36. What is a “sector rotation” strategy?
a) A strategy that involves rotating investments between different sectors based on their performance
b) A strategy that involves investing in a single sector for a long period of time
c) A strategy that involves investing in multiple sectors simultaneously
d) A strategy that involves short-selling stocks of a specific sector
37. What does the term “market depth” refer to in the capital market?
a) The ability of a security to withstand market fluctuations
b) The total value of all securities traded in the market
c) The amount of liquidity available in a particular security
d) The price volatility of a particular security
38. What is a “preference share”?
a) A share that carries preferential voting rights compared to ordinary shares
b) A share issued by the government to raise funds
c) A low-priced share
d) A share that is only available to institutional investors
39. What is a “market anomaly”?
a) A deviation from the expected behavior of financial markets
b) A financial instrument that does not conform to standard market practices
c) A regulatory violation in the capital market
d) A price movement in a particular stock that is contrary to market trends
40. What does the term “risk premium” refer to in the capital market?
a) The additional return investors require for taking on additional risk
b) The total return on an investment
c) The initial investment amount required to purchase a security
d) The difference between the bid and ask prices of a security
