MCQ Bank
In which of the following, technical analysis is of NO use?
- A) All of the given options
- B) Weak form efficiency
- C) Strong-form efficiency
- D) Semi-strong form efficiency
What is the relationship between price sensitivity and bond’s coupon rate?
- A) It has a direct relationship
- B) It has no relationship
- C) It has a countless relationship
- D) It has an inverse relationship
Tests are more difficult to conduct for which of the following form?
- A) Weak form efficiency
- B) Semi-strong form efficiency
- C) Strong form efficiency
- D) Weak form & Strong form
Accounting value of a share is known as:
- A) Face value
- B) Book value
- C) Market value
- D) Future value
Bond valuation principal is based upon ____________ of expected cash flows.
- A) Future value
- B) Current value
- C) Present value
- D) Market value
A degree of informational efficiency which states that future stock prices cannot be predicted by analyzing price from the past is known as:
- A) None of the given options
- B) Strong form efficiency
- C) Weak form efficiency
- D) Semi strong form efficiency
Bond is a type of Direct Claim Security whose value is NOT secured by __________.
- A) Fixed assets
- B) Real assets
- C) Intangible assets
- D) Tangible assets
The Dow Jones Industrial Average (DJIA) is an example of which of the following index?
- A) Price weighting index
- B) Capitalization weighting index
- C) Volume based index
- D) None of given options
Which of the following is an average signifying the point in time when the present value of a security is repaid?
- A) Yield to maturity
- B) Convexity
- C) Immunization
- D) Duration
Bond prices are expressed as a percentage of:
- A) Intrinsic value
- B) Par value
- C) Future value
- D) Discount value
Which of the following is NOT a test of semi-strong form efficiency?
- A) Accounting changes
- B) Stock splits
- C) Dividend announcements
- D) Insider transactions
Which of the following is a payment to owners in the form of stocks?
- A) Stock dividend
- B) Stock ticker
- C) Stock flicker
- D) Penny stock
Which of the following index is also known as value weighting?
- A) Capitalization weighting
- B) Price weighting
- C) Equal weighting
- D) Base weighting
Which of the following measures the sensitivity of the asset's price to interest rate movements, expressed as a number of years?
- A) Convexity
- B) Yield to maturity
- C) Immunization
- D) Duration
What is the relationship between price sensitivity and yield to maturity at which the bond is selling?
- A) It has no relationship
- B) It has an inverse relationship
- C) It has a direct relationship
- D) It has a countless relationship
Which of the following index is price weighted?
- A) New York Stock Exchange Composite
- B) Russell 3000 Index
- C) Dow Jones Industrial Average
- D) Standards and Poor’s Index
Which of the following is an accounting value of a share in case a company goes bankrupt?
- A) Present value
- B) Market value
- C) Book value
- D) Intrinsic value
Which of the financial asset is NOT easily convertible into cash?
- A) Saving account
- B) Money market deposits
- C) Swaps
- D) Deposit certificates
Capitalization weighting must be adjusted for changes in all of the following, EXCEPT:
- A) Share repurchases
- B) Index components
- C) Primary stock offerings
- D) Total personal values
Which of the following has duration equal to its maturity?
- A) A 7 year bond with 3%coupon
- B) A 5 year bond with 6% coupon
- C) A zero-coupon bond
- D) A 10 year bond with 5% coupon