INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT ..., Lecture notes of Finance

Download INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT ... and more Lecture notes Finance in PDF only on Docsity! INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT TYBMS - FINANCE SEM – V Sample Questions Multiple Choice Questions 1. If there is an increase in interest rates than the fixed interest rate of the corporate bond will a. Return to the corporation b. Decrease in value c. Remain unchanged d. Increase in value 2. Which one of the following is shown first when the assets are arranged in the order of their liquidity? a. Investment b. Cash in hand c. Debtors d. None of the above 3. An investor invests in assets known as a a. Securities b. Block of Assets c. Portfolio d. None of the above 4. Over the period, investors determine the compound growth rate of an investment by a. Arithmetic median b. Arithmetic mean c. Calculus mean d. Geometric mean 5. Investors agree to invest in high- risk investments if only a. There are any true speculations b. The predicted return is satisfactory for taking a risk c. There are no safe options except for holding cash d. The return is short 6. In Capital Market Line every investment is a. Finitely divisible b. Infinitely divisible c. Both a & b d. None of the above 7. Investments would score high only if there is a protection to a. Real estate b. Preferred stock c. Government bonds d. Common stock 8. Employment of funds with the aim of achieving additional income is known as____ a. Investment b. Speculation c. Gambling d. Biting 9. _______ is based on tips, rumors and hunches, unplanned and without knowledge of the exact nature of risk. a. Investment b. Speculation c. Gambling d. Arbitrage 10. Buying low and selling high, making a large capital gain is associated with ________ a. Investment b. Speculation c. Gambling d. Arbitrage 11. Rising of prices and falling of standard of living is arises at the time of __________ a. Inflation b. Boom period c. Normal period