FIN630 - Investment Analysis & Portfolio Management Quiz # 02 Solved by afaaq Afaaqtariq233@gmail.

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Question # 1 of 20 ( Start time: 01:37:32 PM ) Total Marks: 1 Which of the following is the ratio of share price to stockholder equity as measured on the balance sheet? Select correct option: Price to book value ratio Price to sales ratio Leverage ratio Debt coverage ratio

Question # 2 of 20 ( Start time: 01:38:55 PM ) Total Marks: 1 Which of the following trading systems is used by the Karachi Stock Exchange? Select correct option: ISECTS LOTS KATS PETS

Question # 3 of 20 ( Start time: 01:39:53 PM ) Total Marks: 1 The S&P 500 Composite Stock Index is favored by most institutional investors and money managers. What does S&P stands for? Select correct option: Sophisticated and Poised Standard and Poor Stylish and Permanent Sojourn and Perennial

Question # 4 of 20 ( Start time: 01:40:48 PM ) Total Marks: 1 More investors are using technical analysis now than in earlier periods because: Select correct option: Investors are able to know the quantitative calculations of technical analysis More business schools are now teaching technical analysis The Internet makes more data available to track stock prices There is now more empirical evidence supporting technical analysis

Question # 5 of 20 ( Start time: 01:41:38 PM ) Total Marks: 1 Which of the following represents an unusually risky stock? Select correct option: Blue chip stock Growth stock Penny stock None of the given options

Question # 6 of 20 ( Start time: 01:41:57 PM ) Total Marks: 1 The industries that are least affected by recessions and economic adversity are referred as which of the following? Select correct option: Growth industries Cyclical industries Interest-sensitive industries Defensive industries

Question # 7 of 20 ( Start time: 01:42:18 PM ) Total Marks: 1 Which of the following depicts a bullish trend in stock market? Select correct option: Stock price drop below support level Stock price rises above support level Stock price drop below resistant level None of given options

Question # 8 of 20 ( Start time: 01:42:53 PM ) Total Marks: 1 In bottom-up approach of fundamental analysis, investors begin their analysis with: Select correct option: Industry Economy Market Company

Question # 9 of 20 ( Start time: 01:43:44 PM ) Total Marks: 1 In which of the following charts days do not matter? Select correct option: Line and pie charts Bar and pie charts Bar and line charts Point and figure charts

Question # 10 of 20 ( Start time: 01:44:17 PM ) Total Marks: 1 In which of the following the investors look at the historical perspective? Select correct option: Value investment Interactive investment Growth investment Accredited investment

Question # 11 of 20 ( Start time: 01:44:50 PM ) Total Marks: 1 Which one of the following is correct formula for calculating gross margin? Select correct option: Net Profit/Net Sales Gross Profit/Net Sales Net income/Net Sales Gross Profit/credit Sales

Question # 12 of 20 ( Start time: 01:45:27 PM ) Total Marks: 1 The circuit breaker that is applied where stock prices in the market are dropping is known as which of the following? Select correct option: Starter Floor Ceiling Simulator

Question # 13 of 20 ( Start time: 01:45:58 PM ) Total Marks: 1 On Balance Volume one of technical indicator use _____ as base. Select correct option: Demand Supply Volume Price Question # 14 of 20 ( Start time: 01:46:43 PM ) Total Marks: 1 In which of the following accounts the trading charges are high? Select correct option: Savings account System account Personal account Cash account

Question # 16 of 20 ( Start time: 01:47:42 PM ) Total Marks: 1 Which of the following terms refer to the recurring and fluctuating levels of economic activity that an economy experiences over a long period of time? Select correct option: Claims cycle Reaction cycle Business cycle Capital cycle

Question # 17 of 20 ( Start time: 01:48:10 PM ) Total Marks: 1 Which one of the following is correct formula for calculating operating margin? Select correct option: Net Profit/Net Sales Net income/Net Sales Operating income/Net Sales Operating income/credit sales

Question # 18 of 20 ( Start time: 01:48:36 PM ) Total Marks: 1

_____ do not change the collective wealth of shareholders.

Select correct option: Stock splits Bonus shares Right shares All of the following

Question # 19 of 20 ( Start time: 01:49:08 PM ) Total Marks: 1 Which of the following is the reason stock prices behave the way they do at resistance lines? Select correct option: Many investors want to buy at this price Market makers resist moving prices lower than this price Many investors want to sell at this price Market makers support prices at this level Question # 20 of 20 ( Start time: 01:49:48 PM ) Total Marks: 1 Which of the following ratios are of more concern for the shareholders? Select correct option: Liquidity and profitability Liquidity and leverage Profitability and activity Profitability and leverage

Question # 1 of 20 ( Start time: 02:57:19 PM ) Total Marks: 1 More investors are using technical analysis now than in earlier periods because: Select correct option:

Investors are able to know the quantitative calculations of technical analysis

More business schools are now teaching technical analysis

The Internet makes more data available to track stock prices There is now more empirical evidence supporting technical analysis

Question # 2 of 20 ( Start time: 02:57:58 PM ) Total Marks: 1 Which of the following statements hold TRUE for ask price? Select correct option:

It is the price at which a broker is willing to sell a certain security It is the price at which a broker is willing to buy a certain security It is the quoted price in an order to buy shares of a company It is the rate at which a dealer will buy the base currency

Question # 3 of 20 ( Start time: 02:58:37 PM ) Total Marks: 1 All of the following are characteristics of stop orders EXCEPT: Select correct option:

Protecting profits Minimizing losses

Rapid execution It is seldom used by investors

Question # 4 of 20 ( Start time: 02:59:13 PM ) Total Marks: 1 All of the following are the problems associated to the Dividend Discount Model, EXCEPT: Select correct option:

This model need infinite stream of dividends This model has uncertain dividend stream This model must estimate future dividends This model requires constant earnings per share

Question # 5 of 20 ( Start time: 02:59:44 PM ) Total Marks: 1 Which of the following depicts a bullish trend in stock market? Select correct option:

Stock price drop below support level Stock price rises above support level Stock price drop below resistant level

None of given options

Question # 6 of 20 ( Start time: 03:00:23 PM ) Total Marks: 1 An account that permits an investor to borrow part of the cost of investment firm a brokerage firm. Select correct option:

Dealer account Option account Margin account Cash account

Question # 7 of 20 ( Start time: 03:00:44 PM ) Total Marks: 1 Which order will be executed automatically at the current bid or ask price? Select correct option:

Limit order Market order Stop order Good till cancelled

Question # 8 of 20 ( Start time: 03:01:09 PM ) Total Marks: 1 In which of the following charts days do not matter? Select correct option:

Line and pie charts Bar and pie charts Bar and line charts Point and figure charts

Question # 9 of 20 ( Start time: 03:01:28 PM ) Total Marks: 1 Long tern directs in Dow Theory is depicted through: Select correct option:

Holes

Strings

Waves

Tides

Question # 10 of 20 ( Start time: 03:01:48 PM ) Total Marks: 1 Which of the following is the ratio of a companys total market value (price times number of shares) divided by sales? Select correct option:

Price to sales ratio Price to book value ratio Debt coverage ratio Leverage ratio

Question # 11 of 20 ( Start time: 03:02:10 PM ) Total Marks: 1 Which of the following charts give the economic information on weekly or yearly basis? Select correct option:

Line charts Bar charts Pie charts Symbol charts

Question # 12 of 20 ( Start time: 03:02:36 PM ) Total Marks: 1 Companies that have capitalization amounts of more than $2 billion are known as ___________. Select correct option:

Small cap companies Mid cap companies Growth companies Large cap companies

Question # 13 of 20 ( Start time: 03:03:07 PM ) Total Marks: 1 Which one of the following is correct formula for calculating operating margin? Select correct option:

Net Profit/Net Sales Net income/Net Sales

Operating income/Net Sales Operating income/credit sales

Question # 14 of 20 ( Start time: 03:03:25 PM ) Total Marks: 1 Which of the following take place at the expansion stage of the industry life cycle? Select correct option:

Firm operations get more stable and dependable No rapid growth in demand Costs get stable rather than decreasing or increasing Sales growth decline as new products are developed

Question # 15 of 20 ( Start time: 03:03:51 PM ) Total Marks: 1 An investor wants to buy 100 shares of a company but due to shortage of funds investor can only 30% of the total share price and will borrow rest of 70% from brokerage firm. Which of the following type of account will be suitable for investor in this situation? Select correct option:

Cash account

Margin account

Real account

CFA account

Question # 16 of 20 ( Start time: 03:04:13 PM ) Total Marks: 1 Which of the following does not pay fix income (interest/ dividend) to investors? Select correct option:

Preferred stock

Government bond Common stock

Treasury bond

Question # 17 of 20 ( Start time: 03:04:34 PM ) Total Marks: 1 Which of the following is the theories searching the patterns in randomness? Select correct option:

Elliott wave theory Chaos theory Portfolio theory Valuation theory

Question # 18 of 20 ( Start time: 03:04:56 PM ) Total Marks: 1 Which of the following is not a type of the multistage dividend discount model? Select correct option:

Two-stage models

Y models

H models

Three-stage models

Question # 19 of 20 ( Start time: 03:05:17 PM ) Total Marks: 1 Which of the following is a characteristic of cyclical stock? Select correct option:

Their value is tied with the overall state of the national economy. They are low-priced, speculative and risky securities. They have stable earnings and no extensive liabilities None of the given options

Question # 20 of 20 ( Start time: 03:05:40 PM ) Total Marks: 1 Which of the following programs propagate the ethics? Select correct option:

London Instruments Fiscal Attachment Laurel Immigration Fairness Analysis Low Income Financial Association Licensed International Financial Analyst

FIN630 - Investment Analysis & Portfolio Management Quiz # 02

Solved by afaaq Afaaqtariq233@gmail.com