This quiz works best with JavaScript enabled. Home > Investments > Investment Management > Investment Management – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Management Quiz 17 (7 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is a stock split? A) A type of dividend paid to shareholders. B) A merger between two companies. C) The division of existing shares into multiple new shares. D) A method of reducing a company's debt. Show Answer Correct Answer: C) The division of existing shares into multiple new shares. 2. Bond is what kind of an instrument A) Investment. B) Debt. C) Secured. D) Fixed term. Show Answer Correct Answer: B) Debt. 3. Investing in commodities as a real asset provides: A) High short-term returns. B) Diversification and a hedge against inflation. C) Limited exposure to inflation. D) Steady income through dividends. Show Answer Correct Answer: B) Diversification and a hedge against inflation. 4. The dividend yield is calculated by: A) Dividing the stock's price by its earnings per share. B) Dividing the annual dividend by the stock's current price. C) Multiplying the stock's price by its beta. D) Adding the stock's historical dividend payments. Show Answer Correct Answer: B) Dividing the annual dividend by the stock's current price. 5. Risk and return have what kind of a relationship A) Direct. B) Indirect. C) Equal. D) No. Show Answer Correct Answer: A) Direct. 6. What is the meaning of correlation coefficient = 1? A) Perfect negative correlation, move in different directions. B) Perfect positive correlation, move together in the same direction. C) Perfect positive correlation, move in different directions. D) Perfect negative correlation, move together in the same direction. Show Answer Correct Answer: B) Perfect positive correlation, move together in the same direction. 7. Which of the following is confirmation bias in the context of investment decisions? A) Making decisions based on new information. B) Seeking information that confirms pre-existing beliefs. C) Ignoring relevant data. D) Considering both positive and negative information equally. Show Answer Correct Answer: B) Seeking information that confirms pre-existing beliefs. ← PreviousRelated 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