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Investment Management Quiz 8 (30 MCQs)

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1. ABC Company has assets with a market value of 500 million rupiah. Based on the company's analysis, the market value of ABC Company's assets could fall to 300 million rupiah (with a probability of 60%) and rise to 900 million rupiah (with a probability of 40%) in one year. What is the Expected Return on Equity for Company ABC?
2. Which of the following securities have potentially the highest risk level, and also have the highest potential return?
3. Investment may be defined as the process of sacrificing ..... in order to get ..... in the future?
4. When considering various forms of cash investment, the treasurer should not consider the safety of the principal being invested.
5. Investing guarantees you will grow your wealth
6. .... in accounting involves debt securities that a company intends and is able to hold until they mature. These securities are recorded on the balance sheet at their amortized cost and are typically listed as long-term assets.
7. What is the term for the price at which a stock is currently trading on the market?
8. According to the mean-variance criterion, which one of the following investments dominates all others?
9. Letting go of risk for getting a return or vice versa is called as
10. Which of the following is considered a direct real asset investment opportunity?
11. What is a common characteristic of infrastructure as a real asset investment opportunity?
12. A loan to a large organization like a government or corporation and it pays interest to the holder and can be bought and sold is:
13. Since risk is also associated with return, the treasurer must, once again, favor low-yield investments for minimal risk.
14. Investors who make decisions based on avoiding the emotional pain of regret are influenced by:
15. It deals with the broad spectrum of concepts, principles, analytical techniques, policies and practices regarding institutional investment.
16. A portfolio is made up of two assets. Asset A has an allocation of 80% and a standard deviation of 16%, and asset B has an allocation of 20% and a standard deviation of 25%. If the correlation coefficient between asset A and B is 0.6, the portfolio standard deviation is closest to?
17. Preference shareholders have
18. This policy requires the financial staff to have a certain amount of cash on hand. The fixed dollar amount in the policy should be looked at often to make sure it matches the estimated needs for working capital in the near future.
19. An investment project, including:
20. What is a common focus of value investors when analyzing stocks?
21. What role does farmland play as a real asset investment opportunity?
22. Studying industry and company's performance for taking an investment decision is called what kind of a strategy
23. In the mean-standard deviation graph, the line that connects the risk-free rate and the optimal risky portfolio, P, is called .....
24. Which of the following statements is not part of the definition of investment?
25. Which of the following is a risk associated with investing in the stock market?
26. What term is used to describe a bond that has reached its maturity date, and the issuer repays the principal amount to bondholders?
27. ..... is the probability of loss
28. The slope of the Capital Market Line (CML) in a mean-standard deviation chart is the ..... of the market portfolio
29. Passive investing is often associated with:
30. As per Economics, Investment is .....
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