Download Calicut University M.Com Latest 2020 Security Analysis and Portfolio Management Question Bank

Download UOC (University of Calicut) M.Com (Master of Commerce) Security Analysis and Portfolio Management Question Bank (Important Questions)

School of Distance Education
Financial Management Page1
SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
THIRD SEMESTER M.COM ELECTIVE :MC3E(F)02
Multiple Choice Questions
1.Liquidity risk is :
a) is risk investment bankers face.
b) is lower for small OTC
c) increases whenever interest rates increases
d) is risk associated with secondary market transactions
2.Bond holders usually accept interest payment each.
a) 1 year b) six months c) 2 months d) 2 years
3.Passive management is also referred to as.......?
a) index fund management b) index folio management
c) interest free management d) none of these
4. Multifactor asset pricing model that can be used to estimate the ......rate
for the valuation of financial asset.
a) discount b) interest c) expense d) risk
5. Arbitrate pricing theory is an ................. model.
a) asset pricing b) risk evaluation c) bond pricing d) none of these
6.CAMP stands for .
a) capital asset pricing model b) capital assessment pricing model
c) capital asset placement model d) none of these
7. An asset risk premium is given by :
a) the asset standard deviation
b) the assets expected returns
c) expected return per unit of standard deviation
d) the excess of the assets expected return over the riskless rates
8.Which of the following is an example of a depreciable asset?
a) land b) cash c) account receivable d) equipment
9.While bond prices fluctuate ,
a) yeilds are constant
b) coupon are constant
c) the spread between yeilds is constant
d) short term bond prices fluctuate even more
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School of Distance Education
Financial Management Page1
SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
THIRD SEMESTER M.COM ELECTIVE :MC3E(F)02
Multiple Choice Questions
1.Liquidity risk is :
a) is risk investment bankers face.
b) is lower for small OTC
c) increases whenever interest rates increases
d) is risk associated with secondary market transactions
2.Bond holders usually accept interest payment each.
a) 1 year b) six months c) 2 months d) 2 years
3.Passive management is also referred to as.......?
a) index fund management b) index folio management
c) interest free management d) none of these
4. Multifactor asset pricing model that can be used to estimate the ......rate
for the valuation of financial asset.
a) discount b) interest c) expense d) risk
5. Arbitrate pricing theory is an ................. model.
a) asset pricing b) risk evaluation c) bond pricing d) none of these
6.CAMP stands for .
a) capital asset pricing model b) capital assessment pricing model
c) capital asset placement model d) none of these
7. An asset risk premium is given by :
a) the asset standard deviation
b) the assets expected returns
c) expected return per unit of standard deviation
d) the excess of the assets expected return over the riskless rates
8.Which of the following is an example of a depreciable asset?
a) land b) cash c) account receivable d) equipment
9.While bond prices fluctuate ,
a) yeilds are constant
b) coupon are constant
c) the spread between yeilds is constant
d) short term bond prices fluctuate even more
School of Distance Education
Financial Management Page2
10.To calculate historical (realised) risk and return, use;
a) ex-post data
b) mean and variance of expected return
c) probability distribution of possible states
d) ex- ante data
11. A price weighted index is an arithmetic mean of
a) future prices b) current prices c) quarter prices d) none of these
12. A firm that fails to pay dividends on its preferred stock is said to be ???
a) insolvent b) in arrears c) in sufferable d) delinquent
13. ............... is not a money market instrument.
a) cerftificates of deposit b) a treasury bill
c) a treasury bond d) commercial paper
14. A bond that has no collateral is called ...................... .?
a) collable bond b) a debenture c) a junk bond d) a mortgage
15.The process of addition of more assets in an existing portfolio is called.....?
a) portfolio revision b) portfolio addition
c) portfolio exchanging d) none of these
ANSWER KEY
1.c 2.b 3. a 4.a 5.a 6.a 7.a 8.d 9.a 10.a 11.b 12.b 13.b 14.b 15.a
Prepared by:
Sri. Nazar. K
Assistant Professor on contract,
School of Distance Education,
University of Calicut.
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