Portfolio Management

A Portfolio Management Internship offers students or recent graduates hands-on experience in managing investment portfolios, analyzing financial markets, and assisting with investment strategies. Interns typically work under financial analysts, portfolio managers, or wealth advisors in finance firms, banks, or asset management companies.

What Interns Typically Learn:

Investment Analysis:
Assessing stocks, bonds, mutual funds, and other assets using financial metrics and market trends.
Portfolio Construction:
Understanding asset allocation, diversification, and risk-return trade-offs.
Financial Modeling & Valuation:
Building Excel models and learning valuation techniques (DCF, multiples, etc.).
Market Research:
Tracking economic indicators, industry reports, and company performance.
Reporting & Performance Tracking:
Preparing reports on portfolio performance, risk analysis, and rebalancing strategies.
Tools & Platforms:
Exposure to Bloomberg, Excel, Morningstar, or portfolio management systems.

Important Notice:
Once you start the quiz, you will not be able to pause, exit, or restart it. Please ensure you are ready before beginning.

Portfolio Management D1

1 / 45

A financial analyst's role is primarily focused on:

a) Employee management and training

b) Historical stock prices only

c) Future business performance and potential

d) Daily operational tasks

2 / 45

A financial analyst's work is directly tied to the concept of:

a) Human psychology

b) Value creation

c) Public speaking

d) Environmental science

3 / 45

What does "qualitative analysis" involve for a financial analyst?

a) Assessing non-numerical factors like management quality and brand strength

b) Using only simple arithmetic

c) Ignoring a company's business model

d) Only looking at numbers

4 / 45

What is the primary output of a financial analyst's valuation model?

a) A company's intrinsic value

b) A company's mission statement

c) A social media engagement report

d) A list of all employees

5 / 45

What is the purpose of "sensitivity analysis" in financial modeling?

a) To measure a computer's processing speed

b) To determine a company's popularity

c) To see how a model's output changes with a change in a single input variable

d) To check how sensitive a person is to certain foods

6 / 45

A "demand deposit" is a deposit that:

a) Earns no interest

b) Is only for businesses

c) Can be withdrawn at any time

d) Cannot be withdrawn for a specific period

7 / 45

What does "KYC" stand for in the context of banking?

a) Know Your Competitor

b) Kindly Yield Credit

c) Keep Your Cash

d) Know Your Customer

8 / 45

What is a "pitch book" in the context of a financial analyst's work?

a) A list of all customers

b) A document detailing a company's history

c) A presentation used to sell a deal or a company

d) A list of all employees

9 / 45

The "risk-reward" relationship is a core concept for financial analysts. It implies that:

a) Risk and reward are unrelated

b) Higher potential returns are often associated with higher risk

c) Lower risk always leads to higher returns

d) Higher risk always leads to higher returns

10 / 45

10)

The Glass-Steagall Act in the US historically separated:

a) Public and private banking

b) Investment banking and commercial banking

c) Domestic and international banking

d) Retail banking and corporate banking

11 / 45

11)

What does the term "leverage" refer to in financial analysis?

a) The use of borrowed funds to increase returns

b) The number of employees in a company

c) The amount of equipment a company owns

d) A type of physical lever

12 / 45

12)

A financial analyst's salary is often dependent on:

a) The amount of caffeine they consume

b) Their level of experience and specialized knowledge

c) The company's stock price

d) The number of hours they sleep

13 / 45

13)

What is a "Tier 1 Capital Ratio"?

a) Accuracy

b) A measure of a bank's customer service

c) A core measure of a bank's financial strength and ability to withstand losses

d) A measure of a bank's leverage

14 / 45

14)

Which of the following is an example of an industry a financial analyst might specialize in?

a) Healthcare or Technology

b) Automotive repair

c) Culinary arts

d) Professional sports

15 / 45

15)

What is the primary role of a bank's compliance department?

a) To ensure the bank adheres to all relevant laws and regulations

b) o manage human resources

c) To manage the bank's finances

d) To develop new financial products

16 / 45

16)

What does a bank's "liquidity" refer to?

a) The bank's number of branches

b) The bank's total profitability

c) The bank's ability to sell assets quickly to meet short-term obligations

d) The bank's leverage ratio

17 / 45

17)

What is "scenario analysis"?

a) A tool for designing a company's logo

b) A technique to analyze only the best-case scenario

c) A method for projecting outcomes under different sets of assumptions

d) A way to choose a movie to watch

18 / 45

18)

A financial analyst must be proficient in which software?

a) Adobe Photoshop

b) Microsoft Excel and PowerPoint

c) Garageband

d) Autocad

19 / 45

19)

What is the purpose of a bank's asset-liability committee (ALCO)?

a) To oversee the management of the bank's balance sheet and risks

b) To organize employee events

c) To handle customer service issues

d) To manage the bank's marketing campaigns

20 / 45

20)

What is a common tool used by financial analysts to evaluate a company's value?

a) A word processing document

b) A simple spreadsheet

c) An artistic portfolio

d) Discounted Cash Flow (DCF) model

21 / 45

21)

Which professional designation is highly regarded for a financial analyst?

a) Certified Public Accountant (CPA)

b) Project Management Professional (PMP)

c) Certified Ethical Hacker (CEH)

d) Chartered Financial Analyst (CFA)

22 / 45

22)

What is a "shadow bank"?

a) A type of government bank

b) A bank that operates at night

c) A bank with a virtual-only presence

d) A non-bank financial institution that performs similar functions to banks

23 / 45

23)

A bank's main source of revenue is typically:

a) Selling real estate

b) Charging for parking

c) The interest it earns on loans

d) Selling merchandise

24 / 45

24)

What does the term "analyst" imply in this field?

a) Someone who only works in a team

b) Someone who simply reports news

c) Someone who performs physical labor

d) Someone who breaks down complex information to provide insights

25 / 45

25)

Which of the following is considered a non-interest income for a bank?

a) Interest earned on loans

b) Interest paid on deposits

c) Interest earned on government bonds

d) Fees from ATM usage and credit cards

26 / 45

26)

Which of the following is a key characteristic of a mutual bank?

a) It is owned by its depositors and customers

b) It is publicly traded on a stock exchange

c) It only offers loans to corporations

d) It is owned by the government

27 / 45

27)

What is a key ethical consideration for a financial analyst?

a) The number of hours they work

b) Their choice of car

c) Avoiding conflicts of interest and providing unbiased analysis

d) Their choice of clothing

28 / 45

28)

What does "due diligence" mean in the context of a financial analyst's work?

a) A brief review of a company's website

b) A thorough investigation and analysis before a major transaction

c) Providing emotional support to clients

d) Completing a task quickly

29 / 45

29)

A financial analyst is often responsible for creating:

a) Social media content strategies

b) Detailed financial models and forecasts

c) Physical product prototypes

d) Employee satisfaction surveys

30 / 45

30)

A financial analyst often needs to be a proficient user of:

a) A paint brush

b) Financial databases like Bloomberg or Refinitiv

c) A simple calculator

d) A sewing machine

31 / 45

31)

What does "FinTech" stand for?

a) Financial Textbook

b) Fine Techniques

c) Final Technology

d) Financial Technology

32 / 45

32)

Why is it important for a financial analyst to understand economic trends?

a) To predict fashion trends

b) To design a company's website

c) To understand how market conditions impact a company's performance

d) To manage a company's social events

33 / 45

33)

What is the primary function of a financial analyst?

a) Managing a company's public relations

b) Designing corporate marketing campaigns

c) Evaluating a company's financial health and making recommendations

d) Providing legal advice

34 / 45

34)

What is the purpose of a financial analyst's report?

a) To advertise new products

b) To entertain readers

c) To summarize a company's historical events

d) To provide a professional opinion and a basis for investment decisions

35 / 45

35)

Which skill is most critical for a financial analyst?

a) Strong quantitative and analytical abilities

b) Artistic design and creativity

c) Advanced mechanical engineering

d) Public speaking and debate

36 / 45

36)

A financial analyst working in corporate finance might be involved in:

a) Budgeting, forecasting, and capital allocation

b) Writing movie scripts

c) Stock market speculation

d) Fashion design

37 / 45

37)

A financial analyst's work is crucial for:

a) Government policy-making

b) Interior design

c) Investor decision-making

d) Local community event planning

38 / 45

38)

A financial analyst needs to be skilled in identifying:

a) The most popular sports teams

b) Potential vacation spots

c) Future business opportunities and risks

d) The best type of food to eat for lunch

39 / 45

39)

Why is communication an important skill for a financial analyst?

a) To design a company's website

b) To manage a company's sports team

c) To tell jokes at meetings

d) To effectively present complex findings to clients or management

40 / 45

40)

When a financial analyst uses a "multiples analysis," they are:

a) Comparing a company to similar companies in the industry

b) Counting the number of employees

c) Dividing a company's revenue by its expenses

d) Multiplying a number by itself

41 / 45

41)

What is the core difference between financial analysis and accounting?

a) Accounting is a creative art, analysis is a rigid science

b) Accounting is about recording financial history, analysis is about using that data to make future decisions

c) Accounting is forward-looking, analysis is backward-looking

d) ccounting is for individuals, analysis is for corporations

42 / 45

42)

A financial analyst working in investment banking would likely focus on:

a) Mergers & Acquisitions (M&A) and capital raising

b) Fashion design

c) Writing movie scripts

d) An elementary school teacher

43 / 45

43)

What is a key difference between a sell-side and a buy-side financial analyst?

a) Sell-side works for individual investors, buy-side works for corporations

b) Sell-side works for investment banks, buy-side works for institutional investors

c) Sell-side works for retail stores, buy-side works for restaurants

d) Sell-side works for governments, buy-side works for non-profits

44 / 45

44)

What is a key function of a clearinghouse in the banking system?

a) To provide legal advice to banks

b) To manage a bank's social media

c) To sell banking products

d) To facilitate the exchange and settlement of payments

45 / 45

45)

When a financial analyst recommends a "Buy" rating for a stock, it means they believe:

a) The stock's price will decrease

b) The company is about to go bankrupt

c) The company is overvalued

d) The company is likely to perform well and the stock price will rise

Your score is

The average score is 85%

Exit

Important Notice:
Once you start the quiz, you will not be able to pause, exit, or restart it. Please ensure you are ready before beginning.

Portfolio Management D2

1 / 44

1) Which of the following is a function of the Reserve Bank of India (RBI)?

a) Regulating banks

b) Issuing currency notes

c) All of the above

d) Controlling inflation

2 / 44

2) The primary role of a central bank, such as the Federal Reserve, is to:

a) Provide personal loans to consumers

b) Control a nation's monetary policy and money supply

c) Engage in retail banking activities

d) Offer insurance products

3 / 44

3) Liquidity risk in banking refers to:

a) The risk of rising inflation

b) The risk of not having enough cash or liquid assets to meet obligations

c) The risk of declining stock prices

d) The risk of borrowers defaulting on loans

4 / 44

4) What does “financial intermediation” mean?

a) Banks print money

b) Banks only lend to government

c) Banks trade in stock markets

d) Banks channel funds from savers to borrowers

5 / 44

5) Which of the following represents ownership in a company?

a) Preference Shares

b) Debentures

c) Bonds

d) Equity Shares

6 / 44

6) Which of the following is considered an off-balance sheet item for a bank?

a) Loan commitments and guarantees

b) Fixed assets

c) Deposits from customers

d) Loans made to customers

7 / 44

7) A “reverse repo rate” is the rate at which:

a) Banks borrow from each other

b) Government borrows from RBI

c) Banks lend to customers

d) RBI borrows money from commercial banks

8 / 44

8) Which instrument has features of both debt and equity?

a) Preference Shares

b) Treasury Bill

c) Convertible Debentures

d) Commercial Paper

9 / 44

9) Which of these is part of non-interest income for banks?

a) Fees and commissions

b) Employee salaries

c) Loan repayments

d) Cash deposits

10 / 44

10) What does “asset-liability management” mean in banking?

a) Managing only bank buildings and equipment

b) Tracking customer accounts

c) Balancing profits and expenses

d) Matching assets and liabilities to manage risks

11 / 44

11) Which of the following is an example of a bank’s income-generating activity?

a) Maintaining reserve requirements

b) Lending money to customers

c) Holding cash in vaults

d) Paying interest on deposits

12 / 44

12) What is the primary source of revenue for commercial banks?

a) Salaries from employees

b) Interest earned on loans

c) Government subsidies

d) Customer service charges

13 / 44

13) What does “bank run” mean?

a) A bank’s promotional campaign

b) Rapid expansion of bank branches

c) Sudden withdrawal of deposits by many customers due to lack of confidence

d) An increase in bank lending

14 / 44

14) What is “operational risk” in banking?

a) Risk of natural disaster

b) Risk due to interest rate changes

c) Risk of default by customers

d) Risk arising from failed internal processes, people, or systems

15 / 44

15) What is “Basel Accord” concerned with?

a) Agricultural finance

b) Stock market investments

c) International standards for banking supervision and capital adequacy

d) Environmental sustainability

16 / 44

16) What is the main purpose of a bank's capital adequacy ratio?

a) To determine the bank's profitability

b) To measure the bank's customer satisfaction

c) To measure the bank's market share

d) To ensure the bank has enough capital to absorb unexpected losses

17 / 44

17) Basel III norms are primarily concerned with:

a) Regulating the stock market

b) Promoting agriculture financing

c) Enhancing banking supervision and regulation

d) Providing insurance services

18 / 44

18) A bank’s balance sheet shows:

a) Assets, Liabilities, and Equity

b) Profits and Losses only

c) Cash only

d) Loans only

19 / 44

19) The main objective of monetary policy is:

a) Reduce number of bank branches

b) Increase government employees’ salaries

c) Increase bank profits

d) Control inflation and stabilize currency

20 / 44

20) A bank’s equity is defined as:

a) Deposits – Loans

b) Assets – Liabilities

c) Liabilities – Assets

d) Assets + Liabilities

21 / 44

21) The modern banking landscape has been significantly shaped by:

a) The decline in global trade

b) The discovery of a new continent

c) The rise of FinTech and digital banking

d) The invention of the printing press

22 / 44

22) Which of the following best describes “interest rate risk” for banks?

a) The risk that stock prices may fall

b) The risk of fraud by employees

c) The risk of customer defaults

d) The risk that changing interest rates may affect bank income or value

23 / 44

23) The Cash Reserve Ratio (CRR) is the proportion of:

a) Cash reserves kept in vaults

b) Bank profits kept aside for dividends

c) Government bonds held by a bank

d) Bank deposits that must be held with the central bank

24 / 44

24) What is the function of the interbank lending market?

a) To allow consumers to borrow directly from banks

b) To allow governments to borrow from banks

c) To allow businesses to issue equity

d) To allow banks to borrow from each other for short-term liquidity needs

25 / 44

25) What is a Non-Performing Asset (NPA)?

a) A government bond held by a bank

b) A physical branch office

c) An asset that generates income

d) A loan where the borrower has stopped making payments

26 / 44

26) What does "fractional reserve banking" mean?

a) Banks only lend to a fraction of their customers

b) Banks must lend all their deposits

c) Banks must hold a fraction of deposits in reserve and can lend out the rest

d) Banks only accept a fraction of deposits

27 / 44

27) What does CAMELS rating system evaluate?

a) Customer service levels

b) Employee satisfaction

c) Banks’ performance on Capital, Asset quality, Management, Earnings, Liquidity, Sensitivity

d) Animal research projects

28 / 44

28) Which of the following is an example of monetary policy tool?

a) Cash Reserve Ratio

b) All of the above

c) Open Market Operations

d) Repo Rate

29 / 44

29) What is the purpose of “Know Your Customer” (KYC) in banks?

a) To measure bank profitability

b) To promote sales

c) To identify and verify customer identity

d) To reduce employee turnover

30 / 44

30) What is the function of a bank’s risk management department?

a) Handle advertising

b) Manage and mitigate financial risks

c) Provide customer service

d) Handle recruitment

31 / 44

31) SLR (Statutory Liquidity Ratio) requires banks to maintain:

a) Loans as security

b) All profits in a separate account

c) Minimum reserves in the form of gold, cash, or approved securities

d) Cash with the central bank

32 / 44

32) Which type of risk arises when a borrower fails to meet obligations?

a) Operational Risk

b) Market Risk

c) Liquidity Risk

d) Credit Risk

33 / 44

33) What does “securitization” in banking mean?

a) Securing bank lockers

b) Issuing credit cards

c) Converting illiquid assets into marketable securities

d) providing insurance

34 / 44

34) Which is NOT a function of banks?

a) Providing loans

b) Conducting elections

c) Issuing credit cards

d) Accepting deposits

35 / 44

35) Which of the following is a type of credit risk for a bank?

a) A physical disaster at the bank's headquarters

b) A decline in a stock's price

c) A borrower failing to repay their loan

d) A sudden increase in interest rates

36 / 44

36) A bank's assets are primarily composed of:c

a) Customer deposits

b) Shareholder equity

c) Employee salaries

d) Loans made to businesses and individuals

37 / 44

37) Which of the following is a direct instrument of monetary policy?

a) Cash Reserve Ratio

b) Repo Rate

c) All of the above

d) Open Market Operations

38 / 44

38) Which ratio measures bank profitability?

a) Return on Assets (ROA)

b) Debt-to-Equity Ratio

c) Statutory Liquidity Ratio

d) Liquidity Ratio

39 / 44

39) A “repo rate” is the rate at which:

a) Banks lend to each other

b) Banks borrow money from RBI against securities

c) Customers borrow from banks

d) RBI borrows money from commercial banks

40 / 44

40) What is the core function of a commercial bank?

a) Regulating financial markets

b) Managing government debt

c) Issuing corporate bonds

d) Accepting deposits and providing loans

41 / 44

41) In banking, “NIM” stands for:

a) National Investment Market

b) Non-Interest Method

c) Nominal Internal Money

d) Net Interest Margin

42 / 44

42) The ratio that measures a bank’s ability to meet short-term obligations is:

a) Return on Equity

b) Debt-to-Equity Ratio

c) Current Ratio

d) Liquidity Coverage Ratio (LCR)

43 / 44

43) What is the role of a bank's treasury department?

a) To provide investment advice to clients

b) To handle customer complaints

c) To manage human resources

d) To manage the bank's own liquidity and funding

44 / 44

44) Which financial ratio is commonly used to assess a bank’s profitability?

a) Inventory Turnover

b) Debt-to-Equity Ratio

c) Current Ratio

d) Return on Assets (ROA)

Your score is

The average score is 0%

Exit

Important Notice:
Once you start the quiz, you will not be able to pause, exit, or restart it. Please ensure you are ready before beginning.

Portfolio Management D3

1 / 42

1) A stock option is a type of:

a) Treasury Bill

b) Debt Instrument

c) Preference Share

d) Derivative

2 / 42

2) ETFs are traded on:

a) Primary Market

b) Stock Exchanges

c) RBI

d) Mutual Fund Offices

3 / 42

3) Preference Shares carry:

a) No financial benefits

b) Voting rights only

c) Ownership only

d) Fixed dividends and preferential rights

4 / 42

4) Which of the following is an exchange-traded product?

a) Equity Shares

b) Exchange Traded Funds (ETFs)

c) Warrants

d) Debentures

5 / 42

5) Bonds issued by the Government of India are known as:

a) Corporate Bonds

b) Preference Shares

c) Treasury Bills

d) G-Secs

6 / 42

6) What is the maximum maturity period of a Commercial Paper?

a) 364 days

b) 90 days

c) 180 days

d) 730 days

7 / 42

7) Which among the following is NOT a capital market instrument?

a) Equity Shares

b) Commercial Papers

c) Bonds

d) Debentures

8 / 42

8) A financial contract whose value depends on an underlying asset is called:

a) Preference Share

b) Debt

c) Equity

d) Derivative

9 / 42

9) Which of the following instruments has the highest risk?

a) Debentures

b) Preference Shares

c) Government Bonds

d) Equity Shares

10 / 42

10) Gilt-edged securities are:

a) Government Securities

b) Preference Shares

c) Corporate Bonds

d) Equity Shares

11 / 42

11) Which of the following is not issued in the primary market?

a) FPO

b) Secondary Trading

c) Rights Issue

d) IPO

12 / 42

12) Mutual Funds are an example of:

a) Derivatives

b) Collective Investment Scheme

c) Treasury Securities

d) Corporate Bonds

13 / 42

13) Which of the following is an example of a hybrid instrument?

a) government Bond

b) Treasury Bill

c) Convertible Debenture

d) Equity Share

14 / 42

14) Which of the following is a short-term debt instrument issued by corporations?

a) Bonds

b) Debentures

c) Equity Shares

d) Commercial Papers

15 / 42

15) Which market deals with instruments of maturity less than 1 year?

a) Derivatives Market

b) Capital Market

c) Money Market

d) Equity Market

16 / 42

16) The risk of default is lowest in

a) Corporate Bonds

b) Debentures

c) Preference Shares

d) Treasury Bills

17 / 42

17) The return on bonds is generally in the form of:

a) Dividend

b) Profit Share

c) Coupon Interest

d) Commission

18 / 42

18) Which is a regulated investment vehicle pooling investor money?

a) Treasury Bill

b) Warrant

c) Mutual Fund

d) Debenture

19 / 42

19) Which instrument provides both debt and equity features to investors?

a) Commercial Paper

b) Debenture

c) Preference Share

d) Convertible Debenture

20 / 42

20) Which capital market instrument gives fixed dividends and priority in repayment during liquidation?

a) Preference Shares

b) Warrants

c) Equity Shares

d) Bonds

21 / 42

21) Which of the following instruments are traded in the money market?

a) quity Shares

b) Warrants

c) Debentures

d) Treasury Bills

22 / 42

22) Derivatives include:

a) Preference and Equity Shares

b) Futures and Options

c) Warrants and ETFs

d) Bonds and Debentures

23 / 42

23) IPO refers to:

a) Initial Public Offering

b) International Price Offering

c) Internal Public Offering

d) Initial Price Offering

24 / 42

24) The minimum maturity period of a Commercial Paper in India is:

a) 0 days

b) 7 days

c) 14 days

d) 30 days

25 / 42

25) What is the tenure of Treasury Bills issued in India?

a) 30 and 60 days

b) 91, 182, and 364 days

c) 90 and 270 days

d) 180 and 360 days

26 / 42

26) Which is the safest capital market instrument?

a) Government Securities

b) Equity Shares

c) Preference Shares

d) Commercial Papers

27 / 42

27) Which instrument provides ownership and residual claim on profits?

a) Debenture

b) Preference Share

c) Equity Share

d) Treasury Bill

28 / 42

28) Which instrument provides dividend at a fixed rate irrespective of profit?

a) Equity Shares

b) Warrants

c) Futures

d) Preference Shares

29 / 42

29) Which of the following is a derivative instrument?

a) Equity Shares

b) Debentures

c) Preference Shares

d) Futures

30 / 42

30) Which is a negotiable money market instrument issued by banks?

a) Commercial Paper

b) Treasury Bill

c) Equity Share

d) Certificate of Deposit

31 / 42

31) Which instrument provides fixed income to investors?

a) Warrants

b) Bonds

c) Equity Shares

d) Derivatives

32 / 42

32) Which instrument allows hedging against price risk?

a) Futures

b) Equity Shares

c) Bonds

d) Preference Shares

33 / 42

33) Which of the following is an example of a hybrid instrument?

a) Government Bond

b) Commercial Paper

c) Treasury Bill

d) Convertible Debenture

34 / 42

34) Debentures are usually considered as:

a) Hybrid Capital

b) Debt Capital

c) Derivatives

d) Equity Capital

35 / 42

35) Commercial Papers are issued in denominations of:

a) 5 Lakh and multiples

b) 1 Lakh and multiples

c) 50,000 and multiples

d) 10 Lakh and multiples

36 / 42

36) Which of the following is NOT a money market instrument?

a) Treasury Bills

b) Commercial Papers

c) Equity Shares

d) Certificates of Deposit

37 / 42

37) Convertible Debentures are those which can be:

a) Converted into Warrants

b) Converted into Equity Shares

c) Converted into Preference Shares

d) Converted into Bonds

38 / 42

38) Which instrument is issued by banks to raise short-term funds?

a) Certificates of Deposit

b) Mutual Funds

c) Equity Shares

d) Treasury Bills

39 / 42

39) Which instrument gives its holder the right to buy shares at a later date at a pre-determined price?

a) Bonds

b) Warrants

c) Debentures

d) Preference Shares

40 / 42

40) The maximum maturity period of Treasury Bills in India is:

a) 730 days

b) 364 days

c) 90 days

d) 182 days

41 / 42

41) Equity shareholders are also known as:

a) Owners

b) Debt Holders

c) Creditors

d) Preference Holders

42 / 42

42) Which of the following is issued at a discount and redeemed at par?

a) Preference Shares

b) treasury Bills

c) Debentures

d) Equity Shares

Your score is

The average score is 0%

Exit

Important Notice:
Once you start the quiz, you will not be able to pause, exit, or restart it. Please ensure you are ready before beginning.

Portfolio Management D4

1 / 45

1) A financial goal with a short-term horizon (1-3 years) should typically be invested in:

a) Long-term bonds

b) High-growth stocks

c) Low-risk, highly liquid assets like savings accounts or money market funds

d) Cryptocurrencies

2 / 45

2) A "speculative portfolio" is characterized by:

a) High-risk investments with the hope of substantial returns

b) A portfolio with no risk

c) Low-risk, high-return investments

d) A portfolio that only invests in bonds

3 / 45

3) The "efficient frontier" in portfolio management is a concept that shows:

a) A portfolio that has no risk

b) A portfolio with no returns

c) The worst possible returns for a given level of risk

d) The best possible returns for a given level of risk

4 / 45

4) What does "compounding" in investments mean?

a) Only investing in bonds

b) Trading stocks daily

c) The process of earning returns on both the initial investment and on the returns reinvested

d) Losing money over time

5 / 45

5) What does "rebalancing" a portfolio mean?

a) Selling all investments

b) Withdrawing money from all accounts

c) Buying only stocks

d) Adjusting the mix of assets back to target allocation after market movements

6 / 45

6) What does "asset allocation" mean in portfolio management?

a) Putting all money into a savings account

b) The process of dividing investments among different asset categories like stocks, bonds, and cash

c) Choosing a single company to invest in

d) Buying only one type of investment

7 / 45

7) Why is inflation a concern for investors?

a) It has no effect on investment returns

b) It makes their money more valuable

c) It erodes the purchasing power of their returns

d) It makes investments less risky

8 / 45

8) The "compound interest" effect is crucial for long-term portfolio growth because:

a) It guarantees losses

b) . It reduces the value of investments

c) It eliminates all investment risk

d) Returns generate additional returns over time, accelerating growth

9 / 45

9) What is the definition of "inflation" in the context of portfolio management?

a) The number of shares a company has

b) The rate at which the general level of prices for goods and services is rising, and purchasing power is falling

c) The amount of a company’s debt

d) The return on an investment

10 / 45

10) How often should investors typically review their portfolio for rebalancing?

a) Never

b) Once every few years or as needed

c) Every hour

d) Every day

11 / 45

11) What is "unsystematic risk"?

a) Risk specific to an individual company or industry

b) Risk with no effect on returns

c) Risk that cannot be managed

d) Risk that affects the entire market

12 / 45

12) What is a common example of a "financial goal"?

a) To save for a down payment on a house

b) To go to the movies

c) To buy a new shirt

d) To buy a new car

13 / 45

13) Diversification primarily helps reduce which type of risk?

a) No risk

b) Both systematic and unsystematic risk

c) Systematic risk

d) Unsystematic risk

14 / 45

14) Why do younger investors often invest more heavily in stocks?

a) They dislike bonds

b) They want guaranteed returns

c) They have a longer time horizon to recover from market downturns

d) They cannot invest in bonds

15 / 45

15) Why is compounding powerful for long-term investors?

a) It eliminates risk

b) It magnifies growth over time as returns generate additional returns

c) It reduces taxes

d) It guarantees profits

16 / 45

16) What is a "spoke-and-hub" portfolio?

a) A portfolio with a core of passive investments (hub) and active investments around it (spokes)

b) A portfolio that has a single investment at its center

c) A portfolio with no core investments

d) A portfolio with a core of active investments and passive investments around it

17 / 45

17) Which of the following is an example of systematic risk?

a) A factory fire in one company

b) A company CEO resigning

c) Inflation

d) Poor management in a firm

18 / 45

18) What is "systematic risk"?

a) Risk with no impact on investments

b) Risk specific to one company

c) Risk that affects the entire market or economy

d) Risk that can be eliminated through diversification

19 / 45

19) An "aggressive portfolio" is designed for investors who:

a) Only want to invest in bonds

b) Have a low tolerance for risk

c) Are seeking high returns and are willing to take on significant risk

d) Are nearing retirement

20 / 45

20) An investor with a long-term time horizon (e.g., 20+ years) can typically afford to take on:

a) Low risk

b) No risk

c) High risk

d) Moderate risk

21 / 45

21) Which of the following is an example of unsystematic risk?

a) Recession

b) Interest rate hikes

c) Political instability

d) A company losing a lawsuit

22 / 45

22) What is the main advantage of having international investments in a portfolio?

a) They reduce the need to invest domestically

b) They are always risk-free

c) They provide diversification across different economies

d) They guarantee higher returns

23 / 45

23) What is a financial portfolio?

a) A collection of a person’s investments

b) A report on a company’s performance

c) A list of a person’s monthly expenses

d) A personal budget

24 / 45

24) A "conservative portfolio" is characterized by:

a) Investments in a company’s debt

b) Investments focused on capital preservation and stability

c) High-risk investments aiming for high returns

d) Investments in a single, high-growth stock

25 / 45

25) What is a "balanced portfolio"?

a) A portfolio with only bonds

b) A portfolio with only stocks

c) A portfolio that is never changed

d) A portfolio that combines stocks, bonds, and other assets to balance risk and return

26 / 45

26) What is the main risk of holding a portfolio with only one stock?

a) it has a low return

b) It is too complicated

c) It has a high concentration of risk

d) It is too diversified

27 / 45

27) Why is it important to consider the "cost" of an investment?

a) It has no effect on returns

b) Higher costs always lead to higher returns

c) Costs are only important for short-term investments

d) High costs can significantly reduce net returns over time

28 / 45

28) Which type of investor would most likely prefer a conservative portfolio?

a) A student starting college

b) A 70-year-old relying on investments for living expenses

c) A young professional with a high income

d) A 25-year-old saving for retirement

29 / 45

29) What does "active management" in a portfolio mean?

a) A strategy where a manager only invests in passive fund

b) A portfolio that is never changed

c) A strategy of buying and holding investments for the long term

d) A strategy where a manager makes frequent decisions to try and outperform the market

30 / 45

30) What is an "index fund"?

a) A fund that tracks the performance of a specific market index like the S&P 500

b) A fund that invests only in real estate

c) A fund that invests in one company

d) A savings plan

31 / 45

31) Why is asset allocation important?

a) It eliminates all risk

b) It guarantees profits

c) It allows investors to avoid taxes

d) It helps reduce risk and balance returns across a portfolio

32 / 45

32) What is "return on investment (ROI)"?

a) The total money spent on an investment

b) The interest rate on a loan

c) The taxes paid on investments

d) The profit or loss made on an investment relative to the amount invested

33 / 45

33) What does the term "liquidity risk" mean in portfolio management?

a) The risk of inflation

b) The risk of an asset's price falling

c) The risk that an asset cannot be converted to cash quickly without a significant loss in value

d) The risk of a company's debt

34 / 45

34) What is the main purpose of including bonds in a portfolio?

a) To maximize returns

b) To reduce overall portfolio risk and provide income

c) To bet on high-growth companies

d) To invest in a single company

35 / 45

35) Why are index funds often recommended for beginners?

a) They only invest in government bonds

b) They require no money to start

c) They provide broad market exposure at a low cost

d) They guarantee profits

36 / 45

36) What does "diversification" in a portfolio mean?

a) Buying and selling assets frequently

b) Putting all money in a savings account

c) Investing in only one company

d) Holding many different types of assets

37 / 45

37) Which of the following is a key factor in determining a person’s portfolio allocation?

a) Their favorite color

b) Their risk tolerance and investment timeline

c) Their preferred mode of transportation

d) Their height

38 / 45

38) What does "liquidity" mean in investing?

a) The number of shares a company has

b) The ability to turn an asset into cash quickly without significant loss in value

c) The risk of inflation

d) The return on a stock

39 / 45

39) What is the primary role of a robo-advisor in portfolio management?

a) To use algorithms to build and manage a portfolio automatically based on an investor's goals

b) To provide human-to-human advice

c) To give legal advice

d) To only invest in a single stock

40 / 45

40) Which of the following investments is generally considered the most liquid?

a) Stocks of large companies

b) Private equity

c) Fine art

d) Real estate

41 / 45

41) What is a "mutual fund"?

a) A pooled investment vehicle managed by professionals

b) An individual stock

c) A savings account

d) A type of loan

42 / 45

42) What is the main goal of "passive management"?

a) To trade frequently

b) To lose money

c) To match the performance of a market index

d) To beat the market

43 / 45

43) Which of the following is a key financial goal a portfolio is designed to help achieve?

a) Paying for a haircut

b) Buying new clothes

c) Saving for retirement

d) Buying groceries

44 / 45

44) What is the primary purpose of creating an investment portfolio?

a) To earn a guaranteed return

b) To spread risk across different assets

c) To keep all assets in one place

d) To invest only in one type of stock

45 / 45

45) Which is a common example of an investment for a balanced portfolio?

a) Only real estate

b) Only gold

c) A mix of stocks and bonds

d) Only cryptocurrency

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Portfolio Management D5

1 / 45

1) What is the primary purpose of a "liability" insurance policy?

a) To cover legal and financial responsibility for damage or injury to others

b) To cover damage to your own property

c) To pay for your life insurance

d) To pay for your healthcare

2 / 45

2) What does the "cash value" component of a whole life insurance policy represent?

a) The amount of the death benefit

b) The amount of debt

c) The total amount of premiums paid

d) A savings component that accumulates over time and can be borrowed against

3 / 45

3) What does a "co-payment" or "co-pay" refer to in health insurance?

a) A fixed amount paid by the insured for a covered service

b) The annual premium

c) The total deductible

d) The full cost of the medical service

4 / 45

4) Which of the following is a reason a person might buy life insurance?

a) To pay for their car

b) To pay for groceries

c) To pay for their vacation

d) To provide for their dependents in the event of their death

5 / 45

5) What is a key benefit of using insurance riders?

a) They guarantee a higher death benefit

b) They allow a policyholder to customize coverage to their specific needs

c) They guarantee a higher death benefit

d) They lower the premium

6 / 45

6) What is a "variable life insurance" policy?

a) A policy that only has a death benefit

b) A policy with a fixed premium

c) A policy that only covers a specific period

d) A whole life policy with a cash value invested in a portfolio of securities

7 / 45

7) What is the core principle of insurance?

a) To eliminate all financial risk

b) To guarantee a return on an investment

c) The transfer of risk from an individual to a larger group

d) To make a large profit for the insurance company

8 / 45

8) Which type of insurance is designed to protect a homeowner against damage to their property?

a) Homeowners or property insurance

b) Health insurance

c) Disability insurance

d) Auto insurance

9 / 45

9) What is a "health insurance" policy's primary purpose?

a) To cover medical and surgical expenses

b) To cover car accidents

c) To cover a person's life

d) To cover a person's income

10 / 45

10) What does "risk pooling" in insurance mean?

a) The insurance company's total assets

b) A group of people sharing a similar risk

c) A single person takes on all the risk

d) A type of investment

11 / 45

11) What is an "exclusion" in an insurance policy?

a) The deductible

b) An event that is covered by the policy

c) The premium payment

d) An event or type of loss that is not covered

12 / 45

12) What does "whole life insurance" offer in addition to a death benefit?

a) A guaranteed annual return

b) A premium that decreases over time

c) A tax-free income

d) A cash value component that grows over time

13 / 45

13) What is the main purpose of "property insurance"?

a) To cover medical expenses

b) To protect against the financial loss of property due to events like fire or theft

c) To protect against the financial loss of a car

d) To provide a death benefit

14 / 45

14) What is a "universal life insurance" policy?

a) A type of whole life with flexible premiums and a death benefit that can be adjusted

b) A type of car insurance

c) A type of health insurance

d) A type of term life insurance

15 / 45

15) What is the purpose of disability insurance?

a) To provide income if the insured is unable to work due to a disability

b) To pay for a car

c) To pay for a vacation

d) To cover healthcare expenses

16 / 45

16) What does the term "underwriting" mean in insurance?

a) The process of paying a claim

b) The process of evaluating an applicant's risk to determine if they should be insured

c) The process of selling a policy

d) The process of writing the policy

17 / 45

17) The "insurable interest" concept in insurance means:

a) The policyholder must own the property they are insuring

b) The policyholder must suffer a financial loss if the insured event occurs

c) the policyholder must pay the premium

d) The insurance company must have a profit motive

18 / 45

18) What is a "collateral" in a policy loan against a life insurance policy?

a) The loan amount

b) The cash value of the policy

c) The death benefit

d) The annual premium

19 / 45

19) Which of the following is a key benefit of having insurance?

a) It increases a person's income

b) It provides financial protection against unexpected events

c) It eliminates all financial losses

d) It guarantees a high return on investment

20 / 45

20) What is "long-term care insurance" designed to cover?

a) Expenses for a car accident

b) Expenses for ongoing medical and personal care

c) Expenses for a long vacation

d) Expenses for a life insurance policy

21 / 45

21) What is the purpose of an "annuity" in financial planning?

a) A lump-sum payment

b) A type of life insurance

c) A series of payments made at regular intervals for a specified period or for life

d) A type of car insurance

22 / 45

22) Which of the following is an example of an "uninsurable risk"?

a) A loss from a predictable business downturn

b) A fire at a home

c) A car accident

d) An illness

23 / 45

23) What is a "policy" in insurance?

a) The legal document detailing the terms and conditions of the insurance contract

b) The name of the insurance company

c) The formal request by a policyholder to an insurance company for coverage or compensation

d) The person who is covered

24 / 45

24) Which of the following is a key factor that determines a life insurance premium?

a) The insured person's hair color

b) The insured person's age, health, and lifestyle

c) The insured person's favorite color

d) The insured person's job

25 / 45

25) A "face amount" in a life insurance policy refers to:

a) The death benefit amount

b) The cash value

c) The annual premium

d) The age of the insured

26 / 45

26) A "term" in a life insurance policy refers to:

a) The total amount of the death benefit

b) The type of policy

c) . The length of time the policy is in effect

d) The number of premiums paid

27 / 45

27) What is the main purpose of life insurance?

a) To pay for the insured person's living expenses

b) To provide healthcare

c) To pay for a car accident

d) To provide a lump-sum payment to beneficiaries after the insured person's death

28 / 45

28) What is the main difference between Term Life Insurance and Whole Life Insurance?

a) Term life is for individuals, while whole life is for businesses

b) Term life covers a specific period, while whole life provides lifelong coverage and a cash value component

c) Term life is more expensive than whole life

d) Term life has a cash value, while whole life does not

29 / 45

29) What is a key benefit of annuities for retirement planning?

a) They are a type of life insurance

b) They have no risk

c) They provide a guaranteed income stream, protecting against the risk of outliving one's savings

d) They provide a lump-sum payment

30 / 45

30) What is a "rider" in an insurance policy?

a) The insurance company's legal name

b) The person who rides a horse

c) A type of insurance policy

d) A provision added to a policy to modify or enhance its coverage

31 / 45

31) What is a "claim" in insurance?

a) The formal request by a policyholder to an insurance company for coverage or compensation

b) The policyholder's application for a premium

c) The insurance company's legal name

d) The policy's expiration date

32 / 45

32) What is the purpose of "reinsurance"?

a) To make it more difficult to get insurance

b) To get insurance on a smaller scale

c) Insurance purchased by insurance companies to protect themselves from large losses

d) A type of health insurance

33 / 45

33) What is the main reason a person might prefer Term Life Insurance?

a) It provides lifelong coverage

b) It has a cash value component

c) It is generally less expensive than whole life and serves a specific time-bound need

d) It has a guaranteed return

34 / 45

34) Which of the following is a type of liability insurance?

a) Car insurance (liability portion)

b) Homeowners insurance

c) Disability insurance

d) Life insurance

35 / 45

35) Which type of insurance would cover damages to your car in a car accident?

a) Health insurance

b) Life insurance

c) Homeowners insurance

d) Auto insurance

36 / 45

36) What is an insurance premium?

a) The money the policyholder pays for coverage

b) A bonus payment

c) The amount of money the insurance company pays you

d) The total amount of coverage

37 / 45

37) What is a "beneficiary" in a life insurance policy?

a) The insurance agent

b) The person who receives the death benefit

c) The person who owns the policy

d) The person who pays the premiums

38 / 45

38) The main difference between a stock insurance company and a mutual insurance company is:

a) Stock companies are for individuals, mutual companies are for businesses

b) Stock companies are regulated, mutual companies are not

c) Stock companies are owned by shareholders, mutual companies are owned by policyholders

d) Stock companies are more profitable than mutual companies

39 / 45

39) The principle of "indemnity" in property insurance means:

a) The insurer can profit from a loss

b) The insured must pay a premium

c) The insured cannot profit from a loss

d) The insurer will pay for a loss

40 / 45

40) A "conversion privilege" in a term life insurance policy allows the policyholder to:

a) Convert the policy to a whole life policy without a new medical exam

b) Get a cash value loan

c) Change the premium

d) Change the beneficiary

41 / 45

41) What does "Medigap" insurance cover?

a) Expenses for a long-term care facility

b) The "gaps" in coverage left by a private health insurance plan

c) The full cost of a person's health insurance

d) The "gaps" in coverage left by Original Medicare

42 / 45

42) A "non-forfeiture clause" in a life insurance policy protects the policyholder from:

a) Losing their cash value

b) Having their premium increase

c) Losing all benefits if they stop paying premiums after a certain period

d) Having their policy cancelled

43 / 45

43) What is a "subrogation" clause in an insurance policy?

a) A clause that allows the insured to make a claim

b) A clause that limits the amount of a claim

c) A clause that prevents a person from filing a claim

d) A clause that allows the insurer to recover payment from a third party who caused a loss

44 / 45

44) A "waiver of premium" rider on a life insurance policy means:

a) The premiums are waived if the policyholder becomes disabled and can no longer work

b) The premium is paid by the insurance company

c) The policyholder never has to pay a premium

d) The premium can be paid monthly

45 / 45

45) What is a "deductible" in an insurance policy?

a) The amount the insurer pays

b) The total amount of the premium

c) The insurance company's profit

d) The amount the policyholder must pay out-of-pocket before the insurer starts to pay

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Portfolio Management D6

1 / 45

1) What does "data lineage" track?

a) The journey of data from its origin to its current state

b) The number of people who have used the data

c) The size of the data

d) The age of the data

2 / 45

2) What is the purpose of "outlier detection" in financial data cleaning?

a) To find the highest value

b) To find the average value

c) To identify and handle unusual data points that could skew analysis

d) To find the lowest value

3 / 45

3) what is the main purpose of the "Cleaning" stage in data analysis?

a) To remove or correct inaccurate, incomplete, or irrelevant data

b) To create a visual representation of data

c) To extract data from a source

d) To make data look pretty

4 / 45

4) What is the primary purpose of "data scrubbing"?

a) To load data

b) To extract data

c) To copy data

d) To clean and correct data

5 / 45

5) A "correlation matrix" is a visualization tool that helps to show:

a) The number of data points

b) The trend of a single variable

c) The relationship between different financial variables

d) The total sum of all data

6 / 45

6) What is the purpose of "data warehousing"?

a) A tool for cleaning data

b) A physical location for data

c) A tool for visualizing data

d) A system for storing and managing large amounts of data for reporting and analysis

7 / 45

7) Which of the following is an example of an "insight" you might gain from financial data analysis?

a) A company's revenue is growing at a faster rate than its expenses

b) The number of people who own a specific car

c) The color of a company's logo

d) The average temperature of a city

8 / 45

8) Which is a common example of a "data quality" problem?

a) A company's total assets

b) The data has missing values or duplicate entries

c) The data is in a single format

d) The data is from a reliable source

9 / 45

9) The primary goal of financial data analysis is to:

a) Find and highlight patterns and insights that can inform decisions

b) Get a specific answer

c) Create a complicated report

d) Make a guess

10 / 45

10) What is the purpose of "data modeling" in financial analysis?

a) To only look at one variable

b) To create a simplified representation of a dataset to identify relationships and patterns

c) To create a physical model of a company

d) To make data more complicated

11 / 45

11) Which of the following would be considered an unstructured financial data source?

a) A list of company assets

b) A company's quarterly earnings call transcript

c) A list of stock prices in a table

d) A detailed company balance sheet

12 / 45

12) Which type of analysis would you use to predict a company's future revenue based on past performance?

a) Diagnostic analysis

b) Predictive analysis

c) Descriptive analysis

d) Prescriptive analysis

13 / 45

13) What is a key step in preparing financial data for visualization?

a) Adding more data

b) Deleting half of the data

c) Structuring the data in a logical and coherent way

d) Turning it into a physical copy

14 / 45

14) What is the first step in the financial data analysis process?

a) Extraction of data

b) Cleaning data

c) Visualizing data

d) Analyzing data

15 / 45

15) What does "Transformation" in ETL refer to?

a) The process of hiding data

b) The process of deleting data

c) The process of converting or restructuring data into a suitable format for analysis

d) The process of copying data

16 / 45

16) What is the main benefit of using a tool like Python or R for financial data analysis?

a) They provide powerful libraries for statistical analysis and data manipulation

b) They are only used for visualization

c) They can only be used on a single computer

d) They are very simple to use

17 / 45

17) What is a common financial metric used in analysis?

a) The number of trees

b) The number of buildings

c) The number of cars

d) Return on Equity (ROE) or Earnings Per Share (EPS)

18 / 45

18) What is the purpose of a "trend line" on a chart?

a) To show every data point

b) To show the exact value of a data point

c) To hide data

d) To show the general direction of a series of data points over time

19 / 45

19) What does "Normalization" of financial data involve?

a) Making data look normal

b) Scaling different data points to a common range to make them comparable

c) Converting data to a different currency

d) Making all data the same size

20 / 45

20) What does the "E" in ETL stand for?

a) Evaluation

b) Execution

c) Encryption

d) Extraction

21 / 45

21) Which of the following is a form of financial data?

a) Weather patterns

b) Stock prices, bond yields, and company earnings reports

c) A list of all movies

d) Social media likes

22 / 45

22) What does "big data" refer to in the context of financial analysis?

a) Datasets that are too large and complex to be analyzed with traditional methods

b) A single large spreadsheet

c) A company's revenue

d) A company's total assets

23 / 45

23) What is the purpose of a "dashboard" in financial data analysis?

a) To present data in a complex and confusing way

b) To only show a single number

c) To give a comprehensive, at-a-glance view of key performance indicators (KPIs)

d) To replace all analysis

24 / 45

24) What does a "data integrity" check ensure?

a) The data is accurate and consistent

b) The data is on a public server

c) The data is easy to read

d) The data is in a small file

25 / 45

25) What is the purpose of a "data audit"?

a) To verify the accuracy and integrity of data

b) . To write a report

c) To create a visualization

d) To store data

26 / 45

26) What is the main goal of using a "pivot table" in Excel for financial data?

a) To delete all data

b) To create a simple list

c) To make a simple chart

d) To summarize, group, and analyze large datasets

27 / 45

27) What is the purpose of "ETL"?

a) To extract and transform data but not load it

b) To provide a structured process for moving data from one source to a destination for analysis

c) To only visualize data

d) To only clean data

28 / 45

28) Which financial visualization would be best for showing the proportion of different assets in a portfolio?

a) A pie chart

b) A histogram

c) A line chart

d) A scatter plot

29 / 45

29) What does the "L" in ETL stand for?

a) Listening

b) Loading

c) Licensing

d) Leveraging

30 / 45

30) Which of the following is a key reason for cleaning financial data?

a) To slow down the analysis process

b) To ensure the accuracy and reliability of the analysis

c) To increase the size of the dataset

d) To make the analysis more complicated

31 / 45

31) Which of the following is a key reason why data-driven decision-making is important in finance?

a) It relies on a person's gut feeling

b) It helps to reduce bias and improve the accuracy of forecasts

c) It is a slow process

d) It is only for large companies

32 / 45

32) A "waterfall chart" is most useful for visualizing:

a) The proportion of different assets

b) The cumulative effect of sequential positive and negative values on a starting value

c) The change in stock price over time

d) The market share of a company

33 / 45

33) What is the main purpose of "exploratory data analysis" (EDA)?

a) To delete all data

b) To prove a specific hypothesis

c) To create a final report

d) To discover patterns, anomalies, and relationships within a dataset

34 / 45

34) Which statistical technique would be used to find the relationship between two financial variables?

a) A simple count

b) A simple average

c) Regression analysis

d) A histogram

35 / 45

35) Which type of chart is most suitable for showing a company's revenue trend over time?

a) A pie chart

b) A line chart

c) A bar chart

d) A scatter plot

36 / 45

36) What is a common way to visualize financial data?

a) By drawing a picture of a house

b) By making a phone call

c) By creating a chart or a graph

d) By writing a long essay

37 / 45

37) Which of the following is a common tool for data extraction from financial sources?

a) A pen and paper

b) A calculator

c) A hammer

d) A web scraper or API

38 / 45

38) What is the main benefit of automating the ETL process?

a) It makes the data more complicated

b) It makes the process slower

c) it reduces manual effort and minimizes the risk of human error

d) It makes the data less accurate

39 / 45

39) What does "time-series analysis" of financial data involve?

a) Analyzing data that is not related to time

b) Analyzing data that is in a book

c) Analyzing data that changes over time, like stock prices or revenue

d) Analyzing data at a single point in time

40 / 45

40) Which of the following is an example of a "dirty data" problem?

a) the data has a typo in a company name

b) The data is up to date

c) The data is from a reliable source

d) Data is in a spreadsheet

41 / 45

41) A "dashboard" would typically include:

a) A single large table of data

b) A long essay

c) A list of all employees

d) A collection of charts and graphs showing key metrics

42 / 45

42) What is a common pitfall in financial data analysis?

a) . Having too much data

b) Using an unreliable data source

c) Using a good software tool

d) Having clean data

43 / 45

43) What is a common challenge in analyzing financial data?

a) The data is too simple

b) The data is too small

c) The data is in a single format

d) The data is often unstructured and comes from multiple sources

44 / 45

44) Which of the following is a key reason for using SQL in financial data analysis?

a) To create a website

b) To store and retrieve data from a database

c) To create charts

d) To write a report

45 / 45

45) Which of the following is a common financial data source?

a) A public library

b) A social media platform

c) A movie review website

d) SEC filings (10-K, 10-Q) and company websites

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Portfolio Management D7

1 / 45

1) A "golden cross" in Technical Analysis indicates:A "golden cross" in Technical Analysis indicates:

a) A correction

b) A bearish market trend

c) A bullish market trend

d) A stable trend

2 / 45

2) Which ratio is used to measure valuation relative to sales?

a) Dividend Yield

b) Price-to-Sales Ratio

c) P/E Ratio

d) Price-to-Book Ratio

3 / 45

3) What is a "resistance level" in Technical Analysis?

a) The lowest price a stock has ever been

b) A price level where a stock is expected to continue rising

c) The average price of a stock

d) A price level where a stock's rally is expected to pause or reverse

4 / 45

4) Which of the following is a tool used by Technical Analysts?

a) A company's management analysis

b) A Discounted Cash Flow (DCF) model

c) Trend lines and chart patterns

d) A company's cash flow statement

5 / 45

5) What is the purpose of a stop-loss order in trading?

a) To buy at a lower price

b) To lock in dividends

c) To minimize losses by selling at a predefined price

d) To maximize profits

6 / 45

6) Which type of analysis would use GDP growth data?

a) Chart Analysis

b) Fundamental Analysis

c) technical Analysis

d) Sentiment Analysis

7 / 45

7) In Technical Analysis, what does a "head and shoulders" pattern suggest?

a) Stability in price

b) Continuation of a bullish trend

c) Increase in dividends

d) Potential trend reversal

8 / 45

8) What is the core principle of Fundamental Analysis?

a) Valuing a security by examining underlying economic and financial factors

b) Analyzing historical stock price charts

c) Relying on gut feeling

d) Using artificial intelligence to predict future prices

9 / 45

9) Which Technical Analysis indicator measures momentum?

a) Bollinger Bands

b) Moving Average

c) MACD

d) RSI

10 / 45

10) Which valuation method involves discounting future cash flows?

a) Price-to-Book Ratio

b) Discounted Cash Flow (DCF)

c) Dividend Yield

d) Price-to-Earnings Ratio

11 / 45

11) What does "beta" measure in Fundamental Analysis?

a) A stock's trading volume

b) A stock's volatility relative to the overall market

c) A stock's price-to-earnings ratio

d) A stock's dividend yield

12 / 45

12) What does "intrinsic value" refer to in Fundamental Analysis?

a) The lowest price a stock has ever been

b) The historical average price

c) The current market price of a stock

d) The perceived true value of a security based on an analyst's valuation

13 / 45

13) What is a candlestick chart primarily used for?

a) Showing company revenue

b) Showing GDP growth

c) Displaying price movements

d) Showing dividend history

14 / 45

14) What does Bollinger Bands measure?

a) Market capitalization

b) Company debt

c) Dividend growth

d) Volatility of a stock

15 / 45

15) In Fundamental Analysis, what does EPS stand for?

a) equity Price Share

b) Estimated Profit Statement

c) Earnings Per Share

d) Effective Portfolio Strategy

16 / 45

16) What does a company’s Current Ratio measure?

a) Liquidity

b) Profitability

c) Leverage

d) Valuation

17 / 45

17) Which of the following is a key tool for a Fundamental Analyst?

a) Evaluating a company's management

b) Relying on analyst ratings

c) Examining a company's financial statements

d) Forecasting future price movements based on historical price and volume data

18 / 45

18) What is a "support level" in Technical Analysis?

a) The average price of a stock

b) The highest price a stock has ever reached

c) A price level where a stock is expected to fall further

d) A price level where a stock's decline is expected to stop due to high demand

19 / 45

19) What is a "bullish" sentiment in Technical Analysis?

a) A belief that a stock's price will fall

b) A belief that the stock market will remain stable

c) A belief that a stock's price will rise

d) A belief that the market is irrational

20 / 45

20) What does a Relative Strength Index (RSI) above 70 generally indicate?

a) The stock is overbought

b) The stock is oversold

c) The stock has no trend

d) The stock is fairly valued

21 / 45

21) Which Technical Analysis tool identifies overbought and oversold conditions?

a) Bollinger Bands

b) Moving Averages

c) RSI

d) MACD

22 / 45

22) What is the main assumption of Fundamental Analysis?

a) That past performance is the only indicator of future performance

b) That stock prices fluctuate randomly

c) That the market price may not reflect a security's true value

d) That all information is already reflected in the price

23 / 45

23) Which of the following is a metric a Fundamental Analyst would use?

a) Relative Strength Index (RSI)

b) Price-to-Earnings (P/E) Ratio

c) Fibonacci retracements

d) Moving Average Convergence Divergence (MACD)

24 / 45

24) Which ratio is commonly used to assess a company’s profitability?

a) Price-to-Sales Ratio

b) Current Ratio

c) Return on Equity (ROE)

d) Debt-to-Equity Ratio

25 / 45

25) In Fundamental Analysis, which ratio indicates dividend payout?

a) MACD

b) Bollinger Bands

c) P/E Ratio

d) RSI

26 / 45

26) What does "bearish" sentiment in Technical Analysis mean?

a) A belief that a stock's price will fall

b) A belief that the market will be stable

c) A belief that a stock's price will rise

d) A belief that the company will perform well

27 / 45

27) Which valuation ratio is often used to compare companies in the same industry?

a) Price-to-Earnings (P/E) Ratio

b) Beta

c) RSI

d) Dividend Yield

28 / 45

28) Which indicator uses moving averages to identify trend direction?

a) Bollinger Bands

b) MACD

c) P/E Ratio

d) RSI

29 / 45

29) What does "alpha" measure in investing?

a) Risk-adjusted performance of a portfolio

b) Company’s total assets

c) Market capitalization

d) Liquidity of the company

30 / 45

30) Which ratio measures a company’s financial leverage?

a) EPS

b) Current Ratio

c) Debt-to-Equity Ratio

d) Dividend Yield

31 / 45

31) Which ratio indicates a company’s liquidity?

a) Current Ratio

b) Beta

c) Debt-to-Equity

d) P/E Ratio

32 / 45

32) What does MACD stand for?

a) Market Analysis Charting Data

b) Market Average Cross Data

c) Monetary Asset Comparison Data

d) Moving Average Convergence Divergence

33 / 45

33) Which valuation metric compares stock price with book value?

a) Price-to-Book

b) . Price-to-Sales

c) Dividend Yield

d) Price-to-Earnings

34 / 45

34) What does a high P/E ratio generally indicate?

a) The stock is undervalued

b) The stock is overvalued or expected to grow

c) The company has high debt

d) The company has low profits

35 / 45

35) What is a key limitation of Fundamental Analysis?

a) It only uses historical data

b) It cannot be used for long-term investing

c) It ignores a company's business model

d) It is highly dependent on the accuracy of financial statements

36 / 45

36) What does a "double top" pattern indicate?

a) A continuation of trend

b) A bullish reversal

c) A bearish reversal

d) A period of consolidation

37 / 45

37) A "death cross" is a technical indicator that suggests:

a) A period of stability

b) A potential long-term downturn in a stock's price

c) A new all-time high

d) A strong bullish trend

38 / 45

38) What is the main assumption of Technical Analysis?

a) That past price movements can predict future price movements

b) That a company's financial health is all that matters

c) That political events have no impact on stock prices

d) hat a company's financial health is all that matters

39 / 45

39) What does "dividend yield" indicate for a Fundamental Analyst?

a) The percentage of a company's earnings paid out as dividends

b) The company's debt level

c) The stock's price volatility

d) The historical price trend

40 / 45

40) What is the core principle of Technical Analysis?

a) Relying on analyst ratings

b) Forecasting future price movements based on historical price and volume data

c) Evaluating a company's management

d) Examining a company's financial statements

41 / 45

41) Which analysis focuses on economic, industry, and company factors?

a) Fundamental Analysis

b) Sentiment Analysis

c) Technical Analysis

d) Chart Analysis

42 / 45

42) A Technical Analyst would be most interested in which of the following?

a) A company's CEO

b) A stock's price chart and trading volume

c) A company's revenue growth

d) A country's GDP

43 / 45

43) What is a key limitation of Technical Analysis?

a) It is only for a specific industry

b) It is too reliant on a company's financial statements

c) It cannot be used for short-term trading

44 / 45

44) Which chart pattern is associated with a bullish reversal?

a) Double Bottom

b) Head and Shoulders

c) Rising Wedge

d) Double Top

45 / 45

45) Moving averages in Technical Analysis help identify:

a) Dividend policies

b) Cash flow

c) Company liabilities

d) . Market trends

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