversely over time. c) Move in trends \~— d) Move randomly. 37. In fundamental analysis, industry anal a) First step, h) Second step»— c)->vhird step. d) Fourth step is the: 49. PO a) b) RTs fue a) ) 9) a) 9, 01 a) ) °) a)Ween Nay Fisk of | er ME| as id share , Nobel Series 38, Its Putting Money at risk by betting on an eae with the hope that you might win money. a) Investment b) Gamblin ©) Finan 4) Portfolio 39%. Itis.a method used to ey, the financial data of 8) Security Analysis b) Fundamentat analysis ©) Performance Analysis 4) None of the Above 40. IPO stands for: a) Internal Public Office 6) Initial Public Office. ¢) Initial Public Offer d) Internal Police Office 41. Which of the following are common errors in investment ue the worth of security by studying issues, management? a) Not Having a Clearly Defined Investment Plan b) Investor often overdose themselves on Information ¢) BothA&BU— d) None A&B i 42 the variability in a security’s returns resulting from fluctuations in the aggregate market, a) Market Risk ~~ b) Inflation risk ¢) Credit Risk d) Intend rate risk 43. OTC stands for: a) Offer To The Centre b) Over The counter ~ =) Over TO Corporation ©) None of the Above.nsecured promissory notes issued hy z a el Series term cash. the shortfe to raise short 16 | Nob ats b) cP ¢) Treasury bills a) Allof the Above Are financial investments that fe from something else. have no intrinsic value, but driy, their valu a) Bonds b) Commercial Bills ©) Derivatives d) Shares 46. A group of security is known as: a) Investment b) Portfolio ~~ c) Security d) Gambling 47, Are organized markets for buying & selling securities whic include stock, bonds, options, futures. a) Derivatives b) Sensex <) Stock Exchange + d) Market 48, Analysis is a method that is used to evaluate the worth ofsecu!i? by analyzing the statisti ivi epee | a) Economic b) Financia! ¢) Technical ~~ d) None Of Above 49. Nie 2 the following theory analyzes how wealth c#” be ptimally invested in portfolio’s which are made up of 85° whose expected returns and risks are diffi : a) GD. Gordon’s approach am b) Modigliani miller approach a N Jarkowitz Model — d) ‘yraditional Theory a) b) ©) d) 34. Ris sch a) b) ¢) d) 35. Wi a) b)> the principal at Maturity , 63 Ac ppnont Sete ice ta penis specified period of being shai 57. The pene interest over 50) a) | rn Oi iy yendet ys » Botha & bY Dre iD Borrower in one basket” means, AD 56, “Not putting all your eet ae ~ q)_ Investinent és b) Financing ¢) Diversification \~ e of the above ° 59. aa market can be divided into and market. 65. a a) Primary, Secondary. i" b) Money, Capital. ¢) Organized, OTC. 7 d) None of the Above. ; . Saw Are 60. The two types of data analysis techniques that are available re assist investors to make a better investment decision are: B. a) Fundamental, Technical analysis» e 6) Financial, Fundamental analysis. D. ©) Economic, Financial analysis. 67. Uns d) Economic, Fundamental analysis. A GL. Step involyes determining Periodically how the portfolio les B. Performed over the review period. c. 4) Portfolio performance evaluation \_ ~~ D. b) Portfolio revision $8. Div ©) Portfolio construction ft d) Performing Security analysis _ 62. Capital market is firstly initiated by D. 4 a) Mohsin 69, A. SS¢ A b) Linter - 2) Markowitz ne qd) William sharpes— j ncries | 13 Stent products like bonds, And so on is called as » Mutual funds 6) Investment ©) Specu, 9) Gambling. — 64. The relationshi reward is a. lation po Potential unsystematic risk and return to beta r; ratio BL Excesy y ie ety, ec) ’ c. ExGese a . ees standard d. Excess rettirn to beta squr 65. The value of bond depends on a, The coupon rate, b. Years to maturity. ¢. Expected yield to maturity, d. All the above, — vailaiy © Ate examples of financial intermedi: A. Commercial banks B. Insurance companies C. Investment companies D. All of the above \~ 67. Unsystematic risk is A. The risk associated with movements in security pricess——~ B. Reduced through diversification. C. Higher when interest rates rise, D. The risk of loss of purchasing power. 68. Diversification reduces A, Interest rate risk B. Market risk C. Unique risk D. Inflation rh cts the investor’s return By 69, Asset allocation ins on individual assets. A. Altering the fet jo retuon by the allocation. B. Weighting the pater Cy Rie MNT ators use of mutual D. Teureesing the 19 deviation ratio Variance ratio L- ratio an n ares fala funds.‘Series pa fa eat wealth of a society is equal to the sum of 70, The A. All financial assets. B, All real assets, C. All financial and real assets, ~~ D. All physical assets 71. Which of the following i é change in an investor's circumstances? A. Change in market conditions. s B. Change in legal considerations. C. Change in time horizon, D. Change in tax circumstances. 72. The Markowitz model identifies the efficient set of-portfolios, which offers the A. Highest return for any given level of risk or the lowest risk for any given level of return. B. Least-risk portfolio for a conservative, middle-aged inyestor. C. Long-run approach to wealth accumulation for a young invester. ~®. Risk-free alternative for risk-averse investors. \_ — 73. A model for optimizing the selection of securities is the model. A. Miller-Orr, B. Black-Sholes. ©. Markowitz. D. Gordon 74. a oe peter investment decision because it deter 1 n characteristics of the portfolio, A. Hedging. B. Market timing, C. Performance measurement D. Asset allocation, 75, If an investor searches for patterns in security returns bY examining various techniques applicd to a set of data, this is known as a) Fundamental analysis, b) Technical analysis.~ = Ji {L) it | mining. | a; Random walk theory ssyin 6 oy 2 yoy not normally one of the reasons for 76. At Onl; Pay; a | YL 1 qd) 77. Max a) b) c) d) 78. The a) b) °) d) 79. Con a) b) c) qd) 80. Whi ofa a) |Port est oli isk fy 1 investor 1g investoy he ster mine - A bond issue is bro + Market risk is best me; Nobel Series | 15 ken Up so tha P.S0 that some investors will receive nts while Others ‘Will ree: an example of Only interest Payme) Payments, which is a) Bundling 6) Un-bundling ©) Financial en, ngineering 4) Baw ai asured by a) Alpha es b) Beta ©) Standard deviation d) Coefficient of variation, — }. The relevant risk for a Well-diversified portfolio is a) Interest rate risk b) Inflation risk. c) Business risk. d) Market risk. — Company-specific risk is also known as a) Market risk. b) Systematic risk. ©) Non-diversifiable risk d) Idiosyncratic risk Which of the following is true regarding the expected return lio? s ie eel ighted average only for stock portfolies. sitive. . - ee ae highest individual retuen:e— c) It can never be above d) Allof the above are "tue. In order to determine the ee i the following must be Known except, individual assets. ae expected returns of in ‘ 2) robe bias a ail asset to total portfolio value. B) Weight of eae cy indvidul act : ine the c) Expected ret er be known in order to determine e urn of a portfolio, all of 4) All of the ge. fa portfolio n— i fed reture16| nobel Series with the interrelationships between secur, g2. Is concerm returits. a) Random dive relating diversification sification. b) Co ates ¢) Friedman diversification d) Markowitz diversification. ~~ In order to determine the compound growth rate of an 83, investment oyer some period, an investor would calculate the a) Arithmetic mean. b) Geometric mean ¢) Calculus mean. d) Arithmetic median. 84, If interest rates rose, you would expect to also rise. = a) Business risk b) Financial risk. ¢) Liquidity risk. d) Inflation risk 85. Which of the following is not related to overall market variability? a) Financial risk,~~ b) Interest rate risk, ¢) Purchasing power risk. d) Market risk. 86. If interest rates are expected to rise, you would expect a) Bond prices to fall more than stock prices \-— is 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. 87. The coupon rate is another name for the a. Market interest rate. b, Current yield. » pla ed interest rate. Vield to maturity.ity 88. Treasury biNs are traded in the EE a 3. Money market, = 6. Capital marker © Government market d. Regulated market + The largest sing! onal ows chs is or nsle institutional owney i Set aaet nae of common stocks is oe © b. Insurance companies, ¢. Pension funds, d. Commerciai banks. 90. Which of the following relates fo industry analysis? a) Infrastructure facilities SG). Competitive forces | c) Interest rate d) Market share 91, The theory of bond immunisation was introduced he a) Redington »— b) F.Amling ¢) Burton GMalkiel 2. RNA cries vl move ———— to market interest changes. a) Inversely 1~ b) Positively ¢) Constant d) Randomly %8. Bond pricing theore! a) Harry Markowitz b) Kritzman ©) F.Amling m= ‘ Burton GMalkiel ve is referred f0 a8 * 4. Bond price-yield relation’ 8) Concave 5) Convex ~~ ®) Linear jf = @ jeular hype Ket sms was introduced by— ola a8 [osemco18 | Nobel Series ee ic risk .-Unsystematic * a) Change in interest rate rease il ulation crease in popult 3 eneres strike in the c pany —~ co) Gi d) Exchange rate fluctuations 96, Total risk includes a) Systematic risk only b) Unsystematic risk only ¢) Both a and b aboye ~~ 4) Only diversifiable risks j 97. ——~is the amount left oyer after individual consumption, a) Investment b) Savings ~~ ce) Surplus d) Money. 98. — inchide “expensive stocks” that offer big rewards but haye big risk a) The patient portfolio 6) Conservative portfolio .— c) Aggressive portfolio d) Efficient portfolio 99. Find the odd one. a) Risk b) Return ©) Safety d) Tax evasion — 100.An investor committed money for very short period expect... 4) Return from price fluctuation ~— b) Dividend ¢) Benefit from both price variati d) None of these 101. Investment is the A. Net additions made tothe nations capital Gitte B. Persons commitment to buy a flat or house C. Employment of funds on assets to carn returns, 1) _Fmployment of funds on goods and services that are used ! production process (NP.TA PM.MCO-2) y arise due to the following reason, ion and dividend PoR> Tope, O>>> PynrgBr, Cay, mn, pe Speculator isa person re Se A. Who evaluates the | B. Who uses his own ©. Who is willing f es s willing to take high risk for high returns a Considers heresays and market behaviours (3. Which one of the following is A. Treasury bills = B. National savings certificate SUmpti, | C: Certificate of deposit D. Commercial paper Performance of the company funds only hot a money market securiti 4, Commercial papers are A. Unsecured promissory notes -- B. Secured promissory notes wards but iy) © Sold ata premium D, Issued for a period of 1 to 2 years . Registrar to the issue : A. Helps in the appointment of lead managers B. Drafts the prospectus C. Recommends the basis of allotment \~ PD. Directs the various agencies involved in the issue , The underwriter has to take up 4 ‘A. The fixed portions of the issue capital B. The agreed portion of the unsubscribed part\— C. The agreed portion or can refuse if D. The unfixed portions of the issue capital rerio ep are financial assets ‘A. Bonds B. Machines C. Stocks i D. Aand€ ae ae example of derivative security Is Ee keegan atvare ok Ccnerel Motore ok - ‘Acall option on Mobil stock: C. A commodity futures contract wv, é Rand Ca20 Nobel Serits following, investment areas is heavily tied to Wir art i : 2 A 109, Which ofr atical and statistical models? pe using mt ymalysis. © e A. Security ana BS ae U5. The, B, Portfolio bate ae os 0 «ational investing —— 5 eit planning. ri na ris s ic! CANS. ng 110. Most investors are risk-averse youl m i as A. They will assume more risk only if they are compensated by 3 a higher expected return. Oe Gavi B. They will always invest in the investment with the lowes possible risk. They will always invest in the investment with the lowey possible risks D. They avoid the stock market due to the high degree of risk 111. Which of the following would be considered a risk-free A. N B, M Vl: ope \L: investment? A. Gold. aS os Cc. G B. Equity in a house. C. High-grade corporate bonds. ae D. Treasury bills. a: 112. are financial assets. eek A. Bonds oarA Bl Machines BLA ©, Stocks CA D. A&C DA 113. Investment decision making traditionally consists of {W° steps. i. A, Investment banking and security analysis. as B. Buying and selling. 5 = C. Risk and expected return, rf » D. Security analysis and portfolio management. .— ane 114. The rise of the Internet has ’ . e re BT really, increased the cost of security trading. , - e Weer Significantly democratized the flow of investment informal?” d, —Bae wm Nobel Series |21 ed to fewer Number of discount br okers, at dD. ; Led to large amounts Of security fraud (15. The largest Single institutional @ onal owner of common stocks A. Mutual funds. ~ ~ Ge B. Insurance companies Sateqy] C. Pension funds | | D. Commercial banks N the ‘avine: hE [oy a 16, Savings accounts are but are not A. Negotiable; liquid h the Toy B. Marketable; liquid, C. Liquid; personal..~ ree of rig, | D- Liquid; marketable 7. Treasury bills are traded in the 7 A. Money market” B. Capital market. C.. Government market © Tiskfiee D. Regulated market. ; F 8 Which of the following would not be considered as capital market security? A. A corporate bond. B. Acommon stock, oe €. AG-month Treasury bill. | fund share. r ; as oe sa rate is another name for the by ic Ce St ‘A. Market interest rate: B. Current yield. C. Stated interest rate D. Yield to maturity. | Dividends are paid A. Monthly. B. Qparterly. or t+ -Sem-annually: vo itsies . =a 22 | Nobel Serie that Intel is overvalued at 65 times, .stor States 127. A majo 121. If an inves referring 10. and an o ‘A. Earnings per share. race B. Dividend yield.-~ B. Theil C. Book value. Cc. Clos D. Pie ratio. P . oper 122. If a preferred stock issue is cumulative, 4 D. Clo: means= 128. Which ‘A. Dividends are paid at the end of the year. Gi B. Dividends is legally binding on the corporation. B. lo C. Unpaid dividends will be paid in the future,_— C.:0p. D, Unpaid dividends are never repaid. D. All 123. Which of the following is not a characteristic of investme 129. It is } companies? ; Tramiel A. Pooled Investing. un B. Diversification. Bein C. Managed portfolios. ah aR D. Reduced expenses. iD " 124. In order to avoid paying income taxes, an investment comp pee must, Z the A. Be classified as a non-profit organization. 130. A gr B. Invest only in municipal bonds. — known C. Pass on interest, dividends, and capital gains to A. Fu stockholders. B. Fu D. Be registered as a closed-end investment company. C. Fu 125. The most popular type of investment company is a D. Fu A. Unit investment trust. 131, Net 4 B. Mutual fund. ; A.B €. Closed-end investment company. B. . D. Real estate investment trust. » Or 126. An unmanaged fixed income security portfolio handled b uO independent trustee is known as a. 3 13a Ne A. Junk bond fund. + TENS B. Closed-end investment company. A. Is = "(i Cait investment trust. Ris D, Hedge fund. vw . ie t=ote Nobel Series | 2 jor difference between a close ad investment company and an open-end investment company A. Closed-end investment companic: that are generally much riskier. antially different\-—— re passive investments and B. Their security portfolios are sub C. Closed-end iny stment Companie: Open-ends are not 18. We end companies have a more fixed capitalization + Which of the following generally traded on stock exchanges? A. Unit investment trusts B. Closed-end investment companies €. Open-end investment companies D. All trade on stock exchanges. 129. It is not important to have a secondary market for mutual funds because 5 Unvestors hold the securities till maturity, Investors trade between themselves. Investors sell their shares back to the company. Banks will cash their shares as long as they have accounts at the bank. 130. A group of mutual funds with a common management are Known as, * A. Fund syndicates. B, Fund conglomerates. C. Fund families. D. Fund complexes 131. Net asset value takes into account d unrealized capital gains. —~ pAp> A. Both realized an B, Only realized capital gains. fy unrealized capital gains. : ; 5 a realized nor wnt ealized capital gains. 132 IfNAV > market price of @ fund, then the fund. A. Is selling at @ discount. B, Is selling at 4 premiums @ [| 8 in index fund. ~D, isan exchange-tra ded fund.24| Nobel Series 33, Mutual funds mY affitiated with an underwriter, Ty, 133. Mu Is be means_____—* i istribute share AA. The underwriter has an exclusive right to di i at lanes. 7 Jects the securities in the portfolio, © underwriter se ; oo ae tual fund, C. There is no risk to the issuer of the mu D. There is no risk to the investor of the mutual fund. riting arrangement, the risk is assumed hy 134. In an underw the. . A, Issuer of the security. ~ B. Investment bankers. C. Commercial bankers. D. Institutional investors. 135. The is a window through which the investor cay see the compan A. Syndicate offer. B, IPO, C. Prospectus\—~ D. Shelf rule. 136. Investment bankers are compensated by A. The underwriting spread. B. Commissions paid by the buyers of the security C. Commission paid by the sellers of the security. D, Guaranteed investment contracts. — 137. Investment bankers operate in the A. Primary market,~ B. Secondary market. C. Third market, D. Fourth market, 138, Which exchange member is assigned to a specific trading po? A. Commission broker, B. Floor trader. C. Specialist B| @ealer. = aa “gowrd OCOQOwp> 144, 1ONW>Mares : tions networks, | C. Internet investment service, Gon D. Global it network. med by | 140. If an investor js atten i Re eiate ere ed to buy a Stock that is very Volatile, A. Market order, © ————— B. Limit order.. C, Stop-loss order. D. Contingency order, stor can | 141. Which of the following has het certificates by plac ing stock tr A. Detnat account. .~ B, Securities Exchai ge Commission. C. Depository Trust Company ped to eliminate the use of stock ransactions on computers? D. Federal Depository Insurance Corporation /142. All new issues being offered for public sale are registered with, —, A. SEBI. ; B. New issue market“ C. Maloney act of 1936. ; D. Securities investor protection act 143, Total return is equal to ee A, Capital gain + price change: B. Yield + income. C. Capital gaits tosh D. Yield + price oe nat gives pov em ‘4. Phe return compoue? — investor is known 28 he ————— . Capital gain. Interest rate. Yel } nsealized ga!"- f 1970. ic cash flows 10 the 2 ng. post? > - ae willing, to invest in riskier jn. “ate, gjnanel Seri od a vestors 3° . 145. Inves! ‘ i only_———, js short term iS , ae 7 Aj, ifthe io no safe alternatives except for holding cay ore a : ee p. Ie ther xpected return 1S adequate for the risk leyg) ~ jfthe © Ce true speculators: wae : 152. if they are Bs tes are & : xpected to rise, y ie interest T# you Wout 146 a price fll more than stock prices B. Bond pt ices to rise MOTE C. Stock prices (0 fall more than bond prices. D. Stock prices to TISe and bond prices to fall. 147, Financial risk is most associated with. sy A, The use of equity financing by corporations. B. The use of debt Ainancing by corporations Equity investments held by. corporations. D. Debt investments held by corporations: 148. Political stability is . the major factor concerning A. Exchange risk. B. Systematic risk. C. Unsystematic risk, B®. Country risk. ~~ 149. Liquidity risk a A. Is the risk that investment bankers normally face. Bl OTE snr eS sociated with secondary market transaction D. Increases Whenever interest rates increase. \~ 150. Which of the following is not related verall variability? Eade . Financial risk. Interest rate risk. Purchasing power risk. Market risk. than stock prices. ke! oie >‘tment, Woulg factor ‘ocks. ns. market Nobel Series |27 151. This type of risk can be avoided by diversifying properly. A. Systematic risk B. Unsystematic risk C. Portfolio risk D. Total risk 152. A statistical n ure of hh in stock returns move toge A. Variation coefficient B. Certainty equivalent ©. Variance D. Covariance ‘ow closely two variables especially ‘ther 153. Which of the following Securities has the most possible risk Well as the highest potential return? A. Preferred stocks B. Commercial paper C. Derivative securities ~~ D. Bonds 154 . The ability to convert an asset rapidly and without influencing its price is referred tons, as A. Scalability B. Liquidity C. Marketability ~~ D. Minimal risk pant Hh 155. Horse racing, card games, and the lottery arv all instane of. a A. Investing B. Gambling~~ D sane Hing high. Ss elling high, San ciated with buying low and sel hee i in. sh sulting in & significant capital 2 res A. Speculation B, Gambling = gla esting 5. Aibitrageinvestment in shares in «4, Cn Oi series Jing # ores OF noldi ae nay A. Hay te imp: p, Ds Bt ; speculation : at C. OP of the above . C. Tot Danae’ Ne existing investors it selling their x D. Shi yes THe ate! s Stacy Teanees =. Primary, market airs B. Commodity market B.D c. Cap! a] market e p. Secondary mark - . : mK A 159. which of the following securities is most likely to bey, d virtually worthless if company ‘declares bankruptcy? Ds 4, Common stock ae B. Preferred stock 165. Wi Cc. Bond nen D. None of the above 160. A sharcholder-funded investment program that trades ina B variety of assets A. Mutual Funds © a B. Dividends 2 C. Share program D. None of the answers 7 161. A caer of money paid to a company’s shareholders ol? 166. § lar basis, A. Bonds A. B. Profit B. C. Cashback c D. Dividends ‘i D 162. A form of sayi 207 of savings eh company and hi; : ee that shows you own a pict’ of A ee ave a claim on its assets a ar nines A. Dividend and carning B B. Share c ENO:. Bei L Dv. - None of the above; on # , of? 163, High-interest rate dD. 164. Fixed investment in A B. D. SA. D. 166. Shares are a part of the im Dp one of these Nobel Series | 2° s will hi negative impact. Have no imps : ion the cost of new houses, but do haye an impact on the cost of existit dwellings. To : : 4 the right, shift the need for new houses. To the left, chan; en ¢ the flow supply timetable for new dwellings Shift the ne 2 hew housing supply flow schedule to the right’ ; the business is merely a small part a ely a small part of overall aggregate demand. oes not ahifi Play a significant influence in the long-term economic Stowth process Approximately 11% of GDP is spent on research and development.. — Since 1993, the percentage of overall output has decrease every year, 165. Which of the assertions below is (are) correct? The multiplier process, together with the simple accelerator theory, explai Investment is more volatile than the simp!e accelerator model eyelical swings in production. predicts. The level of investment, according to the simple accelerator theory of investment, is determined by the level of existing inventories. Both a and b are correct. vestment portfolio. A. Insurance market B. Financial market : C. Securities market D. Banking syste™ ‘ 167. The two types of investment alternatives are ‘A. Bank and post office deposit ntures B. Shares and debe! hae ee, Fivancial assets & Realy for another is part of _ ef Series Sig oe TET A. Securities market B. Forex market C. Commodity market Dp. None of the above ‘The connection between inv 30| No 168+ estors and debtors is calley 169. ae ‘A. Electronic market B. Financial market \~ C. Market D. None of these 170, The return you make on your investment is based on the amount you put in, usually given as a percentage. A. Emergency Fund B. Interest Rate <~ C. Index D. Penalty 171. is a leading indicator of market behavior. Arbitrage . Indexs—— . Investment . None of These 172. The length of time that an investment is expected to last. A. Maturity Date B. Interest C. Diversification D. Term. ~ 173. Market risk is also called: ......... a) Systematic risk and unique risk. b) Unique risk & non diversifiable risk. ©) Systematic risk & diversihable risk. ~ 4) “ui diversifiable risk & systematic risk. -—— Owm> Coeae Nobet Series | 31 104 AS Per “Efficient Fronticr® concept, ifthe security fills ubove the frontier — >! a) The security is dominated by som drawn security d drawn. The security on previously and hence the frontier itself will have to be re- rity dominates some security on previously drawn Security and hence the frontier itself will have to be redrawn ©) The security is dominated by some security on the frontier and will be rejected, d) The security is efficient and hence will be selected. 175. Which of the following investment advice will you provide to he your client investor if CAPM Return = Expected return? a) Sell b) Buy c) Hold\ ‘d) Put