81. ___ is also called characteristic Lines.
A. CML
B. SML
C. Efficient Frontier
D. CAL
Answer
B. SML
82. Efficient frontier is situated at ___ boundary of opportunity set.
A. North west
B. North east
C. South west
D. South east
Answer
A. North west
83. Arbitrage Pricing Theory was introduced by ___
A. Charles Dow
B. Benchamin Graham
C. William sharp
D. Stephen S.Rose
Answer
D. Stephen S.Rose
84. Which pricing model provides no guidance on the determination of the risk premiumfactor?
A. The Multifactor APT
B. The CAPM
C. Both CAPM &Multifactor APT
D. Neither the CAPM nor Multifactor APT
Answer
A. The Multifactor APT
85. ___ is an example for oscillators.
A. ROC
B. RSI
C. MACD
D. All the above
Answer
D. All the above
86. The APT differs from CAPM because the APT.
A. Places more emphasis on market risk
B. Recognizes multiple systematic risk factors
C. Recognizes multiple unsystematic risk factors
D. Minimizes the importance of diversification
Answer
B. Recognizes multiple systematic risk factors
87. ___ focus more on past price movement of a firm’s stock than on the underlyingdeterminants of future profitability.
A. Credit Analysis
B. Fundamental Analysis
C. Systems Analysis
D. Technical Analysis
Answer
D. Technical Analysis
88. RAPM stands for ___
A. Risk Adjustment Performance Matrix
B. Risk Adjusted Performance Measure
C. Risk return Analysis of portfolio management
D. Risk Adjusted portfolio Measure
Answer
A. Risk Adjustment Performance Matrix
89. Reward to variability Ratio is ___
A. Traynor Ratio
B. Sharp Ratio
C. Jenson Ratio
D. Book Market Ratio
Answer
B. Sharp Ratio
90. Reward to volatility Ratio is also called as ___
A. Treynor Ratio
B. Sharp Ratio
C. Jenson Ratio
D. Book market Ratio
Answer
A. Treynor Ratio
91. Michel C. Jenson introduced;
A. Reward to variability ratio
B. Reward to volatility Ratio
C. Differential return measure
D. Price book ratio
Answer
C. Differential return measure
92. Treynor Ratio is calculated using ___
A. Standard deviation
B. Beta
C. Alpha
D. Both Alpha and Beta
Answer
B. Beta
93. When alpha ‘p’ is positive, it shows ___
A. Superior return
B. Neutral performance
C. Worst performance
D. None of the above
Answer
A. Superior return
94. Which of the following is a defensiveshares?
A. Beta>1
B. Beta<1
C. Beta=1
D. Beta=0
Answer
B. Beta<1
95. NSE established on ___
A. 1875
B. 1785
C. 1990
D. 1992
Answer
D. 1992
96. ___ is a person who believes in lower expected return at reduced risk.
A. Hedgers
B. Arbitrageurs
C. Speculators
D. Spreaders
Answer
D. Spreaders
97. Who is the author of the book”Security Analysis and The Intelligent Investor”
A. John Maynard Keynes
B. Kritzman
C. Benjamin Graham
D. Harry Markowitz
Answer
C. Benjamin Graham
98. ___ is putting money at risk by betting on an uncertain outcome with the hope thatyou might win money.
A. Investment
B. Gambling
C. Financing
D. Portfolio
Answer
B. Gambling
99. Total risk is associated with ___
A. Standard deviation
B. Beta
C. Alpha
D. Correlation
Answer
A. Standard deviation
100. Which of the following is not related with a bond?
A. Dividend
B. Residential maturity
C. ESOP
D. Spot interest rate
Answer
D. Spot interest rate
101. ___ is the bonds issued at a considerable discount and repaid at par.
A. Deep discount bond
B. Callable bond
C. Floating rate note
D. Junk bonds
Answer
A. Deep discount bond
102. Which of the following is a PSU bond?
A. Cumulative Interest bonds
B. Step up bonds
C. Tax free bonds
D. Monthly return bonds
Answer
C. Tax free bonds
103. ___ are issued by a group of multinational banks.
A. Domestic bonds
B. Foreign bonds
C. Euro bonds
D. Junk bonds
Answer
C. Euro bonds
104. YTM is the most widely used measure to know the return on ___
A. Equity
B. Derivatives
C. Bonds
D. Preference shares
Answer
C. Bonds
105. ___ is the discount rate that makes present value of single cash inflow to cost of thebond.
A. Current yield
B. YTC
C. YTM
D. Spot interest rate
Answer
D. Spot interest rate
106. YTC is used in the case of ___ bonds.
A. Irredeemable
B. Callable bonds
C. Redeemed on maturity
D. Convertible
Answer
B. Callable bonds
107. Bond price-yield relationship is referred to as ___
A. Concave
B. Convex
C. Linear
D. Rectangular hyperbola
Answer
B. Convex
108. Bond pricing theorems was introduced by—
A. Harry Markowitz
B. Kritzman
C. F.Amling
D. Burton G.Malkiel
Answer
D. Burton G.Malkiel
109. Bond price will move ___ to market interest changes.
A. Inversely
B. Positively
C. Constant
D. Randomly
Answer
A. Inversely
110. ___ is a measure of interest rate sensitivity of a bond.
A. YTM
B. HTC
C. Duration
D. Current yield
Answer
C. Duration
111. The theory of bond immunisation was introduced by ___
A. Redington
B. F.Amling
C. Burton G.Malkiel
D. Kritzman
Answer
A. Redington
112. ___ is a hedging method against the risk associated with changes in interest rates.
A. Macaules duration
B. Bond convexity
C. Bond immunisation
D. Effective duration
Answer
C. Bond immunisation
113. Which of the following relates to industry analysis?
A. Infrastructure facilities
B. Competitive forces
C. Interest rate
D. Market share
Answer
B. Competitive forces
114. Which is the most popular multiplier for valuing shares?
A. EPS/ stock price
B. P/E Ratio
C. Constant growth mode
D. One year holding model
Answer
B. P/E Ratio
115. ___ ratio is used to estimate the value of stocks by the investors rather than adoptingdiscounting models.
A. Price to sales ratio
B. Price to book ratio
C. Price earnings ratio
D. Dividend pay-out ratio
Answer
C. Price earnings ratio
116. ___ is the study of historical stock prices and stock market behaviour to identifyrecurring pattern.
A. Fundamental Analysis
B. Technical Analysis
C. Economy Analysis
D. Industry Analysis
Answer
B. Technical Analysis
117. Dow Theory relates to ___
A. Primary trend
B. Short term trend
C. Seasonal pattern
D. Intermediate trend
Answer
A. Primary trend
118. Find the odd one.
A. Head and shoulder
B. Flags
C. Triangles
D. Candle sticks
Answer
D. Candle sticks
119. Price movements inzigzagfashion with any rise or fall interrupted by countermovements are known as ___
A. Trend Reversal
B. Consolidation
C. Reactions
D. Penetration
Answer
C. Reactions
120. Which among the following is a market indicator?
A. Oscillators
B. MACD
C. Odd-lot-index
D. Moving average
Answer
C. Odd-lot-index