CITY MEDICAL AND BUSSINESS COLLEGE

Name AHMED FAYSAL YUSUF

Cource ENVESTMENT

ID 276

Indivual assyment

1. The answer is a) Investment

Investment to the employment of funds with the aim of

achieving additional income or growth in value.

2. The answer is b) Speculation.

Speculation is based on tips, rumors, and hunches, and

is unplanned and without knowledge of the exact nature

of risk.

3. The answer is b) 2003.

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The National Commodity and Derivatives Exchange Ltd

(NCDEX) was set up in India in 2003.

4. The answer is b) Speculation.

Speculation involves buying low and selling high to make

a large capital gain.

5. The answer is c) Gambling.

Horse racing, games of cards, and lotteries are typical

examples of gambling.

6. The answer is a) Fixed principal investment.

Fixed principal investment is where the principal amount

and the terminal value are known with certainty.

7. The answer is c) Pension Fund.

Pension funds are known as indirect investment

alternatives.

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8. The answer is b) Variable principal securities.

Variable principal securities are investments where the

terminal value is not known with certainty.

9. The answer is b) Private companies.

Private companies refer to direct ownership investments

in new or growing businesses before they sell securities

on a public basis. These are companies that are not

publicly traded and are owned by a small group of

investors, such as the founders, family members, or

venture capitalists.

10. The answer is a) Inflation.

Inflation refers to the rising of prices and the falling of

the standard of living. During periods of inflation, the

purchasing power of money decreases, leading to a

higher cost of living and a decline in the standard of

living.

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1. The answer is a) Systematic risk.

Systematic risk refers to the risk that covers the risk of

the market, interest rate risk, and purchasing power risk.

It is the risk that affects the entire market or economy

and cannot be diversified away.

2. The canswer is a) Unsystematic risk.

Unsystematic risk refers to the risk due to the internal

environment of a firm or those affecting a particular

industry. This type of risk is specific to a company or

industry and can be reduced through diversification.

3. The answer is b) Systematic risk.

Systematic risk is a non-diversifiable risk, meaning that it

cannot be eliminated by diversifying the investment

portfolio. It is the risk that affects the entire market or

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economy and is influenced by factors such as economic

conditions, political events, and market trends.

4. The answer is b) Systematic risk.

Systematic risk is the risk associated with the overall

security market or the economy as a whole. It is the risk

that cannot be diversified away and affects all securities

in the market. Systematic risk is influenced by various

factors, including economic, sociological, political, and

legal considerations that impact the prices of all

securities in the economy.

5. The answer is b) Unsystematic risk.

Unsystematic risk refers to the risk that is specific to a

particular company or industry, such as labor strikes,

changes in consumer preferences, and management

policies. These factors create uncertainty and contribute

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to the overall risk associated with a specific investment

or business.

6. The answer is a) Inflation risk.

Purchasing power risk, also known as inflation risk, is the

risk that the purchasing power of a currency will decline

over time due to the rise in the general price level of

goods and services in the economy. This can erode the

real value of an investment or a person's savings.

7. The answer is a) Internal business risk.

Internal business risk can be identified through the rise

and decline of a firm's total revenues, as indicated in the

firm's earnings before interest and taxes (EBIT). This

type of risk is internal to the firm and is influenced by

factors such as management decisions, operational

efficiency, and product quality.

8. The answer is a) Return on Investment.

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ROI stands for Return on Investment, which is a

performance measure used to evaluate the efficiency of

an investment or to compare the efficiency of a number

of different investments.

9. The answer is a) Variance calculation and measuring

the Standard deviation.

Variance calculation and measuring the standard

deviation are common ways of measuring risk. Variance

measures the spread or dispersion of a set of data points

from the mean, while standard deviation is the square

root of the variance, which provides a measure of the

average deviation from the mean.

10. The answer is a) Probability distribution.

Probability distribution describes the occurrence of all

possible outcomes of an event and the probability of

occurrence of each outcome. It provides a

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comprehensive representation of the likelihood of

different possible outcomes in a given situation.