INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT
FIN630
1. Which of the following stage should be avoided by investors who are interested in
capital gains?
a. Pioneering stage
b. Expansion stage
c. Stabilization stage
d. Decline stage
2. Which of the following is NOT true about Expansion stage?
a. Marketplace is full of competitors
b. Firm operations more stable, dependable
c. Financial policies firmly established
d. Dividends often become payable
3. Which of the following industry is NOT sensitive to business cycle and price changes?
a. Growth industry
b. Cyclical industry
c. Defensive industry
d. Interest sensitive industry
4. Which of the following is EXCLUDED from Porter's competitive factors?
a. Bargaining power of buyers
b. Rivalry between existing competitors
c. Substitute products or services
d. Changes in the economy
5. Which of the following is NOT one of the components of ROA?
a. Net income margin
b. Turnover
c. Leverage
d. Sales
6. All of the following are characteristics of Earnings per share EXCEPT?
a. It is calculated by dividing Net income over number of shares outstanding
b. Earnings per share is a ratio, which is used for share price evaluation
c. Earnings per share relate income with ownership.
d. It is based on future forecasted data.
7. On which of the following financial statements would you expect to find assets,
liabilities, and stockholders' equity?
a. Balance sheet
b. Income statement
c. Statement of cash flows
d. Statement of changes in equity
8. Which of the following is an intangible asset with an identifiable useful life?
a. Patent
b. Timber
c. Goodwill
d. Trademark
9. On which of the following financial statements would you expect to find operating,
investing, and financing activities?
a. Balance sheet
b. Income statement
c. Statement of cash flows
d. Statement of changes in equity
10. Mutual funds are _______________ companies.
a. Private
b. Investment
c. Insurance
d. Banking
11. Money market mutual fund is:
a. A closed-end investment company
b. A unit investment company
c. A directly investment in Treasury Bills
d. An exchange traded fund
12. Brokerage fee charged by a stockbroker is an example of:
a. Margin profit
b. Insurance premium
c. Transaction cost
d. Capital expenditure
13. Which of the following is defined as an investment strategy that involves ongoing
buying and selling actions by the investors?
a. Active strategy
b. Passive strategy
c. Buy-and-hold strategy
d. All of the given options
14. A form of the EMH which states that security prices fully reflect all public and
private information.
a. Strong form efficiency
b. Weak form efficiency
c. Semi strong form efficiency
d. None of the given options
15. The computation of the Dow Jones Industrial Average is known as a __________
index.
a. Price-weighted
b. Market value
c. Equal-weighted
d. Volume weighted
16. The duration of a bond:
a. Is less than maturity for bonds paying coupon interest
b. Is directly related to coupon yield
c. Decreases with maturity
d. Is greater than maturity for zero coupon bonds
17. Which of the following pay a specified cash flow over a specific period?
a. Fixed income Securities
b. Junk bonds
c. Zero coupon bonds
d. Convertible bonds
18. Which of the following is defined as the rate of return anticipated on a bond if it is
held until the maturity date?
- Discount rate
b. Interest free rate
c. Return on equity
d. Yield to maturity
19. Which of the following measures the sensitivity of an asset's price to interest rat
movements, expressed as a number of years?
a. Duration
b. Yield to maturity
c. Convexity
d. Immunization
20. Which of the following factor contributes to the price volatility of a bond?
a. Maturity
b. Coupon
c. Yield to maturity
d. All of the given options
