Question32:-Which statements about Harry Markowitz's portfolio optimization
model are correct?

(i) Form the portfolios that have the same return, the investor will prefer the
portfolio with lower risk

(11) From the portfolios that have the same return, an investor will prefer the
portfolio with higher risk

(iii) From the portfolios that have the same risk level, an investor will prefer the
portfolio with a higher rate of return

A:-Only (i) and (ii)

B:-Only (i) and (iii)

C:-Only (ii) and (iii)

D:-All the above (i, ii and iii)
Correct Answer:- Option-B

Question33:-Which is the term used to describe an investment position intended to
offset potential losses or gains that may be incurred by a companion investment?

A:-Hedge

B:-Swap

C:-Forward

D:-Futures

Correct Answer:- Option-A

Question34:-Which is the measurement of the returns earned in excess of that
which could have been earned on an investment that has no diversifiable risk?

A:-Risk-free rate

B:-Beta value
C:-Reward-to-volatility ratio
D:-Total risk

Correct Answer:- Option-C

Question35:-Which opportunities arise, when the current buying price of an asset
falls below the price specified in a futures contract to sell the asset?

A:-Arbitrage
B:-Hedging
C:-Speculation
D:-Tax Avoidance
Correct Answer:- Option-A
Question36:-The measure of uncertainly about the returns provided by the stock
A:-Expected return
B:-Volatility
C:-Rate of return

D:-Capitalisation