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MCQs

Total Questions : 131 | Page 4 of 14 pages
Question 31. In order to settle on compound growth rate of an investment over period, an investor determine the
  1.    geometric mean
  2.    calculus mean
  3.    arithmetic mean
  4.    arithmetic median
 Discuss Question
Answer: Option A. -> geometric mean
Answer: (a).geometric mean
Question 32. Non-systematic risk is furthermore identified as
  1.    no diversifiable risk
  2.    market risk
  3.    random risk
  4.    company specific risk
 Discuss Question
Answer: Option D. -> company specific risk
Answer: (d).company specific risk
Question 33. Hold two securities as an alternative of will not decrease hazard occupied by an investor if two securities are
  1.    perfectively positive correlated
  2.    perfectively negative correlated
  3.    no correlation
  4.    all of answer correct
 Discuss Question
Answer: Option A. -> perfectively positive correlated
Answer: (a).perfectively positive correlated
Question 34. Total portfolio hazard is
  1.    equal to systematic risk plus diversifiable risk
  2.    equal to systematic risk plus unavoidable risk
  3.    equal to avoidable risk plus diversifiable risk
  4.    equal to systematic risk plus no diversifiable risk
 Discuss Question
Answer: Option A. -> equal to systematic risk plus diversifiable risk
Answer: (a).equal to systematic risk plus diversifiable risk
Question 35. Investors should be agreeing to invest in riskier investments merely
  1.    if return is short
  2.    if there are no safe alternatives except for holding cash
  3.    if expected return is adequate for risk level
  4.    if there are true speculators
 Discuss Question
Answer: Option C. -> if expected return is adequate for risk level
Answer: (c).if expected return is adequate for risk level
Question 36. Markowitz model presumed generally investors are
  1.    risk averse
  2.    risk natural
  3.    risk seekers
  4.    risk moderate
 Discuss Question
Answer: Option A. -> risk averse
Answer: (a).risk averse
Question 37. In expected rate of return for constant growth, an expected dividend yield must be
  1.    functional decreasing
  2.    constant
  3.    continuously growing
  4.    functional increasing
 Discuss Question
Answer: Option B. -> constant
Answer: (b).constant
Question 38. The value of stock as concluded with the help of analysis by particular investor is classified as
  1.    particular value
  2.    intrinsic value
  3.    fundamental value
  4.    both b and c
 Discuss Question
Answer: Option D. -> both b and c
Answer: (d).both b and c
Question 39. The capital gain is $2 and the beginning price is $24 then the capital gains yield will be
  1.    22
  2.    0.1 times
  3.    0.12
  4.    0.12
 Discuss Question
Answer: Option D. -> 0.12
Answer: (d).0.12
Question 40. A formula such as an original investment plus an expected capital gain is used to calculate
  1.    final stock
  2.    expected stock
  3.    expected final stock price
  4.    final stock price
 Discuss Question
Answer: Option C. -> expected final stock price
Answer: (c).expected final stock price

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