Very Short Answer Question 1. What is economic analysis? Economic analysis is the process of studying general state of economy to assess economic movements in country and their impact on stock price. In the process of economic analysis, we study the pattern of movement in macroeconomic variables to forecast how they affect specific industry and […]
Chapter 6: Common Stock Fundamentals
Very Short Question Answer 1. List out the pros and cons of stock ownership. The pros or advantages of stock ownership are as follows: It offers substantial return opportunities. It is easily marketable. The market information on common stock is easily accessible. Common stock investment requires lower investment outlay. The cons or disadvantages of stock […]
Chapter 5: Modern Portfolio
Very Short Question Answer 1. How do you distinguish a growth portfolio from an income portfolio? A growth portfolio is one that offers a long-term capital appreciation to the investor. The example of growth portfolio is the portfolio of high growth common stock. On the other hand, the income portfolio ensures regular income such as […]
Chapter 4: Return and Risk
Very Short Question Answer 1. Differentiate between expected return and required return? The expected return refers to the rate of return expected from an investment. On the other hand required rate of return is the rate of return that an investment must earn to compensate against the level of risk involved in it. Expected return […]
Chapter 3: Investment Information and Securities Transactions
Very Short Question Answer 1. Differentiate the price – weighted index from the value – weighted index. Price weighted index is calculated by assigning weights in an index in proportion to the stock price of the underlying corporation. It is given by total of the market prices of all stocks in the sample divided by […]
Chapter 2: Markets and Transactions
Very Short Question Answer 1. State the roles of an investment banker. Investment bankers play .a number of roles in the primary market. One of the primary roles of an investment banker is to work as an intermediary between issuing corporations and investors through initial public offerings (IPOs). Similarly, they provide underwriting services for new […]
Chapter 1: Investment Environment
Very Short Question Answer 1. List out major characteristics of an investment. The most common characteristics of investment are as follows: Investment is undertaken with the expectation of earning a rate of return. Investment is the allocation of current saving with the expectation of more wealth for consumption in the future. Every investment involves risk […]
Chapter 3: Growth of Entrepreneurship
Brief Answer Questions 1. Mention the types of rural entrepreneurship. The types of rural entrepreneurship are listed below: Farm entrepreneurship Artisan entrepreneurship Merchant and traders Tribal entrepreneurship 2. What is rural entrepreneurship? Rural entrepreneurship is the creation of a new organization that introduces a new product, serves or creates a new market or utilizes a […]
Chapter 2: Women Entrepreneurship
Brief Answer Questions 1. Mention any four problems of women entrepreneurship. [2] The four problems of women entrepreneurship are mentioned as follows: Lack of finance High competition Limited mobility Lack of skill and education 2. Define women entrepreneurship. Women entrepreneurship is the process, where women organize all the factors of production, undertake, risks and provide […]
Chapter 1: Introduction to Entrepreneurship and Enterprise Development
Brief Answer Questions 1. Mention any four traits of an entrepreneur. The four traits of an entrepreneur are mentioned below: Motivation Organizer Risk bearer Hardworking 2. Define the term inventor. Inventory is someone who primarily aims to create something new. To S/he tries to bring positive change in mankind by his/her invention. 3. What is […]