Q1.  In a price weighted average stock market indicator series, the following type of stock has the greatest influence: 

    a. the stock with the lower price. 

     b. the stock with the highest price-earnings ratio. 

     c. the stock with the highest market capitalisation. 

     d. the stock with the lowest market capitalisation. 

     e. the stock with the highest price. 

 Q2. 

  To a technician that believed in the importance of volume, a bullish signal would occur when 

     a. prices increase on light volume. 

     b. prices increase on heavy volume. 

     c. prices decrease on light volume. 

     d. prices decrease on heavy volume. 

    e. prices increase on declining volume. 

 Q3. 

  Which of the following is NOT considered as an assumption of technical analysis? 

     a. Market value is determined solely by supply and demand. 

     b. Supply and demand are governed by both rational and irrational factors. 

     c. Security prices tend to move in trends that persist for an appreciable length of time. 

     d. Stock prices follow a random walk. 

     e. Changes in trend are caused by the shifts in supply and demand relationships. 

    Q4. 

 

 In 2019, Ming Berhad issued an RM150 par value preferred stock that pays an 8 percent annual dividend. Due to changes in the overall economy and in the company's financial condition, investors are now requiring a 16 percent return. What price would you be willing to pay for a share of the preferred if you receive your first dividend one year from now? 

    

 a. RM80 

    

 b. RM75 

    

 c. RM59 

    

 d. RM95 

    

 e. RM110 

 

 Q5. 

 

 If for the S&P Industrials Index, the profit margin was 0.18 and the equity turnover ratio was 12, the return on equity (ROE) would be 

    

 a. 0.83 percent. 

    

 b. 0.48 percent. 

    

 c. 2.16 percent. 

    

 d. 30.00 percent. 

  e. 48.00 percent. 

   

Q6. 

 Which of the following factors influence an investor's required rate of return? 

a.       The economy's real risk-free rate (RFR). 

b.       The expected rate of inflation (I). 

c.       A risk premium. 

d.       All of the above. 

e.       None of the above. 

                                                                                                                                                                 

 

7. A price range at which technicians would expect a substantial increase in the demand for a stock is called 

    

 a. support level. 

    

 b. resistance level. 

    

 c. basic level. 

    

 d. resistance limit. 

    

 

 

 e. normal level. 

  

Q8. Which of the following is NOT characteristic of the "growth" phase in the industry life cycle? 

 

a.       Consumer will accept uneven quality. 

b.       Products have technical and performance differentiation. 

c.       Low profits. 

d.       High labor costs. 

e.       Many competitors. 

 

 

 

Q9.    Smart and Happy Berhad had a dividend payout ratio of 58% in 2019. The retention rate in 2019 was 

 

a.       0%. 

b.       42%. 

c.       58%. 

d.       32%. 

e.       None of the above. 

 

 

 

Q10.   Which are the two important competitive strategies advocated by Micheal Porter? 

 

a. Low-cost leadership, the barrier to entry. 

b.  New entrant deterrent, differentiation. 

c. Low-cost leadership, differentiation. 

d.  Differentiation, monopolistic. 

e. Monopolistic simulation, differentiation. 

 

Answer rating: 100% (QA)

1 e the stock with the highest price 2 b prices increase on heavy volume 3 d S... View the full answer