MCQ on Security Analysis and Investment Management

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Objective Questions and Answers of MBA: MCQ on Security Analysis and Investment Management

Subject: Objective Questions and Answers of MBA: MCQ on Security Analysis and Investment Management

Part 1: List for questions and answers of Security Analysis and Investment Management


Q1. Expected worth is the

a) Inverse of standard deviation

b) Correlation between a security

c) Same as discrete probability distribution

d) weighted average of all possible outcomes


Q2. Liquidity risk is

a) Is risk investments bankers face

b) Is lower for small otc

c) is risk associated with secondary market transactions

d) Increases whenever interest rates increases


Q3. Bondholders usually accept interest payments each

a) 1 year

b) six months

c) 2 months

d) 2 years


Q4. A corporate bond is a corporation’s write undertaking that it will refund a specific amount of money plus

a) Premium

b) interest

c) Nothing

d) Security


Q5. A price weighted index is an arithmetic mean of

a) Future prices

b) current prices

c) Quarter prices

d) None of these


Q6. Political constancy is chief aspect concerning

a) Exchange risk

b) Systematic risk

c) Non-systematic risk

d) country risk 


Q7. Capital market line is firstly initiated by

a) Mohsin

b) Linter

c) Markowitz

d) william sharpe


Q8. Most favourable portfolio is proficient portfolio with the

a) Lowest risk

b) Highest risk

c) highest utility

d) Least investment


Q9. Ambiguity introduced by way by which organization finances its investments is

a) Country risk

b) Liquidity risk

c) financial risk

d) Business risk


Q10. 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.


Q11. Beta coefficient is used to measure market risk which is an index of

a) Coefficient risk volatility

b) Market risk volatility

c) stock market volatility

d) Portfolio market portfolio


Q12. An opposite of perfect positive correlation + 1.0 is called

a) negative correlation

b) Multiple correlation

c) Divisor correlation

d) None of above 


Q13. Risk in average individual stock can be reduced by placing an individual stock in

a) Low risk portfolio

b) diversified portfolio

c) Undiversified portfolio

d) High risk portfolio


Q14. Expected returns weighted average on assets in portfolio is considered as

a) Weighted portfolio

b) expected return on portfolio

c) Coefficient of portfolio

d) Expected assets


Q15. Correct measure of risk of stock is called

a) Alpha

b) beta

c) Variance

d) Market relevance


Q16. Beta reflects stock risk for investors which is usually

a) individual

b) Collective

c) Weighted

d) Linear


Q17. For any or lower degree of risk, highest or any expected return are concepts use in

a) Riskier portfolios

b) Behavior portfolios

c) Inefficient portfolios

d) efficient portfolios


Q18. An unsystematic risk which can be eliminated but market risk is the

a) Aggregate risk

b) remaining risk

c) Effective risk

d) Ineffective risk 


Q19. An indication in a way that variance of y-variable is explained by x-variable which is shown as

a) degree of dispersion is one

b) Degree of dispersion is two

c) Degree of dispersion is three

d) Degree of dispersion is four


Q20. In regression of capital asset pricing model, an intercept of excess returns is classified as

a) Sharpe’s reward to variability ratio

b) Tenor’s reward to volatility ratio

c) jensen’s alpha

d) Tenor’s variance to volatility ratio 


Part 1: List for questions and answers of Security Analysis and Investment Management


Q1. Answer: d

Q2. Answer: c

Q3. Answer: b

Q4. Answer: b

Q5. Answer: b

Q6. Answer: d

Q7. Answer: d

Q8. Answer: c

Q9. Answer: c

Q10. Answer: c

Q11. Answer: c

Q12. Answer: a

Q13. Answer: b

Q14. Answer: b

Q15. Answer: b

Q16. Answer: a

Q17. Answer: d

Q18. Answer: b

Q19. Answer: a

Q20. Answer: c