This quiz works best with JavaScript enabled. Home > Investments > Investment Management > Investment Management – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Management Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In a real asset investment simulation, how is the valuation of tangible assets typically determined? A) Based on supply and demand in the financial markets. B) Solely through historical performance. C) Through appraisals and market comparable. D) Ignoring valuation and focusing on qualitative factors. Show Answer Correct Answer: C) Through appraisals and market comparable. 2. Management content in the subject "Investment project management", includes: A) Manage project implementation time. B) Manage project implementation costs. C) Manage the arrangement and coordination of project implementation resources. D) All of the above. Show Answer Correct Answer: D) All of the above. 3. The following is not the attribute of good investment A) Liquidity. B) Marketability. C) Returns. D) Volatility. Show Answer Correct Answer: D) Volatility. 4. What does ESG stand for in the context of ethical and sustainable investing? A) Ethical, Social, Green. B) Environmental, Social, Governance. C) Ethical, Sustainable, Green. D) Economic, Social, Governance. Show Answer Correct Answer: B) Environmental, Social, Governance. 5. The correlation coefficient between two assets equals ..... A) Their covariance divided by the product of their variances. B) Their covariance divided by the product of their standard deviation. C) The product of their variances divided by their covariance. D) The sum of their expected returns divided by their covariance. Show Answer Correct Answer: B) Their covariance divided by the product of their standard deviation. 6. It is estimated when the investor hasn't enough information about the underlying probability distributions for the returns of two assets and then the sample of historical returns is used. A) Covariance. B) Population covariance. C) Sample covariance. D) Positive covariance. Show Answer Correct Answer: C) Sample covariance. 7. Marketable investments are investments that can be easily converted into cash? A) Real Estate. B) Precious Metals. C) Private Equity. D) Stocks. Show Answer Correct Answer: D) Stocks. 8. What is the flow of investing in shares? A) Capital-stock-market-company-shares. B) Investor-securities-stock market-entity. C) Investor-entity-stock-market-capital. D) Capital-Investors-entities-stock markets. Show Answer Correct Answer: B) Investor-securities-stock market-entity. 9. .... in accounting covers both debt and equity securities that don't fit into other specific categories. These securities are listed on the balance sheet at their fair value. A) Available for sale. B) Held to Maturity. C) Trading Securities. D) Tax Liability. Show Answer Correct Answer: A) Available for sale. 10. Indirect investment is an investment method in which the investor: A) Directly participate in capital management. B) Do not directly participate in capital management. C) Sometimes directly, sometimes not directly managing spent capital. D) All sentences are correct. Show Answer Correct Answer: B) Do not directly participate in capital management. 11. How does diversification affect the risk-return tradeoff in a portfolio? A) Diversification increases risk and reduces potential returns. B) Diversification reduces risk without impacting potential returns. C) Diversification increases both risk and potential returns. D) Diversification has no impact on the risk-return tradeoff. Show Answer Correct Answer: B) Diversification reduces risk without impacting potential returns. 12. Other investment tool in which they receive money from investors with the common objective of pooling the funds and then investing them in securities according to a stated set of investment objectives. A) Investment companies. B) Investment funds. C) Insurance companies. D) Both A and B. Show Answer Correct Answer: D) Both A and B. 13. How might ethical investors engage with local communities to support economic development? A) Avoiding any involvement in community development initiatives. B) Prioritizing investments in communities with minimal social challenges. C) Collaborating with local stakeholders to understand and address community needs. D) Ignoring community input and making investment decisions independently. Show Answer Correct Answer: C) Collaborating with local stakeholders to understand and address community needs. 14. Question 4:How many main types of investment fund? A) 2. B) 3. C) 4. D) 5. Show Answer Correct Answer: B) 3. 15. As per Finance, Investment is A) Only Financial Product. B) Only Financial Services. C) Both. D) None of the above. Show Answer Correct Answer: C) Both. 16. An investor invests in assets is known as a ..... A) Securities. B) Block of Assets. C) Portfolio. D) None of th above. Show Answer Correct Answer: C) Portfolio. 17. What is Robbani in sharia investment philosophy, except? A) God as Something to believe in. B) Believe that the profits and losses that occur are the decision and ownership of Allah SWT. C) Aiming to cultivate a noble moral attitude, discipline, fulfilling one's promise, trust, fear of Allah SWT and not fearing the loss of the world. D) God as Witness and Watcher. Show Answer Correct Answer: A) God as Something to believe in. 18. What Is SPECULATION? A) High Risk & short-term approach. B) Quick return and diversification. C) Risk & Saving. D) Proper Planning. Show Answer Correct Answer: A) High Risk & short-term approach. 19. Short-term needs A) Save. B) Invest. Show Answer Correct Answer: A) Save. 20. In ethical investing, what is a common practice to evaluate the social impact of investments? A) Avoiding any investments with potential social or environmental risks. B) Engaging in social impact assessments and reporting. C) Conducting regular financial audits. D) Ignoring the social impact and focusing solely on financial returns. Show Answer Correct Answer: B) Engaging in social impact assessments and reporting. ← PreviousNext →Related QuizzesInvestments QuizzesInvestment Management Quiz 1Investment Management Quiz 3Investment Management Quiz 4Investment Management Quiz 5Investment Management Quiz 6Investment Management Quiz 7Investment Management Quiz 8Investment Management Quiz 9Investment Management Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books