QUIZ

1. A market participant has a time horizon of one week. He is typically:

(a) A trader (b) An investor (c) A speculator (d) A gambler (e) None of the above

2. Which one of the following is not one among the broad categories in which shares

are classified into?

(a) Speculative shares (b) Advancing shares (c) Cyclical shares (d) Income shares (e) None of the above

3. A preference share is a hybrid instrument.

(a) True (b) False

4. Resilience of a market means:

(a) There are no frequent price changes in the market (b) New orders emerge in response to price changes (c) The market volume is resilient (d) All the above (e) None of the above

5. Traditionally the cut off between short-term and long-term financial claims has

been:

(a) Three years (b) Five years (c) Six months (d) One year (e) None of the above

6. Which one of the following factors is not behind the globalisation of financial

markets?

(a) Deregulation (b) Institutionalisation (c) Liberalisation.

(d) Cartelisation (e) None of the above

7. The most important decision in portfolio management is the:

(a) Choice of the market (b) Choice of the instruments (c) Choice of the asset mix (d) Cost of the management (e) None of the above

8. The true value of a security is its:

(a) Market value (b) Discounted value (c) Value at which it was issued (d) Long-term average value (e) None of the above

9. Investor performance in the long run may not depend on:

(a) Maintaining composure (b) Sticking to a pattern (c) Patience (d) Diligence (e) None of the above

10. The reflexivity principle is a special insight developed by

(a) George Soros (b) Warren Buffett (c) J.M.Keynes (d) Benjamin Graham (e) None of the above

KEY

1 (a) 2 (b) 3 (a) 4 (b) 5 (d) 6 (d) 7 (c) 8 (e) 9 (b)

10 (a)