EQPS Single Choice Latest Update @ 2025!!
Technicians study financial statements to detect "breakouts" i.e. the movement to a new
equilibrium price. - ANSWER>>False
The total expense ratio (TER) for mutual funds aims to show the total costs of running
expenses of a fund, expressed as a percentage of the fund´s assets. - ANSWER>>True
The strategic asset allocation holds the weights of the various asset classes. -
ANSWER>>True
Using index futures to beta-hedge, systemic market risk can be zeroed out, assuming
the CAPM is a good model and its parameters are correct. - ANSWER>>True
The Fama and French Three-Factor-Model is an extension of the CAPM, which also
incorporates the size of the stocks, as well as the book-to-market ratio of the stocks. -
ANSWER>>True
The purpose of active portfolio management is to follow a benchmark-index as closely
as possible. - ANSWER>>False
The larger the correlation of normally distributed assets in a portfolio, the greater the
standard deviation of the portfolio. - ANSWER>>True
If one has taken a long future position on a stock index, the margin account is reduced
when the underlying index increases. - ANSWER>>False
The capital market line is the tangent line between the risk-free rate of return and the
efficient frontier. - ANSWER>>True
, Iceberg orders are filled only after the price of the stock has dropped below some
threshold level. - ANSWER>>False
"Sampling" is a strategy of passive portfolio management whereby a purchase is made
of all the securities in some index, using weights that equal the securities weights in the
index. - ANSWER>>False
A doji appearing at an early stage of upward or downward trend will probably show a
pause but not a reversal of a trend. - ANSWER>>True
Tobin separation implies that, if we extend the Markowitz Portfolio Theory by including a
risk-free asset, then all investors will invest only in a) the risk-free asset, long or short,
and b) the market portfolio M. - ANSWER>>True
Jensen's alpha measure is flexible enough to allow for alternative models of risk and
expected return than the CAPM. - ANSWER>>True
The business risk of a company is determined by finding the standard deviation of the
gross profit divided by the mean of the gross profit using a time series of the gross profit
figures of that company. - ANSWER>>False
The findings of Fama and French that high book-to-market ratio stocks tended to realize
larger risk-adjusted returns than low book-to-market ratio stocks challenge how well the
CAPM works. - ANSWER>>True
A market is a means through which buyers and sellers are brought together to aid in the
transfer of goods and/or services. - ANSWER>>True
A basic assumption of the Markowitz model is that investors base decisions solely on
expected return and risk - ANSWER>>True
Income bonds are assumed as safe as debentures because they pay higher rates of
interest - ANSWER>>False
Technicians study financial statements to detect "breakouts" i.e. the movement to a new
equilibrium price. - ANSWER>>False
The total expense ratio (TER) for mutual funds aims to show the total costs of running
expenses of a fund, expressed as a percentage of the fund´s assets. - ANSWER>>True
The strategic asset allocation holds the weights of the various asset classes. -
ANSWER>>True
Using index futures to beta-hedge, systemic market risk can be zeroed out, assuming
the CAPM is a good model and its parameters are correct. - ANSWER>>True
The Fama and French Three-Factor-Model is an extension of the CAPM, which also
incorporates the size of the stocks, as well as the book-to-market ratio of the stocks. -
ANSWER>>True
The purpose of active portfolio management is to follow a benchmark-index as closely
as possible. - ANSWER>>False
The larger the correlation of normally distributed assets in a portfolio, the greater the
standard deviation of the portfolio. - ANSWER>>True
If one has taken a long future position on a stock index, the margin account is reduced
when the underlying index increases. - ANSWER>>False
The capital market line is the tangent line between the risk-free rate of return and the
efficient frontier. - ANSWER>>True
, Iceberg orders are filled only after the price of the stock has dropped below some
threshold level. - ANSWER>>False
"Sampling" is a strategy of passive portfolio management whereby a purchase is made
of all the securities in some index, using weights that equal the securities weights in the
index. - ANSWER>>False
A doji appearing at an early stage of upward or downward trend will probably show a
pause but not a reversal of a trend. - ANSWER>>True
Tobin separation implies that, if we extend the Markowitz Portfolio Theory by including a
risk-free asset, then all investors will invest only in a) the risk-free asset, long or short,
and b) the market portfolio M. - ANSWER>>True
Jensen's alpha measure is flexible enough to allow for alternative models of risk and
expected return than the CAPM. - ANSWER>>True
The business risk of a company is determined by finding the standard deviation of the
gross profit divided by the mean of the gross profit using a time series of the gross profit
figures of that company. - ANSWER>>False
The findings of Fama and French that high book-to-market ratio stocks tended to realize
larger risk-adjusted returns than low book-to-market ratio stocks challenge how well the
CAPM works. - ANSWER>>True
A market is a means through which buyers and sellers are brought together to aid in the
transfer of goods and/or services. - ANSWER>>True
A basic assumption of the Markowitz model is that investors base decisions solely on
expected return and risk - ANSWER>>True
Income bonds are assumed as safe as debentures because they pay higher rates of
interest - ANSWER>>False
