Economics Mcqs

A. stock markets tend to be inefficient
B. all of these answers
C. index funds are able to buy undervalued stocks
D. actively managed funds trade more often and charge fees for their alleged expertise

A. shares are overvalued
B. people behave irrationally when choosing shares
C. markets reflect all available information in a rational way
D. shares are undervalued

A. None of these answers
B. An increase in expected dividends
C. A reduction in aggregate risk
D. A reduction in the interest rate
E. All of these answers

A. shares tend to be overvalued
B. the stock market is informationally efficient so share prices should follow a random walk
C. All of these answers
D. fundamental analysis is a valuable tool for increasing one’s returns from investing in shares

A. lower return and a lower level or risk
B. lower return and a higher level of risk
C. higher return and a lower level or risk
D. higher return and a higher level of risk

A. uncertainty associated with the entire economy
B. uncertainty associated with specific companies
C. risk associated with adverse selection
D. risk associated with moral hazard

A. increasing the rate of return within their portfolio
B. diversifying their portfolio
C. All of these answers help reduce risk
D. buying insurance

A. one country will always have 2 percent more real GDP/person than the other
B. the standard of living in the country growing at 4 percent will start to accelerate away from the slower growing country due to compound growth
C. the standard of living in the two countries will converge
D. Next year the country growing at 4 percent will have twice the GDP/person as the country growing at 2 percent

A. Rs 43,456,838
B. Rs 53,406,002
C. Rs 34,538,902
D. Rs 39,604,682

A. future value
B. fair value
C. present value
D. compound value
E. beginning value