Name: ________________________________________ Date: ___________

Course Year & Section: _____________________ Score: __________

Instruction: Answer the following questions. Strictly NO ERASURES are

allowed.

I. TRUE OR FALSE. Write True if the statement is correct and False if the statement is wrong.
(10 pts.)
_____1. Investment management is also known as portfolio management.

_____2. The largest financial fund are firms that exhibit all the complexity of demands.

_____3. The internal auditors are the one who took account of the institutions own money and
cost.

_____4. The financial controllers are the one who examines the internal system of the
organization.

_____5. The important of investment management is to formulate a suitable portfolio strategy.

_____6. Successful fund managers are expensive and headhunted by competitions.

_____7. The objectives of individual investors are to maximize return on investment.

_____8. Investment management is not important to the investors.

_____9. Investment managers would not require a discipline process of funds.

_____10. Asset owners and clients would be more demanding and probably looking for better
than average performance from their investments.

II. ODD MAN OUT: Choose the word that does not belong to the group. (15 pts.)

1. A. Investment
B. Interest
C. Revenue

2. A. Assessment
B. Achievement
C. Fulfillment

3. A. Interest
B. Profit
C. Gain

4. A. Securities
B. Bonds
C. Checks

5. A. Investors
B. Creditors
C. Investment

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 6. A. Shareholders
B. Stockholders
C. Pot holders

7. A. Stock price
B. Market price
C. Tag price

8. A. Innovation
B. Development
C. Progressing

9. A. Product innovation
B. Product quantity
C. Product quality

10. A. Depreciation
B. Increasing
C. Declining

11. A. Cash
B. Credit
C. Money

12. A. Business risk

B. Market risk
C. Stocks risk

13. A. Shares
B. Bonds
C. Stocks

14. A. Over all corporate growth

B. Per-share growth
C. Quoted price per share

15. A. Cost
B. Value
C. Price

III. IDENTIFICATION. Write the appropriate term as described. Write your answer before each
number. (18 pts.)

__________________________1. It is the professional management of various securities.

__________________________2. It shows the flow of funds in and out of the company.

__________________________3, Aggregate of assets held as investments by an organization or

individual.

__________________________4. Takes part in corporate strategic and operational planning in

an enterprise.

__________________________5. It refers to the process of determining the best usage of the

financial resources of an organization.
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 __________________________6. It is the process of translating a plan on quantitative terms
usually monetary.

__________________________7. It refers to a certificate of indebtedness.

__________________________8. It refers to the obligations that matures beyond one year.

__________________________9. It involves implementing the formulated portfolio strategy by

buying or selling certain securities in specified amounts.

IV. ENUMERATION. Enumerate the following. (22 pts.)

A. Approaches to Investment Decision-Making

1.
2.
3.
4.

B. Factors Influencing Investment Decision

5.
6.
7.
8.
9.
10.
11.

C. Steps of Portfolio Management

12.
13.
14.
15.
16.
17.
18.

D. Types of Risks
19.
20.
21.
22.

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V. ESSAY. Answer the following question. Limit your answer to 5 sentences only. (10 pts.)

1. Why is investment management important to any business?

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

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