One way a company or a person uses their income or profit is by taking up investments. The acquisition of shares is one of the essential methods people choose to use. When it comes to buying security, as taught during security analysis and portfolio management, there are some things we always need to consider. Take this quiz and test how well you understood the topic.
All real assets.
All financial assets.
All physical assets.
All real and financial assets.
None of the above
Hedge.
Offset debt.
Appease stockholders.
Attract customers.
Enhance their balance sheets.
Directly contribute to the country's productive capacity.
Are of no value to anyone.
Indirectly contribute to the country's productive capacity.
Design securities with desirable properties.
Provide advice to the firms as to market conditions, price, etc.
All of them
None of them
The dividend yield of the distribution
The downside risk of a distribution
The normality of a distribution
A and C
Standard deviation overestimates risk
Standard deviation correctly estimates risk
Standard deviation underestimates risk
None of the above
15.7%.
12.4%
16.5%
17.8%
11.6%
Securities' returns are positively correlated.
Securities' returns are uncorrelated.
Securities' returns are high.
Securities' returns are negatively correlated.
A and C.
Equal to zero.
Greater than zero.
Equal to -1.
None of the above
The elimination of systematic risk.
The identification of unsystematic risk
The effect of diversification on portfolio risk.
Active portfolio management to enhance returns.
None of the above
Correlation.
Standard deviation.
Covariance.
Variance.
A and C.
Unique risk.
Beta.
Standard deviation of returns.
Variance of returns.
None of the above.
Market risk is negligible.
Unsystematic risk is negligible.
Systematic risk is negligible.
Nondiversifiable risk is negligible.
None of the above
1.25
1.7
1.0
0.95
None of the above
The multifactor APT.
The CAPM.
Both the CAPM and the multifactor APT.
Neither the CAPM nor the multifactor APT.
None of the above is a true statement.
An investor has downside risk only.
The opportunity set is not tangent to the capital allocation line.
A risk-free arbitrage opportunity exists.
The law of prices is not violated.
None of the above
Places more emphasis on market risk.
Recognizes multiple systematic risk factors.
Recognizes multiple unsystematic risk factors.
Minimizes the importance of diversification.
All of the above
Interest rate fluctuations.
The business cycle.
Inflation rates.
A and B
All of the above
7.0%
8.0%
9.2%
13.0%
13.2%
Semistrong
Strong
Weak
All of them
None of them
A) an active trading strategy.
B) investing in an index fund.
C) a passive investment strategy.
A and B
B and C
Credit analysts
Fundamental analysts
Systems analysts
Technical analysts
All of the above
Book value is a value
Resistance level is a value
Support level is a value
The lucky event issue.
The magnitude issue.
The selection bias issue.
All of the above.
None of the above
Are irrational; are irrational
Are rational; may not be rational
Are rational; are rational
May not be rational; may not be rational
May not be rational; are rational