This quiz works best with JavaScript enabled. Home > Finance > Investments > Investment Management > Investment Management – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Management Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An option is a contract that gives the holder the right to undertake a transaction if they wish to do so. A) False. B) True. Show Answer Correct Answer: B) True. 2. Definition of Assets According to Terms.....? A) Something that must be owned by all mankind. B) Something that can be owned and kept for certain purposes and this mainly concerns concrete things. C) Wealth formed from halal and non-halal income. D) As everything that humans really want to keep and own. Show Answer Correct Answer: D) As everything that humans really want to keep and own. 3. Which investment is the most risky? A) Savings account. B) Stock. C) Bond. D) Mutual fund. Show Answer Correct Answer: B) Stock. 4. How many types of property management are there in Islam? A) 4. B) 9. C) 2. D) 8. Show Answer Correct Answer: A) 4. 5. How does an investor's risk tolerance impact their position on the risk-return tradeoff spectrum? A) Higher risk tolerance aligns with a preference for lower potential returns. B) Risk tolerance is inversely related to potential returns. C) Lower risk tolerance is associated with a preference for higher potential returns. D) Risk tolerance has no influence on the risk-return tradeoff. Show Answer Correct Answer: A) Higher risk tolerance aligns with a preference for lower potential returns. 6. A bond's duration increases A) Yearly. B) On its maturity. C) Over the term of the bond. D) Monthly. Show Answer Correct Answer: B) On its maturity. 7. 18) Investment in labor force, investment in capital construction and investment in current assets, fall under the investment classification: A) According to capital management function. B) According to capital source. C) According to economic content. D) According to investment goals. Show Answer Correct Answer: C) According to economic content. 8. Classification of investments by capital source includes: A) Domestic capital and foreign capital. B) Commercial bank capital. C) Capital for basic construction. D) All sentences are correct. Show Answer Correct Answer: A) Domestic capital and foreign capital. 9. .... shall not be classified as held to maturity unless sufficient investments are already on hand to cover all budgeted short-term cash requirements. A) Transfer Between. B) Debt Securities. C) Transfer of Debt Securities. D) Funds Investment. Show Answer Correct Answer: B) Debt Securities. 10. Having a concise report summarizing each investment, its present market value, and its return on investment proves to be valuable. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 11. What is the term for a diversified portfolio of stocks and bonds that is managed by professionals on behalf of investors? A) ETF (Exchange-Traded-Fund). B) Mutual Fund. C) Certificate of Deposit (CD). D) Hedge Fund. Show Answer Correct Answer: B) Mutual Fund. 12. What role does shareholder advocacy play in ethical investing? A) Avoiding any involvement in company affairs. B) Engaging with companies to influence positive changes in their practices. C) Advocating for policies that disregard social and environmental impacts. D) Encouraging companies to maximize profits at any cost. Show Answer Correct Answer: B) Engaging with companies to influence positive changes in their practices. 13. Bond pricing theorem has how many theorems A) 2. B) 5. C) 1. D) 3. Show Answer Correct Answer: B) 5. 14. In hedge fund arbitrage strategies, what is the primary goal? A) Predicting market trends for capital appreciation. B) Exploiting price differentials in various markets. C) Maximizing portfolio volatility. D) Focusing on long-term buy-and-hold investments. Show Answer Correct Answer: B) Exploiting price differentials in various markets. 15. Type of Investment in the economy wherein investors buy and sell financial assets and manage individual investment portfolio themselves. A) Financial Institutions. B) Direct Transactions. C) Indirect Investing. D) Direct Investing. Show Answer Correct Answer: D) Direct Investing. 16. How can ethical investing contribute to economic development? A) By exclusively investing in developed economies. B) Ignoring the economic development aspect and focusing on philanthropy. C) Through investments that promote sustainable business practices and job creation. D) By prioritizing profits over social and environmental concerns. Show Answer Correct Answer: C) Through investments that promote sustainable business practices and job creation. 17. The main objectives of Investment are ..... ? A) Income, Capital Gain, Liquidity,. B) Safety or Security of Funds. C) Tax Benefits & Risk Avoid. D) All of the Above. Show Answer Correct Answer: D) All of the Above. 18. Liquidity means..... A) How quickly you can market. B) How quickly you will get cash. C) How quickly you can convert into Cash. D) How well you will get returns. Show Answer Correct Answer: C) How quickly you can convert into Cash. 19. 20) Which of the following is most interested in the financial performance of the project: A) State budget agency. B) Investor. C) Bank. D) Government level. Show Answer Correct Answer: B) Investor. 20. What role does risk management play in real asset investment simulation? A) Risk management only applies to financial assets. B) Proactive risk management is crucial to mitigate potential challenges. C) Real assets inherently have lower risk, so little management is needed. D) Risk management is not applicable to real assets. Show Answer Correct Answer: B) Proactive risk management is crucial to mitigate potential challenges. 21. In a real asset investment simulation, how is the valuation of tangible assets typically determined? A) Based on supply and demand in the financial markets. B) Solely through historical performance. C) Through appraisals and market comparable. D) Ignoring valuation and focusing on qualitative factors. Show Answer Correct Answer: C) Through appraisals and market comparable. 22. Management content in the subject "Investment project management", includes: A) Manage project implementation time. B) Manage project implementation costs. C) Manage the arrangement and coordination of project implementation resources. D) All of the above. Show Answer Correct Answer: D) All of the above. 23. The following is not the attribute of good investment A) Volatility. B) Liquidity. C) Returns. D) Marketability. Show Answer Correct Answer: A) Volatility. 24. What does ESG stand for in the context of ethical and sustainable investing? A) Ethical, Social, Green. B) Environmental, Social, Governance. C) Ethical, Sustainable, Green. D) Economic, Social, Governance. Show Answer Correct Answer: B) Environmental, Social, Governance. 25. The correlation coefficient between two assets equals ..... A) Their covariance divided by the product of their variances. B) Their covariance divided by the product of their standard deviation. C) The product of their variances divided by their covariance. D) The sum of their expected returns divided by their covariance. Show Answer Correct Answer: B) Their covariance divided by the product of their standard deviation. 26. It is estimated when the investor hasn't enough information about the underlying probability distributions for the returns of two assets and then the sample of historical returns is used. A) Positive covariance. B) Covariance. C) Population covariance. D) Sample covariance. Show Answer Correct Answer: D) Sample covariance. 27. Marketable investments are investments that can be easily converted into cash? A) Precious Metals. B) Real Estate. C) Stocks. D) Private Equity. Show Answer Correct Answer: C) Stocks. 28. What is the flow of investing in shares? A) Investor-securities-stock market-entity. B) Investor-entity-stock-market-capital. C) Capital-stock-market-company-shares. D) Capital-Investors-entities-stock markets. Show Answer Correct Answer: A) Investor-securities-stock market-entity. 29. .... in accounting covers both debt and equity securities that don't fit into other specific categories. These securities are listed on the balance sheet at their fair value. A) Tax Liability. B) Trading Securities. C) Available for sale. D) Held to Maturity. Show Answer Correct Answer: C) Available for sale. 30. Indirect investment is an investment method in which the investor: A) Directly participate in capital management. B) Do not directly participate in capital management. C) Sometimes directly, sometimes not directly managing spent capital. D) All sentences are correct. Show Answer Correct Answer: B) Do not directly participate in capital management. Next →Related QuizzesInvestments QuizzesFinance QuizzesInvestment Management Quiz 2Investment Management Quiz 3Investment Management Quiz 4Investment Management Quiz 5Investment Management Quiz 6Investment Management Quiz 7Investment Management Quiz 8Investment Management Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books