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WorksheetsFundamentals of Investment - Module 1
Total questions: 62
Worksheet time: 31mins
Name
Class
Date
1.
Roll Number
4 lines
2.
Name of Student
4 lines
3.
1. Sacrifice of current funds for the purpose of future returns is ....
a)
Public Funding
b)
Investment
c)
All of the above
d)
None of the above
4.
2. Which of the following is NOT an element of Investment Environment
a)
Regulators
b)
Market
c)
Securities
d)
Investors
e)
None of the above
5.
3. Regulator of capital market in India
a)
RBI
b)
CLB
c)
AMFI
d)
SEBI
6.
4. Regulator of Money Market in India
a)
SEBI
b)
MCA
c)
RBI
d)
SBI
7.
5. Investments made by institutions registered out side India is called as....
a)
HNIs
b)
FIIs
c)
AIFIs
d)
None of the above
8.
6. Individual investors who makes huge amounts as Investment in securities are called as.....
a)
Top Investors
b)
Small Investors
c)
HNIs
d)
NRIs
9.
7. Retail investors are those who makes Investment in securities up to .......
a)
₹ 3 lakh
b)
₹ 1 lakh
c)
₹ 2 lakh
d)
₹ 6 lakh
10.
8. Market which deals long term securities are called as.....
a)
Capital Market
b)
Money Market
c)
Hybrid Market
d)
All of the above
11.
9. Market for short term securities are called as .....
a)
Capital Market
b)
Money Market
c)
Hybrid Market
d)
None of the above
12.
10. Which of the following is NOT the Investment in Real Assets
a)
Land and Properties
b)
Gold and Silver
c)
Art and Antiques
d)
Shares and Debentures
13.
11. Which of the following is NOT a Bullion
a)
Platinum
b)
Gold
c)
Silver
d)
Crude Oil
14.
12. Fixed Deposit Receipt of Bank is an example of.... .
a)
Non- Securatised Financial Investment
b)
Security form of Investment
c)
Real Assets form of Investment
d)
None of the above
15.
13. Security form of financial investment does NOT include ........
a)
Equity shares
b)
Debentures
c)
Derivaties
d)
Insurance Policies
16.
14, The Regulator of Investments in Commodity Derivatives Market in India is ....
a)
Mandies
b)
RBI
c)
SEBI
d)
None of the above
17.
15. Which of the following is NOT an intermediary
a)
Merchant Banker
b)
Underwriters
c)
Share Tranfer Agents
d)
Stock Brokers
e)
None of the above
18.
16. Fund based Financial Service includes......
a)
Leasing
b)
Factoring
c)
Both of the above
d)
None of the above
19.
17. Essential Characteristics of Investment includes .......
a)
Risk and Return
b)
Liquidity and Marketability
c)
Safety of Principal
d)
All of the above
20.
18. Process of Investment does NOT includes ........
a)
Settings Investment Objectives
b)
Security Analysis
c)
Portfolio Construction
d)
Portfolio Termination
e)
Portfolio Evaluation and Revision
21.
19. Which among the following is comparatively risk less
a)
Equity shares
b)
Preference shares
c)
Corporate Debentures
d)
Govt Bonds
22.
20. Financial Derivatives does NOT includes ......
a)
Futures and Forwards
b)
Options and Swaps
c)
Mutual Funds
d)
None of the above
23.
21. Risk and Return are .......
a)
Positively Correlated
b)
Negatively Correlated
c)
Not Correlated
d)
None of the above
24.
22. Which of the following offers highest return ?
a)
Govt Bonds
b)
Corporate Bonds
c)
Mutual Funds
d)
Equity shares
25.
23. Govt Securities is risk less and therefore its return is .....
a)
Less
b)
High
c)
Moderate
d)
Zero
26.
24. Investment and Speculation are synonymous to each other. The statement is ...
a)
True
b)
False
c)
Cannot Say
27.
25. Which of the following is NOT the feature of Speculation
a)
Aims Short term Capital Gain
b)
high risk and high return
c)
Decisions based on rumours
d)
Expects regular dividends and capital gain
28.
26. Speculators makes trading in securities .........
a)
Occassionally
b)
Frequently
c)
Sometimes
d)
Not at all
29.
27. Greed and fear play a greater role in ......
a)
Investment
b)
Speculation and Gambling
c)
Both of the above
d)
None of the above
30.
28. Recovery of past losses are generally NOT possible in .....
a)
Gambling
b)
Investment
c)
Speculation
d)
All of the above
31.
29. Making return or incurring loss is a matter of chance in ....
a)
Investment
b)
Speculation
c)
Gambling
d)
All of the above
32.
30. ....... measures the relative change in the market capitalisation of securities over a period of time
a)
Stock market volume
b)
Stock indices
c)
Stock market breadth
d)
Demat of securities
33.
31. Which is an example of Price-Based Index
a)
NIFTY
b)
SENSEX
c)
Dow Jones
d)
Nasdaq
34.
32. Which of the following is NOT a Market Capitalisation based index
a)
Sensex
b)
Nifty
c)
Nasdaq
d)
Dow Jones
35.
33. The bench mark stock market indices in India are.....
a)
Dow Jones and Nasdaq
b)
BBC Global and FTSE
c)
Sensex and Nifty
d)
DAX and CAC
36.
34. The oldest stock exchange in India is......
a)
BSE
b)
NSE
c)
MSE
d)
None of the above
37.
35. BSE was established in the year
a)
1875
b)
1992
c)
1902
d)
1978
38.
36. NSE was established in the year
a)
1875
b)
1992
c)
1902
d)
1978
39.
37. Return from Security Investment consists of.........
a)
Income
b)
Capital Gain
c)
Both of the above
d)
Nine of the above
40.
38. Expected return from a Security Investment is the summation of possible return with its respective .......
a)
Risk
b)
Income
c)
Probability
d)
All of the above
41.
39. The chance of variability in the expected return is called as .....
a)
Probability
b)
Possible Return
c)
Expected Return
d)
Risk
42.
40. The standard measurement of risk related to Investment is .....
a)
Covariance
b)
Correlation
c)
Standard Deviation
d)
Probability
43.
41. Investment related risk is broadly divided in to .......
a)
Systematic Risk
b)
Unsystematic Risk
c)
Both of the above
d)
None of the above
44.
42. The risk which is not diversifiable is called as ......
a)
Systematic Risk
b)
Unsystematic Risk
c)
Both of the above
d)
None of the above
45.
43. Which of the following is the type of Unsystematic Risk
a)
Business Risk
b)
Financial Risk
c)
Both of the above
d)
None of the above
46.
44. Which of the following is NOT a type of systematic risk
a)
Interest rate risk
b)
Market risk
c)
Financial risk
d)
Political risk
47.
45. The measurement of systematic risk is called as .....
a)
Alpha
b)
Beta
c)
Standard Deviations
d)
All of the above
48.
46. Beta can be measured under the method of .......
a)
Correlation method
b)
Regression method
c)
Both of the above
d)
None of the above
49.
47. The residual risk is called ......
a)
Alpha
b)
Beta
c)
Standard Deviations
d)
All of the above
50.
48. The Investment Approach which is often regarded as Castle in the Air theory is ......
a)
Fundamental Approach
b)
Psychological Approach
c)
Academic Approach
d)
Eclectic Approach
51.
49. The Investment Approach which belives that the market is efficient and always reflect the intrinsic value is ........
a)
Fundamental Approach
b)
Psychological Approach
c)
Academic Approach
d)
Eclectic Approach
52.
50. The risk per rupee of Investment is measured with .....
a)
Correlation
b)
Coefficient of Variation
c)
Standard Deviation
d)
Beta
53.
51. CAPM stands for
a)
Capital Appreciation Pricing Model
b)
Cash Assets Pricing Model
c)
Capital Assets Precision Model
d)
Capital Assets Pricing Model
54.
52. If the Beta coefficient is greater than 1 , the stock is said to be......
a)
Aggressive
b)
Defensive
c)
Neutral
d)
None of the above
55.
53. If the Beta is less than 1 , the Stock is said to be.....
a)
Aggressive
b)
Defensive
c)
Neutral
d)
None of the above
56.
54. If the Beta is equal to 1 , then the stock is said to be ......
a)
Aggressive
b)
Defensive
c)
Neutral
d)
None of the above
57.
55. If the market return and the stock return moves in opposite directions, the the calculated value of Beta will be .....
a)
Greater than 1
b)
Less than 1
c)
Equal to 1
d)
Negative Beta
58.
56. The graphical representation of CAPM is called .......
a)
CML
b)
SML
c)
CRL
d)
None of the above
59.
57. SML Stands for
a)
Systematic Market Line
b)
Symmetrical Market Line
c)
Scientific Market Line
d)
Securities Market Line
60.
58. The slope of SML is called as .....
a)
Alpha
b)
Beta
c)
Expected Return
d)
None of the above
61.
59. The intercept value in an SML is denoted as........
a)
Alpha
b)
Beta
c)
Expected Return
d)
None of the above
62.
60. APM stands for......
a)
Aggregate Pricing Model
b)
Average Pricing Model
c)
Arbitrage Pricing Model
d)
Associated Pricing Model
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