This quiz works best with JavaScript enabled. Home > Investments > Investment Management > Investment Management – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Management Quiz 10 (20 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) Trainor. B) Sharpe. C) Jenson. D) Burton unlike. Show Answer Correct Answer: A) 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) Social Activity, Skill, Chance. B) Chance, Long Term. C) Long Term, Better option. D) Chance & Option. Show Answer Correct Answer: A) 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) Cash dividends expected in future. B) Market expectations of a share. C) The economic value of a share. D) The performance of a company in the market. Show Answer Correct Answer: C) 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) Available for Sale. B) Held to Maturity. C) Trading Securities. D) Tax Liability. Show Answer Correct Answer: C) 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 80B. C) Sec 80C. D) Sec 80D. Show Answer Correct Answer: C) 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) Corporate bond. B) Municipal bond. C) Treasury bond. D) Junk bond. Show Answer Correct Answer: C) 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) 5. B) 9. C) 10. D) 3. Show Answer Correct Answer: B) 9. 18. Technical analysts analyse the market through a calculation of the ..... A) Diffusion index. B) Confidence index. C) Opportunistic model. D) Economic model. 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. ← PreviousNext →Related QuizzesInvestments QuizzesInvestment Management Quiz 1Investment 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