Securities analysis and portfolio management Pdf MCQs for 2024. Investment analysis and portfolio management MCQs Question papers in pdf.
Welcome to our collection of multiple-choice questions (MCQs) on Security Analysis and Portfolio Management! This article provides a set of MCQs along with their answers to help you test your knowledge and understanding of key concepts in security analysis and portfolio management.
Whether you are a student studying finance or an investor looking to enhance your understanding of securities and portfolio management, these questions will serve as a valuable resource.
Securities analysis and portfolio management Pdf MCQs
Q1. ___ 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
[expand title=" View Answer "] Answer: (a)[/expand]
Q2. ___ is a method used to evaluate the worth of security by studying the financial data of the issues.
(a) Security Analysis
(b) Fundamental analysis
(c) Performance Analysis
(d) None of the Above
[expand title=" View Answer "] Answer: (b)[/expand]
Q3. IPO stands for:
(a) Internal Public Office
(b) Initial Public Office
(c) Initial Public Offer
(d) Internal Police Office
[expand title=" View Answer "] Answer: (c)[/expand]
Q4. The primary market is one in which a borrower issues new securities in exchange for cash from an investor.
(a) True
(b) False
[expand title=" View Answer "] Answer: (a)[/expand]
Q5. Which of the following are common errors in investment management?
(a) Not Having a Clearly Defined Investment Plan
(b) Investors often overdose themselves on Information
(c) Both A&B
(d) None A&B
[expand title=" View Answer "] Answer: (c)[/expand]
Q6. Which of the following is the quality of a smart investor required.
(a) Smart Investor Invest Consistency.
(b) Smart Investors Are Important
(c) Smart Investors Are Emotionally Tied To Their Investment Position.
(d) All of the Above.
[expand title=" View Answer "] Answer: (a)[/expand]
Q7. ___ is the variability in a security’s returns resulting from fluctuations in the aggregate market.
(a) Market Risk
(b) Inflation risk
(c) Credit Risk
(d) Intend rate risk
[expand title=" View Answer "] Answer: (a)[/expand]
Q8. Money Market Transactions can be executed directly or by an intermediary.
(a) True
(b) False
[expand title=" View Answer "] Answer: (a)[/expand]
Q9. OTC stands for:
(a) Offer To The Centre
(b) Over The counter
(c) Over TO Corporation
(d) None of the Above.
[expand title=" View Answer "] Answer: (b)[/expand]
Q10. ___ are the short-term unsecured promissory notes issued by a company to raise short-term cash.
(a) CD
(b) CP
(c) Treasury bills
(d) All of the Above
[expand title=" View Answer "] Answer: (b)[/expand]
Q11. ___ Are financial investments that have no intrinsic value but drive their value from something else.
(a) Bonds
(b) Commercial Bills
(c) Desiratives
(d) Shares
[expand title=" View Answer "] Answer: (c)[/expand]
Q12. A group of security is known as:
(a) Investment
(b) Portfolio
(c) Security
(d) Gambling
[expand title=" View Answer "] Answer: (b)[/expand]
Q13. How many stocks are listed on the Mumbai stock exchange?
(a) 6000
(b) Less Than 6000
(c) More Than 6000
(d) 10000
[expand title=" View Answer "] Answer: (c)[/expand]
Q14. ___ Are organized markets for buying & selling securities which include stock, bonds, options, futures.
(a) Desiratives
(b) Sensex
(c) Stock Exchange
(d) Market
[expand title=" View Answer "] Answer: (c)[/expand]
Q15. The securing pattern of session & recovery is called the ___
(a) Expansion
(b) Contraction Cycle
(c) Business Cycle
(d) Economic Cycle
[expand title=" View Answer "] Answer: (c)[/expand]
Q16. ___ Indicators tend to follow (log) economic performance.
(a) Coincident
(b) Logging
(c) Leading
(d) None Of Above
[expand title=" View Answer "] Answer: (b)[/expand]
Q17. ___ Analysis is a method that is used to evaluate the worth of securities by analyzing the statistics that are generated by market activity, such as the past price of volume.
(a) Economic
(b) Financial
(c) Technical
(d) None Of Above
[expand title=" View Answer "] Answer: (c)[/expand]
Q18. A ___ pattern is a distinct formation on a stock chart that creates a trading signal or a sign of future price movements.
(a) Price Chart
(b) Chart
(c) Technical
(d) None Of Above
[expand title=" View Answer "] Answer: (b)[/expand]
Q19. Under the weak form of EMH, technical analysis is useless.
(a) True
(b) False
[expand title=" View Answer "] Answer: (a)[/expand]
Q20. ___ is the annual rate of return that a fundholder will earn under the assumption that the bond is held to maturity & the investment payments are invested.
(a) YTM
(b) NPV
(c) ARR
(d) CY
[expand title=" View Answer "] Answer: (a)[/expand]
Q21. References shares are also called ___ securities on they share the characteristics of bonds and common share.
(a) Hybrid
(b) Prior
(c) Primary
(d) Secondary
[expand title=" View Answer "] Answer: (a)[/expand]
Q22. Po=D/R is the formula for the calculation of the present value of money in case of:
(a) Zero growth of dividend.
(b) Constant growth of dividend
(c) Valuable growth of dividend
(d) None of the Above.
[expand title=" View Answer "] Answer: (a)[/expand]
Q23. which of the following theory analyzes how wealth can be optimally invested in portfolios that are made up of assets whose expected returns and risks are different.
(a) G.D. Gordon’s approach
(b) Modigliani miller approach
(c) Markowitz Model
(d) Traditional Theory
[expand title=" View Answer "] Answer: (c)[/expand]
Q24. Which model relates return to a single factor?
(a) Markowitz
(b) Single Index
(c) M.M. Approach
(d) Traditional
[expand title=" View Answer "] Answer: (b)[/expand]
Q25. CAPM stands for:
(a) Capital assets products method.
(b) Capital assets pricing model.
(c) Capitalization assets of product market.
(d) None of the Above.
[expand title=" View Answer "] Answer: (b)[/expand]
Q26. CAPM is a single period model is one of the advantages of CAPM.
(a) True
(b) False
[expand title=" View Answer "] Answer: (b)[/expand]
Q27. ___ Risk can be measured by be using data.
(a) Specific
(b) Technical
(c) Systematic
(d) Financial
[expand title=" View Answer "] Answer: (c)[/expand]
Q28. ___ Bonds give the bondholders an option to exchange each bond for a specified no. of shares of common stock of the team.
(a) Preference
(b) Irredeemable
(c) Redeemable
(d) Convertible
[expand title=" View Answer "] Answer: (d)[/expand]
Q29. ___ Risk is the possibility that borrowers repay debt ahead of schedule.
(a) Liquidity
(b) Inflation
(c) Prepayment
(d) Investment
[expand title=" View Answer "] Answer: (c)[/expand]
Q30. The regulatory agency which oversees the functioning of stock markets, which is located in Mumbai is:
(a) NSE
(b) BSE
(c) SEBI
(d) OTCEI
[expand title=" View Answer "] Answer: (c)[/expand]
Q31. Which of the following is not a common risk factor?
(a) Market Risk
(b) Promotional Risk
(c) Interest Rate Risk
(d) Inflation Risk
[expand title=" View Answer "] Answer: (b)[/expand]
Q32. How many stocks are listed in OTCEI?
(a) 40
(b) 50
(c) 90
(d) 45
[expand title=" View Answer "] Answer: (b)[/expand]
Q33. Which of the following chart gives more details than a regular line chart?
(a) Line
(b) Histogram
(c) Pie
(d) Bar
[expand title=" View Answer "] Answer: (d)[/expand]
Q34. ___ gives the no. of shares for which each bond maybe exchange.
(a) Market Conversion Value
(b) Conversion Ratio
(c) P/V Ratio
(d) B.E.P. Ratio
[expand title=" View Answer "] Answer: (b)[/expand]
Q35. The January effect studies documented evidence of higher mean return in January as compared to another month.
(a) True
(b) False
[expand title=" View Answer "] Answer: (a)[/expand]
Q36. The issues promise to repay the principal at maturity date plus coupon interest over some specified period of being.
(a) Investor
(b) Tender
(c) Both a & b
(d) Borrower
[expand title=" View Answer "] Answer: (c)[/expand]
Q37. ___ is the excess of the bond over its conversion value.
(a) Market Conversion
(b) Conversion Premium
(c) Conversion Discount
(d) Conversion Ratio
[expand title=" View Answer "] Answer: (b)[/expand]
Q38. A zero-coupon bond’s oration is different from its maturity.
(a) True
(b) False
[expand title=" View Answer "] Answer: (b)[/expand]
Q39 “Not putting all your eggs in one basket” means.
(a) Investment
(b) Financing
(c) Diversification
(d) None of the above
[expand title=" View Answer "] Answer: (c)[/expand]
Q40. ___ Represents the tradeoff between risk & expected return faced by an investor when forming this portfolio.
(a) Efficient Set
(b) Attainable Set
(c) Efficient Frontier
(d) Risk Diversification
[expand title=" View Answer "] Answer: (c)[/expand]
Q41. ___ Management is the process of managing investment portfolios by attempting to time the market while management is the process of managing investment portfolios by trying to match the performance of an index.
(a) Active, Passive
(b) Passive, positive
(c) Passive, Active
(d) Direct, Indirect
[expand title=" View Answer "] Answer: (a)[/expand]
Q42. In portfolio construction, ___& ___ issues are addressed
(a) Selectivity, Variability, Evaluation.
(b) Timing, Selectivity, Diversification.
(c) Diversification, Information, Investment.
(d) Selectivity, Diversification, Evaluation.
[expand title=" View Answer "] Answer: (b)[/expand]
Q43. ___ Are markets for the short term, while markets are markets for long & high team securities.
(a) Primary, Secondary.
(b) Money, Capital.
(c) Direct, Indirect.
(d) Organized, Unorganized.
[expand title=" View Answer "] Answer: (b)[/expand]
Q44. The financial market can be divided into and market.
(a) Primary, Secondary.
(b) Money, Capital.
(c) Organized, OTC.
(d) None of the Above.
[expand title=" View Answer "] Answer: (c)[/expand]
Q45. The market is one in which investors trade directly with each other while the market is one where dealers post bid rates & offer rates at which public investors can trade.
(a) Buy rates, Sale rates
(b) Auction, Dealer
(c) Primary, Secondary
(d) Money, Capital
[expand title=" View Answer "] Answer: (b)[/expand]
Q46. The two types of data analysis techniques that are available to assist investors to make a better investment decision are:
(a) Fundamental, Technical analysis.
(b) Financial, Fundamental analysis.
(c) Economic, Financial analysis.
(d) Economic, Fundamental analysis.
[expand title=" View Answer "] Answer: (a)[/expand]
47. The risks that a bondholder faces when investing in bonds are:
(a) Interest rate, default rate, liquidity risk
(b) Current yield, YTM risk
(c) Both a & b are correct
(d) Neither is correct
[expand title=" View Answer "] Answer: (a)[/expand]
48. ___ does not directly contribute to the productive capacity of the economy.
(a) Fundamental asset
(b) Real asset
(c) Monetary asset
(d) Financial asset
[expand title=" View Answer "] Answer: (d)[/expand]
49. The value of the financial asset derives from and depends on ___.
(a) Fundamental asset
(b) Underlying real asset
(c) Risk
(d) Risk and return
[expand title=" View Answer "] Answer: (b)[/expand]
50. ___ step involves determining periodically how the portfolio has performed over the review period.
(a) Portfolio performance evaluation
(b) Portfolio revision
(c) Portfolio construction
(d) Performing security analysis
[expand title=" View Answer "] Answer: (a)[/expand]
Download Security analysis and portfolio management MCQs in pdf
FAQs on analyzing securities and Managing Portfolio
Q1. How is the analysis of securities conducted?
Answer: Analyzing securities involves assessing their financial statements, business prospects, industry trends, competitive positioning, and macroeconomic factors to make informed investment decisions.
Q2. What is the difference between Capital Market Line (CML) and Security Market Line (SML)?
Answer: CML represents the risk-return tradeoff for a diversified portfolio, considering risk-free and risky assets.
SML depicts the relationship between an asset’s expected return and systematic risk with the market’s risk-free rate and premium.
Q3. How do portfolio management and security analysis relate?
Answer: Portfolio management involves creating and managing an investment portfolio to achieve specific financial goals, while security analysis focuses on evaluating individual securities for investment decisions.
Q4. What does securities management entail?
Answer: Securities management encompasses selecting, acquiring, holding, and selling securities to optimize portfolio performance and align with investor objectives.
Q5. What is the difference between security analysis and portfolio management?
Answer: Security analysis evaluates individual securities to assess their investment potential.
Portfolio management involves constructing and managing a portfolio of various securities to achieve specific financial objectives.
Conclusion Points
This article has provided comprehensive multiple-choice questions and answers on security analysis and portfolio management. Testing your knowledge in this area can enhance your understanding of key concepts and principles. We hope that this resource has been helpful in your preparation for exams or in expanding your knowledge in the field.
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