McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Commerce (M.com) , Bachelor of Banking and Insurance (BBI) .
| 51. |
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 | |
| 52. |
Treynor Ratio is calculated using--- |
| A. | Standard deviation |
| B. | Beta |
| C. | Alpha |
| D. | Both Alpha and Beta |
| Answer» B. Beta | |
| 53. |
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 | |
| 54. |
Which of the following is a defensiveshares? |
| A. | Beta>1 |
| B. | Beta<1 |
| C. | Beta=1 |
| D. | Beta=0 |
| Answer» B. Beta<1 | |
| 55. |
NSE established on--- |
| A. | 1875 |
| B. | 1785 |
| C. | 1990 |
| D. | 1992 |
| Answer» D. 1992 | |
| 56. |
------- is a person who believes in lower expected return at reduced risk. |
| A. | Hedgers |
| B. | Arbitrageurs |
| C. | Speculators |
| D. | Spreaders |
| Answer» D. Spreaders | |
| 57. |
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 | |
| 58. |
---‐--- is putting money at risk by betting on an uncertain outcome with the hope that you might win money. |
| A. | Investment |
| B. | Gambling |
| C. | Financing |
| D. | Portfolio |
| Answer» B. Gambling | |
| 59. |
Total risk is associated with ---- |
| A. | Standard deviation |
| B. | Beta |
| C. | Alpha |
| D. | Correlation |
| Answer» A. Standard deviation | |
| 60. |
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 | |
| 61. |
--------- 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 | |
| 62. |
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 | |
| 63. |
----- are issued by a group of multinational banks. |
| A. | Domestic bonds |
| B. | Foreign bonds |
| C. | Euro bonds |
| D. | Junk bonds |
| Answer» C. Euro bonds | |
| 64. |
YTM is the most widely used measure to know the return on----- |
| A. | Equity |
| B. | Derivatives |
| C. | Bonds |
| D. | Preference shares |
| Answer» C. Bonds | |
| 65. |
------is the discount rate that makes present value of single cash inflow to cost of the bond. |
| A. | Current yield |
| B. | YTC |
| C. | YTM |
| D. | Spot interest rate |
| Answer» D. Spot interest rate | |
| 66. |
YTC is used in the case of------- bonds. |
| A. | Irredeemable |
| B. | Callable bonds |
| C. | Redeemed on maturity |
| D. | Convertible |
| Answer» B. Callable bonds | |
| 67. |
Bond price-yield relationship is referred to as ----- |
| A. | Concave |
| B. | Convex |
| C. | Linear |
| D. | Rectangular hyperbola |
| Answer» B. Convex | |
| 68. |
Bond pricing theorems was introduced by— |
| A. | Harry Markowitz |
| B. | Kritzman |
| C. | F.Amling |
| D. | Burton G.Malkiel |
| Answer» D. Burton G.Malkiel | |
| 69. |
Bond price will move --------- to market interest changes. |
| A. | Inversely |
| B. | Positively |
| C. | Constant |
| D. | Randomly |
| Answer» A. Inversely | |
| 70. |
------- is a measure of interest rate sensitivity of a bond. |
| A. | YTM |
| B. | HTC |
| C. | Duration |
| D. | Current yield |
| Answer» C. Duration | |
| 71. |
The theory of bond immunisation was introduced by------ |
| A. | Redington |
| B. | F.Amling |
| C. | Burton G.Malkiel |
| D. | Kritzman |
| Answer» A. Redington | |
| 72. |
---------- 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 | |
| 73. |
Which of the following relates to industry analysis? |
| A. | Infrastructure facilities |
| B. | Competitive forces |
| C. | Interest rate |
| D. | Market share |
| Answer» B. Competitive forces | |
| 74. |
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 | |
| 75. |
--------ratio is used to estimate the value of stocks by the investors rather than adopting discounting 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 | |
| 76. |
-------is the study of historical stock prices and stock market behaviour to identify recurring pattern. |
| A. | Fundamental Analysis |
| B. | Technical Analysis |
| C. | Economy Analysis |
| D. | Industry Analysis |
| Answer» B. Technical Analysis | |
| 77. |
Dow Theory relates to--- |
| A. | Primary trend |
| B. | Short term trend |
| C. | Seasonal pattern |
| D. | Intermediate trend |
| Answer» A. Primary trend | |
| 78. |
Find the odd one. |
| A. | Head and shoulder |
| B. | Flags |
| C. | Triangles |
| D. | Candle sticks |
| Answer» D. Candle sticks | |
| 79. |
Price movements inzigzagfashion with any rise or fall interrupted by counter movements are known as-------- |
| A. | Trend Reversal |
| B. | Consolidation |
| C. | Reactions |
| D. | Penetration |
| Answer» C. Reactions | |
| 80. |
Which among the following is a market indicator? |
| A. | Oscillators |
| B. | MACD |
| C. | Odd-lot-index |
| D. | Moving average |
| Answer» C. Odd-lot-index | |
| 81. |
Random Walk Theory was popularised by---- |
| A. | Burton Malkiel |
| B. | Redington |
| C. | Charles Dow |
| D. | F.Amling |
| Answer» A. Burton Malkiel | |
| 82. |
Elliot Wave Theory was introduced in the year---- |
| A. | 1949 |
| B. | 1934 |
| C. | 1926 |
| D. | 1926 |
| Answer» B. 1934 | |
| 83. |
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 | |
| 84. |
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 | |
| 85. |
Which of the following is a tool in technical analysis to determine whether a security is a good for investment? |
| A. | The Price earnings ratio |
| B. | Balance sheet |
| C. | Income statement |
| D. | Trend lines |
| Answer» D. Trend lines | |
| 86. |
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 | |
| 87. |
Triangles are ------ patterns. |
| A. | Continuation |
| B. | Reversal |
| C. | Support and resistance |
| D. | None of the above |
| Answer» A. Continuation | |
| 88. |
--------movements are typically referred to as bullish and bearish. |
| A. | Secondary |
| B. | Daily |
| C. | Major |
| D. | Primary |
| Answer» D. Primary | |
| 89. |
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 | |
| 90. |
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 | |
| 91. |
Which of the following represents an upper price limit for a stock, based on the quantity of willing sellers? |
| A. | Candle |
| B. | Trend line |
| C. | Support |
| D. | Resistance |
| Answer» D. Resistance | |
| 92. |
Which of the following do a technical analysis believe is a lower bound on a stock’s price? |
| A. | Candle |
| B. | Support |
| C. | Trend line |
| D. | Resistance |
| Answer» B. Support | |
| 93. |
Barometric approach is used for----- |
| A. | Economic forecasting |
| B. | Trend prediction |
| C. | Price estimation |
| D. | Dividend forecasting |
| Answer» A. Economic forecasting | |
| 94. |
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 | |
| 95. |
The last step in fundamental analysis is |
| A. | Economic Analysis |
| B. | Industry Analysis |
| C. | Company Analysis |
| D. | Technical Analysis |
| Answer» C. Company Analysis | |
| 96. |
Which of the following is a financial investment? |
| A. | Share |
| B. | Farm house |
| C. | Car |
| D. | T. V. Set |
| Answer» A. Share | |
| 97. |
Which of the following is tax saving investment? |
| A. | Fixed deposit |
| B. | Shares |
| C. | PPF |
| D. | Post office saving |
| Answer» C. PPF | |
| 98. |
All personal investing is designed to achieve certain ….. |
| A. | Objective |
| B. | Investment |
| C. | Risk |
| D. | Returns |
| Answer» A. Objective | |
| 99. |
The object of portfolio is to reduce ……by diversification |
| A. | Return |
| B. | Risk |
| C. | Uncertainty |
| D. | Percentage |
| Answer» B. Risk | |
| 100. |
The fundamental analysis approach has been associated with ….. |
| A. | Uncertainties |
| B. | Certainties |
| C. | Ratios |
| D. | Balance sheet |
| Answer» A. Uncertainties | |
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