MCQs

1) Rayan buys 500 shares of Square Pharmaceuticals that currently trade at 285 tk per share. A few days later, he reads in the financial express that the company is expected to release outstanding results in the third quarter due to a successful deal with a foreign company to import covid vaccine. Once the construction company releases its third quarter results, the stock price rises as expected. As a matter of fact, for a week, the stock price rises to 290 tk per share but then drops to tk 280 per share. He wonders why the price does not rise further. The reason is

a) Weak form of efficiency

b) Market correction

c) strong form of efficiency

d) semi strong form of efficiency

2) Aiyra works as a fund manager at the Dhaka Stock Exchange. She observed that the price of Beximco stock rises on Monday and drops on Thursday. One Thursday, she purchased 100 shares of Beximco's stock for 210.30 Tk per share hoping to sell them on Monday and earn a profit. When the market opened on Monday, Mohali Sports declined to 208.5 Tk per share. The market seems to be ............................., because it is not letting her earn excess return

Semi strong

strong

weak

A, B, and C

3) A key driver of the GameStop mania, this occurs when investors tend to follow or copy what other investors are doing. They are influenced by emotion, social media pressure and instinct, rather than relying upon their own independent analysis.

1 point

The fear of missing out

Overconfidence of getting profit

Herding instinct

Loss aversion

4) a maturity matching strategy for a dedicated bond portfolio entails substantial reinvestment risk. A solution to avoid reinvestment risk/

to purchase zero coupon bonds that pay a fixed principal at maturity chosen to match a dedicated portfolio's target date

a dedicated portfolio is to match its duration to its target date.

by following dynamic immunization strategy

dedication strategy