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Investment Management - Exam Module 1

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

____________ is based on tips, rumours and hunches, unplanned and without knowledge of the exact nature of risk.

a)

Investment

b)

Speculation

c)

Gambling

d)

Arbitrage

2.

_________ risks cover the risk of market, interest rate risk and purchasing power risk.

a)

Unsystematic risk

b)

Systematic

c)

Financial

d)

Business

3.

Purchasing power risk is also known as________

a)

Inflation risk

b)

Business risk

c)

Financial risk

d)

Market risk

4.

Variance calculation and measuring the Standard deviation is one way of measuring the ______

a)

Return

b)

Speculation

c)

Gambling

d)

Risk

5.

Investors agree to invest in high- risk investments if only

a)

There are any true speculations

b)

The predicted return is satisfactory for taking a risk

c)

There are no safe options except for holding cash

d)

The return is short

6.

Economic well being of a person depends on

a)

how much you save

b)

how much you invest

c)

how wisely you invest

d)

none of these

7.

Real estate investment means

a)

Investment in houses

b)

Investment in flats

c)

Investment in bungalows

d)

all of these

8.

Stock exchange is a

a)

Primary market

b)

secondary market

c)

Money market

d)

none of these

9.

Financial assets include

a)

Bank deposits

b)

Investment in debentures/bonds

c)

Investment in equity shares

d)

all of these

10.

Employment of funds with the aim of achieving additional income is known as____

a)

Speculation

b)

Gambling

c)

Biting

d)

Investment