Investment Fund Concepts Quiz
Explore essential investment management concepts through 15 questions covering mutual funds, alpha, beta, Sharpe ratio, diversification, and more.
#1
What is a mutual fund?
A type of hedge fund
A type of investment vehicle
A type of insurance
A type of pension fund
#2
What is the 'Net Asset Value' (NAV) of a mutual fund?
The total market value of all the assets held by the fund
The total market value of all the liabilities of the fund
The total market value of all the assets minus the liabilities of the fund
The total market value of all the liabilities minus the assets of the fund
#3
What is the 'expense ratio' of a mutual fund?
The ratio of the fund's expenses to its assets
The ratio of the fund's liabilities to its assets
The ratio of the fund's income to its expenses
The ratio of the fund's assets to its liabilities
#4
What is a 'load' in the context of mutual funds?
A fee charged to investors when they buy or sell shares in the fund
A type of investment strategy
A financial instrument
A type of insurance policy
#5
What is a 'hedge fund'?
A type of mutual fund
A type of investment fund
A type of retirement fund
A type of insurance fund
#6
What is 'diversification' in the context of investment portfolios?
The process of reducing risk by investing in a variety of assets
The process of increasing risk by investing in a variety of assets
The process of reducing risk by investing in a single asset
The process of increasing risk by investing in a single asset
#7
What is 'rebalancing' in the context of investment portfolios?
The process of selling assets to maintain a desired asset allocation
The process of buying assets to maintain a desired asset allocation
The process of selling assets to increase risk
The process of buying assets to increase risk
#8
What is 'modern portfolio theory'?
A theory that states that investors should diversify their portfolios
A theory that states that investors should not diversify their portfolios
A theory that states that investors should only invest in stocks
A theory that states that investors should only invest in bonds
#9
What is 'alpha' in the context of investment funds?
The ratio of the fund's return to its risk
The ratio of the fund's return to its benchmark index
The ratio of the fund's return to the market return
The ratio of the fund's return to the risk-free return
#10
What is 'beta' in the context of investment funds?
The ratio of the fund's return to its risk
The ratio of the fund's return to its benchmark index
The ratio of the fund's return to the market return
The ratio of the fund's return to the risk-free return
#11
What is the 'Sharpe ratio'?
A measure of a fund's risk-adjusted performance
A measure of a fund's risk
A measure of a fund's return
A measure of a fund's volatility
#12
What is the 'Sortino ratio'?
A measure of a fund's risk-adjusted performance
A measure of a fund's risk
A measure of a fund's return
A measure of a fund's volatility
#13
What is 'Yield to Maturity' (YTM)?
The rate of return anticipated on a bond if it is held until maturity
The rate of return anticipated on a bond if it is sold immediately
The rate of return anticipated on a bond if it is held for a specific period
The rate of return anticipated on a bond if it is sold after a specific period
#14
What is the 'efficient market hypothesis'?
A theory that states that asset prices fully reflect all available information
A theory that states that asset prices do not reflect all available information
A theory that states that asset prices sometimes reflect all available information
A theory that states that asset prices rarely reflect all available information
#15
What is a 'factor model'?
A statistical model that explains the returns of a portfolio using one or more factors
A statistical model that explains the returns of a portfolio using one or more variables
A statistical model that explains the risk of a portfolio using one or more factors
A statistical model that explains the risk of a portfolio using one or more variables
Sign In to view more questions.
Quiz Questions with Answers
Forget wasting time on incorrect answers. We deliver the straight-up correct options, along with clear explanations that solidify your understanding.
Popular Quizzes in Investment Management
Popular Quizzes in Finance
Report