Security Analysis and Portfolio Management

When money is committed to another person for a period of time for earning higher returns, it is called

• Savings

• Investment

• Surplus

• Deficit

Perfectly ________ correlated series move exactly together and have a correlation coefficient of ________, while perfectly ________ correlated series move exactly in opposite directions and have a correlation coefficient of ________.

• negatively; -1; positively; +1

• negatively; +1; positively; -1

• positively; -1; negatively; +1

• positively; +1; negatively; -1

________ is the chance of loss or the variability of returns associated with a given asset.

• Return

• Value

• Risk

• Probability

portfolio means combination of

• Financial Assets

• Physical Assets

• Both financial and Physical Assets

• None of the above

In portfolio management which aspect should be maximized?

• Return

• Risk

• Return and Risk

• None of the above

stocks and bonds should be classified as;

• Real Asset

• Indirect Asset

• Financial Assets

• personal assets

Which of the following is considered as risk free investment?

• gold

• equity

• bonds

• treasury bills

Most investors are risk averse which means:

• they will assume more risk only if they are compensated by higher expected return

• they will always invest in the investment with the lowest possible risk

• they actively seek to maximize their return

• they avoid the stock market due to the high degree of risk

The SENSEX has

• 50 stocks

• 25 stocks

• 30 stocks

• 100 stocks

putting money at risk by betting on an uncertain outcome;

• investmet

• gambling

• financing

• portfolio