WorksheetsClass Test Fundamentals of Investment dtd. 28.08.25
Total questions: 10
Worksheet time: 2mins
Investment involves
commitment of funds
future expectated returns
Uncertainty of returns
All of the above
Risk inherent in investments may relate to
Loss of Capital
Delay in repayment of capital
Non-payment of interest
Variability of returns
All of the above
Select all the incorrect/ wrong statement related to investments
Longer the maturity period, larger the risk
Lower the creditworthiness of borrower, lower the risk
Risk varies with nature of investment
None is incorrect
Speculation is associated with (select all that apply)
Recieving a stable return and capital appreciation over a period of time
buying and selling of investment for short term
Commiitment of funds to higher risk investments
All of the above
Risk of an investment is introduced by
Difference in expected return and realised return
factors which produce variations in returns
Both
None
Total variability in returns of a security is represented by
Systematic Risk
Unsystematic Risk
Both
None
Which of the following is not a systematic risk?
Market Risk
Interest Rate Risk
Financial risk
Purchasing power risk
Expected return of an investment can be measured using
Simple average
Variance
Weighted Average
Standard Deviation
Risk of an investment can be measured by
Variance
Standard Deviation
Both
None
Unsystematic risk associated with security of a particular company can be reduced to a great extent by
(a)
