wayground logo

Free Printable Worksheets

Font size

S
M
L
XL
Worksheets

Portfolio Management

Total questions: 15

Worksheet time: 15mins

Name
Class
Date
1.

Most investors are risk averse which means:

a)

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

b)

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

c)

they actively seek to maximize their return

d)

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

2.

stocks and bonds should be classified as;

a)

Real Asset

b)

Indirect Asset

c)

Financial Assets

d)

personal assets

3.

The ________ of an asset is the change in value plus any cash distributions expressed as a percentage of the initial price or amount invested.

a)

Return

b)

Value

c)

Risk

d)

Probability

4.

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

a)

Return

b)

Value

c)

Risk

d)

Probability

5.

Last year Mike bought 100 shares of Dallas Corporation common stock for $53 per share. During the year he received dividends of $1.45 per share. The stock is currently selling for $60 per share. What rate of return did Mike earn over the year?

a)

11.7%

b)

13.2%

c)

14.1%

d)

15.9%

6.

Investors should not diversify their portfolio by putting money into different securities based on their appetite for risk.

a)

True

b)

False

7.

Who are institutional investors in Financial assets? ( Choose 3)

a)

Investment Companies

b)

Government

c)

Commercial Banks

d)

Householders

e)

Insurance Companies

8.

After considering current market conditions an investor decides to place 60% of their funds in equities and the rest in bonds. This is an example of

a)

security analysis

b)

asset allocation

c)

top down portfolio management

d)

passive management

9.

After much investigation an investor finds that Intel stock is currently under priced. This is an example of ______.

a)

Asset allocation

b)

Security analysis

c)

passive management

d)

top down portfolio management

10.

........... ......... advise companies on issuing bonds and shares. They also advise on mergers and acquisitions Choose one

a)

Investment Companies

b)

Investment banks

c)

Commercial Banks

d)

Insurance Companies

11.

__________ portfolio construction starts with asset allocation.

a)

Bottom-up

b)

Top Down

c)

Upside down

d)

Side-by-side

12.

Which of the following is the best reason for an investor to be concerned with

the composition of a portfolio?

a)

Risk reduction

b)

Downside risk protection

c)

Avoidance of investment disaster

d)

Increase profitabiltiy

13.

With respect to the portfolio management process, the asset allocation is deter-

mined in the:

a)

planning step

b)

feedback step

c)

execution step

14.

An analyst gathers the following information for the asset allocations of three

portfolios (see attachment). Which of the portfolios is most likely appropriate for a client who has a high

degree of risk tolerance?

a)

Portfolio 1

b)

Portfolio 2

c)

Portfolio 3

d)

Portfolio 1 & 3

15.

Which of the following forms of pooled investments is subject to the least

amount of regulation?

a)

Hedge Funds

b)

Exchange Traded Funds

c)

Closed-End Mutual Funds

d)

Open-End Mutual Fund