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International Finance and Treasury MCQ Questions and Solutions with Explanations | Management

International Finance and Treasury MCQ Questions and answers with easy and logical explanations. Management provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. International FinanceMCQ is important for exams like MAT, CAT, CA, CS, CMA, CPA, CFA, UPSC, Banking and other Management department exam. Page-8 section-8

Each section contains 100 MCQs on International Finance and Treasury .
71
Trustee is a self-governing organization that operates as bondholders
Discuss
Answer & Solution
Answer: Option D
Solution:
Trustee is a self-governing organization that operates as bondholders representative. A trustee is a person or firm that holds or administers property or assets for the benefit of a third party.
72
In order to settle on compound growth rate of an investment over period, an investor determine the
Discuss
Answer & Solution
Answer: Option A
Solution:
In order to settle on compound growth rate of an investment over period, an investor determine the geometric mean. The geometric mean is the average of a set of products, the calculation of which is commonly used to determine the performance results of an investment or portfolio. It is technically defined as "the nth root product of n numbers."
73
Total portfolio hazard is
Discuss
Answer & Solution
Answer: Option A
Solution:
Total portfolio hazard is equal to systematic risk plus diversifiable risk. Portfolio risk is a chance that the combination of assets or units, within the investments that you own, fail to meet financial objectives. Each investment within a portfolio carries its own risk, with higher potential return typically meaning higher risk.
74
Non-systematic risk is furthermore identified as
Discuss
Answer & Solution
Answer: Option D
Solution:
Non-systematic risk is furthermore identified as company specific risk. A non-systematic risk is the one wherein the investor can prevaricate by selling short or just signing a futures.
75
Investors should be agreeing to invest in riskier investments merely
Discuss
Answer & Solution
Answer: Option C
Solution:
Investors should be agreeing to invest in riskier investments merely if expected return is adequate for risk level. High risk investments include equity investments, while moderate and low risk instruments include fixed income investment options like fixed deposits. One of the most important factors to consider while investing is your age. When it comes to investing, being young is an advantage.
76
Hold two securities as an alternative of will not decrease hazard occupied by an investor if two securities are
Discuss
Answer & Solution
Answer: Option A
Solution:
Hold two securities as an alternative of will not decrease hazard occupied by an investor if two securities are perfectively positive correlated.
77
Markowitz efficient hypothesis initiated in
Discuss
Answer & Solution
Answer: Option D
Solution:
Markowitz efficient hypothesis initiated in 1960. Harry Markowitz model (HM model), also known as Mean-Variance Model because it is based on the expected returns (mean) and the standard deviation (variance) of different portfolios, helps to make the most efficient selection by analyzing various portfolios of the given assets.
78
A closed-end fund is a mutual fund in which shares issue just when fund is
Discuss
Answer & Solution
Answer: Option A
Solution:
A closed-end fund is a mutual fund in which shares issue just when fund is organized. A closed-end fund (CEF) or closed-ended fund is a collective investment model based on issuing a fixed number of shares which are not redeemable from the fund.
79
Which type of market efficiency declares that current security prices totally reflect all information, equally public and private
Discuss
Answer & Solution
Answer: Option C
Solution:
Strong type of market efficiency declares that current security prices totally reflect all information, equally public and private. Strong form efficiency is the most stringent version of the efficient market hypothesis (EMH) investment theory, stating that all information in a market, whether public or private, is accounted for in a stock's price.
80
Asset allocation is procedure of scattering your assets between numerous different kinds of investments to
Discuss
Answer & Solution
Answer: Option C
Solution:
Asset allocation is procedure of scattering your assets between numerous different kinds of investments to lessen risk. Asset allocation is an investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance and investment horizon.