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) .
| 101. |
This type of risk is avoidable through proper diversification |
| A. | Portfolio risk |
| B. | Systematic risk |
| C. | Unsystematic risk |
| D. | Total risk |
| Answer» C. Unsystematic risk | |
| 102. |
Beta is the slope of |
| A. | The security market line |
| B. | The capital market line |
| C. | a characteristic line |
| D. | The CAPM |
| Answer» C. a characteristic line | |
| 103. |
A measure of risk per unit of expected return |
| A. | standard deviation |
| B. | Coefficient of variation |
| C. | Correlation coefficient |
| D. | Beta |
| Answer» B. Coefficient of variation | |
| 104. |
The greater the beta ,the security involved |
| A. | Greater the unavoidable risk |
| B. | Greater the avoidable risk |
| C. | Less the unavoidable risk |
| D. | Less the avoidable Risk . |
| Answer» A. Greater the unavoidable risk | |
| 105. |
A Statistical measure of the Degree to which two variables move together |
| A. | Coefficient of variation |
| B. | Variance |
| C. | Covariance |
| D. | Certainty equivalent |
| Answer» C. Covariance | |
| 106. |
The fundamental analysis is a method of finding out |
| A. | Ratio |
| B. | Value of shares |
| C. | Tips |
| D. | Future price of a security |
| Answer» D. Future price of a security | |
| 107. |
Which analysis provides a simplified picture of price behaviour of a shares |
| A. | Fundamental |
| B. | Technical |
| C. | Ratio |
| D. | Fund flow |
| Answer» B. Technical | |
| 108. |
Return of investment is determined by |
| A. | Net profit |
| B. | Capital employed |
| C. | Net worth |
| D. | Net profit & capital employed |
| Answer» D. Net profit & capital employed | |
| 109. |
Which leaverage helps to examine the relationship between EBIT & EPS |
| A. | Operating |
| B. | Financial |
| C. | Combined |
| D. | none |
| Answer» B. Financial | |
| 110. |
Which leaverage shows the relationship between the revenue in the account of sales and the taxable income |
| A. | Financial |
| B. | Operating |
| C. | Combined |
| D. | none |
| Answer» C. Combined | |
| 111. |
The stage of start up of an industry . |
| A. | Pioneering |
| B. | Rapid growth |
| C. | Maturity |
| D. | Decline |
| Answer» A. Pioneering | |
| 112. |
The stage when poor performers start winding up their business |
| A. | Pioneering |
| B. | Rapid growth |
| C. | Maturity |
| D. | Decline |
| Answer» D. Decline | |
| 113. |
The fundamental analysis is a method of finding out …… |
| A. | ratio |
| B. | Value of shares |
| C. | Tips |
| D. | Future price of security |
| Answer» D. Future price of security | |
| 114. |
Which analysis provides a simplified picture of price behaviour of a shares |
| A. | Fundamental |
| B. | Technical |
| C. | Financial |
| D. | Any |
| Answer» B. Technical | |
| 115. |
Return on investment is determined by … |
| A. | Net profit |
| B. | capital employed |
| C. | Net worth |
| D. | Net profit & capital employed |
| Answer» D. Net profit & capital employed | |
| 116. |
Which theory believes that the investors prefer larger to smaller returns from securities ? |
| A. | modern |
| B. | traditional |
| C. | Markowitz |
| D. | sharpe |
| Answer» A. modern | |
| 117. |
Modern portfolio theory …….. the relationship between risk and return |
| A. | maximizes |
| B. | minimizes |
| C. | quantifies |
| D. | does not assume |
| Answer» C. quantifies | |
| 118. |
Which measures the systematic or non -systematic risk of a security ? |
| A. | Beta |
| B. | Variance |
| C. | standard deviation |
| D. | Range |
| Answer» A. Beta | |
| 119. |
According to CAPM ,the correct measure of risk is termed as …. |
| A. | business risk |
| B. | financial risk |
| C. | Beta coefficient |
| D. | systematic risk |
| Answer» C. Beta coefficient | |
| 120. |
The market portfolio has a beta of |
| A. | -1.0 |
| B. | 2.0 |
| C. | 1.0 |
| D. | 0.5 |
| Answer» C. 1.0 | |
| 121. |
The beta of the risk free asset is |
| A. | -1.0 |
| B. | 2.0 |
| C. | 1.0 |
| D. | 0 |
| Answer» D. 0 | |
| 122. |
Capital structure decision should always aim at having debt component in order to |
| A. | Gain tax saying |
| B. | balance of capital structure |
| C. | gain control |
| D. | increase EPS |
| Answer» D. increase EPS | |
| 123. |
The non produce projects should be financed by |
| A. | debt & equity |
| B. | debt |
| C. | equity |
| D. | retained earning |
| Answer» D. retained earning | |
| 124. |
If EBIT is less than the financial break even point then |
| A. | + EPS |
| B. | - EPS |
| C. | no effect on EPS |
| D. | cash of debt increase |
| Answer» B. - EPS | |
| 125. |
An appropriate capital structure is |
| A. | flexible |
| B. | conservator |
| C. | minimum risk of loss of control |
| D. | a,b,c |
| Answer» D. a,b,c | |
| 126. |
Financial risk involves |
| A. | risk of insolvency |
| B. | risk of variation in expected earning |
| C. | both a& b |
| D. | none of the above |
| Answer» C. both a& b | |
| 127. |
If ROI is more than cost of debt |
| A. | EPS increase |
| B. | Financial risk increase |
| C. | both a & b |
| D. | none of the above |
| Answer» C. both a & b | |
| 128. |
Net income approach assume |
| A. | no change in risk |
| B. | no corporate tax |
| C. | both a & b |
| D. | none of the above |
| Answer» C. both a & b | |
| 129. |
…….analysis is a study based on market emotions and share price movement . |
| A. | Fundamental |
| B. | Moral |
| C. | technical |
| D. | all the above |
| Answer» C. technical | |
| 130. |
The daily high price is represented on a candlestick chart by the |
| A. | real body |
| B. | trend -line |
| C. | channel |
| D. | shadow |
| Answer» D. shadow | |
| 131. |
A ……… indicates the general direction in which a security price is headed |
| A. | trend |
| B. | ratio |
| C. | price |
| D. | none of the above |
| Answer» A. trend | |
| 132. |
A ……average of a stock index is the average level of the index over a given interval of time |
| A. | static |
| B. | moving |
| C. | gross |
| D. | net |
| Answer» B. moving | |
| 133. |
Market price breaking through the moving average from below is a ……i ndicator |
| A. | Bullish |
| B. | Flat |
| C. | bearish |
| D. | none of the above |
| Answer» A. Bullish | |
| 134. |
Triple tops & triple bottom are indicators of …. |
| A. | role reversal |
| B. | trend reversal |
| C. | both a & b |
| D. | high volumes |
| Answer» C. both a & b | |
| 135. |
Increase in odd lot selling as compared to odd lot buying , is a …..indicator |
| A. | bullish |
| B. | bearish |
| C. | both a & b |
| D. | neutral |
| Answer» A. bullish | |
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