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Investment Management Practice Test
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Avg score: 14% Most missed: “Most investors are risk-averse which means____________.”

Investment management is the professional asset management of various securities, including shareholdings, bonds, and other assets, such as real estate, to meet specified investment goals for the benefit of investors. (Source: Wikipedia)

Investment Management Practice Test
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25 Questions

1. Investment bankers are compensated by___________.
2. An unmanaged fixed income security portfolio handled by an independent trustee is known as a______________.
3. __________ is the most important investment decision because it determines the risk-return characteristics of the portfolio.
4. Asset allocation affects the investor’s return by______________.
5. Investment is the ___________________
6. When most people refer to the mean, they are referring to the______________.
7. Treasury bills are traded in the __________.
8. Book value is_______________.
9. Portfolio risk is best measured by the_________________.
10. _______ are financial assets.
11. If NAV > market price of a fund, then the fund____________.
12. The ___________ is a window through which the investor can see the company.
13. The last step in fundamental analysis is__________.
14. If the dispersion around a security’s return is larger__________________.
15. Financial disclosure regulations affecting the brokerage industry are a type of_________.
16. Under the Markowitz model, investors_____________.
17. Political stability is the major factor concerning_______________.
18. Money market funds were a financial innovation partly inspired to circumvent _______.
19. _________________is concerned with the interrelationships between security returns.
20. Investors should be willing to invest in riskier investments only________________.
21. Which of the following is not related to overall market variability?
22. Investment decision making traditionally consists of two steps______________.
23. The random walk hypothesis is most related to the___________.
24. Which exchange member is assigned to a specific trading post?
25. Net asset value takes into account____________.