Sample Questions
 

 

1. A fund that buys stake in a company and tries to get it to change policy and/or management is called _________.

A. Activist Fund

B. Active Fund

C. Aggregate Fund

D. Stake Fund

2. The investment return attributable to a manager’s skill, as opposed to the general movement of the market is called ______________.

A. Alpha

B. Beta

C. Gamma

D. Delta

3. The investment return attributable to the movement of a market is called ___________.

A. Alpha

B. Beta

C. Gamma

D. Delta

4. ____________________ is a technique for hedging a position which depends on the sensitivity of the hedge (such as an option) to the value of the underlying asset.

A. Alpha Hedging

B. Beta Hedging

C. Gamma Hedging

D. Delta Hedging

5. A strategy that aims to exploit inefficiencies in the bond markets is known as ________________

A. Delta Hedging

B. Cross Selling

C. Fixed Income Arbitrage

D. Convertible Arbitrage

Answers: 1 (A), 2 (A), 3 (B), 4 (D), 5 (C)

 

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