MCQ’S of Investment

Q.no.1 Coefficient variation of relative dispersion that is useful for___

a) Risk of asset
b) Return of asset
c) Portfolio
d) A and B both

Q.no.2 A portfolio that minimizes return for given level of risk

a) Un efficient portfolio
b) Efficient portfolio
c) Diversification
d) None of these

Q.no.3 Describe two series that move in the same direction

a) Diversification
b) Negative correlation
c) Positive correlation
d) A and B both

Q.no.4 Describe two series that move in the opposite direction

a) Negative Correlation
b) Positive Correlation
c) Correlation
d) None of these

Q.no.5 Combining Negative Correlated assets can reduce variability of

a) Portfolio
b) Risk
c) A and B
d) Return
Q.no.6 Perfectly Positively Correlated is

a) +2
b) -2
c) +1
d) -1

Q.no.7 Perfectly Negatively Correlated is

a) +2
b) -1
c) +1
d) -2

Q.no.8 No interaction between their return is____

a) Correlated
b) Positive correlated
c) Negative correlated
d) Uncorrelated

Q.no.9 Perfectly Positive Correlated series that moves____

a) Together
b) Opposite
c) A and B
d) None of these

Q.no.10 Perfectly Negative Correlated series that moves___

a) Together
b) Opposite
c) A and B
d) None of these
Q.no.11 The higher the standard deviation which means___

a) Greater Risk
b) Greater Return
c) Lower Risk
d) None of these

Q.no.12 Correlation Coefficient which range from

a) -1 to +1
b) +1 to -1
c) +1 to 0
d) 0 to -1

Q.no.13 The Correlation Coefficient for Uncorrelated asset is close to__

a) -1
b) +1
c) A and B
d) 0