Security Analysis and Portfolio Management

IIBM Institute of Business Management
Examination Paper MM.100
Security Analysis and Portfolio Management
Section A: Objective Type (30 marks)
 This section consists of Multiple choice questions & Short Answer type questions.
 Answer all the questions.
 Part One questions carry 1 mark each & Part Two questions carry 5 marks each.
Part One:
Multiple choices:
1. Beta is useful for comparing the relative _____________ of different stocks.
a. Business risk
b. Systematic risk
c. Liquidity risk
d. Country risk
2. The price prevailing in market is called
a. Market security
b. Market value
c. Market price
d. None of the above
3. Line charts, Bar charts, Candles tic charts are the parts of
a. Fundamental analysis
b. Technical analysis
c. Company analysis
d. None of the above
4. A market portfolio is a portfolio consisting of a weighted __________ in the market.
a. Sum of every equity
b. Sum of every liabilities
c. Sum of every assets
d. None of the above
5. The date on the option contract is called the ___________
a. Expiration date
b. Date of maturity
c. Both a) & b)
d. None of the above
Examination Paper of Finance Management
6
IIBM Institute of Business Management
6. A forward contract is an agreement made today between a ___________ to exchange the commodity a. Buyer & buyer
b. Buyer & seller
c. Seller & seller
d. None of the above
7. Portfolio means a collection or combination of financial assets such as
a. Shares
b. Debentures
c. Government securities
d. All of the above
8. CAPM is the abbreviation of
a. Capital Asset Pricing Measure
b. Capital Average Pricing Model
c. Capital Asset Pricing Model
d. None of the above
9. In India the secondary market for shares is regulated by
a. RBI
b. SEBI
c. Company law board
d. There is no regulatory authority
10. The risk of the whole market as measured by „Beta‟ is
a. 1
b. 0
c. -1
d. None of the above
Part Two:
1. What does „β‟ (Beta) mean in risk management?
2.