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MCQs

Total Questions : 131 | Page 3 of 14 pages
Question 21. The duration which is divided by the interest rate plus one is classified as
  1.    decreased duration
  2.    increase duration
  3.    modified duration
  4.    at par duration
 Discuss Question
Answer: Option C. -> modified duration
Answer: (c).modified duration
Question 22. Liquidity risk is:
  1.    is risk investments bankers face
  2.    is lower for small OTC
  3.    is risk associated with secondary market transactions
  4.    increases whenever interest rates increases
 Discuss Question
Answer: Option C. -> is risk associated with secondary market transactions
Answer: (c).is risk associated with secondary market transactions
Question 23. A corporate bond is a corporation's write undertaking that it will refund a specific amount of money plus
  1.    premium
  2.    interest
  3.    nothing
  4.    security
 Discuss Question
Answer: Option B. -> interest
Answer: (b).interest
Question 24. Expected worth is the
  1.    inverse of standard deviation
  2.    correlation between a security
  3.    same as discrete probability distribution
  4.    weighted average of all possible outcomes
 Discuss Question
Answer: Option D. -> weighted average of all possible outcomes
Answer: (d).weighted average of all possible outcomes
Question 25. Bondholders usually accept interest payments each
  1.    1 year
  2.    six months
  3.    2 months
  4.    2 years
 Discuss Question
Answer: Option B. -> six months
Answer: (b).six months
Question 26. Political constancy is chief aspect concerning
  1.    exchange risk
  2.    systematic risk
  3.    non-systematic risk
  4.    country risk
 Discuss Question
Answer: Option D. -> country risk
Answer: (d).country risk
Question 27. A price weighted index is an arithmetic mean of
  1.    future prices
  2.    current prices
  3.    quarter prices
  4.    none of these
 Discuss Question
Answer: Option B. -> current prices
Answer: (b).current prices
Question 28. Capital Market Line is firstly initiated by
  1.    Mohsin
  2.    Linter
  3.    Markowitz
  4.    William Sharpe
 Discuss Question
Answer: Option D. -> William Sharpe
Answer: (d).William Sharpe
Question 29. Most favourable portfolio is proficient portfolio with the
  1.    lowest risk
  2.    highest risk
  3.    highest utility
  4.    least investment
 Discuss Question
Answer: Option C. -> highest utility
Answer: (c).highest utility
Question 30. Ambiguity introduced by way by which organization finances its investments is
  1.    country risk
  2.    liquidity risk
  3.    financial risk
  4.    business risk
 Discuss Question
Answer: Option C. -> financial risk
Answer: (c).financial risk

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