Asset Management - Gradopedia

Question 1

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Asset Managers which largely invest in non-listed companies:

Answer

Private Equity
Portfolio Managers
Mutual Funds

Question 2

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The size and capabilities of an asset management department can be measured using:

Answer

No of employees
Assets under Management
Years in business

Question 3

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Biggest difference between Asset Managers and Financial Advisors:

Answer

Managers look at entire market, Advisors do specific studies
Managers invest on client’s behalf, Advisors only give suggestions
Managers are more long term oriented than Advisors

Question 4

Question

Why would you invest in Debentures?

Answer

High returns
Fixed returns
Both High and Fixed returns

Question 5

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If a Rs. 100 stock is growing 10% every year, how much would it be after 2 years?

Answer

Question 6

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Benefits of investing in a Mutual Fund:

Answer

Reduced Risk
Longer time period as compared to other products
Both of the above

Question 7

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Highest risk and return is possible from:

Answer

Investing in a Mutual Fund
Having a Private Portfolio
Same for both

Question 8

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Beta of a stock indicates risk of a stock:

Answer

In relation to stocks in the same sector
As compared to market risks
In relation to economic situations

Question 9

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Wealth Management can be done by:

Answer

High Net-Worth Individuals only
High and medium Net-Worth both
Any individual interested in investments

Question 10

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An asset manager should revise the portfolio:

Answer

Monthly
Quarterly
As and when it is required

Question 11

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Unsystematic risk can be best reduced by:

Answer

Investing in limited number of sectors
Increasing the number of securities
It is based on market conditions and cannot be controlled

Question 12

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The best measure of Risk-free security is:

Answer

Private Bank Fixed Deposit
Government Bonds
Reliance Industries Limited’s Bonds

Question 13

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Investment in a US-based stock is most exposed to:

Answer

Liquidity Risk
Exchange-rate Risk
Political Risk

Question 14

Question

An asset manager constantly screening interest rate changes most likely comes from:

Answer

Private Equity
Mutual Fund
Commodities

Question 15

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An asset manager interacting with Entrepreneurs ideally works through:

Answer

Mutual Funds
Private Equity
Debentures

Question 16

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An portfolio manager decides the best asset mix based on:

Answer

Market trends and possible returns
Investor's risk taking abilities
Upcoming and promising investment avenues

Question 17

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The best example of inflation-adjusted returns in investing in:

Answer

Stocks
Bonds
Real Estate

Question 18

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Systematic risk can be reduced by:

Answer

Adding more securities
Investing in alternative products
In cannot be reduced

Question 19

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Reinvestment risk is linked to risk from reinvesting:

Answer

The interest received throughout the life of the security
The principal amount received at the end of the period
Both of the above

Question 20

Question

A fund paying out higher dividend is most likely included in:

Answer

Growth Scheme
Income Scheme
Balanced Scheme

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Asset Management - Gradopedia

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	Created by Hitesh Awtaney almost 9 years ago