Shet

hTJEducat
ionSoci
ety
’s
Shet
hNKTTColl
egeofCommerce&JTTColl
egeofAr
ts

Name: FarheenG.Shai
kh
Subject:Secur
it
yAnaly
sisandPor
tfol
i
oManagement
Class:TYBBISem VI

Q1]Mul
ti
pleChoi
ceQuest
ions.

1.Thistypeofr iski sav oidablethr

oughproperdiver
sif
icat
ion?
a.Portfol i
oRi sk
b.Systemat i
cr isk
c.Unsy st emat i
cr i
sk
d.Total risk
2.A stati
sti
calmeasur eoft hedegreetowhi cht wov ari
ablesmov e
together.
a.Coef ficient
b.Variance
c.Cov ariance
d.Certai ntyequi v
alent
3.Anaggr essi vecommonst ockwouldhaveabet a.
a.Equal toz er o
b.Great ert hanone
c.Equal toone
d.Lesst hanone
4.Al i
nethatdescr ibest herelati
onshi
pbet weenanindivi
dualsecur
it
ies
retur
nsandr eturnont hemar ketport
fol
io.
a.Char act eri
st i
cl i
ne
b.Secur itymar ketline
c.Capi tal mar ketline
d.Beta
5.Ther i
skf reesecur it
yhasabet aequaltowhi l
ethemar ketport
fol
ios
betaisequal t
o
a.One, mor et hanone
b.One: lesst hanone
c.Zero, one
 d.Lesst hanz ero: mor et hanzer o
6.Accordingt ot hecapi tal-
assetpr ici
ngmodel( CAPM) ,asecurit
y’s
expectedr etur ni sequal t
ot her iskfreer atepl usapr emium.
a.Equal tosecur ity’sbet a
b.Basedont heunsy stemat icr i
skoft hesecur ity
c.Basedont het ot al r
iskofsecur ity
d.Basedont hesy stemat icr iskoft hesecur i
ty
7.Carri
eshascer taint yequi val entt oar iskygambl esexpectedval
ue
thatislesst hant hegambl esexpect edv alue.Car r
iesshows:
a.Riskav ersi on
b.Riskpr efer ences
c.Riski ndi fference
d.Ast rangeout lookonl ife
8.Betaist hesl opof :
a.Thesecur i
tymar ketl ine
b.Thecapi tal mar ketl i
ne
c.Achar act er isticline
d.TheCAPM
9.Ameasur eofr iskperuni tofexpect edr eturn
a.Standar ddev i
at ion
b.Coef ficientofv ar i
at i
on
c.Cor rel ationcoef f i
cient
d.Bet a
10. Thegr eat ert hebet at heoft hesecur i
tyi nvolved:
a.Gr eat ert heunav oidabl er isk
b.Gr eat ert heav oidabl er isk
c.Lesst heunav oidabl er isk
d.Lesst heav oidabl er i
sk
11. Thef undament al anal ysisi samet hodoff i
ndingout
a.Rat ios
b.Val ueofashar e
c.Tips
d.Fut urepr iceofasecur ity.
12. Whi chanal y sispr ov i
desasi mpl i
fiedpi ctureofpr icebehavi
orofa
share?
a.Fundament al
b.Techni cal
 c.Rat i
o
d.Fundsf low.
13. Ret ur noni nv est menti sdet er minedby
a.Netpr ofit
b.Capi talempl oy ed
c.Networ th
d.Netpr ofitandcapi tal empl oyed
14. I nvestor swhouset echni calanal y
sis,st artchecki ngt hemar ket
actionoft heshar eifitis_ ___
a.f avor able
b.unf av orabl e
c.desi r
abl e
d.pr of i
table
15. Whi chanal ysi spr ovidesasi mpl ifi
edpi ctureofpr icebehaviorofa
shar e?
a.Fundament al
b.Techni cal
c.Fi nanci al
d.Any
16. Techni calanal y stsbel ievet hatt hepr iceofashar edependuponi n
thest ockmar ket .
a.Suppl y
b.Demand
c.Demandandsuppl y
d.Vol ume
17. Theoppor tuni tylineist he:
a.setofal lpor t
foli
oswi tht hesameexpect edr ateofr et
urnbut
differentst andar ddev iations
b.setofpor tfoliosamongwhi cht hei nvestorisi ndif
fer
ent
c.setofi nv est mentoppor tunitiesmadeav ail
ablebymi xi
nga
ri
skyassetandar isk- fr
eeasset
d.setofi nv est mentoppor tunitiesmadeav ailablebymi xi
ngt wo
ri
skyasset s
18. Consi deragr aphwi thst andar ddev iati
onont hehorizontalaxis
andex pect edr etur nont hev erticalaxi s.Thel i
net hatconnectst he
ri
skf reer ateandt heopt i
mal riskypor tf
ol i
oiscal led:
a.t hesecur itymar ketl ine
 b.t hechar acteristi
cl ine
c.t hecapi talmar ketl ine
d.t hei ndi fferencecur v e
19. Mar ketr i
ski salsocal l
ed:
a.uni quer iskandnon- diversif
iabl er i
sk
b.nondi v ersifi
abler iskandsy stemat i
cr i
sk
c.sy stemat i
criskanddi versif
iabl er i
sk
d.sy stemat i
criskanduni quer isk
20. Supposey ouest imat et hechar act er i
sticl i
nef orStockX.Youf ind
thatthest andar ddev i
at i
onofX' ser rort ermi s7%, X'
sbet ai s1. 4,
and
the st andar d dev i
ation oft he mar keti s 12%.Whati st he tot al
standar ddev i
at i
onf orSt ockX?
a.19. 0%
b.18. 2%
c.30. 5%
d.15. 8%
e.23. 8%
21. Ther i
sk-fr eer atef ort henexty eari s3%,andt hemar ketrisk
premi um i sex pectedt obe10%.Thebet aofAcme' sst ocki s1.5.I f
youbel ievet hatAcme' sst ockwi llact uallyret urn18.2%ov erthenext
year,thenaccor dingt ot heCAPM y oushoul d:
a.buyt hest ockbecausei tisunderpr iced
b.sel lthest ockbecausei tisunderpr iced
c.sel lthest ockbecausei tisov erpr iced
d.bei ndi fferentbet weenbuy i
ngandsel lingt hestock
e.buyt hest ockbecausei tisov erpr i
ced
22. St ockAhasabet aof1. 0andv eryhi ghuni quer i
sk.I ftheexpect ed
retur
n on t he mar keti s 20%,t hen accor ding tot he CAPM t he
expect edr etur nonSt ockAwi llbe:
a.mor et han20%becauseofSt ockA' sv er yhighuni quer isk
b.atl east20%. ifthei nv estorhol dsonl ySt ockA
c.t he answercannotbe f ound wi t
houtknowi ng St ock A' s
cor relationorcov ariancewi tht hemar ket
d.exact l
y20%
e.t heanswercannotbef oundwi thoutknowi ngt her isk-freerate
ofi nterest
23. Thebet aoft hemar ketpor tf
olioi s:
 a.0.5
b.O
c.-1.
0
d.1.0
24. I fanasset '
sexpect edr et
urnpl otsabov et hesecuri
tymarketline,
t
heasseti s:
a.under-pr i
ced
b.overpri
ced
c.fai
rlypriced( ifi
thasanunusual l
yl argeamountofuni querisk)
d.boththef irstandt hirdanswer s
25. Whi choneoft hefollowi ngi st r
ue?
a.Alphaist hesl opeoft hechar acteristicline
b.Alphaist hesl opeoft heoppor tunityl i
ne
c.Betaist hesl opeoft hecapital mar ketl i
ne
d.Alloftheabov e
26. Themar ketr i
skpr emi um i s15% andt her i
sk-f
ree
rateis6%,Thebet aofAssetDi s0. 2.Whati sAssetD'
Sexpect ed
retur
nundert heCAPM?
a.20%
b.30%
c.7%
d.3%
e.8%
27. Themar ketriskpr emi um i st hesl
opeof:
a.thecapi tal mar ketline
b.theefficientf rontier
c.thechar act eristi
cl i
ne
d.theoppor tunityline
e.thesecur i
tymar ketl i
ne
28. Accor dingt otheCAPM, ov erpri
cedsecur
it
ieshave:
a.negativeal phas
b.zeroalphas
c.negativebet as
d.positi
veal phas
e.zerobet as
29. Thebet aoft herisk-freeasseti s:
a.2.0
 b.1.
0
c.O
d.0.
5

30. Capi t
alassetpr ici
ngt heoryassertst hatportfoli
o
ret
urnsar ebestex plainedby :
a.speci f
icrisk
b.di versifi
cation
c.economi cfact ors
d.sy stemat i
cr i
sk
31. Themar ketportf
oli
ohasabet aof:
a.- 1.0
b.2. 0
c.1. 0
d.0. 5
e.0. 0
32. Accor di
ng t o securi
ty mar ketli
ne,t he expected
ret
urnofanysecur it
yi saf uncti
onof :
a.t otalri
sk
b.sy stemat i
cr i
sk
c.unsy stemat icrisk
d.di versifi
abler i
sk
e.uni quer isk
33. Accor di
ngt ot hecapitalmar ketli
ne,theexpect ed
ret
urnofanyef f
icientportfoli
oisaf uncti
onof :
a.sy stemat i
cr i
sk
b.unsy stemat icrisk
c.t otalri
sk
d.bet a
e.uni quer isk
34. Whi choft hefoll
owingstatement saboutthemar ket
port
folioisfalse?
a.The mar ket por tfol
io cont ai
ns bot h sy st
emat i
c and
unsy stemat icrisk
b.Themar ketpor tf
oli
ol i
esont hecapitalmarketl
ine
c.Themar ketpor tf
oli
ol i
esont hesecur i
tymarketli
ne
 d.Themarketpor
tfol
i
oi ncl
udesal
lriskyassetsint
hewor
ld
e.Themarketpor
tfol
i
oi sontheeff
icientf
ronti
er
35. ___
___
__i
salsoimportantfact
ortobeconsi deredwhi
l
emakingan
i
nvest
ment

a.Pr
oduct
ivi
ty

b.Mar
ket
abi
l
ity

c.Tr
ansf
erabi
l
ity

36. Al
lper
sonal
inv
est
ment
sar
edesi
gnedt
oachi
evecer
tai
n__
___
_

a.Ri
sks

b.Obj
ect
ives

c.benef
it
s

37. A___
___
ist
heempl
oymentoff
undswi
tht
heai
m ofget
ti
ngr
etur
n
oni
t.

a.Ri
sk

b.I
nvest
ment

c.Gambl
i
ng

38. Inv
estor
swhol
ookf
orachancet
omakemoneyf
astar
eknownas
__
_____

a.Busi
nessman

b.Specul
ator
s

c.deposi
tor

39. _
___
___
_isat
axsav
ingi
nvest
ment

a.Shar
es

b.Deposi
ts

c.PPF

40. _
___
___
ref
erst
oappr
eci
ati
onofi
nvest
ment
 a.Capi
tal
Growt
h,

b.Ri
sk

c.Li
qui
dit
y

41. Thet
ermr
etai
li
nvest
orsmeans_
___
inv
est
ors

a.I
ndi
vi
dual

b.Col
l
ect
ive

c.bot
h

42. _
___
___
_Inv
est
orsconsi
dersecur
it
ymor
eimpor
tantt
hanr
isk.

a.Act
ive

b.Passi
ve

c.Aggr
essi
ve

43. The_
___
___obj
ect
ivei
stomaxi
mizet
heut
il
it
yoft
ermi
nal
weal
th.

a.Shar
ehol
der
s,

b.Cust
omer
s

c.i
nvest
ors

44. _
___
___
_ist
heoneoft
hepar
toft
hei
nvest
mentpr
oves

a.Assetcol
l
ect
ion

b.AssetAl
l
ocat
ion

c.Debtcol
l
ect
ion

45. NASDAQi
san_
___
___st
ockexchange

a.I
ndi
an

b.Amer
ican

c.Japnes

46. Li
qui
dit
ymeansmar
ket
abi
l
ityofan_
___
___
___
 a.Asset
s

b.I
nvest
ment

c.st
ock

47. NASDAQi
sfoundedi
n__
___
_

a.1981

b.1971

c.1961

48. _
___
__mar
keti
spr
edomi
nant
lyanov
erni
ghtmar
ket

a.Money

b.Cal
lMoney

c.shor
tmoney

49. A___
___
__i
sani nt
ermedi
aryt
ofaci
l
itat
einv
est
menti
ndi
ff
erent
market
s&secur
it
ies.

a.Mut
ual
Fund

b.f
ixeddeposi
ts

c.bot
h

50. NSDLi
sIndi
a’
slar
gestcent
ral
secur
it
iesdeposi
tor
ybasedi
n__
___

a.Del
hi

b.Mumbai

c.Kol
kat
a