INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT
FIN630
Quiz:
1) The most economic function of stock exchange is to:
a) Safeguard the interest of investors
b) Help in the capital formation in the country
c) Provides facilities for speculation
d) Provide a ready market for old securities
2) People with a high discount rate will require:
a) A higher interest rate to entice them to save
b) Investment options with longer maturities
c) A lower interest rate to entice them to save
d) A constant ROI
3) The dividend-discount model indicates that the current market price of a
stock rises if:
a) The interest rate rises
b) The growth rate of dividends rises
c) The current dividend is higher
d) All of the above are correct
4) The efficient market hypothesis suggests that ______________.
a) No investors can earn excess returns persistently over time
b) No investors can earn positive returns persistently over time
c) No investors can earn excess returns at any point in time
d) No investors can earn positive returns at any point in time
5) ________ is a measure of the volatility of stock prices or returns.
a) ROR
b) Beta
c) ROI
d) Risk premium
6) ______ is a basket of stocks that tracks a particular sector, investment style,
geographical area, or the market as a whole.
a) Exchange traded fund
b) Open-end fund
c) Closed-end fund
d) Unit investment trust
7) The total market value of securities in an investment company's portfolio
divided by the number of investing company fund shares currently out
standing is known as ________.
a) Discounted value
b) Present value
c) Future cash flow value
d) Net asset value
8) Financial assets:
a) Contribute to the country's productive capacity both directly and indirectly
b) Do not contribute to the country's productive capacity either directly or
indirectly
c) Directly contribute to the country's productive capacity
d) Indirectly contribute to the country's productive capacity
9) The primary purpose of the liquidity ratios is to determine:
a) How much working capital is tied up in inventory
b) The relative level of short-term debt
c) How well a firm is able to pay off short-term obligations
d) All of the given options
10) The intrinsic value of a stock is the ______________ of future net cash
flows.
a) Sum value
b) Present value
c) Investment value
d) Future value
