73-Portfolio Management

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1).
Most favourable portfolio is proficient portfolio with which of the following?
2).
In which of the following risks, ambiguity introduced by organization, finances its investments?
3).
What happens to corporate bond with a fixed interest rate, if interest rates in nation increase?
4).
Political constancy is chief aspect concerning which of the following risks?
5).
Who among the followinf initiated Capital Market Line?
6).
The net wealth of the aggregate economy is equal to the sum of which of the following?
7).
Which of the following statements about portfolio diversification is correct?
8).
Which of the following steps should be taken by investor who wishes to form a portfolio that lies to the right of the optimal risky portfolio on the Capital Allocation Line?
9).
Which of the following is a statistic that measures how the returns of two risky assets move together?
10).
The individual investor's optimal portfolio is designated by which of the following?
1. Most favourable portfolio is proficient portfolio with which of the following?
[A] lowest risk
[B] Highest risk
[C] Highest utility
[D] Least investment
2. In which of the following risks, ambiguity introduced by organization, finances its investments?
[A] country risk
[B] financial risk
[C] liquidity risk
[D] business risk
3. What happens to corporate bond with a fixed interest rate, if interest rates in nation increase?
[A] decrease in value
[B] Be returned to corporation
[C] remain unchanged
[D] increase in value
4. Political constancy is chief aspect concerning which of the following risks?
[A] exchange risk
[B] systematic risk
[C] non-systematic risk
[D] country risk
5. Who among the followinf initiated Capital Market Line?
[A] William Sharpe
[B] Markowitz
[C] Linter
[D] Mohsin
6. The net wealth of the aggregate economy is equal to the sum of which of the following?
[A] All real assets
[B] All financial assets
[C] All physical assets
[D] All real and financial assets
7. Which of the following statements about portfolio diversification is correct?
[A] Proper diversification can reduce or eliminate systematic risk
[B] The risk-reducing benefits of diversification do not occur meaningfully until at least 50-60 individual
[C] Because diversification reduces a portfolio’s total risk, it necessarily reduces the portfolio’s expected
[D] Typically, as more securities are added to a portfolio, total risk would be expected to decrease at a
8. Which of the following steps should be taken by investor who wishes to form a portfolio that lies to the right of the optimal risky portfolio on the Capital Allocation Line?
[A] Lend some of her money at the risk-free rate and invest the remainder in the optimal risky portfolio
[B] Borrow some money at the risk-free rate and invest in the optimal risky portfolio
[C] Such a portfolio cannot be formed
[D] None of the above
9. Which of the following is a statistic that measures how the returns of two risky assets move together?
[A] Correlation
[B] Standard deviation
[C] Variance
[D] None of the above
10. The individual investor’s optimal portfolio is designated by which of the following?
[A] The point of tangency with the opportunity set and the capital allocation line
[B] The point of highest reward to variability ratio in the opportunity set
[C] The point of tangency with the indifference curve and the capital allocation line
[D] The point of the highest reward to variability ratio in the indifference curve
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