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Investment Management

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Investment is the ____.

a)

Net addition made to the nation’s capital stock

b)

Person’s commitment to buy a flat

c)

Employment funds on assets to earn return.

d)

Employment of funds on goods and services that are used in production process.

2.

Purchasing power risk is also known as_______

a)

Inflation risk

b)

Business risk

c)

Market risk

d)

Financial risk

3.

Preference shareholders receive

a)

Fixed rate of dividend

b)

Flexible rate of dividend

c)

Fixed rate of interest

d)

Flexible rate of interest

4.

Bonds have an additional feature of ____

a)

Arrear 

b)

Forfeiture

c)

Call

d)

Dividend

5.

Convertible  bond consists of 

a)

Present value of equity shares which will be received at time of conversion

b)

Part equity, part preference shares

c)

Part preference shares and part debentures

d)

Zero interest bond

6.

Who is called a father of fundamental analysis

a)

 Benjamin Graham

b)

Timbergen

c)

William

d)

Eliott Wave

7.

The intrinsic value of a share shows

a)

Cash dividends expected in future

b)

Market expectations of a share

c)

The economic value of a share

d)

The performance of a company in the market

8.

During the ______________ stage many new firms enter into market, the firms earns high profit , all firms compete with each other and only a few efficient firms are left to run the business and most of the other firms are wiped out.

a)

Expansion stage

b)

Pioneering stage

c)

Stagnation stage

d)

Declining stage

9.

The Dow theory was developed by ________________

a)

Stock broker by the name of Dow

b)

An editor of Wall Street Journal by the name of Dow

c)

 It was developed by Markowitz and Dow

d)

It was developed by Sharpe.

10.

Markowitz model presumed generally investors are

a)

Risk neutral

b)

Risk seekers

c)

Risk averse

d)

Risk moderate