This quiz works best with JavaScript enabled. Home > Investments > Investment Management > Investment Management – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Investment Management Quiz 9 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Holding cash and savings provides almost no return but has the ..... risk. A) Lowest. B) Highest. Show Answer Correct Answer: A) Lowest. 2. When is diversification effective? A) When standard deviation of the portfolio is larger than weighted standard deviations of the risky assets. B) When security returns are positively correlated. C) When security returns are high. D) When standard deviation of the portfolio is smaller than weighted standard deviations of the risky assets. Show Answer Correct Answer: D) When standard deviation of the portfolio is smaller than weighted standard deviations of the risky assets. 3. Bank FDs are marketable. A) True. B) False. Show Answer Correct Answer: B) False. 4. Safest investment are ..... investments A) Short term. B) Long term. C) Mid Term. D) Very short term. Show Answer Correct Answer: A) Short term. 5. Lending money at interest from credit institutions is an investment method: A) Direct. B) Indirect. C) Intermediate. D) There is both direct and indirect. Show Answer Correct Answer: B) Indirect. 6. This is one of the policies that board of directors shall be notified of the reasons for any significant shift in the designation of securities among the held-to-maturity, available-for-sale, and trading portfolios, and the approximate impact on different categories of income. A) Transfer Between. B) Debt Securities. C) Funds Investment. D) Transfer of Debt Securities. Show Answer Correct Answer: A) Transfer Between. 7. This is one of the Investment portfolios in which the board of directors must authorize all shifts in investment designation out of the held-to-maturity portfolio. A) Transfer Between. B) Debt Securities. C) Funds Investment. D) Transfer of Debt Securities. Show Answer Correct Answer: D) Transfer of Debt Securities. 8. What are Physical Investments? A) Tangible Assets. B) House & Land. C) Precious stones. D) All of the Above . Show Answer Correct Answer: D) All of the Above . 9. Buying and selling shares on the stock market is: A) Direct investment. B) Indirect investment. C) Loan. D) All sentences are correct. Show Answer Correct Answer: B) Indirect investment. 10. In sector rotation, which economic indicators are often considered when deciding on sector allocations? A) Historic stock prices. B) Short-term market trends. C) Unemployment rates and GDP growth. D) Dividend yields of individual stocks. Show Answer Correct Answer: C) Unemployment rates and GDP growth. 11. Return on a bond investment is called as what rate A) Interest. B) Coupon. C) NAV. D) Growth and appreciation. Show Answer Correct Answer: B) Coupon. 12. This is generally not secured, however, larger corporations issue this carry higher yields than on government debt issuances. A) Commercial Paper. B) Letter of Credit. C) Certificate of Deposits. D) Bankers' Acceptances. Show Answer Correct Answer: A) Commercial Paper. 13. What is the primary function of stock market indices like the Dow Jones Industrial Average (DJIA) and the S&P 500? A) To predict future stock prices. B) To provide investment advice to individuals. C) To measure and represent the performance of a group of stocks. D) To regulate the stock market. Show Answer Correct Answer: C) To measure and represent the performance of a group of stocks. 14. What is the interest? A) Beginning amount of money invested or borrowed. B) Extra money paid over time for borrowing money. C) Ending amount, total balance, current value. D) When you leave money in the bank and it makes money. Show Answer Correct Answer: B) Extra money paid over time for borrowing money. 15. Which of the following assets is a financial asset? A) It's not. B) Shares. C) Property. D) Land. Show Answer Correct Answer: B) Shares. 16. How is the impact of investments typically measured in sustainable investing? A) Ignoring any measurement of impact. B) Using metrics related to environmental, social, and governance factors. C) Through engagement with stakeholders. D) Solely based on financial returns. Show Answer Correct Answer: B) Using metrics related to environmental, social, and governance factors. 17. The purpose of business investment is to bring benefits to investors and society. In case the interests of these two subjects are not consistent with each other, the State will not use any of the following measures to stimulate investment: A) Tax reduction. B) Create incentives for loans. C) Exemption from electricity and water bills. D) Preferential rental space. Show Answer Correct Answer: C) Exemption from electricity and water bills. 18. Why do we need to form an asset? A) To prepare for the future. B) To accumulate wealth. C) Preparing for Passive Income in Old Age. D) Makes work easier. Show Answer Correct Answer: C) Preparing for Passive Income in Old Age. 19. How can investors receive compounding returns? A) By selecting a savings account that has a higher interest rate. B) By investing their earnings back into their original investment. C) By transferring their earnings into a high-risk investment. D) By diversifying their investment portfolio. Show Answer Correct Answer: B) By investing their earnings back into their original investment. 20. In what type of market environment might a contrarian strategy be more appealing? A) Bull market with widespread optimism. B) Bear market with widespread pessimism. C) Stable market conditions with moderate growth. D) Market with high income-generating opportunities. Show Answer Correct Answer: B) Bear market with widespread pessimism. ← 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 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books