This quiz works best with JavaScript enabled. Home > Finance > Investments > Investment Management > Investment Management – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Management Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The formula (RI-Rf)/Bi was given by which person The formula (Ri-Rf)/Bi was given by The formula (Ri-Rf)/Bi was given by The formula (Ri-Rf)/Bi was given by A) Burton unlike. B) Jenson. C) Sharpe. D) Trainor. Show Answer Correct Answer: D) Trainor. 2. The meaning of property according to Ibn Najm is..... 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) Something that is not mandatory to have and anyone has the right to it. Show Answer Correct Answer: B) Something that can be owned and kept for certain purposes and this mainly concerns concrete things. 3. Gambling is the act of placing a bet on an outcome that is uncertain, It Includes ..... ? A) Chance & Option. B) Chance, Long Term. C) Social Activity, Skill, Chance. D) Long Term, Better option. Show Answer Correct Answer: C) Social Activity, Skill, Chance. 4. Which of the following is not a basic tenet of the Dow Theory? A) No additional information is needed for the stock market outside of data on stock indexes. B) The financial market has three distinct types of movements:the primary trend, the intermediate trend, and short-term trends. C) There is usually a positive relationship between a trend and the volume of shares traded. D) A bear market is established when the Dow Jones Industrial Average is moving down. Show Answer Correct Answer: D) A bear market is established when the Dow Jones Industrial Average is moving down. 5. A type of Investment vehicle wherein bank accepts the responsibility to repay a loan to the holder of the vehicle in case the debtor fails to perform. A) Banker's acceptances. B) Banker's responsibility. C) Banker's Transaction. D) None of the Above. Show Answer Correct Answer: A) Banker's acceptances. 6. The intrinsic value of a share shows A) The performance of a company in the market. B) Market expectations of a share. C) Cash dividends expected in future. D) The economic value of a share. Show Answer Correct Answer: D) The economic value of a share. 7. The process of putting your money to work over the long term by buying and holding assets that will grow from compound interest. A) Investing. B) Savings. Show Answer Correct Answer: A) Investing. 8. Investors nearing retirement will typically shift their investment portfolios to include ..... risk investments. A) Lower. B) Moderate. C) Higher. D) None of the above. Show Answer Correct Answer: A) Lower. 9. Foreign investment capital in Vietnam has the following components: A) Loans and aid capital from foreign Governments and international organizations. B) Foreign direct investment capital. C) Investment capital of diplomatic agencies, international organizations and other foreign agencies located in Vietnam. D) All statements are correct. Show Answer Correct Answer: D) All statements are correct. 10. A reward-to-volatility ratio is useful in: A) Measuring the standard deviation of returns. B) Understanding how returns increase relative to risk increases. C) Analyzing returns on variable rate bonds. D) Assessing the effects of inflation. Show Answer Correct Answer: B) Understanding how returns increase relative to risk increases. 11. .... in accounting comprises both debt and equity securities that a company plans to sell for a profit in the near future. A) Held to Maturity. B) Tax Liability. C) Available for Sale. D) Trading Securities. Show Answer Correct Answer: D) Trading Securities. 12. Which of the following is not a step in the portfolio management process? A) Develop a policy statement. B) Study current financial and economic conditions. C) Construct the portfolio. D) Monitor investor's needs and market conditions. E) Sell all assets and reinvestment proceeds at least once a year. Show Answer Correct Answer: E) Sell all assets and reinvestment proceeds at least once a year. 13. The section that grants deduction for tax savings under the income tax act, 1961 A) Sec 80A. B) Sec 80D. C) Sec 80B. D) Sec 80C. Show Answer Correct Answer: D) Sec 80C. 14. What is the term for an investment strategy that involves buying a diversified portfolio of stocks and holding them for the long term without frequent trading? A) Day Trading. B) Swing Trading. C) Value Investing. D) Buy and Hold. Show Answer Correct Answer: D) Buy and Hold. 15. Which type of bond is issued by the U.S. government and is considered one of the safest investments due to its full faith and credit backing? A) Junk bond. B) Corporate bond. C) Municipal bond. D) Treasury bond. Show Answer Correct Answer: D) Treasury bond. 16. It is recommended that an individual has an emergency fund established before investing. This emergency fund should have enough money to cover ..... months of your expenses. A) 0-3. B) 2-5. C) 3-6. D) 4-7. Show Answer Correct Answer: C) 3-6. 17. How many types of property are there? A) 9. B) 5. C) 10. D) 3. Show Answer Correct Answer: A) 9. 18. Technical analysts analyse the market through a calculation of the ..... A) Economic model. B) Confidence index. C) Opportunistic model. D) Diffusion index. Show Answer Correct Answer: B) Confidence index. 19. They are securities representing financial obligations of the government. A) Treasury bills (also called T-bills). B) Repurchase agreement (often referred to as a repo). C) Certificate of deposit. D) Commercial paper. Show Answer Correct Answer: A) Treasury bills (also called T-bills). 20. Bonds have an additional feature of ..... A) Arrear. B) Forfeiture. C) Call. D) Dividend. Show Answer Correct Answer: C) Call. 21. What term describes a measure of how much an investment has gained or lost in value over a specific period, usually expressed as a percentage? A) Asset allocation. B) Capital gain. C) Rate of return. D) Liquidity ratio. Show Answer Correct Answer: C) Rate of return. 22. Mean variance model was given by A) Eugene fama. B) Markowitz. C) Trainor. D) Jenson. Show Answer Correct Answer: B) Markowitz. 23. Passive investors generally assume that markets are:a. b. c. d. A) Inefficient and can be consistently exploited. B) Random and unpredictable. C) Driven solely by short-term trends. D) Best navigated through frequent trading. Show Answer Correct Answer: B) Random and unpredictable. 24. ..... is an investment strategy where an investor seeks to purchase securities that are priced below their intrinsic value? A) Investment strategy. B) Investment Management. C) Value investing. D) Growth investing. Show Answer Correct Answer: C) Value investing. 25. Which among the statements is a potential challenge associated with sector rotation strategies? A) Limited diversification. B) Low potential for capital appreciation. C) Passive management approach. D) Consistent returns in all market conditions. Show Answer Correct Answer: A) Limited diversification. 26. What term describes the practice of buying a stock with borrowed money, hoping that the price will rise and allow the investor to profit? A) Dollar-cost averaging. B) Margin trading. C) Dividend investing. D) Short selling. Show Answer Correct Answer: B) Margin trading. 27. What is the primary risk associated with holding long-term bonds when interest rates rise? A) Inflation risk. B) Liquidity risk. C) Credit risk. D) Interest rate risk. Show Answer Correct Answer: D) Interest rate risk. 28. Why might investors choose to engage in international investing? A) To limit investment opportunities to domestic markets. B) To benefit from global economic growth and diversify risk. C) To concentrate risk in a single country's market. D) To avoid exposure to different economic conditions. Show Answer Correct Answer: B) To benefit from global economic growth and diversify risk. 29. What is a common risk associated with investing in specific emerging markets? A) Political and economic instability. B) Established regulatory frameworks. C) Limited growth potential. D) Lower volatility compared to developed markets. Show Answer Correct Answer: A) Political and economic instability. 30. During the ..... stage many new firms enter into market, the firms earns high profit, all firms compete with each other and only a few efficient firms are left to run the business and most of the other firms are wiped out. A) Pioneering stage. B) Expansion stage. C) Declining stage. D) Stagnation stage. Show Answer Correct Answer: A) Pioneering stage. ← PreviousNext →Related QuizzesInvestments QuizzesFinance QuizzesInvestment Management Quiz 1Investment Management Quiz 2Investment Management Quiz 3Investment Management Quiz 4Investment Management Quiz 5Investment Management Quiz 6Investment Management Quiz 8Investment Management Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books