121. Random Walk Theory was popularised by ___
A. Burton Malkiel
B. Redington
C. Charles Dow
D. F.Amling
Answer
A. Burton Malkiel
122. Elliot Wave Theory was introduced in the year ___
A. 1949
B. 1934
C. 1926
D. 1926
Answer
B. 1934
123. The oldest approach to common stock selection is ___
A. Fundamental Analysis
B. Technical Analysis
C. Random walk Analysis
D. Value Analysis
Answer
B. Technical Analysis
124. Technical Analysis reflects the idea that stock prices ___
A. Move upward over time
B. Move inversely over time
C. Move in trends
D. Move randomly
Answer
C. Move in trends
125. Which of the following is a tool in technical analysis to determine whether a security isa good for investment?
A. The Price earnings ratio
B. Balance sheet
C. Income statement
D. Trend lines
Answer
D. Trend lines
126. Line charts are formed by connecting ___ of each time frame.
A. Average price
B. Highest of the day
C. Closing price
D. Lowest of the day
Answer
C. Closing price
127. Triangles are ___ patterns.
A. Continuation
B. Reversal
C. Support and resistance
D. None of the above
Answer
A. Continuation
128. ___ movements are typically referred to as bullish and bearish.
A. Secondary
B. Daily
C. Major
D. Primary
Answer
D. Primary
129. Process of selling of shares that is not owned by a person is termed as ___
A. Hedging
B. Short-selling
C. Broking
D. Quoting
Answer
B. Short-selling
130. At resistance level a technical analysis expect the ___
A. Demand of a stock to decrease substantially
B. Demand of a stock increase substantially
C. Supply of a stock to Increase substantially
D. Supply of a stock decrease substantially
Answer
A. Demand of a stock to decrease substantially
131. Which of the following represents an upper price limit for a stock, based on the quantityof willing sellers?
A. Candle
B. Trend line
C. Support
D. Resistance
Answer
D. Resistance
132. Which of the following do a technical analysis believe is a lower bound on a stock’sprice?
A. Candle
B. Support
C. Trend line
D. Resistance
Answer
B. Support
133. Barometric approach is used for ___
A. Economic forecasting
B. Trend prediction
C. Price estimation
D. Dividend forecasting
Answer
A. Economic forecasting
134. Opportunistic model building is also known as ___
A. Econometric model building
B. Mathematical model building
C. Sectorial analysis
D. Anticipatory surveys
Answer
C. Sectorial analysis
135. The last step in fundamental analysis is
A. Economic Analysis
B. Industry Analysis
C. Company Analysis
D. Technical Analysis
Answer
C. Company Analysis
136. 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
137. Treynor Ratio is calculated using ___
A. Standard deviation
B. Beta
C. Alpha
D. Both Alpha and Beta
Answer
B. Beta
138. 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
139. Which of the following is a defensiveshares?
A. Beta>1
B. Beta<1
C. Beta=1
D. Beta=0
Answer
B. Beta<1
140. NSE established on ___
A. 1875
B. 1785
C. 1990
D. 1992
Answer
D. 1992
141. ___ is a person who believes in lower expected return at reduced risk.
A. Hedgers
B. Arbitrageurs
C. Speculators
D. Spreaders
Answer
D. Spreaders
142. 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
143. ___ 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
144. Total risk is associated with ___
A. Standard deviation
B. Beta
C. Alpha
D. Correlation
Answer
A. Standard deviation
145. 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
146. ___ 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
147. 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
148. ___ are issued by a group of multinational banks.
A. Domestic bonds
B. Foreign bonds
C. Euro bonds
D. Junk bonds
Answer
C. Euro bonds
149. YTM is the most widely used measure to know the return on ___
A. Equity
B. Derivatives
C. Bonds
D. Preference shares
Answer
C. Bonds
150. ___ 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
151. YTC is used in the case of ___ bonds.
A. Irredeemable
B. Callable bonds
C. Redeemed on maturity
D. Convertible
Answer
B. Callable bonds
152. Bond price-yield relationship is referred to as ___
A. Concave
B. Convex
C. Linear
D. Rectangular hyperbola
Answer
B. Convex
153. Bond pricing theorems was introduced by—
A. Harry Markowitz
B. Kritzman
C. F.Amling
D. Burton G.Malkiel
Answer
D. Burton G.Malkiel
154. Bond price will move ___ to market interest changes.
A. Inversely
B. Positively
C. Constant
D. Randomly
Answer
A. Inversely
155. ___ is a measure of interest rate sensitivity of a bond.
A. YTM
B. HTC
C. Duration
D. Current yield
Answer
C. Duration
156. The theory of bond immunisation was introduced by ___
A. Redington
B. F.Amling
C. Burton G.Malkiel
D. Kritzman
Answer
A. Redington
157. ___ 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
158. Which of the following relates to industry analysis?
A. Infrastructure facilities
B. Competitive forces
C. Interest rate
D. Market share
Answer
B. Competitive forces
159. 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
160. ___ 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
