This quiz works best with JavaScript enabled. Home > Investments > Investment Management > Investment Management – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Management Quiz 12 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is a common characteristic of infrastructure as a real asset investment opportunity? A) Low capital intensity. B) Long gestation periods for returns. C) Short investment horizon. D) High liquidity. Show Answer Correct Answer: B) Long gestation periods for returns. 2. 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: A) Bond. B) Mutual fund. C) Stock. D) Hard asset. Show Answer Correct Answer: A) Bond. 3. Since risk is also associated with return, the treasurer must, once again, favor low-yield investments for minimal risk. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 4. Investors who make decisions based on avoiding the emotional pain of regret are influenced by: A) Hindsight bias. B) Regret aversion. C) Overconfidence bias. D) Anchoring bias. Show Answer Correct Answer: B) Regret aversion. 5. It deals with the broad spectrum of concepts, principles, analytical techniques, policies and practices regarding institutional investment. A) Portfolio Management. B) Investment Management. C) Indirect investment. D) None of the Above. Show Answer Correct Answer: B) Investment Management. 6. 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? A) 16.3%. B) 2.7%. C) 22%. D) 5.5%. Show Answer Correct Answer: A) 16.3%. 7. Preference shareholders have A) Preferential right as to dividend only. B) Preferential right in the management. C) Preferential right as to repayment of capital at the time of liquidation of the company. D) Preferential right as to dividend and repayment of capital at the time of liquidation of the company. Show Answer Correct Answer: D) Preferential right as to dividend and repayment of capital at the time of liquidation of the company. 8. 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. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 9. An investment project, including: A) 4 basic elements. B) 5 basic elements. C) 6 basic elements. D) 7 basic elements. Show Answer Correct Answer: C) 6 basic elements. 10. What is a common focus of value investors when analyzing stocks? A) High price-to-earnings (P/E) ratios. B) Low price-to-book (P/B) ratios. C) Companies with no dividends. D) Rapid revenue growth. Show Answer Correct Answer: B) Low price-to-book (P/B) ratios. 11. What role does farmland play as a real asset investment opportunity? A) Farmland provides high short-term capital gains. B) Farmland investments are solely focused on urban development. C) Farmland can generate income through agricultural activities. D) Farmland investments are not affected by global economic conditions. Show Answer Correct Answer: C) Farmland can generate income through agricultural activities. 12. Studying industry and company's performance for taking an investment decision is called what kind of a strategy A) Passive. B) Dormant. C) Active. D) Mediocre. Show Answer Correct Answer: C) Active. 13. In the mean-standard deviation graph, the line that connects the risk-free rate and the optimal risky portfolio, P, is called ..... A) The Security Market Line. B) The Capital Allocation Line. C) The Indifference Curve. D) The investor's utility line. Show Answer Correct Answer: B) The Capital Allocation Line. 14. Which of the following statements is not part of the definition of investment? A) Commitment of a certain amount of funds. B) The aim is to reduce the impact of inflation. C) Commitment of a certain amount of resources. D) Obtaining benefits in the future. Show Answer Correct Answer: B) The aim is to reduce the impact of inflation. 15. Which of the following is a risk associated with investing in the stock market? A) Inflation risk. B) Fixed returns. C) Guaranteed principal. D) Tax Advantages. Show Answer Correct Answer: A) Inflation risk. 16. What term is used to describe a bond that has reached its maturity date, and the issuer repays the principal amount to bondholders? A) Callable bond. B) Convertible bond. C) Matured bond. D) Redeemed bond. Show Answer Correct Answer: C) Matured bond. 17. ..... is the probability of loss A) Inflation. B) Risk. C) Investment. D) None of above. Show Answer Correct Answer: B) Risk. 18. The slope of the Capital Market Line (CML) in a mean-standard deviation chart is the ..... of the market portfolio A) Risk-free rate. B) Expected return of portfolio. C) Sharpe ratio. D) Standard deviation of market. Show Answer Correct Answer: C) Sharpe ratio. 19. Passive investing is often associated with: A) Regularly buying and selling securities. B) High portfolio turnover. C) Low-cost index fund or ETF investing. D) Frequent market timing adjustments. Show Answer Correct Answer: C) Low-cost index fund or ETF investing. 20. As per Economics, Investment is ..... A) Building Productive Assets. B) Building Financial Market. C) Building Financial Product. D) None of the above. Show Answer Correct Answer: A) Building Productive Assets. ← 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