#1
Which of the following is NOT a factor typically considered in country risk analysis?
Political stability
Economic indicators
Language spoken in the country
Social factors
#2
Which economic indicator is commonly used to assess a country's ability to repay its debt?
GDP growth rate
Inflation rate
Unemployment rate
Debt-to-GDP ratio
#3
Which of the following is NOT typically considered a sovereign risk?
Foreign exchange risk
Political risk
Credit risk
Market risk
#4
Which organization provides country risk ratings and analysis?
World Bank
International Monetary Fund (IMF)
Standard & Poor's (S&P)
Organization of the Petroleum Exporting Countries (OPEC)
#5
Which of the following is a method used to mitigate country risk?
Diversification
Leverage
Short selling
Margin trading
#6
What is the primary goal of country risk analysis?
To eliminate all risks associated with investing in a country
To accurately assess the potential risks and rewards of investing in a country
To ensure that investing in a country always leads to high returns
To completely avoid investing in high-risk countries
#7
Which of the following is an example of political risk in country risk analysis?
Changes in interest rates
Inflation
Civil unrest
Market competition
#8
What is the primary source of data used in country risk analysis?
Historical stock prices
Government reports
Social media trends
Company financial statements
#9
Which country risk analysis framework categorizes risks into political, economic, social, technological, legal, and environmental factors?
Merton Model
CAPM
PESTLE analysis
Black-Scholes Model
#10
Which factor is NOT typically considered in assessing economic risk?
Interest rates
Inflation
Exchange rates
Government stability
#11
Which theory suggests that investors demand higher returns for higher perceived risks?
Capital Asset Pricing Model (CAPM)
Modern Portfolio Theory (MPT)
Efficient Market Hypothesis (EMH)
Risk-return tradeoff theory
#12
Which term refers to the risk of a government defaulting on its debt obligations?
Sovereign risk
Market risk
Credit risk
Liquidity risk
#13
Which theory suggests that investors can achieve optimal portfolios by considering both risk and return?
Market efficiency theory
Efficient market hypothesis
Modern portfolio theory
Capital asset pricing model
#14
Which risk assessment approach focuses on identifying and quantifying all possible risks?
Quantitative risk analysis
Qualitative risk analysis
Probabilistic risk analysis
Sensitivity analysis
#15
Which of the following is NOT a method of qualitative risk analysis?
Delphi technique
SWOT analysis
Monte Carlo simulation
Expert judgment