NEW
Font size
WorksheetsRisk Management and Investment Quiz ( Session - 4,5,6 )
Total questions: 30
Worksheet time: 45mins
What type of risk is associated with interest rate changes?
Credit Risk
Market Risk
Liquidity Risk
Operational Risk
The probability of a borrower defaulting is captured under:
LGD
PD
EAD
Beta
Which ratio measures a bank's capital adequacy?
ROE
CAR
P/E
NIM
Stress testing in risk management is used to:
Predict customer behavior
Simulate extreme market conditions
Track daily trades
Improve liquidity
The 2020 Yes Bank crisis was primarily due to:
High provisioning
Poor technology
Excessive bad loans and poor governance
Market speculation
LGD stands for:
Loss Given Delay
Loan Growth Duration
Loss Given Default
Liquidity Gap Determinant
Which of the following is a qualitative risk management technique?
VaR
Scenario Analysis
Regression Model
Monte Carlo Simulation
If a borrower defaults on ₹100, and bank recovers ₹30, LGD is:
30%
70%
100%
50%
Capital Adequacy Ratio helps in:
Profit tracking
Compliance only
Ensuring solvency and risk absorption
Loan growth
Which risk management metric measures potential future loss?
ROI
P/E
VaR
EPS
Value investing focuses on:
High-growth startups
Undervalued companies with solid fundamentals
Day trading
Penny stocks
Which strategy emphasizes earnings growth over valuation?
Value Investing
Growth Investing
Dividend Investing
Arbitrage
Momentum investors typically:
Invest in distressed assets
Buy undervalued stocks only
Follow price trends
Only invest in gold
PEG ratio is calculated as:
P/E ÷ ROE
P/B × EPS
P/E ÷ Growth Rate
EPS ÷ P/E
A PEG < 1 generally indicates:
Overvalued
Undervalued
Fairly valued
Zero return
A stock trading at ₹200 with EPS of ₹20 has a P/E of:
20
10
5
100
Which is a key indicator for value investing?
High PEG
Low Dividend Yield
Low P/B ratio
High P/E
Growth stocks usually:
Have high dividends
Have low revenue growth
Reinvest profits
Focus on debt reduction
Which of the following is most suitable in bull markets?
Momentum investing
Value investing
SIP in bonds
Commodity hedging
Growth investors would avoid stocks with:
Negative EPS growth
High revenue CAGR
High ROE
Low debt
Modern Portfolio Theory aims to:
Maximize return for given risk
Minimize taxes
Time the market
Avoid diversification
Strategic asset allocation is best described as:
Daily trading
Fixed long-term allocation
Investing in gold only
Market timing strategy
Efficient Frontier consists of:
Risky portfolios only
Portfolios with best return at each risk level
Loss-making portfolios
Fixed-income investments
Rebalancing a portfolio means:
Starting from scratch
Adjusting weights to original targets
Buying gold only
Avoiding equity investments
Diversification helps to reduce:
Systematic risk
Unsystematic risk
Interest rates
Tax liabilities
A correlation of -1 between two assets implies:
They move in opposite directions
No relationship
Move together
No volatility
Tactical asset allocation is typically:
Short-term and responsive
Long-term
Passive
Based only on bonds
A conservative portfolio is most suitable for:
Young aggressive investors
Retirees
Day traders
Crypto investors
If equity returns 14% and debt returns 6%, a 70:30 equity-debt portfolio returns:
10%
12.6%
8%
11.4%
In portfolio theory, risk is best measured by:
ROI
Standard Deviation
NAV
P/E ratio
