Deck 6: Investment and Market Analysis

Question 1

Flat trend in technical analysis means

A)prices move upwards
B)prices move downwards
C)prices move within a narrow range
D)none of these

Answer 1

prices move within a narrow range

Question 2

GDP indicates

A)Inflation or deflation
B)the status of the economy
C)the condition of the stock market
D)none of these

Answer 2

the status of the economy

Question 3

The fall in the interest rate is good to the stock market because

A)money may flow from bond market to stock market
B)corporate houses can borrow at easy terms
C)investors can invest with borrowed funds
D)all of these

Answer 3

all of these

Question 4

The price earnings ratio of a stock reflects

A)the growth of the company
B)the market mood for the company's stock
C)the earnings retained and invested in the company.
D)none of these

Question 5

This fund is one that is available for subscription all through the year.

A)Open ended fund
B)closed ended fund
C)growth fund
D)income fund

Question 6

This fund is open for subscription only during a specified period

A)Open ended fund
B)closed ended fund
C)growth fund
D)income fund

Question 7

These funds are stocks funds that invest in stocks with the potential for long term capital appreciation

A)Open ended fund
B)closed ended fund
C)growth fund
D)income fund

Question 8

The aim of this fund is to provide regular and steady income to investor.

A)Open ended fund
B)closed ended fund
C)growth fund
D)income fund

Question 9

Stock mutual funds also sometimes called

A)Open ended fund
B)closed ended fund
C)growth fund
D)equity fund

Question 10

Mutual funds are

A)Open ended fund
B)closed ended fund
C)both a and b
D)none of the above

Question 11

Credit rating is mandatory

A)Equity shares
B)preference shares
C)debentures
D)all of the above

Question 12

Systematic risk is also known as

A)Unavoidable risk
B)unique risk
C)avoidable risk
D)financial risk

Question 13

Unsystematic risk is also known as

A)Unavoidable risk
B)unique risk
C)avoidable risk
D)both b and c

Question 14

Investor can build a risk free portfolio, when two assets have ---------correlation

A)Perfect positive
B)zero
C)perfect negative
D)partial correlation

Question 15

A set of securities held by an individual investor is called --------

A)Portfolio
B)group
C)collection
D)bundle

Question 16

Which of the following helps in reduction of risk in portfolio management?

A)Derivation
B)dispersion
C)distribution
D)diversification

Question 17

The risk in portfolio is measured through the

A)Weighted average of standard deviations
B)Weighted average of variance
C)Variance co-variance matrix
D)correlation

Question 18

If an investment assures a fixed return in the future, then the standard deviation of return will be

A)0
B)1
C)greater than one
D)less than one

Question 19

The securities contact act was passed in

A)1949
B)1956
C)1954
D)1962

Question 20

In secondary market

A)Second hand securities are traded
B)new securities are traded
C)Right issues are traded
D)none of the above

Question 21

The first stock exchange was set up in

A)Kolkata
B)Mumbai
C)Chennai
D)Delhi

Question 22

Over the counter market is for

A)selling the share through banker
B)buying /selling of unlisted securities
C)Buying /selling of listed securities
D)selling the securities to the financial

Question 23

Over the counter market is a part of

A)Primary market
B)secondary market
C)money market
D)none of the above

Question 24

Which speculator expect fall in prices in future

A)bull
B)bear
C)stag
D)lame duck