Mathematics · Financial Mathematics · page 1 of 1

Investment & Risk Management MCQs with Answers

Includes 2 past paper MCQs (marked).

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Investment & Risk Management MCQs (1–3)

3 MCQs with answers and a short one-liner. Hide answers to test yourself.

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1.
Past Paper MCQ
_ refers to the risk inherent to the entire market or market segment.
Correct Answer: D. Systematic risk
One-liner
The risk inherent to the entire market or market segment is known as Systematic risk.
2.
Past Paper MCQ
Ali got a life insurance policy of Rs. $500{,}000$. The rate of annual premium is $4.5\%$ of the total amount of the policy, whereas the policy fee is at the rate of $0.25\%$. Find the annual premium of the policy.
Correct Answer: A. Rs. $23{,}750$
One-liner
The annual premium is calculated as $(4.5\% + 0.25\%) \times 500{,}000 = 4.75\% \times 500{,}000 =$ Rs. $23{,}750$.
3.
The rate of change of cost is called _ cost.
Correct Answer: A. Marginal
One-liner
The rate of change of cost is called Marginal cost.