Economics - Risk and Return MCQ Test: Economics - Risk and Return MCQs - Practice Questions
1. What is the 'Black-Scholes Model' used for in options pricing?
2. What does 'Friedman's Quantity Theory of Money' propose?
3. Define 'Sharpe Ratio' and its role in evaluating investment performance.
4. Define 'Dollar Cost Averaging' in investment strategy.
5. Define 'Hedonic Pricing' in the context of economic analysis.
6. Define 'Liquidity Risk' in the context of investments.
7. What is the primary function of 'Standard Deviation' in investment analysis?
8. What is the primary focus of 'Asset Allocation' in investment strategy?
9. What characterizes an 'Elastic' demand in microeconomics?
10. How does 'Standard Deviation' function as a measure of risk in financial analysis?
11. In finance, what is the primary purpose of the 'VIX' (Volatility Index)?
12. What does the 'Pareto Principle' suggest in economic decision-making?
13. What does 'ROI' stand for in financial terms?
14. What is the significance of 'VaR' (Value at Risk) in risk management?
15. What does the 'Efficient Market Hypothesis (EMH)' propose?
16. What is 'Market Capitalization' in the context of stocks?
17. In finance, what does 'Diversifiable Risk' refer to?
18. Define 'Bull Market' in the context of financial markets.
19. What does the 'Sharpe Ratio' assess in the context of investment performance?
20. Explain the concept of 'Gini Coefficient' in measuring economic inequality.
21. How is 'Risk' typically defined in the context of financial investments?
22. Define 'Herd Behavior' in financial markets.
23. What is the 'Black-Scholes Model' used for in finance?
24. Define 'Systematic Risk' in the context of investments.
25. Define 'Monte Carlo Simulation' in the context of financial modeling.
26. What does the 'Gini Coefficient' measure in the context of income distribution?
27. What is the primary purpose of 'Beta' in investment analysis?
28. What is the 'Treynor Ratio' used for in investment analysis?
29. What characterizes 'Pigovian Taxes' in environmental economics?
30. What does the 'Lucas Critique' address in economic policy?