Quiz 1 (MBA)
Alexandria University
Faculty of Commerce
Prof. Elsayeda Ismail
Executive MBA Program
Investments and Portfolio Management
Quiz: 1
1. Asset allocation refers to the _________.
A. allocation of the investment portfolio across broad asset classes B. analysis of the value of securities
C. choice of specific assets within each asset class
D. none of the answers
2. __________ portfolio construction starts with selecting attractively priced securities.
A. Bottom-up
B. Top-down
C. Upside-down
D. Side-to-side
3. A bond issue is broken up so that some investors will receive interest payments while others will receive
principal payments. This is an example of _________.
A. bundling
B. credit enhancement
C. securitization
D. unbundling
4. __________ portfolio management calls for holding diversified portfolios without spending effort or
resources attempting to improve investment performance through security analysis.
A. Active
B. Momentum
C. Passive
D. Market timing
5. After much investigation an investor finds that Intel stock is currently under priced. This is an example of
______.
A. asset allocation
B. security analysis
C. top down portfolio management
D. passive management
6. In a perfectly efficient market the best investment strategy is probably a/an
A. active strategy
B. passive strategy
C. asset allocation
D. market timing
7. An important trend that has changed the contemporary investment market is _________.
A. financial engineering
B. globalization
C. securitization
D. all three of the other answers
8. Surf City Software Company develops new surf forecasting software. It sells the software to Microsoft in
exchange for 1000 shares of Microsoft common stock. Surf City Software has exchanged a _____ asset for a
_____ asset in this transaction.
A. real, real
B. financial, financial
C. real, financial
D. financial, real
9. Real assets are ______.
A. are assets used to produce goods and services
C. always equal to liabilities
B. always the same as financial assets
D. claims on company's income
10. U.S. Treasury bonds pay interest every six months and repay the principal at maturity. The U.S. Treasury
routinely sells individual interest payments on these bonds to investors. This is an example of ___________.
A. unbundling
B. bundling
C. securitization
D. security selection
Wael Barakat Ibrahim Mohamed
Cohort (9)
