NISM Chapter 10 7%

Unsystematic risk can be reduced through diversification. State whether True or False.

• True
• False

Government securities can be considered to be completely risk-free. State whether True or False.

• True
• False

Performance of fund must always be measured relative to the

• Investment objective
• Benchmark
• Index
• Asset class

Which fund has the highest risk?

• Index Fund
• Sector Fund
• Balanced fund
• Arbitrage fund

What is Systematic Risk also known as

• Diversifiable risk
• Non-diversifiable risk
• Managing risk
• Economic risk

Which of the following type of analysis tracks the price and volume data related to trading in the security?

• Fundamental Analysis
• Technical Analysis
• Quantitative Analysis
• Situation Analysis

An investor invested in scheme A when the scheme's NAV was Rs. 120 per unit. The investor redeemed the investments at the NAV of Rs. 135. Calculate the simple return.

• 15.00 percent
• 12.50 percent
• 11.11 percent
• 10.00 percent

Risk can be measured by

• Standard deviation
• Beta
• Variance
• All of the above

Which of the following is a measure of fluctuation in periodic returns in an equity mutual fund scheme?

• Sharpe Ratio
• Variance
• Modified Duration
• Jensen's Alpha

Risk adjusted return is measured by

• Standard Deviation
• Sharpe ratio
• Treynor ratio
• Both b & c