Iibm - Security Analysis and Portfolio Management

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Security Analysis and Portfolio Management

Q1. Covariance of the returns of security i and market portfolio is 270. Standard deviation of market portfolio is 15. Calculate β of security i.

a. 1.2

b. 2.4

c. 3.0

d. 3.8

e. 4.2

Q2. In an economy the level of confidence can be gauged by examining the following factors.

a. The current investment climate

b. The current capacity utilization

c. Overall economic conditions

d. Financial performance of companies

e. All of the above

Q3. Default free bonds can still have

a. Price change risk

b. Interest rate risk

c. Marketability risk

d. Political risk

e. All of the above

Q4. The analyst should take into account the following characteristics while evaluating a company for investment purpose.

a. Permanence

b. Labor conditions

c. Government policies and regulations

d. Past earnings performance and future expectations

e. All of the above

Q5. B1 and B2 group shares in BSE can be settled through

a. Carry forward settlement

b. Spot delivery

c. Hand delivery

d. Kerb trades

e. None of the above

Q6. Which among the following factors are considered while conducting five factor ROE analysis?

a. Pre-tax margin

b. Operating margin

c. Asset turnover

d. Total leverage

e. All of the above

Q7. The ratio of market capitalization to book value can be used as a proxy for

a. ROE

b. ROA

c. EBIT

d. EBDIT

e. None of the above

Q8. A stop loss order is given when the market is

a. Highly volatile

b. Experiencing a downtrend

c. Experiencing a bull run

d. Inactive

e. None of the above

Q9. The low exit and high entry barriers can be found in industries which have

a. Low and stable returns

b. Low but risky returns...