#1
Which of the following is NOT a factor typically considered in investment decision-making?
Expected return
Risk tolerance
Interest rates
Market trends
#2
What does the term 'ROI' stand for in investment analysis?
Return on Investment
Risk of Investment
Revenue on Investment
Rate of Interest
#3
Which of the following is NOT a type of risk typically associated with investments?
Market risk
Operational risk
Credit risk
Inflation risk
#4
What is the primary goal of risk management in investment?
To eliminate all risks associated with investments
To maximize returns regardless of risks
To balance risks and returns to achieve investment objectives
To completely avoid all investments with potential risks
#5
Which of the following is NOT a type of investment asset?
Stocks
Bonds
Mutual funds
Insurance policies
#6
In the context of investments, what does 'Diversification' refer to?
Concentrating all investments in a single asset
Spreading investments across different assets
Investing only in high-risk assets
Investing in foreign currencies only
#7
What is 'Beta' in finance and investment?
A measure of an asset's volatility relative to the market
The expected return of an investment
The rate of inflation
The annual dividend yield
#8
What is the Sharpe Ratio used for in investment analysis?
To measure an investment's risk-adjusted return
To calculate the absolute return of an investment
To assess the liquidity of an investment
To determine the market capitalization of a company
#9
Which of the following is a measure of systematic risk?
Standard deviation
Alpha
Beta
Sharpe Ratio
#10
What does the term 'Liquidity' refer to in investment?
The ability to buy or sell an asset without causing a significant price change
The profitability of an investment
The potential return of an investment
The level of diversification in an investment portfolio
#11
Which of the following statements best describes the concept of 'Time Value of Money'?
The principle that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity
The principle that money available in the future is worth more than the identical sum in the present due to inflation
The principle that money should be invested in stocks for the long term to maximize returns
The principle that money should be saved rather than invested to avoid risk
#12
Which of the following is a risk management technique that involves transferring the risk to another party?
Diversification
Hedging
Risk avoidance
Risk retention
#13
What is 'CAPM' in the context of investment analysis?
Capital Allocation Pricing Model
Continuous Asset Pricing Model
Capital Asset Pricing Model
Continuous Allocation Pricing Model
#14
What is 'Value at Risk (VaR)' in risk management?
A measure of the maximum potential loss in value of a risky asset over a specific time period
A measure of the average return of a risky asset over a specific time period
A measure of the standard deviation of returns of a risky asset
A measure of the correlation between different assets in a portfolio
#15
Which of the following is a measure of non-systematic risk?
Standard deviation
Beta
Alpha
Market risk premium
#16
What is the primary purpose of the Modern Portfolio Theory (MPT) in investment?
To maximize returns while minimizing risks through diversification
To predict future stock prices
To identify undervalued stocks
To speculate on short-term market movements
#17
What does the term 'Risk-Adjusted Return' refer to in investment analysis?
The return of an investment without considering any risks
The return of an investment adjusted for its risk level
The return of an investment compared to a benchmark
The return of an investment in relation to its beta value