This quiz works best with JavaScript enabled. Home > Investments > Investment Management > Investment Management – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Management Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In growth investing, investors are likely to be attracted to companies with: A) Low growth potential and stable earnings. B) High debt and low market capitalization. C) Potential for above-average earnings growth. D) Consistent dividend payouts. Show Answer Correct Answer: C) Potential for above-average earnings growth. 2. What is the term used to describe the practice of buying stocks and other securities in anticipation of a price increase? A) Short selling. B) Day trading. C) Long position. D) Margin trading. Show Answer Correct Answer: C) Long position. 3. Which among these statements is negative screening in the context of ethical investing? A) Supporting companies with poor environmental and social records. B) Ignoring ethical considerations and focusing on financial performance. C) Avoiding investments in companies that do not meet certain ethical criteria. D) Actively seeking out investments with negative social impacts. Show Answer Correct Answer: C) Avoiding investments in companies that do not meet certain ethical criteria. 4. In venture capital, which stage typically involves providing funding for a company's initial development and product launch? A) Seed stage. B) Growth stage. C) Expansion stage. D) Maturity stage. Show Answer Correct Answer: A) Seed stage. 5. What are the 3 R's of investing? A) Research, Risk, Review. B) Return, Review & Risk. C) Risk, Return, Research. D) Research, Return, Revert. Show Answer Correct Answer: C) Risk, Return, Research. 6. Defined as the existing investment vehicles inthe market available for investor and the places for transactions with these investment vehicles. A) Investment Management. B) Investment Portfolio. C) Investment Vehicle. D) Investment environment. Show Answer Correct Answer: D) Investment environment. 7. In general, how might the risk-return tradeoff vary with different investment horizons? a. b. c. d. A) There is no relationship between investment horizon and risk-return tradeoff. B) The risk-return tradeoff is consistent across all investment horizons. C) Long-term investments have higher risk and lower potential returns. D) Short-term investments have lower risk and higher potential returns. Show Answer Correct Answer: B) The risk-return tradeoff is consistent across all investment horizons. 8. What does an event-driven hedge fund strategy focus on? A) Predicting macroeconomic trends. B) Capitalizing on short-term market fluctuations. C) Profiting from specific corporate events or changes. D) Holding a diversified portfolio for the long term. Show Answer Correct Answer: C) Profiting from specific corporate events or changes. 9. Who is the "Father of Value Investing" or simply "Father of Investment?" A) Gregor Mendel. B) Alexander Graham Bell. C) Benjamin Graham. D) Karl Marx. Show Answer Correct Answer: C) Benjamin Graham. 10. These typically have durations of up to two years and pay a fixed interest rate upon maturity, though some variable-rate are available. A) Repurchase Agreement. B) U.S Treasury Issuance. C) Certificate of Deposits. D) Bonds Near Maturity Dates. Show Answer Correct Answer: C) Certificate of Deposits. 11. This portion comprises all the journal entries necessary for handling investments, encompassing the purchase of an investment, acknowledgment of any profits or losses, and movements of investments between different investment categories. A) Investment Journal Entries. B) Investment Reporting. C) Investment Management Controls. D) Investment Management. Show Answer Correct Answer: A) Investment Journal Entries. 12. When is the best time to invest? A) When you have more money. B) While still young. C) As soon as possible. D) When there is a need. Show Answer Correct Answer: C) As soon as possible. 13. Who is called a father of fundamental analysis A) Benjamin Graham. B) Tinbergen. C) William. D) Elliott Wave. Show Answer Correct Answer: A) Benjamin Graham. 14. Which of the following components of income is not a component that can be obtained from shares? A) Dividends. B) Capital gain. C) Capital loss. D) Flower. Show Answer Correct Answer: D) Flower. 15. The average maturity of the investment portfolio shall be limited to ..... years is a a strategy that is meant to stop a company from investing in things with maturities that are too long. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 16. The process of allocating funds for an investment is distinctive because every stage within this process serves as a control checkpoint. A) Investment Reporting. B) Investment Management. C) Investment Journal Entries. D) Investment Management Controls. Show Answer Correct Answer: D) Investment Management Controls. 17. What does the term "blue-chip stocks" refer to in the stock market? A) What does the term "blue-chip stocks" refer to in the stock market?. B) Stocks of established, financially stable, and reputable companies. C) Stocks of small, startup companies. D) Stocks with a high level of volatility. Show Answer Correct Answer: B) Stocks of established, financially stable, and reputable companies. 18. Portfolio investment is done based on the investor's A) Risk tolerance. B) Desire. C) Aspiration. D) Wealth. Show Answer Correct Answer: A) Risk tolerance. 19. Here is the wrong way to get a property, Except? A) Fraudulent investment. B) Investing in non-underlying assets. C) State sukuk investment. D) Investments containing sunset. Show Answer Correct Answer: C) State sukuk investment. 20. The treasurer does not determine that managing investments is not a primary skill or lacks adequate resources for an in-house investment team A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. ← PreviousNext →Related QuizzesInvestments QuizzesInvestment Management Quiz 1Investment Management Quiz 2Investment Management Quiz 3Investment Management Quiz 4Investment Management Quiz 5Investment Management Quiz 6Investment Management Quiz 8Investment Management Quiz 9Investment Management Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books