Pgdba 4th Sem Security Analysis & Portfolio Management_combined

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question The value of the stock in the ________ model is sensitive to the estimates of the growth rate. Correct The Gordons dividend growth Answer Select The Blank Question The possibility of reduction of risk through the construction of a portfolio depends on the value of ________ between the two assets. Correct Correlation coefficient Answer Multiple Choice Single Answer Question When an investor invests in stock, expects to get the dividends and an expected price for the period the stock is held is the rule of :Correct The General model Answer Select The Blank Question Debentures rated ________ are judged to offer sufficient safety of timely payment of interest and repayment of principal. Correct "BBB" Answer Multiple Choice Single Answer Question Stock Exchanges are the part of :Correct Answer Your Answer

Secondary market Money Market

Multiple Choice Multiple Answer Question Active investment managers :Correct Answer

Do not believe that markets are efficient , Puts efforts to search mispriced securities in the market , Are relatively active traders in securities to acquire abnormal returns

Multiple Choice Multiple Answer

Question Correct Answer

Equity analysts provides estimates of earnings and earnings growth for future, using historical data and :Macro economic information that may impact future growth , Private information about the firm , Firm's specific information and public information

Multiple Choice Multiple Answer Question What are the features of short-term trends? Correct Answer

True/False Question Correct Answer True/False Question Correct Answer

They last from 1 to 3 or 4 weeks , They interrupt the course of the intermediate cycle , They are usually influenced by random news events

The normal relationship is for the volume to expand on rallies and contract on declines. True

In case of assured returns, A scheme cannot promise returns unless such returns are fully guaranteed by sponsor or AMC. True

Multiple Choice Multiple Answer Question What are the features of trend lines Correct Answer

A simple and useful tool in technical analysis , Prices move in trends , The trend lines represent points of support and resistance

Select The Blank Question ________ is due to the fact that a borrower may not pay interest and/or principal on time. Correct Default risk Answer Multiple Choice Multiple Answer Question What are the features of candle stick charts? Correct Answer Your Answer

Indicates in black if the closing price is lower than the opening price , Indicates in white if the closing price is higher than the opening price , Displays the correlation between the high and low prices

True/False Question Correct Answer

A firm uses a combination of equity and debt for financing its assets. True

Select The Blank Question A pattern which does not result in reversal of a trend but reaffirmation of the underlying trend is called ________. Correct Consolidation pattern Answer True/False Question Correct Answer

Policies of the government and the attitude of the government towards the industry have a considerable influence on the industry. True

Multiple Choice Single Answer Question The index futures symbols of BSE are represented as :Correct Answer

BSX JAN 2005 (January contract)

Multiple Choice Multiple Answer Question The growth rate in the initial phase is not constant but declines linearly over time to reach the stable growth rate in steady state is a phenomena of :Correct H- Model for valuing growth , H-Two stage model for Answer growth , H-Model unlike the classic two stage model Multiple Choice Multiple Answer Question What are the features of line charts? Correct Answer True/False Question Correct Answer

It connects closing prices from one period to the next , It is ideal for securities with no high or low price data

Investors in high tax bracket would benefit by investing in equity schemes. False

Select The Blank Question ________ bonds are generally called for prepayment after interest rates have fallen, investors will not be able to find comparable investment avenues. Correct Call risk Answer Select The Blank Question ________ deal in futures to offset a pre-existing risk. Correct Answer

Hedger

Multiple Choice Single Answer Question More than half the variation in stock price could be attributed to which factor? Correct Market influence Answer Match The Following Question

Correct Answer

Your Answer

Price pattern

Resistance level

Primary trend

Last between 1-2 years

Head and shoulders formation Last between 1-2 years

Intermediate trend

Last between 3 weeks to Last between 3 weeks to as long as 6 months as long as 6 months Last 1 to 3-4 weeks Last 1 to 3-4 weeks

Short term trend

Select The Blank Question ________are good benchmark to compare the ratios for a firm. Correct Industry averages Answer Select The Blank Question The ________ phase is characterized by resistance area and support level. Correct Transition Answer True/False Question

The price earning ratio is an increasing function of the payout ratio and the growth rate and a decreasing function of the riskiness of the firm.

Correct Answer

True

Multiple Choice Single Answer Question In India we have index futures contracts based on :Correct Answer True/False Question Correct Answer

S&P CNX Nifty and the BSE sensex

When we invest in only one asset we are not exposed to any specific or market risk. False

Multiple Choice Single Answer Question In India, the futures on individual securities have been introduced from :Correct 2001 Answer Select The Blank Question ________ measures the efficiency of credit management. Correct Answer

Average collection period

Multiple Choice Single Answer Question What do you understand by the term redemption price? Correct Answer

Price or NAV at which a scheme purchases its units

Multiple Choice Multiple Answer Question What are the ways of measuring relative strength? Correct Answer Your Answer

Calculate the rates of return and classify securities that have earned superior historical returns , Calculating certain ratios will help in analyzing whether a security has relative strength Calculating the Return on investment

Multiple Choice Multiple Answer Question The Peer group of Bharat Forge consists of which all companies?

Correct Answer True/False Question Correct Answer

Am forge industries , Kalyani Forge , EL Forge

Five paisa.com is an example of on line trading portal. True

Multiple Choice Single Answer Question A security analysis is done :Correct Answer

For decision making for investments

Multiple Choice Multiple Answer Question Which were the initiatives which the chairman said would focus on in 2003-04 in the speech in annual report for the year 2003-03? Correct Research and development , Capital investment and focus on Answer balance sheet , Overseas acquisitions Select The Blank Question Dow Jones transportation average was previously known as ________. Correct Rail average Answer Your Answer Freight average Multiple Choice Multiple Answer Question The Two-Stage dividend discount model is best suited for the firms that are :Correct In high growth rate phase , Expecting to maintain the growth Answer rate phase steadily for a specific time period , Sources of high growth are expected to disappear after specific period of time True/False Question Correct Answer

A mutual fund is required to dispatch the dividend warrants to the unit holders within thirty days of the declaration of dividend. True

Multiple Choice Single Answer

Question Correct Answer

As per the exhibit 18-1 for individual stock futures on NSE, the price steps in respect of all futures contract admitted to the dealings of the exchange shall be :0.05

Multiple Choice Multiple Answer Question The features of bond are :Correct Answer

Collateral , Call provision , Sinking fund and protective covenants

Multiple Choice Single Answer Question What is a technical approach to investment? Correct Answer

A reflection of the idea that prices move in trends which are determined by various factors

Match The Following Question

Correct Answer

Your Answer

MCX

Commodity Exchange

Commodity Exchange

Sensex

BSE Index

BSE Index

Nifty

NSE Index

NSE Index

Lifex

ET Index

Gold Index

Multiple Choice Single Answer Question A pledge of real assets as insurance against the non-payment of default by the buyer represents Correct Collateral Answer True/False Question Correct Answer

Bearish actions come from a series of declining peaks and troughs. True

Multiple Choice Single Answer Question Who developed Dow's Principles and organised them into a theory as it is known today? Correct William Peter Hamilton Answer

Your Answer kk

Charles.H.Dow

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The Blank Question ________ is affected by the leverage decisions of the firm. Correct Answer Return on equity Your Answer Return on equity Select The Blank Question Debentures rated "BB" refers ________ of timely payment of interest and principal. Correct Answer Inadequate safety Your Answer Inadequate safety Select The Blank Question S&P NSE 50 index is known as ________. Correct Answer NIFTY Your Answer NIFTY True/False Question The risk associated to get the required rate of return on the stock is measure by market beta. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer

NSE&BSE are regulated by Securities Exchange Board of India Securities Exchange Board of India Under options contract When you expect prices to fall, then, you take a long position by buying puts. When you expect prises to rise, then you take a short position by selling puts. Cost of Carry model Options contract A contract where both the parties are equally responsible Futures contract Futures contract The amount which the buyer of the option has to pay to the option writer to induce him to accept the risk associated with the contract. Option price Option price

True/False Question A segment is unattractive if the buyers possess strong or growing bargaining powers. Correct Answer True Your Answer True Multiple Choice Single Answer Question Debt instruments that have a maturity period of more than one year are called as :Correct Answer Bonds Your Answer Bonds Multiple Choice Single Answer

Question The present value of all the future cash payments to be paid on the security to the investor is termed as :Correct Answer Intrinsic value of a security Your Answer Intrinsic value of a security Multiple Choice Multiple Answer Question What are the features of Retail government securities (G-secs) ? Correct Answer Safest investment option available , Demat account is required for investment , Choice of tenure varies from less than 1 year to 30 years Your Answer Safest investment option available , Demat account is required for investment , Choice of tenure varies from less than 1 year to 30 years True/False Question A higher value of current ratio indicates a better short term solvency of the firm. Correct Answer True Your Answer True Select The Blank Question ________seeks to safeguard against potential losses on the outstanding position in futures market. Correct Answer Initial margin Your Answer Initial margin Select The Blank

Question Risk can be referred as the ________ in the return with respect to the expected return. Correct Answer Volatility Your Answer Volatility Multiple Choice Multiple Answer Question The return to the bond investor can be measured in terms of :Correct Answer Current yield , Yield to maturity , Realised yield Your Answer Current yield , Yield to maturity , Realised yield True/False Question Certificate of Deposits offers high rate of interest than Treasury Bills. Correct Answer True Your Answer True True/False Question American option gives the holder the right, but not the obligation to buy or sell the underlying instrument on or before the expiry date and the option can be exercised early. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Which of the following are important momentum indicators used widely?

Correct Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD) Your Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD) Multiple Choice Single Answer Question What is Gross National Product ? Correct Answer Gross income generated from within the country Your Answer Gross income generated from within the country Select The Blank Question An ________ is a series of equal payments or receipts occurring at regular intervals of time. Correct Answer Annuity Your Answer Annuity Multiple Choice Single Answer Question If the price of a share at the beginning of the year was Rs.100/-, no dividend received during the year and the price at the end is Rs.115/-. What is the rate of return? Correct Answer 0.15 Your Answer 0.15 Multiple Choice Single Answer Question Which market is affected with the improving and higher growth rate in economy?

Correct Answer Stock market Your Answer Stock market Match The Following Question Correct Answer Your Answer Ratio used as a measure of relative value PEG ratio PEG ratio The market value of the firms assets divided by the replacement cost of these assets Market value to replacement cost ratio Market value to replacement cost ratio Key determiner of revenue multiples Profit margin Profit margin The market value of the equity in a firm reflects the markets expectations of the firms earnings power and cash flows. Price to book value ratio Price earning ratio

Multiple Choice Multiple Answer Question Features of PSU Bonds are :Correct Answer No TDS , Transferable by endorsement , No stamp duty on transfer Your Answer No TDS , Transferable by endorsement , No stamp duty on transfer True/False

Question If a rupee weakens against the dollars it has favourable impact for the exporters. Correct Answer True Your Answer True Multiple Choice Single Answer Question Credit rating companies assign ratings for which of these investments? Correct Answer Company deposits Your Answer Company deposits True/False Question If rupee weakens against the dollar, it has favourable impact for the importers. Correct Answer False Your Answer False Multiple Choice Single Answer Question What is the objective of Portfolio management? Correct Answer To Minimize risk and maximize return Your Answer To Minimize risk and maximize return

Select The Blank Question Acid test ratio is more stringent measure of liquidity compared to the ________. Correct Answer Current ratio Your Answer Current ratio

Multiple Choice Multiple Answer Question An option is :Correct Answer A contract between two parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee Your Answer A contract between two parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee Select The Blank Question ________ is the value at a certain future date today of a stream of cash flows that occurs over a period of time. Correct Answer Future value Your Answer Future value True/False Question The basic assumption of Technical analysis is that, price discounts everything and it is the outcome of all forces affecting a stock. Correct Answer True Your Answer True

******************************** LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The Blank Question ________ take long or short positions only with the intention of making profits by getting out of the market when conditions favor them. Correct Answer Speculators Your Answer Speculators

Select The Blank Question ________ deal in futures to offset a pre-existing risk. Correct Answer Hedger Your Answer Hedger

Multiple Choice Single Answer Question Mr.Saurabh invests Rs. 5,000/- today. The rate of interest is 4% compounded annually. What will be the value of his investment after 5 years? Correct Answer Rs. 6083/Your Answer Rs. 6083/-

Multiple Choice Single Answer Question In estimating the growth of a firm, analyst's forecasts have an advantage over historical data-based models because :Correct Answer They incorporate more recent information about the firm and inputs future prospects Your Answer They use the firm's growth rate based on the arithmetic average and the geometric average

Multiple Choice Single Answer Question In a forward contract there is :Correct Answer No Exchange of cash Your Answer No Exchange of cash

Multiple Choice Multiple Answer Question What are the features of trend lines Correct Answer A simple and useful tool in technical analysis , Prices move in trends , The trend lines represent points of support and resistance Your Answer A simple and useful tool in technical analysis , Prices move in

trends , The trend lines represent points of support and resistance

Select The Blank Question ________ is the value at a certain future date today of a stream of cash flows that occurs over a period of time. Correct Answer Future value Your Answer Future value

Select The Blank Question An option is a contract which gives the buyer ________ to buy or sell shares of the underlying security at a specific price on or before a specific date. Correct Answer Right but not obligation Your Answer Right but not obligation

Multiple Choice Multiple Answer Question What are the features of point and figure charts? Correct Answer Charts are constructed using a combination of X's and O's known as boxes. , X's show that the prices are moving up , O's

show that the prices are moving down Your Answer Charts are constructed using a combination of X's and O's known as boxes. , X's show that the prices are moving up , O's show that the prices are moving down

Multiple Choice Single Answer Question Which of these is a short-maturity debt issue? Correct Answer Money market funds and gilts Your Answer Money market funds and gilts

Multiple Choice Single Answer Question Mr.Satish invests Rs.10,000/- today. The rate of interest is 8% compounded annually. What will be the value of his investment after 5 years? Correct Answer Rs.14.693/Your Answer Rs.14.693/-

True/False Question When we invest in only one asset we are not exposed to any specific or market risk.

Correct Answer False Your Answer False

Match The Following Question Correct Answer Your Answer

Expiration period for options Nine months Nine months

The world's first largest options exchange Chicago Board of options exchange Chicago Board of options exchange

The most popular pricing options model published in the year 1973 Black Scholes Black Scholes

When the writer gives the buyer of the option the right to sell the underlying asset on or before the expiry date Put option Put option

Multiple Choice Single Answer Question Mr. Sharma is expecting to receive Rs. 50,000/- at the end of 5 years. He wanted to know what is the present value of this amount, if the rate of interest is 6% p.a? Correct Answer Rs. 37363/Your Answer Rs. 37363/-

True/False Question When you are making an investment you are expecting certain future benefits from your investment. Correct Answer True Your Answer True

Match The Following Question Correct Answer Your Answer

Technical collaboration of Bharat Forge with SIFCO industries USA 1981 1981

Bharat Forge was incorporated at Mumbai 1961 1961

Shares of 100 each subdivided of Bharat forge 1971 1971

930000 bonus shares issued by Bharat Forge 1976 1976

Select The Blank Question ________ ratio indicates the margin available after meeting the manufacturing expenses. Correct Answer Gross Profit margin Your Answer Gross Profit margin

Multiple Choice Multiple Answer Question Gilt Edged Securities are :Correct Answer

Central Govt , State Govt. , Quasi-Govt Your Answer Central Govt , State Govt. , Quasi-Govt

Multiple Choice Single Answer Question Mr. Suresh is expecting to receive Rs.1,50,000/- at the end of 3 years. He wanted to know what is the present value of this amount, if the rate of interest is 9% p.a ? Correct Answer Rs.1,15,827/Your Answer Rs.1,15,827/-

Multiple Choice Multiple Answer Question If option is given to you to receive Rs.1,000/- today or after one year, you will choose to receive it today because :Correct Answer You can use the amount to generate returns over the next one year , The purchasing power of Rs.1,000/- today is more than what it will be one year from now , There is an element of uncertainty associated with the future receipt Your Answer You can use the amount to generate returns over the next one year , The purchasing power of Rs.1,000/- today is more than what it will be one year from now , There is an element of uncertainty associated with the future receipt

True/False Question A mutual fund is required to dispatch the dividend warrants to the unit holders within thirty days of the declaration of dividend. Correct Answer True Your Answer True

Multiple Choice Single Answer Question Which market is affected with the improving and higher growth rate in economy? Correct Answer Stock market Your Answer Stock market

True/False Question The price earning ratio can be estimated for the firms with negative earnings per share. Correct Answer False Your Answer False

Multiple Choice Multiple Answer Question The growth rate in the initial phase is not constant but declines linearly over time to reach the stable growth rate in steady state is a phenomena of :Correct Answer H- Model for valuing growth , H-Two stage model for growth , H-Model unlike the classic two stage model Your Answer H- Model for valuing growth , H-Two stage model for growth , H-Model unlike the classic two stage model

Multiple Choice Single Answer Question How did Dow use the behaviour of stock markets? Correct Answer As a barometer of business conditions rather than a basis for forecasting stock prices Your Answer As a barometer of business conditions rather than a basis for forecasting stock prices

True/False Question The normal relationship is for the volume to expand on rallies and contract on declines. Correct Answer True Your Answer

False

Multiple Choice Multiple Answer Question What were the objectives for 2002-03 the chairman of Bharat forge had emphasised on in the annual report for 2001 - 02 Correct Answer Maintain aggressive exports thrust , Increase shares of value added products , Continue reducing costs Your Answer Maintain aggressive exports thrust , Increase shares of value added products , Continue reducing costs

Multiple Choice Multiple Answer Question Which are the different types of accounts offered to investors by the stock brokers? Correct Answer Cash trading , Margin trading Your Answer Cash trading , Margin trading

Multiple Choice Multiple Answer Question The return to the bond investor can be measured in terms of :Correct Answer Current yield , Yield to maturity , Realised yield

Your Answer Current yield , Yield to maturity , Realised yield

True/False Question Balance of payments surplus augments foreign reserves of the country and have a favourable impact on he exchange rate. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question What was the final analysis on the performance of Bharat forge for the year FY 02? Correct Answer Aim to become US$1 billion Company by Fy 08 from US$100 million , Stock currently trades at 15 times its FY 05 consensus EPS forecasts , Stock will trade at an inexpensive PEG of 0.6x. Your Answer Aim to become US$1 billion Company by Fy 08 from US$100 million , Stock currently trades at 15 times its FY 05 consensus EPS forecasts , Stock will trade at an inexpensive PEG of 0.6x.

Multiple Choice Single Answer

Question Agriculture account for how much portion of the economy? Correct Answer Quarter Your Answer Quarter

True/False Question If rupee weakens against the dollar, it has favourable impact for the importers. Correct Answer False Your Answer False

True/False Question The labour conditions do not play an important role in the industry analysis. Correct Answer False Your Answer False

Multiple Choice Multiple Answer Question

Major steps involved in construction of a index are :Correct Answer Selecting a set of scrips to be used , Fixing starting date , Calculating market capitalisation Your Answer Selecting a set of scrips to be used , Fixing starting date , Calculating market capitalisation

Select The Blank Question ________ absorbs the excess demand or supply generated by hedgers and assume the risk of price fluctuations. Correct Answer Speculators Your Answer Speculators

Select The Blank Question The ________ phase carries a lot of significance because it marks the turning point between a rising and a falling market. Correct Answer Transitional Your Answer Transitional

Multiple Choice Single Answer

Question Mr.Rohan invests Rs.25,000/- today. The rate of interest is 6% compounded annually. What will be the value of his investment after 3 years? Correct Answer Rs. 29775/Your Answer Rs. 29775/-

Multiple Choice Single Answer Question Mr. Suhas is expecting to receive Rs.1,00,000/- at the end of 7 years. He wanted to know what is the present value of this amount, if the rate of interest is 7% p.a ? Correct Answer Rs. 62,275/Your Answer Rs. 62,275/-

Select The Blank Question A line is defined as a price movement two or three weeks or longer, during which period the price variation of both averages moves within a price range of approximately________%. Correct Answer 5 Your Answer 5

Multiple Choice Single Answer Question Mr. Shekhar invests Rs.50,000/- in a scheme of LIC, the rate of interest is 8% compounded annually. What will be the value of his investment after 5 years? Correct Answer Rs. 73466/Your Answer Rs. 73466/-

Multiple Choice Multiple Answer Question Equity analysts provides estimates of earnings and earnings growth for future, using historical data and :Correct Answer Macro economic information that may impact future growth , Private information about the firm , Firm's specific information and public information Your Answer Macro economic information that may impact future growth , Private information about the firm , Firm's specific information and public information

True/False Question The risk associated to get the required rate of return on the stock is measure by market beta.

Correct Answer True Your Answer True

Multiple Choice Single Answer Question Mr. Tiwari is expecting to receive Rs.25,000/- at the end of 10 years. He wanted to know what is the present value of this amount, if the rate of interest is 10% p.a:Correct Answer Rs. 9639/Your Answer Rs. 9639/-

Multiple Choice Single Answer Question What is a technical approach to investment? Correct Answer A reflection of the idea that prices move in trends which are determined by various factors Your Answer A reflection of the idea that prices move in trends which are determined by various factors

Multiple Choice Multiple Answer Question

Which were the initiatives which the chairman said would focus on in 2003-04 in the speech in annual report for the year 2003-03? Correct Answer Research and development , Capital investment and focus on balance sheet , Overseas acquisitions Your Answer Research and development , Capital investment and focus on balance sheet , Overseas acquisitions

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

True/False Question Following a decline, heavy volume with little price change is indicative of accumulation and is normally a bearish factor. Correct Answer False Your Answer False

Select The Blank Question ________are good benchmark to compare the ratios for a firm. Correct Answer Industry averages

Your Answer Industry averages

Multiple Choice Single Answer Question A market that is trading at a Price earning ratio that is much higher than its historical norms is considered to be :Correct Answer Over valued Your Answer Over valued

Multiple Choice Single Answer Question What are short term trends? Correct Answer Trends which interrupt the course of the intermediate cycle Your Answer Trends which interrupt the course of the intermediate cycle

Select The Blank Question UTI was set up in the year ________. Correct Answer 1963 Your Answer 1963

True/False Question European style options are more expensive than American style because they offer greater flexibility to the buyer. Correct Answer False Your Answer False

Multiple Choice Single Answer Question More than half the variation in stock price could be attributed to which factor? Correct Answer Market influence Your Answer Market influence

Select The Blank Question A ________ rally for stocks generally takes place because of an improved outlook for business conditions over what was anticipated. Correct Answer Bear market Your Answer Bear market

Multiple Choice Multiple Answer Question What are the features of Kisan Vikas Patra? Correct Answer Term is for 8 years seven months , Provision of premature withdrawal , Interest rate is 8.4% compounded annually Your Answer Term is for 8 years seven months , Provision of premature withdrawal , Interest rate is 8.4% compounded annually

Multiple Choice Single Answer Question What is Gross National Product ? Correct Answer Gross income generated from within the country Your Answer Gross income generated from within the country

Multiple Choice Single Answer Question Capital expenditure -depreciation +change in working capital -(new debt issued - debt repaid) = Correct Answer Equity reinvested in business Your Answer Equity reinvested in business

Multiple Choice Single Answer Question What levels if increased will have unfavourable impact on the stock market? Correct Answer Higher levels of taxation Your Answer Low levels of interest rates

Multiple Choice Multiple Answer Question The Two-Stage dividend discount model is based on the assumption of :Correct Answer An initial phase where the growth is not a stable growth rate , A subsequent steady state of growth rate being stable and lasts n years , A stable growth phase lasts forever Your Answer An initial phase where the growth is not a stable growth rate , A subsequent steady state of growth rate being stable and lasts n years , A stable growth phase lasts forever

Select The Blank Question ________ refers to the possibility that there may not be a readily available market for the particular bond. Correct Answer Liquidity risk

Your Answer Liquidity risk

Select The Blank Question The Derivative market is divided into Future market and ________ market. Correct Answer Options Your Answer Present

Multiple Choice Multiple Answer Question The features of bond are :Correct Answer Collateral , Call provision , Sinking fund and protective covenants Your Answer Collateral , Call provision , Sinking fund and protective covenants

Multiple Choice Single Answer Question In India futures on individual securities have been introduced by :Correct Answer

BSE & NSE Your Answer BSE & NSE

Multiple Choice Single Answer Question The expected price of the stock at the end of the holding period is determined by future dividends and the value of the stock is the present value of dividends through infinity are the underlying assumptions of :Correct Answer The General model Your Answer The Dividend Capitalisation model

True/False Question Sensex is the index of Calcutta Stock Exchange. Correct Answer False Your Answer False

True/False Question In case of assured returns, A scheme cannot promise returns unless such returns are fully guaranteed by sponsor or AMC.

Correct Answer True Your Answer True

Multiple Choice Single Answer Question What is GDP at factor cost ? Correct Answer Excludes net income received from abroad Your Answer Excludes net income received from abroad

True/False Question Quick assets consist of current assets less inventories. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question The Gordon growth model is best suited for firms :Correct Answer Growing at a rate equal to or lower that the growth in the economy , Which have well established dividend payout ratio

policy , Whose earnings are steady and perpetual Your Answer Growing at a rate equal to or lower that the growth in the economy , Which have well established dividend payout ratio policy , Whose earnings are steady and perpetual

Select The Blank Question Mutual fund is to be registered with ________ before raising funds from public. Correct Answer SEBI Your Answer SEBI

Multiple Choice Single Answer Question What does lower level of unemployment indicates? Correct Answer Positive economic conditions Your Answer Positive economic conditions

Multiple Choice Single Answer Question The GDP growth rate in the economy in real terms has fluctuated between :-

Correct Answer 4% and 5% Your Answer 4% and 5%

Select The Blank Question An investor with a higher tolerance of risk should tilt his portfolio in favour of ________. Correct Answer Stocks Your Answer Stocks

Multiple Choice Single Answer Question Avenues can be broadly classified into the which type of assets? Correct Answer Financial and Real Your Answer Financial and Real

Multiple Choice Multiple Answer Question Mutual fund schemes could be broadly classified as :Correct Answer

Open ended scheme , Close ended scheme Your Answer Open ended scheme , Close ended scheme

Match The Following Question Correct Answer Your Answer

Development of Dow's principles William Peter Hamilton William Peter Hamilton

Breadth Indicator Advance/decline line Advance/decline line

Momentum indicator MACD MACD

Trend lines Useful tool in technical analysis Useful tool in technical analysis

Multiple Choice Single Answer

Question The bond issuing firm enjoys the flexibility of being able to call the bonds if :Correct Answer Interest rates are falling Your Answer Interest rates are falling

Multiple Choice Single Answer Question The issuing firm enjoys the flexibility to call the bonds if the interest rates fall significantly and it can issue :Correct Answer New bonds at a lower rates Your Answer New bonds at a lower rates

True/False Question If a rupee weakens against the dollars it has favourable impact for the exporters. Correct Answer True Your Answer True

Multiple Choice Single Answer

Question What is the percentage of variation the market and industry influence account for? Correct Answer 2/3rd Your Answer 2/3rd

Multiple Choice Multiple Answer Question Which of the following are important momentum indicators used widely? Correct Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD) Your Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD)

Match The Following Question Correct Answer Your Answer

Turnover ratios Help measure the efficiency of utilisation of assets Help measure the efficiency of utilisation of assets

Debt Equity ratio Debt / Equity Debt / Equity

Quick assets Highly liquid assets Highly liquid assets

Average collection period Similar to debtors turnover Similar to debtors turnover

Multiple Choice Multiple Answer Question What are the features of candle stick charts? Correct Answer Indicates in black if the closing price is lower than the opening price , Indicates in white if the closing price is higher than the opening price Your Answer Indicates in black if the closing price is lower than the opening price , Indicates in white if the closing price is higher than the opening price

True/False Question Policies of the government and the attitude of the government towards the industry have a considerable influence on the

industry. Correct Answer True Your Answer True

Multiple Choice Single Answer Question What do you understand by money supply? Correct Answer Total money in existence at any given time Your Answer Total money in existence at any given time

Multiple Choice Multiple Answer Question What are the features of short-term trends? Correct Answer They last from 1 to 3 or 4 weeks , They interrupt the course of the intermediate cycle , They are usually influenced by random news events Your Answer They last from 1 to 3 or 4 weeks , They interrupt the course of the intermediate cycle , They are usually influenced by random news events

Multiple Choice Single Answer

Question What is net national product also known as? Correct Answer National income Your Answer National income

Select The Blank Question Risk can be referred as the ________ in the return with respect to the expected return. Correct Answer Volatility Your Answer Volatility

True/False Question Currently in India index options are both European and American in nature. Correct Answer False Your Answer False

Multiple Choice Single Answer Question

What is balance of payments? Correct Answer Credit and debit transactions of a country Your Answer Credit and debit transactions of a country

Select The Blank Question Under ________ EMH investors cannot earn abnormal/superior profits on securities on a consistent basis. Correct Answer Semi-strong form Your Answer Semi-strong form

True/False Question The returns of sector specific funds are solely dependant on the performance of the respective sectors / industries. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question The security market is the market for :-

Correct Answer Equity , Debt , Derivatives Your Answer Equity , Debt , Derivatives s 38.

a)

b)

In a perfectly efficient market all securities are correctly priced means there are no :-

High priced and low priced securities Increase priced and decrease priced securities Under priced and over priced securities

c)

d)

Book priced and market priced securities

Marks : 2

42.

a)

b)

What levels if increased will have unfavourable impact on the stock market?

Higher levels of unemployment Unstable economy Higher levels of taxation

c)

d)

Low levels of interest rates

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer Question What are the different types of profitability ratios? Correct Answer Return on equity , Gross profit margin ratio , Earnings power Your Answer Return on equity , Gross profit margin ratio , Earnings power

Select The Blank Question

Mutual fund is to be registered with ________ before raising funds from public. Correct Answer SEBI Your Answer SEBI

Multiple Choice Multiple Answer Question The security market is the market for :Correct Answer Equity , Debt , Derivatives Your Answer Equity , Debt , Bank deposits

Multiple Choice Multiple Answer Question The Gordon growth model is best suited for firms :Correct Answer Growing at a rate equal to or lower that the growth in the economy , Which have well established dividend payout ratio policy , Whose earnings are steady and perpetual Your Answer Growing at a rate equal to or lower that the growth in the economy , Which have well established dividend payout ratio policy

Multiple Choice Single Answer Question A security analysis is done :Correct Answer For decision making for investments Your Answer As per instruction of the company

Multiple Choice Single Answer Question The average investor in the market is driven more by emotions than by rational analysis is a rule of :Correct Answer Technical analysis Your Answer Fundamental Analysis

Multiple Choice Single Answer Question Mr.Saurabh invests Rs. 5,000/- today. The rate of interest is 4% compounded annually. What will be the value of his investment after 5 years? Correct Answer Rs. 6083/Your Answer Rs. 6083/-

Multiple Choice Single Answer Question What is the objective of an income fund? Correct Answer To provide regular and steady income Your Answer To provide guaranteed returns to investors

Multiple Choice Multiple Answer Question Explain what are leverage ratios ? Correct Answer Help in assessing the risk arising using the debt capital , Debt equity ratio and

interest coverage ratio and DSCR are important leverage ratios , Debt is riskier source of finance as it entails fixed outgo of periodic payments Your Answer Help in assessing the risk arising using the debt capital , Debt equity ratio and interest coverage ratio and DSCR are important leverage ratios , Debt is riskier source of finance as it entails fixed outgo of periodic payments

Multiple Choice Multiple Answer Question Which were the initiatives which the chairman said would focus on in 2003-04 in the speech in annual report for the year 2003-03? Correct Answer Research and development , Capital investment and focus on balance sheet , Overseas acquisitions Your Answer Focus on mergers , Research and development , Capital investment and focus on balance sheet

Multiple Choice Multiple Answer Question What were the objectives for 2002-03 the chairman of Bharat forge had emphasised on in the annual report for 2001 - 02 Correct Answer Maintain aggressive exports thrust , Increase shares of value added products , Continue reducing costs Your Answer Maintain aggressive exports thrust , Increase shares of value added products , Continue reducing costs

True/False Question A mutual fund is required to dispatch the dividend warrants to the unit holders within thirty days of the declaration of dividend. Correct Answer True

Your Answer True

Multiple Choice Single Answer Question What does lower level of unemployment indicates? Correct Answer Positive economic conditions Your Answer Economic slowdown

Multiple Choice Single Answer Question The GDP growth rate in the economy in real terms has fluctuated between :Correct Answer 4% and 5% Your Answer 4% and 5%

Multiple Choice Single Answer Question Mr.Rohan invests Rs.25,000/- today. The rate of interest is 6% compounded annually. What will be the value of his investment after 3 years? Correct Answer Rs. 29775/Your Answer Rs. 29775/-

Multiple Choice Single Answer Question Mr.Satish invests Rs.10,000/- today. The rate of interest is 8% compounded annually. What will be the value of his investment after 5 years?

Correct Answer Rs.14.693/Your Answer Rs.14.693/-

True/False Question When you are making an investment you are expecting certain future benefits from your investment. Correct Answer True Your Answer True

Multiple Choice Single Answer Question What is the limitation of Flow-of funds analysis method? Correct Answer Cannot give indication of the inclination of market participants to purchase stock Your Answer Does not give specific information

True/False Question The returns of sector specific funds are solely dependant on the performance of the respective sectors / industries. Correct Answer True Your Answer True

Multiple Choice Multiple Answer

Question Which are the different types of accounts offered to investors by the stock brokers? Correct Answer Cash trading , Margin trading Your Answer General trading , Cash trading , Credit trading

Select The Blank Question Under the options contract ________ gives the holder the right, but not the obligation to buy or sell the underlying instrument only on the expiry date. Correct Answer European option Your Answer American option

Select The Blank Question An investor with a higher tolerance of risk should tilt his portfolio in favour of ________. Correct Answer Stocks Your Answer Bank deposits

Select The Blank Question The ________ phase carries a lot of significance because it marks the turning point between a rising and a falling market. Correct Answer Transitional Your Answer

Sideways

Multiple Choice Multiple Answer Question The growth rate in the initial phase is not constant but declines linearly over time to reach the stable growth rate in steady state is a phenomena of :Correct Answer H- Model for valuing growth , H-Two stage model for growth , H-Model unlike the classic two stage model Your Answer H- Model for valuing growth , H-Two stage model for growth , H-Model unlike the classic two stage model

Select The Blank Question Acid test ratio is more stringent measure of liquidity compared to the ________. Correct Answer Current ratio Your Answer Current ratio

Multiple Choice Multiple Answer Question The Two-Stage dividend discount model is based on the assumption of :Correct Answer An initial phase where the growth is not a stable growth rate , A subsequent steady state of growth rate being stable and lasts n years , A stable growth phase lasts forever Your Answer An initial phase where the growth is not a stable growth rate , A subsequent steady state of growth rate being stable and lasts n years , A stable growth phase lasts forever

True/False Question While calculating geometric mean calculation of root is not important. Correct Answer False Your Answer False

True/False Question The labour conditions do not play an important role in the industry analysis. Correct Answer False Your Answer False

Select The Blank Question ________ measures the efficiency of credit management. Correct Answer Average collection period Your Answer Average collection period

Select The Blank Question ________ measures the profitability of operations without considering the influence of financial structure and tax rate. Correct Answer Earnings power Your Answer Earnings power

Multiple Choice Single Answer Question Which market is affected with the improving and higher growth rate in economy? Correct Answer Stock market Your Answer Stock market

True/False Question Certificate of Deposits offers high rate of interest than Treasury Bills. Correct Answer True Your Answer True

Multiple Choice Single Answer Question What do you understand by money supply? Correct Answer Total money in existence at any given time Your Answer Total money in existence at any given time

Multiple Choice Single Answer Question What is Gross National Product ? Correct Answer Gross income generated from within the country Your Answer

Gross income generated from within the country

Multiple Choice Multiple Answer Question What are the features of trend lines Correct Answer A simple and useful tool in technical analysis , Prices move in trends , The trend lines represent points of support and resistance Your Answer A simple and useful tool in technical analysis , Prices move in trends , The trend lines represent points of support and resistance

True/False Question A price rise accompanied by expanding volume denotes a potential trend reversal. Correct Answer False Your Answer True

Multiple Choice Multiple Answer Question Mutual fund schemes could be broadly classified as :Correct Answer Open ended scheme , Close ended scheme Your Answer Open ended scheme , Close ended scheme , Balance fund

Multiple Choice Multiple Answer Question Features of PSU Bonds are :-

Correct Answer No TDS , Transferable by endorsement , No stamp duty on transfer Your Answer No TDS , Transferable by endorsement , No stamp duty on transfer

Match The Following Question Correct Answer Your Answer

Future value of a series of cash flows occurring at the end of each period. Future value of annuity Future value of annuity

Value today of a stream of cash flows that occurs in future. Present Value Present Value

Value at a certain future date today of a stream of cash flows that occurs over a period of time. Future Value Future Value

Series of equal payments or receipts occurring at regular intervals of time. Present value of annuity Present value of annuity

Select The Blank Question A line is defined as a price movement two or three weeks or longer, during which period the price variation of both averages moves within a price range of approximately________%. Correct Answer

5 5

Your Answer

True/False Question Following a decline, heavy volume with little price change is indicative of accumulation and is normally a bearish factor. Correct Answer False Your Answer True

Multiple Choice Single Answer Question The greater the deviation of the actual returns from the actual return :Correct Answer Greater the variance Your Answer Greater the variance

True/False Question A segment is unattractive if the buyers possess strong or growing bargaining powers. Correct Answer True Your Answer False

Select The Blank

Question ________ refers to the possibility that there may not be a readily available market for the particular bond. Correct Answer Liquidity risk Your Answer Liquidity risk

Multiple Choice Single Answer Question What is GDP at factor cost ? Correct Answer Excludes net income received from abroad Your Answer Includes indirect taxes

Multiple Choice Single Answer Question More than half the variation in stock price could be attributed to which factor? Correct Answer Market influence Your Answer Market influence

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Single Answer

Question What does a transitional phase indicate? Correct Answer It marks the turning point between a rising and falling market Your Answer It marks the turning point between a rising and falling market

True/False Question The price earning ratio is an increasing function of the payout ratio and the growth rate and a decreasing function of the riskiness of the firm. Correct Answer True Your Answer True

Multiple Choice Single Answer Question The issuing firm enjoys the flexibility to call the bonds if the interest rates fall significantly and it can issue :Correct Answer New bonds at a lower rates Your Answer New bonds at a lower rates

True/False Question The sideways trend is essentially a transitional one which separates the two major market movements. Correct Answer True Your Answer False

Multiple Choice Single Answer Question More than half the variation in stock price could be attributed to which factor? Correct Answer Market influence Your Answer Market influence

Multiple Choice Multiple Answer Question Features of PSU Bonds are :Correct Answer No TDS , Transferable by endorsement , No stamp duty on transfer Your Answer No TDS , Transferable by endorsement , No stamp duty on transfer

Multiple Choice Single Answer Question What do you understand by money supply? Correct Answer Total money in existence at any given time Your Answer Total money in existence at any given time

Select The Blank Question Security analysis serves the investment decision maker by identifying ________securities. Correct Answer

Under priced Your Answer Under priced

Multiple Choice Single Answer Question Mr.Saurabh invests Rs. 5,000/- today. The rate of interest is 4% compounded annually. What will be the value of his investment after 5 years? Correct Answer Rs. 6083/Your Answer Rs. 6083/-

Select The Blank Question Under ________ EMH investors cannot earn abnormal/superior profits on securities on a consistent basis. Correct Answer Semi-strong form Your Answer Semi-strong form

True/False Question A mutual fund is required to dispatch the dividend warrants to the unit holders within thirty days of the declaration of dividend. Correct Answer True Your Answer True

True/False Question While calculating geometric mean calculation of root is not important. Correct Answer False Your Answer False

Select The Blank Question Risk can be referred as the ________ in the return with respect to the expected return. Correct Answer Volatility Your Answer Volatility

Multiple Choice Single Answer Question Mr.Rohan invests Rs.25,000/- today. The rate of interest is 6% compounded annually. What will be the value of his investment after 3 years? Correct Answer Rs. 29775/Your Answer Rs. 29775/-

Multiple Choice Multiple Answer Question The return to the bond investor can be measured in terms of :Correct Answer Current yield , Yield to maturity , Realised yield Your Answer

Realised yield

Multiple Choice Multiple Answer Question Which are the different styles of displaying charts? Correct Answer Bar and line charts , Candle stick charts , Point and figure charts Your Answer Bar and line charts , Candle stick charts , Point and figure charts

Select The Blank Question ________ measures the profitability of operations without considering the influence of financial structure and tax rate. Correct Answer Earnings power Your Answer Earnings power

Match The Following Question Correct Answer Your Answer

The yield to maturity is same as the Geometric mean return or the internal rate of return Geometric mean return or the internal rate of return

Periodic interest payments and principal repayment at the time of maturity Debt instrument/Bonds Debt instrument/Bonds

The actual yield earned by an investor on a bond Realised yield Realised yield

Present value interest factor of annuities and present value interest factor Yield to maturity Yield to maturity

Multiple Choice Single Answer Question A security analysis is done :Correct Answer For decision making for investments Your Answer For decision making for investments

Multiple Choice Single Answer Question Mr. Shekhar invests Rs.50,000/- in a scheme of LIC, the rate of interest is 8% compounded annually. What will be the value of his investment after 5 years? Correct Answer Rs. 73466/Your Answer Rs. 73466/-

Multiple Choice Single Answer Question Dividend discount model is considered as the simplest model for :Correct Answer Valuing Equity Your Answer

Valuing Equity

Multiple Choice Single Answer Question Mr.Satish invests Rs.10,000/- today. The rate of interest is 8% compounded annually. What will be the value of his investment after 5 years? Correct Answer Rs.14.693/Your Answer Rs.14.693/-

Select The Blank Question ________ refers to the possibility that there may not be a readily available market for the particular bond. Correct Answer Liquidity risk Your Answer Liquidity risk

Multiple Choice Single Answer Question Mr. Suresh is expecting to receive Rs.1,50,000/- at the end of 3 years. He wanted to know what is the present value of this amount, if the rate of interest is 9% p.a ? Correct Answer Rs.1,15,827/Your Answer Rs.1,15,827/-

Multiple Choice Multiple Answer

Question What are the features of public provident scheme? Correct Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is available from 7th year Your Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is available from 7th year

Multiple Choice Multiple Answer Question What are the features of candle stick charts? Correct Answer Indicates in black if the closing price is lower than the opening price , Indicates in white if the closing price is higher than the opening price Your Answer Indicates in black if the closing price is lower than the opening price , Indicates in white if the closing price is higher than the opening price

Multiple Choice Single Answer Question A security represent evidence of :Correct Answer A property right Your Answer A property right

Multiple Choice Multiple Answer Question Major steps involved in construction of a index are :Correct Answer Selecting a set of scrips to be used , Fixing starting date , Calculating market capitalisation

Your Answer Selecting a set of scrips to be used , Fixing starting date , Calculating market capitalisation

True/False Question The arithmetic mean is a set of observations is calculated by finding the sum values and dividing by the number of observations. Correct Answer True Your Answer True

True/False Question With the use of diversification you can reduce the risk. Correct Answer True Your Answer True

Match The Following Question Correct Answer Your Answer

Weak form model is also termed as Random walk model Weak form EMH

Investors are rational Efficient market hypothesis Passive managers

Securities current prices fully reflect all historical information Weak form EMH Strong form

Framework on efficient capital markets, a review of theory and empirical work Fama Fama

Multiple Choice Single Answer Question What are intermediate trends? Correct Answer They are counter-cyclical trends within the confines of a primary trend Your Answer They are counter-cyclical trends within the confines of a primary trend

Select The Blank Question ________involves a simultaneous sale and repurchase agreement. Correct Answer Repos Your Answer Repos

Multiple Choice Single Answer Question In any Economy, bridge is created between savers and who need the funds by this system :Correct Answer Financial

Your Answer Banking

Multiple Choice Multiple Answer Question What are the features of bank deposits? Correct Answer Interest is presently around 6% , Benefits under section 80 L , Banks offer cheque facility for investors making it convenient to withdraw Your Answer Interest is presently around 6% , Banks offer cheque facility for investors making it convenient to withdraw

Multiple Choice Multiple Answer Question What are the important macro economic indicators? Correct Answer GNP growth rate , Price Conditions , Monsoons Your Answer GNP growth rate , Price Conditions , Monsoons

Multiple Choice Single Answer Question If index future is taken under futures contract, the underlying asset would be :Correct Answer Stock index Your Answer Stock index

True/False

Question European style options are more expensive than American style because they offer greater flexibility to the buyer. Correct Answer False Your Answer False

Select The Blank Question ________ model is based on the principle that an initial phase where the growth rate is not stable and subsequent steady growth rate and remains for the long-term. Correct Answer The Two-Stage dividend discount Your Answer The Two-Stage dividend discount

Select The Blank Question ________ absorbs the excess demand or supply generated by hedgers and assume the risk of price fluctuations. Correct Answer Speculators Your Answer Speculators

Select The Blank Question When a debenture is sold to the general public a ________ is appointed. Correct Answer Trustee Your Answer

Trustee

True/False Question Five paisa.com is an example of on line trading portal. Correct Answer True Your Answer True

Multiple Choice Single Answer Question When a firm can grow net profits by issuing equity, the expected growth rate in net profits is determined by :Correct Answer Equity reinvestment rate X return on equity Your Answer Equity reinvestment rate X return on equity

Multiple Choice Multiple Answer Question Explain what are leverage ratios ? Correct Answer Help in assessing the risk arising using the debt capital , Debt equity ratio and interest coverage ratio and DSCR are important leverage ratios , Debt is riskier source of finance as it entails fixed outgo of periodic payments Your Answer Help in assessing the risk arising using the debt capital , Debt equity ratio and interest coverage ratio and DSCR are important leverage ratios , Debt is riskier source of finance as it entails fixed outgo of periodic payments

Multiple Choice Multiple Answer

Question An options contract allows the investor :Correct Answer To earn a profit while restricting the downside risk , To use the options for speculation , Either to honour or walk away from the contract Your Answer To earn a profit while restricting the downside risk , To use the options for speculation , Either to honour or walk away from the contract

True/False Question If rupee weakens against the dollar, it has favourable impact for the importers. Correct Answer False Your Answer False

Select The Blank Question UTI was set up in the year ________. Correct Answer 1963 Your Answer 1963

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question Measures of ________ tells us what we can expect a typical or middle data point of a distribution to be. Correct Answer Central tendency Your Answer Variance

Multiple Choice Single Answer Question Capital expenditure -depreciation +change in working capital -(new debt issued - debt repaid) = Correct Answer Equity reinvested in business Your Answer Equity reinvested in business Multiple Choice Multiple Answer Question What were the objectives for 2002-03 the chairman of Bharat forge had emphasised on in the annual report for 2001 - 02 Correct Answer Maintain aggressive exports thrust , Increase shares of value added products , Continue reducing costs Your Answer Maintain aggressive exports thrust , Increase shares of value added products , Continue reducing costs Multiple Choice Single Answer Question What do you understand by term pioneering stage in the industry life cycle analysis? Correct Answer Slow sales growth product recently introduced Your Answer Highest sales Multiple Choice Single Answer Question In India futures on individual securities have been introduced by :Correct Answer BSE & NSE Your Answer NSE Multiple Choice Multiple Answer Question The features of bond are :Correct Answer Collateral , Call provision , Sinking fund and protective covenants Your Answer Collateral , Call provision , Sinking fund and protective covenants Select The Blank Question The compounded annual return of Kisan Vikas patra is ________. Correct Answer 0.084 Your Answer 0.084 Select The Blank Question ________ measures the profitability of operations without considering the influence of financial structure and tax rate. Correct Answer Earnings power Your Answer Net profit margin Select The Blank Question The 6.________% tax saving bonds of government of India have a tenure of 5 years. Correct Answer 5 Your Answer 5 Select The Blank

Question The govt allowed public sector banks and institutions in mutual funds in ________. Correct Answer Early 90's Your Answer Early 90's Multiple Choice Multiple Answer Question Which ratios are commonly used? Correct Answer Interest coverage ratios , Debt service coverage ratios , Debt equity ratio Your Answer Debt equity ratio , Interest coverage ratios , Debt service coverage ratios Multiple Choice Single Answer Question Mr.Saurabh invests Rs. 5,000/- today. The rate of interest is 4% compounded annually. What will be the value of his investment after 5 years? Correct Answer Rs. 6083/Your Answer Rs. 6083/Select The Blank Question The ________ phase is characterized by resistance area and support level. Correct Answer Transition Your Answer Horizontal Select The Blank Question ________ is due to the fact that a borrower may not pay interest and/or principal on time. Correct Answer Default risk Your Answer Default risk Multiple Choice Single Answer Question What do you understand by the term redemption price? Correct Answer Price or NAV at which a scheme purchases its units Your Answer Price or NAV at which a scheme purchases its units True/False Question Investment decisions can be viewed as an integrated process to which security analysis makes its unique contribution. Correct Answer True Your Answer True Select The Blank Question Secondary reactions occurs because of ________ which arise in the market as a result of over optimism and over pessimism. Correct Answer Technical distortions Your Answer Fundamental distortions True/False Question Five paisa.com is an example of on line trading portal.

Correct Answer True Your Answer True Multiple Choice Single Answer Question What is the percentage of variation the market and industry influence account for? Correct Answer 2/3rd Your Answer 75% Match The Following Question Correct Answer Your Answer Price pattern Resistance level Secondary reaction Primary trend Last between 1-2 years Last between 1-2 years Intermediate trend Last between 3 weeks to as long as 6 months Last between 3 weeks to as long as 6 months Short term trend Last 1 to 3-4 weeks Last 1 to 3-4 weeks Multiple Choice Multiple Answer Question What are the features of short-term trends? Correct Answer They last from 1 to 3 or 4 weeks , They interrupt the course of the intermediate cycle , They are usually influenced by random news events Your Answer They last from 1 to 3 or 4 weeks , They interrupt the course of the intermediate cycle , They are usually influenced by random news events True/False Question With the use of diversification you can reduce the risk. Correct Answer True Your Answer True True/False Question Post office monthly schemes have a 10 year tenor. Correct Answer False Your Answer False Multiple Choice Single Answer Question Till 1990's secular Indian economy's inflation rate has been of what percentage? Correct Answer 0.07 Your Answer 0.07 Multiple Choice Single Answer Question Mr.Rohan invests Rs.25,000/- today. The rate of interest is 6% compounded annually. What will be the value of his investment after 3 years?

Correct Answer Rs. 29775/Your Answer Rs. 29775/Multiple Choice Multiple Answer Question The firm issuing bonds operating sinking fund and repurchases bonds either :Correct Answer Calling in a certain number of bonds by lot , Buying bonds in the open market , Buying bonds issued to banks and financial institutions Your Answer Calling in a certain number of bonds by lot , Buying bonds in the open market True/False Question A mutual fund is required to dispatch the dividend warrants to the unit holders within thirty days of the declaration of dividend. Correct Answer True Your Answer True True/False Question Fixed assets turnover ratio measures the efficiency of utilisation of total assets, fixed as well as current. Correct Answer True Your Answer True Select The Blank Question A pattern which does not result in reversal of a trend but reaffirmation of the underlying trend is called ________. Correct Answer Consolidation pattern Your Answer Distribution pattern True/False Question The risk associated to get the required rate of return on the stock is measure by market beta. Correct Answer True Your Answer False Select The Blank Question Acid test ratio is more stringent measure of liquidity compared to the ________. Correct Answer Current ratio Your Answer Current ratio Multiple Choice Multiple Answer Question What are the SEBI regulations with respect to mutual funds? Correct Answer Mutual funds to be registered with SEBI before the launching any scheme , 2/3rds of the directors of the trustee company must be independent , An AMC approved by SEBI manages the fund

Your Answer Mutual funds to be registered with SEBI before the launching any scheme , 2/3rds of the directors of the trustee company must be independent , An AMC approved by SEBI manages the fund True/False Question Default is normally evaluated and indicated by the rating assigned to the debt instruments by independent credit ratings agencies. Correct Answer True Your Answer True True/False Question In case of fixed income securities like debentures, you get the return in the form of dividend. Correct Answer False Your Answer False Multiple Choice Single Answer Question What are the assumptions of the Dow theory? Correct Answer Majority of stocks follow the underlying trend of the market most of the time Your Answer Majority of stocks follow the underlying trend of the market most of the time Multiple Choice Multiple Answer Question The Peer group of Bharat Forge consists of which all companies? Correct Answer Am forge industries , Kalyani Forge , EL Forge Your Answer Am forge industries , Kalyani Forge , EL Forge Multiple Choice Single Answer Question We can compare the price earning ratio of a market to its historical average to make judgements about, whether market is :Correct Answer Under valued or over valued Your Answer Under valued or over valued Multiple Choice Single Answer Question What is the rate of interest on the tax free bonds issue by the government? Correct Answer 6.5% Your Answer 6.5% Multiple Choice Multiple Answer Question What are the features of candle stick charts? Correct Answer Indicates in black if the closing price is lower than the opening price , Indicates in white if the closing price is higher than the opening price Your Answer Indicates in black if the closing price is lower than the opening price , Indicates in white if the closing price is higher than the opening price , Displays the correlation between the high and low prices Multiple Choice Multiple Answer

Question What are the features of public provident scheme? Correct Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is available from 7th year Your Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is available from 7th year Multiple Choice Single Answer Question Investments could be made in retail government securities through :Correct Answer Primary dealers Your Answer Primary dealers Multiple Choice Multiple Answer Question What were the Chairman's comments during the speech in the Annual report of the FY 2002-03? Correct Answer Best year in the history of the company , 146% growth in exports , Highest pre and post tax profits Your Answer Best year in the history of the company , 146% growth in exports , Highest pre and post tax profits Multiple Choice Multiple Answer Question An options contract allows the investor :Correct Answer To earn a profit while restricting the downside risk , To use the options for speculation , Either to honour or walk away from the contract Your Answer To earn a profit while restricting the downside risk , To use the options for speculation , Either to honour or walk away from the contract Multiple Choice Single Answer Question Mr.Satish invests Rs.10,000/- today. The rate of interest is 8% compounded annually. What will be the value of his investment after 5 years? Correct Answer Rs.14.693/Your Answer Rs.14.693/Multiple Choice Multiple Answer Question What were the achievements of Bharat Forge during the year 2003? Correct Answer Secured second largest customer in China , Appointed a Company Secretary to act as compliance officer , New contracts won in passenger car components Your Answer Secured second largest customer in China , Appointed a Company Secretary to act as compliance officer , New contracts won in passenger car components Match The Following Question Correct Answer Your Answer Weak form model is also termed as Random walk model Efficient market hypothesis Investors are rational Efficient market hypothesis Random walk model

Securities current prices fully reflect all historical information Weak form EMH Weak form EMH Framework on efficient capital markets, a review of theory and empirical work Fama Strong form True/False Question Quick assets consist of current assets less inventories. Correct Answer True Your Answer True

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The Blank Question ________ measures the profitability of operations without considering the influence of financial structure and tax rate. Correct Answer Earnings power Your Answer Earnings power

True/False Question While calculating geometric mean calculation of root is not important. Correct Answer False Your Answer False

Multiple Choice Single Answer Question What could be a better approach to flow-of -funds analysis?

Correct Answer An examination of liquidity trends in the banking system Your Answer Analyzing the Fiscal issues

True/False Question The Asset management company of the mutual fund must have 50% independent directors. Correct Answer True Your Answer True

True/False Question A higher value of current ratio indicates a better short term solvency of the firm. Correct Answer True Your Answer True

Multiple Choice Single Answer Question Investment is a risk free investment when :Correct Answer Actual return is = expected return Your Answer Actual return is = expected return

Select The Blank Question The govt allowed public sector banks and institutions in mutual funds in ________. Correct Answer Early 90's Your Answer Early 90's

True/False Question The returns of sector specific funds are solely dependant on the performance of the respective sectors / industries. Correct Answer True Your Answer True

Multiple Choice Single Answer Question The price of the index futures contract is defined as :Correct Answer Future price = Spot price + Carry cost Your Answer Future price = Spot price + Carry cost

Multiple Choice Multiple Answer Question An options contract allows the investor :Correct Answer To earn a profit while restricting the downside risk , To use the options for speculation , Either to honour or walk away from the contract

Your Answer To earn a profit while restricting the downside risk , To use the options for speculation , Either to honour or walk away from the contract

True/False Question The basic assumption of Technical analysis is that, price discounts everything and it is the outcome of all forces affecting a stock. Correct Answer True Your Answer True

Select The Blank Question Secondary reactions occurs because of ________ which arise in the market as a result of over optimism and over pessimism. Correct Answer Technical distortions Your Answer Technical distortions

Select The Blank Question In a heads and shoulders formation the deeper the pattern, the greater is the ________ significance once it is completed Correct Answer Bearish Your Answer Bearish

True/False Question Debt is less riskier source of finance than equity. Correct Answer False Your Answer True

True/False Question The arithmetic mean is a set of observations is calculated by finding the sum values and dividing by the number of observations. Correct Answer True Your Answer True

Multiple Choice Single Answer Question What does flow-of fund analysis help in understanding? Correct Answer Availability of money for the stock market Your Answer Financial strength of various companies

True/False Question The normal relationship is for the volume to expand on rallies and contract on declines. Correct Answer True

Your Answer True

Multiple Choice Multiple Answer Question Growth of the firm can be estimated through :Correct Answer Firm's past earnings/historical growth rate , Estimates made by equity research analyst who follow the firm , Estimates from a firm's fundamentals Your Answer Firm's past earnings/historical growth rate , Estimates from a firm's fundamentals , Forecasting future revenues and earnings

Multiple Choice Multiple Answer Question The security analysis process will achieve :Correct Answer True picture of a company , Normal earning power , Projection of future profitability Your Answer True picture of a company , Normal earning power , Projection of future profitability

Multiple Choice Single Answer Question The general dividend model is based on the principle of :Correct Answer Present value of the expected future cash flow Your Answer Present value of the expected future cash flow

Multiple Choice Single Answer Question The index futures symbols of BSE are represented as :Correct Answer BSX JAN 2005 (January contract) Your Answer BSX JAN 2005 (January contract)

Multiple Choice Multiple Answer Question What are the features of bank deposits? Correct Answer Interest is presently around 6% , Benefits under section 80 L , Banks offer cheque facility for investors making it convenient to withdraw Your Answer Interest is presently around 6% , Banks offer cheque facility for investors making it convenient to withdraw

True/False Question Risk on a portfolio of assets is always same as the risk on individual asset. Correct Answer False Your Answer False

Select The Blank Question UTI was set up in the year ________.

Correct Answer 1963 Your Answer 1963

Multiple Choice Multiple Answer Question Major steps involved in construction of a index are :Correct Answer Selecting a set of scrips to be used , Fixing starting date , Calculating market capitalisation Your Answer Selecting a set of scrips to be used , Fixing starting date , Calculating market capitalisation

Select The Blank Question A line is defined as a price movement two or three weeks or longer, during which period the price variation of both averages moves within a price range of approximately________%. Correct Answer 5 Your Answer 5

Multiple Choice Multiple Answer Question The return to the bond investor can be measured in terms of :Correct Answer Realised yield , Current yield , Yield to maturity Your Answer Current yield , Yield to maturity

Multiple Choice Multiple Answer Question What are the features of candle stick charts? Correct Answer Indicates in black if the closing price is lower than the opening price , Indicates in white if the closing price is higher than the opening price Your Answer Indicates in black if the closing price is lower than the opening price , Indicates in white if the closing price is higher than the opening price

Select The Blank Question Debentures rated "BB" refers ________ of timely payment of interest and principal. Correct Answer Inadequate safety Your Answer Inadequate safety

Multiple Choice Single Answer Question The objective of fundamental analysis for a security in a market is to identify either it is :Correct Answer Under priced and over priced Your Answer Under priced and over priced

Multiple Choice Single Answer Question

When the firm is not raising equity by issuing new shares, the growth rate in net profits is given by :Correct Answer Retention ratio X return on equity Your Answer Price earning ratio X return on equity

Select The Blank Question A ________ rally for stocks generally takes place because of an improved outlook for business conditions over what was anticipated. Correct Answer Bear market Your Answer Bullish market

Multiple Choice Multiple Answer Question Characteristics of Preference shares are :Correct Answer Carry a fixed rate of dividend , Dividend payable out of profit , Redemption in 7 to 12 years Your Answer Carry a fixed rate of dividend , Dividend payable out of profit , Redemption in 7 to 12 years

Multiple Choice Multiple Answer Question What are the SEBI regulations with respect to mutual funds? Correct Answer Mutual funds to be registered with SEBI before the launching any scheme ,

2/3rds of the directors of the trustee company must be independent , An AMC approved by SEBI manages the fund Your Answer Mutual funds to be registered with SEBI before the launching any scheme , 2/3rds of the directors of the trustee company must be independent , An AMC approved by SEBI manages the fund

Multiple Choice Single Answer Question The bond issuing firm enjoys the flexibility of being able to call the bonds if :Correct Answer Interest rates are falling Your Answer Interest rates are falling

Multiple Choice Single Answer Question We can compare the price earning ratio of a market to its historical average to make judgements about, whether market is :Correct Answer Under valued or over valued Your Answer Under valued or over valued

Multiple Choice Single Answer Question The growth rate is used to forecast future revenues and earnings and are inputs in valuing :Correct Answer Stable firms Your Answer High growth firms

Multiple Choice Single Answer Question A security analysis is done :Correct Answer For decision making for investments Your Answer For decision making for investments

Multiple Choice Multiple Answer Question Which ratios are commonly used? Correct Answer Debt equity ratio , Interest coverage ratios , Debt service coverage ratios Your Answer Debt equity ratio , Interest coverage ratios , Debt service coverage ratios

Select The Blank Question An option is a contract which gives the buyer ________ to buy or sell shares of the underlying security at a specific price on or before a specific date. Correct Answer Right but not obligation Your Answer Right but not obligation

Match The Following Question Correct Answer

Your Answer

Growth of income 40-60 % debt, 40-60 % equities 40-60 % debt, 40-60 % equities

Current income Short term debt portfolio Fixed - income portfolio

Stability of principal Fixed - income portfolio Short term debt portfolio

Appreciation 75-100 % in equities 75-100 % in equities

Select The Blank Question An investor with a higher tolerance of risk should tilt his portfolio in favour of ________. Correct Answer Stocks Your Answer Stocks

Select The Blank Question S&P NSE 50 index is known as ________. Correct Answer

NIFTY Your Answer NIFTY

Multiple Choice Multiple Answer Question Mutual fund schemes could be broadly classified as :Correct Answer Open ended scheme , Close ended scheme Your Answer Open ended scheme , Close ended scheme

Multiple Choice Multiple Answer Question What are the features of line charts? Correct Answer It connects closing prices from one period to the next , It is ideal for securities with no high or low price data Your Answer It connects closing prices from one period to the next , It is ideal for securities with no high or low price data

True/False Question Investors in high tax bracket would benefit by investing in equity schemes. Correct Answer False Your Answer False

Match The Following Question Correct Answer Your Answer

Ratio used as a measure of relative value PEG ratio Price to book value ratio

The market value of the firms assets divided by the replacement cost of these assets Market value to replacement cost ratio Market value to replacement cost ratio

Key determiner of revenue multiples Profit margin Profit margin

The market value of the equity in a firm reflects the markets expectations of the firms earnings power and cash flows. Price to book value ratio Price earning ratio

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer Question Gilt Edged Securities are :Correct Answer Central Govt , State Govt. , Quasi-Govt

Your Answer Central Govt

Multiple Choice Single Answer Question What is GDP at factor cost ? Correct Answer Excludes net income received from abroad Your Answer Excludes net income received from abroad

Multiple Choice Multiple Answer Question What are the features of short-term trends? Correct Answer They last from 1 to 3 or 4 weeks , They interrupt the course of the intermediate cycle , They are usually influenced by random news events Your Answer They last from 1 to 3 or 4 weeks , They interrupt the course of the intermediate cycle , They are usually influenced by random news events

Select The Blank Question The 8% taxable savings bonds are repayable after ________ years. Correct Answer 6 Your Answer 6

Multiple Choice Multiple Answer

Question Formula for calculation of portfolio variance requires :Correct Answer Expected return on portfolio , Expected return on assets , Weight of asset in the portfolio Your Answer Expected return on portfolio , Standard deviation , Weight of asset in the portfolio

Multiple Choice Multiple Answer Question The Two-Stage dividend discount model is based on the assumption of :Correct Answer An initial phase where the growth is not a stable growth rate , A subsequent steady state of growth rate being stable and lasts n years , A stable growth phase lasts forever Your Answer An initial phase where the growth is not a stable growth rate , A subsequent steady state of growth rate being stable and lasts n years , A stable growth phase lasts forever

Select The Blank Question Risk can be referred as the ________ in the return with respect to the expected return. Correct Answer Volatility Your Answer Difference

True/False Question With the introduction of on-line trading by NSE and BSE, the role of regional stock exchanges have diminished.

Correct Answer True Your Answer True

True/False Question The price earning ratio can be estimated for the firms with negative earnings per share. Correct Answer False Your Answer True

Multiple Choice Multiple Answer Question What were the achievements of Bharat Forge during the year 2003? Correct Answer Secured second largest customer in China , Appointed a Company Secretary to act as compliance officer , New contracts won in passenger car components Your Answer Secured second largest customer in China , Appointed a Company Secretary to act as compliance officer , New contracts won in passenger car components

Select The Blank Question ________ absorbs the excess demand or supply generated by hedgers and assume the risk of price fluctuations. Correct Answer Speculators Your Answer Jobbers

Multiple Choice Multiple Answer Question Who are the constituents of a mutual fund? Correct Answer Sponsor & trustees , Asset management company , Custodian Your Answer Sponsor & trustees , Asset management company , Custodian

True/False Question A share certificate indicates that the investor owns a certain number of shares. Correct Answer True Your Answer True

Multiple Choice Single Answer Question What is the percentage of variation the market and industry influence account for? Correct Answer 2/3rd Your Answer 2/3rd

Multiple Choice Single Answer Question How can transition phases be projected? Correct Answer

Transition phases are signalled by clearly definable price patterns Your Answer Transition phases are signalled by clearly definable price patterns

True/False Question Balance of payments surplus augments foreign reserves of the country and have a favourable impact on he exchange rate. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question What are the features of post office monthly income scheme? Correct Answer Rate of return is 8 % , Interest payable monthly , Investor earns bonus of 10% on completion of term Your Answer Rate of return is 8 % , Interest payable monthly , Investor earns bonus of 10% on completion of term

Match The Following Question Correct Answer Your Answer

NSE Nifty Nifty

SEBI Redressal of investor complaints Redressal of investor complaints

NAV Net asset value Net asset value

AMFI Association of mutual funds of India Association of mutual funds of India

Multiple Choice Multiple Answer Question What were the Chairman's comments during the speech in the Annual report of the FY 2002-03? Correct Answer Best year in the history of the company , 146% growth in exports , Highest pre and post tax profits Your Answer Best year in the history of the company , 146% growth in exports , Highest pre and post tax profits

Select The Blank Question Under the options contract ________ gives the holder the right, but not the obligation to buy or sell the underlying instrument only on the expiry date. Correct Answer European option Your Answer European option

Multiple Choice Single Answer Question When was the Dow theory first published? Correct Answer Between 1900 and 1902 Your Answer Between 1900 and 1902

Multiple Choice Multiple Answer Question What are the features of point and figure charts? Correct Answer Charts are constructed using a combination of X's and O's known as boxes. , X's show that the prices are moving up , O's show that the prices are moving down Your Answer Charts are constructed using a combination of X's and O's known as boxes. , X's show that the prices are moving up , O's show that the prices are moving down

Select The Blank Question The ________ phase carries a lot of significance because it marks the turning point between a rising and a falling market. Correct Answer Transitional Your Answer Transitional

Multiple Choice Single Answer Question Credit rating companies assign ratings for which of these investments?

Correct Answer Company deposits Your Answer Company deposits

Select The Blank Question When a debenture is sold to the general public a ________ is appointed. Correct Answer Trustee Your Answer Trustee

Select The Blank Question A security is said to be ________ if its current market price is over its intrinsic value. Correct Answer Over priced Your Answer Over priced

Multiple Choice Multiple Answer Question What are the different types of profitability ratios? Correct Answer Gross profit margin ratio , Earnings power , Return on equity Your Answer Gross profit margin ratio , Earnings power , Return on equity

Select The Blank Question Dow Jones transportation average was previously known as ________. Correct Answer Rail average Your Answer Rail average

Multiple Choice Single Answer Question An agreement to buy or sell a specified quantity of an asset at a certain future date or a certain price is know as :Correct Answer Forward contract Your Answer Forward contract

Multiple Choice Single Answer Question When was the first mutual fund set up? Correct Answer 1963 Your Answer 1963

Multiple Choice Single Answer Question Which market is affected with the improving and higher growth rate in economy? Correct Answer Stock market Your Answer

Stock market

Multiple Choice Single Answer Question What is the art of technical analysis? Correct Answer To identify trend changes at an early stage and maintain investment posture till the trend has reversed Your Answer To identify trend changes at an early stage and maintain investment posture till the trend has reversed

Multiple Choice Single Answer Question In any Economy, bridge is created between savers and who need the funds by this system :Correct Answer Financial Your Answer Financial

True/False Question The basic inputs of the general model are expected dividends and required rate of return on stock. Correct Answer True Your Answer True

True/False

Question Quick assets consist of current assets less inventories. Correct Answer True Your Answer True

True/False Question Bonds and Debentures represent long term debt instruments. Correct Answer False Your Answer True

Multiple Choice Single Answer Question The expected price of the stock at the end of the holding period is determined by future dividends and the value of the stock is the present value of dividends through infinity are the underlying assumptions of :Correct Answer The General model Your Answer The Dividend discount model

True/False Question American option gives the holder the right, but not the obligation to buy or sell the underlying instrument on or before the expiry date and the option can be exercised early. Correct Answer True

Your Answer True

True/False Question If rupee weakens against the dollar, it has favourable impact for the importers. Correct Answer False Your Answer False

Multiple Choice Multiple Answer Question What are the features of Kisan Vikas Patra? Correct Answer Term is for 8 years seven months , Provision of premature withdrawal , Interest rate is 8.4% compounded annually Your Answer Term is for 8 years seven months , Interest rate is 8.4% compounded annually , Tax benefits under 80 L available

Select The Blank Question ________ is the ratio of the market price per share to the earnings per share. Correct Answer Price earning ratio Your Answer Price earning ratio

Multiple Choice Multiple Answer

Question What are the warning indicators to be considered before analysing the financial statements of a firm ? Correct Answer Growth in profits outstripping the revenue growth by a large extent , Non operating expenses occur frequently , Accounting rules changed frequently Your Answer Growth in profits outstripping the revenue growth by a large extent , Non operating expenses occur frequently , Accounting rules changed frequently

Select The Blank Question ________ is the value today of a stream of cash flows that occurs in future. Correct Answer Present value Your Answer Present value

Select The Blank Question Under futures market ________ process provides for collection of losses that have already occurred. Correct Answer The daily settlement Your Answer The daily settlement

Multiple Choice Single Answer Question A security represent evidence of :Correct Answer A property right

Your Answer A property right

Match The Following Question Correct Answer Your Answer

The yield to maturity is same as the Geometric mean return or the internal rate of return Geometric mean return or the internal rate of return

Periodic interest payments and principal repayment at the time of maturity Debt instrument/Bonds Debt instrument/Bonds

The actual yield earned by an investor on a bond Realised yield Yield to maturity

Present value interest factor of annuities and present value interest factor Yield to maturity Interest rate risk

True/False Question A price rise accompanied by expanding volume denotes a potential trend reversal. Correct Answer False Your Answer False

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The Blank Question Measures of ________ tells us what we can expect a typical or middle data point of a distribution to be. Correct Answer Central tendency Your Answer Central tendency

Select The Blank Question ________ ratio indicates the margin available after meeting the manufacturing expenses. Correct Answer Gross Profit margin Your Answer Gross Profit margin

Multiple Choice Multiple Answer Question Which were the initiatives which the chairman said would focus on in 2003-04 in the speech in annual report for the year 2003-03? Correct Answer Research and development , Capital investment and focus on balance sheet , Overseas acquisitions Your Answer Research and development , Capital investment and focus on balance sheet ,

Overseas acquisitions

Multiple Choice Multiple Answer Question What developments had taken place during the year 2000 in case of Bharat Forge Ltd.? Correct Answer Demerger of investment division and windmills , Nominee director of UTI resigned and ceased to be the director - nomination withdrawn by UTI Your Answer Demerger of investment division and windmills , Nominee director of UTI resigned and ceased to be the director - nomination withdrawn by UTI

Select The Blank Question The ________ phase is characterized by resistance area and support level. Correct Answer Transition Your Answer Transition

Select The Blank Question The 6.________% tax saving bonds of government of India have a tenure of 5 years. Correct Answer 5 Your Answer 5

Match The Following

Question Correct Answer Your Answer

Expiration period for options Nine months Nine months

The world's first largest options exchange Chicago Board of options exchange New York board of Options exchange

The most popular pricing options model published in the year 1973 Black Scholes Black Scholes

When the writer gives the buyer of the option the right to sell the underlying asset on or before the expiry date Put option Put option

Multiple Choice Multiple Answer Question An option is :Correct Answer A contract between two parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee Your Answer A contract between two parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee

True/False Question Currently in India index options are both European and American in nature. Correct Answer False Your Answer False

Multiple Choice Multiple Answer Question Return can be in the form of :Correct Answer Dividends , Interests , Capital appreciation Your Answer Dividends , Interests , Capital appreciation

Multiple Choice Multiple Answer Question Which of the following are important momentum indicators used widely? Correct Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD) Your Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD)

Select The Blank Question The Derivative market is divided into Future market and ________ market. Correct Answer Options

Your Answer Options

True/False Question European style options are more expensive than American style because they offer greater flexibility to the buyer. Correct Answer False Your Answer False

True/False Question A segment is unattractive if the buyers possess strong or growing bargaining powers. Correct Answer True Your Answer True

Match The Following Question Correct Answer Your Answer

Average collection period Similar to debtors turnover How fast the inventory is being converted

Turnover ratios

Help measure the efficiency of utilisation of assets Help measure the efficiency of utilisation of assets

Debt Equity ratio Debt / Equity Debt / Equity

Quick assets Highly liquid assets Highly liquid assets

Multiple Choice Multiple Answer Question In a typical stock market cycle which are the types of trends? Correct Answer Trends upward , Trend downward , Sideway trend Your Answer Trends upward , Trend downward , Sideway trend

Multiple Choice Single Answer Question What is a resistance level? Correct Answer A point where there is opposition to further price rise Your Answer A point where there is opposition to further price rise

Select The Blank Question Debentures rated as "A" are judged to offer ________ of timely payment of

interest and principal. Correct Answer Adequate safety Your Answer High safety

True/False Question A mutual fund is required to dispatch the dividend warrants to the unit holders within thirty days of the declaration of dividend. Correct Answer True Your Answer True

Select The Blank Question ________ measures the efficiency of credit management. Correct Answer Average collection period Your Answer Interest coverage ratio

Multiple Choice Single Answer Question How would you rate a portfolio with 90% investment in stocks? Correct Answer Highly aggressive Your Answer Highly aggressive

Select The Blank Question ________ is due to the fact that a borrower may not pay interest and/or principal on time. Correct Answer Default risk Your Answer Default risk

Multiple Choice Multiple Answer Question The Gordon growth model is best suited for firms :Correct Answer Growing at a rate equal to or lower that the growth in the economy , Which have well established dividend payout ratio policy , Whose earnings are steady and perpetual Your Answer Growing at a rate equal to or lower that the growth in the economy , Which have well established dividend payout ratio policy

Multiple Choice Single Answer Question Agriculture account for how much portion of the economy? Correct Answer Quarter Your Answer Quarter

Multiple Choice Single Answer Question How did Dow use the behaviour of stock markets?

Correct Answer As a barometer of business conditions rather than a basis for forecasting stock prices Your Answer To predict trend patterns in stock prices

Select The Blank Question ________ take long or short positions only with the intention of making profits by getting out of the market when conditions favor them. Correct Answer Speculators Your Answer Hedgers

True/False Question In case of fixed income securities like debentures, you get the return in the form of dividend. Correct Answer False Your Answer True

Multiple Choice Single Answer Question What are primary trends? Correct Answer Reflection of investor's attitudes towards unfolding fundamentals in the business cycle Your Answer Long term trends

Multiple Choice Single Answer Question Mr. Shekhar invests Rs.50,000/- in a scheme of LIC, the rate of interest is 8% compounded annually. What will be the value of his investment after 5 years? Correct Answer Rs. 73466/Your Answer Rs. 73466/-

True/False Question Default is normally evaluated and indicated by the rating assigned to the debt instruments by independent credit ratings agencies. Correct Answer True Your Answer True

Multiple Choice Single Answer Question Mr.Satish invests Rs.10,000/- today. The rate of interest is 8% compounded annually. What will be the value of his investment after 5 years? Correct Answer Rs.14.693/Your Answer Rs.14.693/-

Select The Blank Question

The Dow theory was published in a series of editorials in the ________. Correct Answer Wall street journal Your Answer Wall street journal

True/False Question The price earning ratio is an increasing function of the payout ratio and the growth rate and a decreasing function of the riskiness of the firm. Correct Answer True Your Answer False

Multiple Choice Single Answer Question The greater the deviation of the actual returns from the actual return :Correct Answer Greater the variance Your Answer Greater the variance

Multiple Choice Multiple Answer Question Features of PSU Bonds are :Correct Answer No TDS , Transferable by endorsement , No stamp duty on transfer Your Answer No TDS , Transferable by endorsement , No stamp duty on transfer

Multiple Choice Multiple Answer Question What are the features of public provident scheme? Correct Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is available from 7th year Your Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is available from 7th year

Multiple Choice Multiple Answer Question Which are the different types of accounts offered to investors by the stock brokers? Correct Answer Cash trading , Margin trading Your Answer General trading , Cash trading , Margin trading

Multiple Choice Single Answer Question In a forward contract there is :Correct Answer No Exchange of cash Your Answer No Exchange of cash

Multiple Choice Single Answer Question Under EMH it is assumed that if markets are efficient, securities are priced to provide a :-

Correct Answer Normal returns for their given level of risk Your Answer Equal returns for their given level of risk

True/False Question If a rupee weakens against the dollars it has favourable impact for the exporters. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question If option is given to you to receive Rs.1,000/- today or after one year, you will choose to receive it today because :Correct Answer You can use the amount to generate returns over the next one year , The purchasing power of Rs.1,000/- today is more than what it will be one year from now , There is an element of uncertainty associated with the future receipt Your Answer You can use the amount to generate returns over the next one year , The purchasing power of Rs.1,000/- today is more than what it will be one year from now , There is an element of uncertainty associated with the future receipt

Multiple Choice Single Answer Question The growth period in the industry life cycle is defined as :Correct Answer Period of rapid market acceptance and substantial profit improvement Your Answer

Period of rapid market acceptance and substantial profit improvement

Multiple Choice Single Answer Question What is the objective of Portfolio management? Correct Answer To Minimize risk and maximize return Your Answer To Minimize risk and maximize return

True/False Question A rally that develops on contracting volumes is suspect and warns of a potential trend reversal in price Correct Answer True Your Answer True

True/False Question Post office monthly schemes have a 10 year tenor. Correct Answer False Your Answer False

Multiple Choice Single Answer Question The approach followed to assess the growth rate by looking at how much a firm

reinvests for future growth and the quality of its re-investments is :Correct Answer Estimating growth from a firm's fundamentals Your Answer Earnings multiplier approach

Multiple Choice Single Answer Question Mr.Saurabh invests Rs. 5,000/- today. The rate of interest is 4% compounded annually. What will be the value of his investment after 5 years? Correct Answer Rs. 6083/Your Answer Rs. 6083/-

6.

A segment is more attractive when there are actual or potential substitutes for the product.

True False

12.

The GDP growth rate in the economy in real terms has fluctuated between :-

a) 4% and 5%

b)

c)

3% and 4% 6% and 7% 5% and 6%

d)

14.

The sideways trend is essentially a transitional one which separates the two major market movements.

True False

17.

What is the minimum investment amount in G-secs?

a)

b)

1000 10000

c)

d)

30.

50000 100000

The Two-Stage dividend discount model is best suited for the firms that are :-

a)

b)

In high growth rate phase Expecting to maintain the growth rate phase steadily for a specific time period

c)

d)

Expecting a established dividend payout ratio Sources of high growth are expected to disappear after specific period of time

How can the financial statements can be manipulated while giving the estimates for growth?

a)

Change method of rate of depreciation

b)

Change method of stock valuation

c)

d)

Inflating sales for current year by advancing sales for the following year Changing the management of the company frequently

Marks : 2

45.

a)

b)

c)

What are the ways of measuring relative strength?

Calculate the rates of return and classify securities that have earned superior historical returns Calculating certain ratios will help in analyzing whether a security has relative strength Calculating the Return on investment Working out the high and low price fluctuations

d)

46.

a)

b)

The average investor in the market is driven more by emotions than by rational analysis is a rule of :-

Fundamental Analysis Intrinsic value analysis Economic Analysis

c)

Technical analysis

d)

49.

a)

b)

What levels if increased will have unfavourable impact on the stock market?

Higher levels of unemployment Unstable economy Higher levels of taxation

c)

Low levels of interest rates

d)

55.

a)

b)

Why does every investor have different investment objectives?

Since every investor has a different set of circumstances, needs and opportunities Since it depends on their investment strategies

Every investor has different risk bearing capacities

c) Every investor has different perception of the markets

d)

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

True/False Question In case of assured returns, A scheme cannot promise returns unless such returns are fully guaranteed by sponsor or AMC. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question What are the features of short-term trends? Correct Answer They last from 1 to 3 or 4 weeks , They interrupt the course of the intermediate cycle , They are usually influenced by random news events Your Answer They last from 1 to 3 or 4 weeks , They interrupt the course of the intermediate cycle , They are usually influenced by random news events

Multiple Choice Single Answer

Question Who operates the sinking fund under the sinking fund provision of a firm? Correct Answer The bond trustee or the issuer Your Answer The bond trustee or the issuer

True/False Question Certificate of Deposits offers high rate of interest than Treasury Bills. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question What developments had taken place during the year 2000 in case of Bharat Forge Ltd.? Correct Answer Demerger of investment division and windmills , Nominee director of UTI resigned and ceased to be the director - nomination withdrawn by UTI Your Answer Demerger of investment division and windmills , Nominee director of UTI resigned and ceased to be the director - nomination withdrawn by UTI

True/False Question While calculating geometric mean calculation of root is not important. Correct Answer False Your Answer False

Multiple Choice Single Answer Question The objective of fundamental analysis for a security in a market is to identify either it is :Correct Answer Under priced and over priced Your Answer Under priced and over priced

True/False Question A higher value of current ratio indicates a better short term solvency of the firm. Correct Answer True Your Answer True

True/False Question A rise in interest rates will push the market prises of outstanding bonds where as a fall in interest rates will depress the market prices down. Correct Answer False Your Answer False

Select The Blank Question The ________ phase carries a lot of significance because it marks the turning point between a rising and a falling market.

Correct Answer Transitional Your Answer Transitional

Match The Following Question Correct Answer Your Answer

Equity shares High risk High risk

Government Securities No risk No risk

Bank Deposits Low risk Low risk

Mutual Funds Average risk Average risk

Select The Blank Question Secondary reactions occurs because of ________ which arise in the market as a result of over optimism and over pessimism. Correct Answer Technical distortions

Your Answer Technical distortions

True/False Question Bearish actions come from a series of declining peaks and troughs. Correct Answer True Your Answer True

Multiple Choice Single Answer Question What is an open ended fund or scheme? Correct Answer Which is available for subscription and repurchase on a continuous basis Your Answer Which is available only for subscription on a continuous basis

Match The Following Question Correct Answer Your Answer

Turnover ratios Help measure the efficiency of utilisation of assets How fast the inventory is being converted

Debt Equity ratio Debt / Equity Debt / Equity

Quick assets Highly liquid assets Highly liquid assets

Average collection period Similar to debtors turnover Similar to debtors turnover

Multiple Choice Single Answer Question The present value of all the future cash payments to be paid on the security to the investor is termed as :Correct Answer Intrinsic value of a security Your Answer Intrinsic value of a security

Select The Blank Question Dow Jones transportation average was previously known as ________. Correct Answer Rail average Your Answer Rail average

True/False Question The basic assumption of Technical analysis is that, price discounts everything and it is the outcome of all forces affecting a stock. Correct Answer True

Your Answer True

Multiple Choice Multiple Answer Question The commonly used charts to measure the movements in price under the technical analysis are :Correct Answer Line Charts , Bar Charts , Point and Figure Charts Your Answer Line Charts , Bar Charts , Point and Figure Charts

Multiple Choice Multiple Answer Question What are the important macro economic indicators? Correct Answer GNP growth rate , Price Conditions , Monsoons Your Answer GNP growth rate , Price Conditions , Monsoons

Select The Blank Question A security is said to be ________ if its current market price is over its intrinsic value. Correct Answer Over priced Your Answer Over priced

Multiple Choice Single Answer Question

What do you understand by the term redemption price? Correct Answer Price or NAV at which a scheme purchases its units Your Answer Price or NAV at which a scheme purchases its units

Select The Blank Question ________ is due to the fact that a borrower may not pay interest and/or principal on time. Correct Answer Default risk Your Answer Default risk

Multiple Choice Multiple Answer Question What are the features of Kisan Vikas Patra? Correct Answer Term is for 8 years seven months , Provision of premature withdrawal , Interest rate is 8.4% compounded annually Your Answer Term is for 8 years seven months , Provision of premature withdrawal , Tax benefits under 80 L available

Multiple Choice Single Answer Question What could be a better approach to flow-of -funds analysis? Correct Answer An examination of liquidity trends in the banking system Your Answer An examination of liquidity trends in the banking system

True/False Question Fundamental analysis focuses on predicting the future price of a security and Technical analysis on estimating the intrinsic value of a security. Correct Answer False Your Answer False

Multiple Choice Single Answer Question What is a technical approach to investment? Correct Answer A reflection of the idea that prices move in trends which are determined by various factors Your Answer A reflection of the idea that prices move in trends which are determined by various factors

Select The Blank Question The 8% taxable savings bonds are repayable after ________ years. Correct Answer 6 Your Answer 6

Select The Blank Question Acid test ratio is more stringent measure of liquidity compared to the ________.

Correct Answer Current ratio Your Answer Current ratio

Select The Blank Question An ________ is a series of equal payments or receipts occurring at regular intervals of time. Correct Answer Annuity Your Answer Annuity

Select The Blank Question When a debenture is sold to the general public a ________ is appointed. Correct Answer Trustee Your Answer Trustee

True/False Question The basic inputs of the general model are expected dividends and required rate of return on stock. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question Gilt Edged Securities are :Correct Answer Central Govt , State Govt. , Quasi-Govt Your Answer Central Govt , State Govt. , Quasi-Govt

Multiple Choice Single Answer Question Dividend discount model is considered as the simplest model for :Correct Answer Valuing Equity Your Answer Valuing Equity

True/False Question The arithmetic mean is a set of observations is calculated by finding the sum values and dividing by the number of observations. Correct Answer True Your Answer True

Select The Blank Question Mutual fund is to be registered with ________ before raising funds from public. Correct Answer SEBI Your Answer SEBI

Multiple Choice Multiple Answer Question Formula for calculation of portfolio variance requires :Correct Answer Expected return on portfolio , Expected return on assets , Weight of asset in the portfolio Your Answer Expected return on portfolio , Expected return on assets , Weight of asset in the portfolio

Multiple Choice Single Answer Question What is the minimum investment amount in G-secs? Correct Answer 1000 Your Answer 1000

Multiple Choice Multiple Answer Question Which are the different styles of displaying charts? Correct Answer Bar and line charts , Candle stick charts , Point and figure charts Your Answer Bar and line charts , Candle stick charts , Point and figure charts

Multiple Choice Multiple Answer Question Characteristics of Preference shares are :Correct Answer

Carry a fixed rate of dividend , Dividend payable out of profit , Redemption in 7 to 12 years Your Answer Carry a fixed rate of dividend , Dividend payable out of profit , Redemption in 7 to 12 years

Select The Blank Question The ________ phase is characterized by resistance area and support level. Correct Answer Transition Your Answer Transition

Select The Blank Question In a heads and shoulders formation the deeper the pattern, the greater is the ________ significance once it is completed Correct Answer Bearish Your Answer Bearish

Multiple Choice Multiple Answer Question Explain what are leverage ratios ? Correct Answer Help in assessing the risk arising using the debt capital , Debt equity ratio and interest coverage ratio and DSCR are important leverage ratios , Debt is riskier source of finance as it entails fixed outgo of periodic payments Your Answer Help in assessing the risk arising using the debt capital , Debt equity ratio and interest coverage ratio and DSCR are important leverage ratios , Debt is riskier source of finance as it entails fixed outgo of periodic payments

True/False Question Passive investment managers believe that markets are inefficient and Active managers believe that markets are efficient. Correct Answer False Your Answer False

Select The Blank Question S&P NSE 50 index is known as ________. Correct Answer NIFTY Your Answer NIFTY

Multiple Choice Single Answer Question Which of the following is a money market fund? Correct Answer Commercial paper Your Answer Commercial paper

Multiple Choice Single Answer Question Capital expenditure -depreciation +change in working capital -(new debt issued debt repaid) = Correct Answer

Equity reinvested in business Your Answer Equity reinvested in business

Marks : 2

44.

a)

b)

To measure the current yield on the bond, it's coupon rate is compared with :-

Future estimated price Prevailing market price Prevailing book price

c)

Historical market price

d)

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

True/False Question Investment in gilt edged securities carry a higher element of risk. Correct Answer False Your Answer False

Select The Blank Question The Derivative market is divided into Future market and ________ market. Correct Answer Options Your Answer Options

Select The Blank Question ________ of companies may open at higher or lower price than the issue price. Correct Answer IPO's Your Answer Market price

True/False Question Equity shares is a high return high risk instrument. Correct Answer True Your Answer True

True/False Question When you are making an investment you are expecting certain future benefits from your investment. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question The Two-Stage dividend discount model is based on the assumption of :Correct Answer An initial phase where the growth is not a stable growth rate , A subsequent steady state of growth rate being stable and lasts n years , A stable growth phase lasts forever Your Answer An initial phase where the growth is not a stable growth rate , A subsequent steady state of growth rate being stable and lasts n years , A stable growth phase lasts forever

Multiple Choice Single Answer Question Mr. Tiwari is expecting to receive Rs.25,000/- at the end of 10 years. He wanted to know what is the present value of this amount, if the rate of interest is 10% p.a:Correct Answer Rs. 9639/Your Answer Rs. 9639/-

Multiple Choice Single Answer Question What is Gross National Product ? Correct Answer Gross income generated from within the country Your Answer Gross income generated from within the country

Multiple Choice Single Answer

Question What does a Balanced fund seek to achieve? Correct Answer Growth and regular income Your Answer Growth and regular income

Match The Following Question Correct Answer Your Answer

Weak form model is also termed as Random walk model Random walk model

Investors are rational Efficient market hypothesis Efficient market hypothesis

Securities current prices fully reflect all historical information Weak form EMH Weak form EMH

Framework on efficient capital markets, a review of theory and empirical work Fama Fama

Multiple Choice Multiple Answer Question Which ratios are commonly used? Correct Answer

Interest coverage ratios , Debt service coverage ratios , Debt equity ratio Your Answer Debt equity ratio , Interest coverage ratios , Debt service coverage ratios

Multiple Choice Single Answer Question Under EMH it is assumed that if markets are efficient, securities are priced to provide a :Correct Answer Normal returns for their given level of risk Your Answer Normal returns for their given level of risk

Multiple Choice Multiple Answer Question Return can be in the form of :Correct Answer Dividends , Interests , Capital appreciation Your Answer Dividends , Interests , Capital appreciation

Multiple Choice Single Answer Question Profits are non existent in pioneering stage because of :Correct Answer Heavy expenses on product introduction Your Answer Heavy expenses on product introduction

Select The Blank

Question Measures of ________ tells us what we can expect a typical or middle data point of a distribution to be. Correct Answer Central tendency Your Answer Central tendency

Select The Blank Question ________ identified five forces that determine the intrinsic long run profit attractiveness of a market or market segment. Correct Answer Michael Porter Your Answer Michael Porter

Match The Following Question Correct Answer Your Answer

MCX Commodity Exchange Commodity Exchange

Sensex BSE Index BSE Index

Nifty NSE Index NSE Index

Lifex ET Index ET Index

Multiple Choice Multiple Answer Question Mutual fund schemes could be broadly classified as :Correct Answer Open ended scheme , Close ended scheme Your Answer Open ended scheme , Close ended scheme

Multiple Choice Multiple Answer Question Which are the most popular types of orders placed through an online trading account? Correct Answer Limit orders , Market orders Your Answer Limit orders , Market orders

Multiple Choice Single Answer Question Mr.Satish invests Rs.10,000/- today. The rate of interest is 8% compounded annually. What will be the value of his investment after 5 years? Correct Answer Rs.14.693/Your Answer Rs.14.693/-

Multiple Choice Multiple Answer Question Growth of the firm can be estimated through :Correct Answer Firm's past earnings/historical growth rate , Estimates made by equity research analyst who follow the firm , Estimates from a firm's fundamentals Your Answer Firm's past earnings/historical growth rate , Estimates made by equity research analyst who follow the firm , Estimates from a firm's fundamentals

Multiple Choice Single Answer Question What is the rate of interest on the tax free bonds issue by the government? Correct Answer 6.5% Your Answer 6.5%

Multiple Choice Multiple Answer Question Which of the following are important momentum indicators used widely? Correct Answer Moving average convergence divergence(MACD) , Rate of change (ROC) , Relative strength indicator (RSI) Your Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD)

Select The Blank Question ________ measures the profitability of operations without considering the influence of financial structure and tax rate. Correct Answer Earnings power

Your Answer Earnings power

Multiple Choice Single Answer Question When an investor invests in stock, expects to get the dividends and an expected price for the period the stock is held is the rule of :Correct Answer The General model Your Answer The General model

Select The Blank Question ________ deal in futures to offset a pre-existing risk. Correct Answer Hedger Your Answer Hedger

Multiple Choice Multiple Answer Question What are the different types of profitability ratios? Correct Answer Gross profit margin ratio , Earnings power , Return on equity Your Answer Gross profit margin ratio , Return on equity , Debt service coverage ratio

Multiple Choice Multiple Answer Question To measure the movement of stocks in the market which indices were

constructed by Dow? Correct Answer Dow Jones industrial Average , Dow Jones Transportation Average Your Answer Dow Jones industrial Average , Dow Jones Transportation Average

True/False Question The price earning ratio is an increasing function of the payout ratio and the growth rate and a decreasing function of the riskiness of the firm. Correct Answer True Your Answer True

True/False Question If rupee weakens against the dollar, it has favourable impact for the importers. Correct Answer False Your Answer False

True/False Question A mutual fund is required to dispatch the dividend warrants to the unit holders within thirty days of the declaration of dividend. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question Active investment managers :Correct Answer Do not believe that markets are efficient , Puts efforts to search mispriced securities in the market , Are relatively active traders in securities to acquire abnormal returns Your Answer Do not believe that markets are efficient , Puts efforts to search mispriced securities in the market , Are relatively active traders in securities to acquire abnormal returns

Multiple Choice Multiple Answer Question What are the features of candle stick charts? Correct Answer Indicates in black if the closing price is lower than the opening price , Indicates in white if the closing price is higher than the opening price Your Answer Indicates in black if the closing price is lower than the opening price , Indicates in white if the closing price is higher than the opening price

True/False Question Bonds and Debentures represent long term debt instruments. Correct Answer False Your Answer False

Select The Blank Question The possibility of reduction of risk through the construction of a portfolio depends on the value of ________ between the two assets.

Correct Answer Correlation coefficient Your Answer Correlation coefficient

Select The Blank Question A line is defined as a price movement two or three weeks or longer, during which period the price variation of both averages moves within a price range of approximately________%. Correct Answer 5 Your Answer 5

True/False Question The performance of a scheme is reflected in its NAV which is disclosed on a daily basis in case of open ended schemes. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question A firm's growth is determined by how much is re-invested into new assets and the quality of these investments, and these includes :Correct Answer Acquisitions , Building distribution channels , Expanding marketing capabilities and investing in new facilities Your Answer Acquisitions , Building distribution channels , Expanding marketing capabilities and investing in new facilities

True/False Question Currently in India index options are both European and American in nature. Correct Answer False Your Answer False

Multiple Choice Single Answer Question A security represent evidence of :Correct Answer A property right Your Answer A property right

Multiple Choice Single Answer Question Mr.Saurabh invests Rs. 5,000/- today. The rate of interest is 4% compounded annually. What will be the value of his investment after 5 years? Correct Answer Rs. 6083/Your Answer Rs. 6083/-

Multiple Choice Single Answer Question When a firm can grow net profits by issuing equity, the expected growth rate in net profits is determined by :Correct Answer

Equity reinvestment rate X return on equity Your Answer Equity reinvestment rate X return on equity

True/False Question Fixed assets turnover ratio measures the efficiency of utilisation of total assets, fixed as well as current. Correct Answer True Your Answer True

Select The Blank Question UTI was set up in the year ________. Correct Answer 1963 Your Answer 1963

Select The Blank Question The regulations of SEBI with respect to mutual funds were fully revised in the year ________. Correct Answer 1996 Your Answer 1996

Select The Blank

Question ________ take long or short positions only with the intention of making profits by getting out of the market when conditions favor them. Correct Answer Speculators Your Answer Speculators

Multiple Choice Single Answer Question What do you understand by money supply? Correct Answer Total money in existence at any given time Your Answer Total money in existence at any given time

What is the objective of fundamental analysis?

a)

To establish relationship between economic, industrial and company indicators with a view to forecast the earnings and dividends of the company

b) Analyse the macro economic environment

c)

d)

Analyse the company and sector profitability To establish relationship between economic, industrial and company indicators and compare it with the other sector

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The Blank Question ________ is affected by the leverage decisions of the firm. Correct Answer Return on equity Your Answer Price earning ratio

Multiple Choice Multiple Answer Question The investor in bonds receives income from :Correct Answer Interest payments at coupon rates , Capital gain/loss arising out of the sale of the bond , Redemption of the bond of the issuer at a contracted value Your Answer Capital gain/loss arising out of the sale of the bond , Redemption of the bond of the issuer at a contracted value , Interest payments at coupon rates

Multiple Choice Single Answer Question Mr. Sharma is expecting to receive Rs. 50,000/- at the end of 5 years. He wanted to know what is the present value of this amount, if the rate of interest is 6% p.a? Correct Answer Rs. 37363/Your Answer Rs. 37363/-

Multiple Choice Single Answer Question Mr. Suresh is expecting to receive Rs.1,50,000/- at the end of 3 years. He wanted to know what is the present value of this amount, if the rate of interest is 9% p.a ?

Correct Answer Rs.1,15,827/Your Answer Rs.1,15,827/-

Multiple Choice Multiple Answer Question Equity analysts provides estimates of earnings and earnings growth for future, using historical data and :Correct Answer Macro economic information that may impact future growth , Private information about the firm , Firm's specific information and public information Your Answer Macro economic information that may impact future growth , Private information about the firm , Firm's specific information and public information

Multiple Choice Multiple Answer Question What are the features of company fixed deposits? Correct Answer Interest rate offered is higher than banks , No benefits under 80 L , No TDS for interest income upto Rs. 5000 Your Answer Interest rate offered is higher than banks , No benefits under 80 L , No TDS for interest income upto Rs. 5000

True/False Question A firm uses a combination of equity and debt for financing its assets. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question The Peer group of Bharat Forge consists of which all companies? Correct Answer Am forge industries , Kalyani Forge , EL Forge Your Answer Am forge industries , Kalyani Forge , EL Forge

Multiple Choice Single Answer Question Mr.Rohan invests Rs.25,000/- today. The rate of interest is 6% compounded annually. What will be the value of his investment after 3 years? Correct Answer Rs. 29775/Your Answer Rs. 29775/-

Multiple Choice Single Answer Question Mr. Suhas is expecting to receive Rs.1,00,000/- at the end of 7 years. He wanted to know what is the present value of this amount, if the rate of interest is 7% p.a ? Correct Answer Rs. 62,275/Your Answer Rs. 62,275/-

True/False Question A rally that develops on contracting volumes is suspect and warns of a potential trend reversal in price

Correct Answer True Your Answer True

Select The Blank Question ________ is the value today of a stream of cash flows that occurs in future. Correct Answer Present value Your Answer Present value

Multiple Choice Multiple Answer Question If option is given to you to receive Rs.1,000/- today or after one year, you will choose to receive it today because :Correct Answer You can use the amount to generate returns over the next one year , The purchasing power of Rs.1,000/- today is more than what it will be one year from now , There is an element of uncertainty associated with the future receipt Your Answer You can use the amount to generate returns over the next one year , The purchasing power of Rs.1,000/- today is more than what it will be one year from now , There is an element of uncertainty associated with the future receipt

Multiple Choice Multiple Answer Question What are the features of line charts? Correct Answer It connects closing prices from one period to the next , It is ideal for securities with no high or low price data Your Answer

It connects closing prices from one period to the next , It is ideal for securities with no high or low price data

Multiple Choice Single Answer Question What is the objective of Portfolio management? Correct Answer To Minimize risk and maximize return Your Answer To Minimize risk and maximize return

True/False Question The risk associated to get the required rate of return on the stock is measure by market beta. Correct Answer True Your Answer True

Match The Following Question Correct Answer Your Answer

Growth of income 40-60 % debt, 40-60 % equities 40-60 % debt, 40-60 % equities

Current income Short term debt portfolio Short term debt portfolio

Stability of principal Fixed - income portfolio Fixed - income portfolio

Appreciation 75-100 % in equities 75-100 % in equities

Select The Blank Question ________ refers to the possibility that there may not be a readily available market for the particular bond. Correct Answer Liquidity risk Your Answer Liquidity risk

True/False Question The cost structure remaining the same, better price realisation results in lower gross profit ratio. Correct Answer False Your Answer False

True/False Question Five paisa.com is an example of on line trading portal. Correct Answer

True Your Answer True

Multiple Choice Single Answer Question What is balance of payments? Correct Answer Credit and debit transactions of a country Your Answer Credit and debit transactions of a country

Select The Blank Question ________ absorbs the excess demand or supply generated by hedgers and assume the risk of price fluctuations. Correct Answer Speculators Your Answer Speculators

Multiple Choice Multiple Answer Question Major steps involved in construction of a index are :Correct Answer Selecting a set of scrips to be used , Fixing starting date , Calculating market capitalisation Your Answer Selecting a set of scrips to be used , Fixing starting date , Calculating market capitalisation

Multiple Choice Single Answer Question In any Economy, bridge is created between savers and who need the funds by this system :Correct Answer Financial Your Answer Financial

Select The Blank Question ________ is the value at a certain future date today of a stream of cash flows that occurs over a period of time. Correct Answer Future value Your Answer Future value

Multiple Choice Single Answer Question How many measures of money supply are used commonly? Correct Answer 2 Your Answer 2

True/False Question PPF is a good retirement planning and tax saving vehicle. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question The security analysis process will achieve :Correct Answer True picture of a company , Normal earning power , Projection of future profitability Your Answer True picture of a company , Normal earning power , Projection of future profitability

Select The Blank Question ________ bonds are generally called for prepayment after interest rates have fallen, investors will not be able to find comparable investment avenues. Correct Answer Call risk Your Answer Call risk

Select The Blank Question Debentures rated "BB" refers ________ of timely payment of interest and principal. Correct Answer Inadequate safety Your Answer Inadequate safety

Multiple Choice Single Answer Question What is the goal of the Dow theory?

Correct Answer To determine changes in the primary or major movement in the market Your Answer To determine changes in the primary or major movement in the market

Multiple Choice Multiple Answer Question Who are the constituents of a mutual fund? Correct Answer Sponsor & trustees , Asset management company , Custodian Your Answer Sponsor & trustees , Asset management company , Custodian

Multiple Choice Single Answer Question What is the indicator of buoyant economy? Correct Answer Increased level of housing construction activity Your Answer Increased level of housing construction activity

Multiple Choice Multiple Answer Question What were the achievements of Bharat Forge during the year 2003? Correct Answer Secured second largest customer in China , Appointed a Company Secretary to act as compliance officer , New contracts won in passenger car components Your Answer Secured second largest customer in China , Appointed a Company Secretary to act as compliance officer , New contracts won in passenger car components

Select The Blank Question The 6.________% tax saving bonds of government of India have a tenure of 5 years. 5

Correct Answer Your Answer

5

Select The Blank Question The compounded annual return of Kisan Vikas patra is ________. Correct Answer 0.084 Your Answer 0.084

True/False Question The labour conditions do not play an important role in the industry analysis. Correct Answer False Your Answer False

Select The Blank Question ________ is also known as random walk model. Correct Answer Weak form EMH Your Answer Weak form EMH

Multiple Choice Single Answer Question Futures contract on individual securities shall expire on the last Thursday of the expiry month and if the last Thursday is a trading holiday then the contract shall expire on the :Correct Answer Previous day Your Answer Previous day

Match The Following Question Correct Answer Your Answer

Technical collaboration of Bharat Forge with SIFCO industries USA 1981 1981

Bharat Forge was incorporated at Mumbai 1961 1961

Shares of 100 each subdivided of Bharat forge 1971 1971

930000 bonus shares issued by Bharat Forge 1976 1976

Select The Blank Question ________ ratio is estimated by dividing the market value of a firm's assets by the replacement cost of these assets. Correct Answer Market value to replacement cost ratio Your Answer Market value to replacement cost ratio

Select The Blank Question Debentures rated ________ are judged to offer sufficient safety of timely payment of interest and repayment of principal. Correct Answer "BBB" Your Answer "BBB"

Multiple Choice Single Answer Question As per the exhibit 18-1 for individual stock futures on NSE, the price steps in respect of all futures contract admitted to the dealings of the exchange shall be :Correct Answer 0.05 Your Answer 0.05

Multiple Choice Multiple Answer Question The return to the bond investor can be measured in terms of :Correct Answer Current yield , Yield to maturity , Realised yield Your Answer

Current yield , Yield to maturity , Realised yield

Multiple Choice Single Answer Question A derivative is a product whose value is derived from :Correct Answer Value of an underlying asset Your Answer Value of an underlying asset

Multiple Choice Single Answer Question Mr. Shekhar invests Rs.50,000/- in a scheme of LIC, the rate of interest is 8% compounded annually. What will be the value of his investment after 5 years? Correct Answer Rs. 73466/Your Answer Rs. 73466/-

Multiple Choice Single Answer Question What is the limitation of Flow-of funds analysis method? Correct Answer Cannot give indication of the inclination of market participants to purchase stock Your Answer Cannot give indication of the inclination of market participants to purchase stock

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer

Question Active investment managers :Correct Answer Do not believe that markets are efficient , Puts efforts to search mispriced securities in the market , Are relatively active traders in securities to acquire abnormal returns

Multiple Choice Multiple Answer Question Equity analysts provides estimates of earnings and earnings growth for future, using historical data and :Correct Answer Macro economic information that may impact future growth , Private information about the firm , Firm's specific information and public information

Multiple Choice Multiple Answer Question What are the features of short-term trends? Correct Answer They last from 1 to 3 or 4 weeks , They interrupt the course of the intermediate cycle , They are usually influenced by random news events

Multiple Choice Multiple Answer Question What are the features of trend lines Correct Answer A simple and useful tool in technical analysis , Prices move in trends , The trend lines represent points of support and resistance

Multiple Choice Multiple Answer

Question What are the features of candle stick charts? Correct Answer Indicates in black if the closing price is lower than the opening price , Indicates in white if the closing price is higher than the opening price Your Answer , Displays the correlation between the high and low prices Multiple Choice Multiple Answer Question The growth rate in the initial phase is not constant but declines linearly over time to reach the stable growth rate in steady state is a phenomena of :Correct Answer H- Model for valuing growth , H-Two stage model for growth , H-Model unlike the classic two stage model

Multiple Choice Multiple Answer Question What are the features of line charts? Correct Answer It connects closing prices from one period to the next , It is ideal for securities with no high or low price data

Multiple Choice Multiple Answer Question What are the ways of measuring relative strength? Correct Answer Calculate the rates of return and classify securities that have earned superior historical returns , Calculating certain ratios will help in analyzing whether a security has relative strength Your Answer Calculating the Return on investment

Multiple Choice Multiple Answer Question The Peer group of Bharat Forge consists of which all companies? Correct Answer Am forge industries , Kalyani Forge , EL Forge

Multiple Choice Multiple Answer Question Which were the initiatives which the chairman said would focus on in 2003-04 in the speech in annual report for the year 2003-03? Correct Answer Research and development , Capital investment and focus on balance sheet , Overseas acquisitions

Multiple Choice Multiple Answer Question The Two-Stage dividend discount model is best suited for the firms that are :Correct Answer In high growth rate phase , Expecting to maintain the growth rate phase steadily for a specific time period , Sources of high growth are expected to disappear after specific period of time

Multiple Choice Multiple Answer Question The features of bond are :Correct Answer Collateral , Call provision , Sinking fund and protective covenants

Multiple Choice Multiple Answer Question Correct Answer

Your Answer

Multiple Choice Multiple Answer Question Correct Answer

Your Answer

Multiple Choice Multiple Answer Question Correct Answer

Your Answer

Multiple Choice Multiple Answer Question Correct Answer

What are the features of company fixed deposits? Interest rate offered is higher than banks , No benefits under 80 L , No TDS for interest income upto Rs. 5000 Interest rate offered is higher than banks , No benefits under 80 L , No TDS for interest income upto Rs. 5000 What are the features of point and figure charts? Charts are constructed using a combination of X's and O's known as boxes. , X's show that the prices are moving up , O's show that the prices are moving down Charts are constructed using a combination of X's and O's known as boxes. , X's show that the prices are moving up , O's show that the prices are moving down

What are the features of post office monthly income scheme? Investor earns bonus of 10% on completion of term , Rate of return is 8 % , Interest payable monthly Rate of return is 8 % , Interest payable monthly , Investor earns bonus of 10% on completion of term

The firm issuing bonds operating sinking fund and repurchases bonds either :Calling in a certain number of bonds by lot , Buying bonds in the open market ,

Your Answer

Multiple Choice Multiple Answer Question

Correct Answer

Your Answer

Multiple Choice Multiple Answer Question Correct Answer

Your Answer

Multiple Choice Multiple Answer Question Correct Answer

Buying bonds issued to banks and financial institutions Calling in a certain number of bonds by lot , Buying bonds in the open market , Buying bonds issued to banks and financial institutions

If option is given to you to receive Rs.1,000/- today or after one year, you will choose to receive it today because :You can use the amount to generate returns over the next one year , The purchasing power of Rs.1,000/- today is more than what it will be one year from now , There is an element of uncertainty associated with the future receipt You can use the amount to generate returns over the next one year , The purchasing power of Rs.1,000/- today is more than what it will be one year from now , There is an element of uncertainty associated with the future receipt

The computation of return on a bond involves considering :The entire sequence of cash flows , The timing of cash flows , Calculating the internal rate of return The entire sequence of cash flows , The timing of cash flows , Calculating the internal rate of return

What are the features of line charts? It connects closing prices from one period to the next , It is ideal for securities with no high or low price data

Your Answer

Multiple Choice Multiple Answer Question Correct Answer

Your Answer

Multiple Choice Multiple Answer Question Correct Answer

Your Answer

Multiple Choice Multiple Answer Question Correct Answer

Your Answer

Multiple Choice Multiple Answer Question 1

It connects closing prices from one period to the next , It is ideal for securities with no high or low price data

Explain what are leverage ratios ? Debt equity ratio and interest coverage ratio and DSCR are important leverage ratios , Debt is riskier source of finance as it entails fixed outgo of periodic payments , Help in assessing the risk arising using the debt capital Help in assessing the risk arising using the debt capital , Debt equity ratio and interest coverage ratio and DSCR are important leverage ratios , Debt is riskier source of finance as it entails fixed outgo of periodic payments

What developments had taken place during the year 2000 in case of Bharat Forge Ltd.? Demerger of investment division and windmills , Nominee director of UTI resigned and ceased to be the director - nomination withdrawn by UTI Demerger of investment division and windmills , Nominee director of UTI resigned and ceased to be the director - nomination withdrawn by UTI

The investor in bonds receives income from :Interest payments at coupon rates , Capital gain/loss arising out of the sale of the bond , Redemption of the bond of the issuer at a contracted value Interest payments at coupon rates , Capital gain/loss arising out of the sale of the bond , Redemption of the bond of the issuer at a contracted value

Return can be in the form of :-

Correct Answer

Dividends , Interests , Capital appreciation

Your Answer

Dividends , Interests , Capital appreciation

Multiple Choice Multiple Answer Question 5 Correct Answer

Your Answer

Multiple Choice Multiple Answer Question 35 Correct Answer

Your Answer

Multiple Choice Multiple Answer Question 41 Correct Answer Your Answer

Multiple Choice Multiple Answer Question 46 Correct Answer Your Answer

Multiple Choice Multiple Answer Question 47

What were the achievements of Bharat Forge during the year 2003? Secured second largest customer in China , Appointed a Company Secretary to act as compliance officer , New contracts won in passenger car components Secured second largest customer in China , Appointed a Company Secretary to act as compliance officer , New contracts won in passenger car components

An option is :A contract between two parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee A contract between two parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee

Formula for calculation of portfolio variance requires :Expected return on portfolio , Expected return on assets , Weight of asset in the portfolio Expected return on portfolio , Expected return on assets , Weight of asset in the portfolio

What were the objectives for 2002-03 the chairman of Bharat forge had emphasised on in the annual report for 2001 - 02 Maintain aggressive exports thrust , Increase shares of value added products , Continue reducing costs Maintain aggressive exports thrust , Increase shares of value added products , Continue reducing costs

Which are the most popular types of orders placed through an online trading account?

Correct Answer

Limit orders , Market orders

Your Answer

Market orders , Hedging orders , Arbitrage orders

Multiple Choice Multiple Answer Question 4

Correct Answer

Your Answer

Multiple Choice Multiple Answer Question 5 Correct Answer

Your Answer

Multiple Choice Multiple Answer Question 14 Correct Answer Your Answer

Multiple Choice Multiple Answer Question 15 Correct Answer Your Answer

A firm's growth is determined by how much is re-invested into new assets and the quality of these investments, and these includes :Acquisitions , Building distribution channels , Expanding marketing capabilities and investing in new facilities Acquisitions , Expanding marketing capabilities and investing in new facilities , Mergers

Which of the following are important momentum indicators used widely? Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD) Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD)

Which ratios are commonly used? Debt equity ratio , Interest coverage ratios , Debt service coverage ratios Debt equity ratio , Interest coverage ratios , Debt service coverage ratios

What were the Chairman's comments during the speech in the Annual report of the FY 2002-03? Best year in the history of the company , 146% growth in exports , Highest pre and post tax profits Best year in the history of the company , 146% growth in exports , Highest pre and post tax profits

Multiple Choice Multiple Answer Question 20 Who are the constituents of a mutual fund? Correct Answer Sponsor & trustees , Asset management company ,

Your Answer

Custodian Sponsor & trustees , Asset management company , Custodian

Multiple Choice Multiple Answer Question 26 What are the features of Kisan Vikas Patra? Correct Answer Your Answer

Term is for 8 years seven months , Provision of premature withdrawal , Interest rate is 8.4% compounded annually Term is for 8 years seven months , Provision of premature withdrawal , Interest rate is 8.4% compounded annually

Multiple Choice Multiple Answer Question 38 The security analysis process will achieve :Correct Answer Your Answer

True picture of a company , Normal earning power , Projection of future profitability True picture of a company , Normal earning power , Projection of future profitability

Multiple Choice Multiple Answer Question 41 The return to the bond investor can be measured in terms of :Correct Answer Current yield , Yield to maturity , Realised yield Your Answer Yield to maturity , Realised yield Multiple Choice Multiple Answer Question 5 Which are the different types of accounts offered to investors by the stock brokers? Correct Answer Cash trading , Margin trading Your Answer

General trading , Cash trading , Margin trading

Multiple Choice Multiple Answer Question 7 What are the features of Retail government securities (G-secs) ? Correct Answer Safest investment option available , Demat account is required for investment , Choice of tenure varies from less than 1 year to 30 years Your Answer Securities can be bought from the RBI , Safest investment option available , Demat account is required for investment

Multiple Choice Multiple Answer Question 10 To measure the movement of stocks in the market which indices were constructed by Dow?

Correct Answer Your Answer

Dow Jones industrial Average , Dow Jones Transportation Average Dow Jones Transportation Average

Multiple Choice Multiple Answer Question 16 The security market is the market for :Correct Answer

Equity , Debt , Derivatives

Your Answer

Equity , Debt , Bank deposits

Multiple Choice Multiple Answer Question 18 In a typical stock market cycle which are the types of trends? Correct Answer Trends upward , Trend downward , Sideway trend Your Answer

Trends upward , Trend downward , Flat trend

Multiple Choice Multiple Answer Question 22 Mutual fund schemes could be broadly classified as :Correct Answer

Open ended scheme , Close ended scheme

Your Answer

Open ended scheme , Close ended scheme , Growth schemes

Multiple Choice Multiple Answer Question 24 What was the final analysis on the performance of Bharat forge for the year FY 02? Correct Answer Aim to become US$1 billion Company by Fy 08 from US$100 million , Stock currently trades at 15 times its FY 05 consensus EPS forecasts , Stock will trade at an inexpensive PEG of 0.6x. Your Answer Aim to become US$1 billion Company by Fy 08 from US$100 million , Stock currently trades at 15 times its FY 05 consensus EPS forecasts , Stock will trade at an inexpensive PEG of 0.6x. Multiple Choice Multiple Answer Question 26 Gilt Edged Securities are :Correct Answer

State Govt. , Quasi-Govt , Central Govt

Your Answer

Central Govt , State Govt. , Quasi-Govt

Multiple Choice Multiple Answer Question 33 What are the ways of measuring relative strength? Correct Answer

Calculate the rates of return and classify securities that have earned superior historical returns ,

Your Answer

Calculating certain ratios will help in analyzing whether a security has relative strength Calculate the rates of return and classify securities that have earned superior historical returns , Calculating certain ratios will help in analyzing whether a security has relative strength , Calculating the Return on investment

Multiple Choice Multiple Answer Question 44 What are the different types of profitability ratios? Correct Answer Your Answer

Gross profit margin ratio , Earnings power , Return on equity Gross profit margin ratio , Earnings power , Return on equity

Multiple Choice Multiple Answer Question The Gordon growth model is best suited for firms :Correct Answer Your Answer

Growing at a rate equal to or lower that the growth in the economy , Which have well established dividend payout ratio policy , Whose earnings are steady and perpetual Growing at a rate equal to or lower that the growth in the economy , Which have well established dividend payout ratio policy

Multiple Choice Multiple Answer Question The Two-Stage dividend discount model is based on the assumption of :Correct Answer An initial phase where the growth is not a stable growth rate , A subsequent steady state of growth rate being stable and lasts n years , A stable growth phase lasts forever Your Answer An initial phase where the growth is not a stable growth rate , A subsequent steady state of growth rate being stable and lasts n years , A stable growth phase lasts forever Multiple Choice Multiple Answer Question Features of PSU Bonds are :Correct Answer

No TDS , Transferable by endorsement , No stamp duty on transfer

Your Answer

No TDS , Transferable by endorsement , No stamp duty on transfer

Multiple Choice Multiple Answer Question An options contract allows the investor :Correct Answer Your Answer

To earn a profit while restricting the downside risk , To use the options for speculation , Either to honour or walk away from the contract Either to honour or walk away from the contract , To earn a profit while restricting the downside risk , To use the options for speculation

Multiple Choice Multiple Answer Question Major steps involved in construction of a index are :Correct Answer Your Answer

Selecting a set of scrips to be used , Fixing starting date , Calculating market capitalisation Selecting a set of scrips to be used , Fixing starting date , Fixing ending date

Multiple Choice Multiple Answer Question How can the financial statements can be manipulated while giving the estimates for growth? Correct Change method of rate of depreciation , Change method of Answer stock valuation , Inflating sales for current year by advancing sales for the following year Your Answer Change method of rate of depreciation , Change method of stock valuation , Inflating sales for current year by advancing sales for the following year Multiple Choice Multiple Answer Question The underlying assumptions of Technical analysis are that :Correct Answer Your Answer

Prices move in predictable patterns , Market value is determined by supply & demand , Investors are emotional than being rational Prices move in predictable patterns , Investors are emotional than being rational

Multiple Choice Multiple Answer Question Which are the different styles of displaying charts? Correct Answer Your Answer

Bar and line charts , Candle stick charts , Point and figure charts Candle stick charts , Point and figure charts , Bar and line charts

Multiple Choice Multiple Answer Question What are the features of public provident scheme? Correct Answer Your Answer

15 year instrument , Rate of interest is 8% , Partial withdrawal is available from 7th year 15 year instrument , Rate of interest is 8% , Partial withdrawal is available from 7th year

Multiple Choice Multiple Answer Question Growth of the firm can be estimated through :Correct Answer Your Answer

Firm's past earnings/historical growth rate , Estimates made by equity research analyst who follow the firm , Estimates from a firm's fundamentals Firm's past earnings/historical growth rate , Estimates made by equity research analyst who follow the firm , Estimates from a firm's fundamentals

Multiple Choice Multiple Answer Question Characteristics of Preference shares are :Correct Answer Your Answer

Carry a fixed rate of dividend , Dividend payable out of profit , Redemption in 7 to 12 years Carry a fixed rate of dividend , Dividend payable out of profit , Redemption in 7 to 12 years

Multiple Choice Multiple Answer Question What are the SEBI regulations with respect to mutual funds? Correct Answer Your Answer

Mutual funds to be registered with SEBI before the launching any scheme , 2/3rds of the directors of the trustee company must be independent , An AMC approved by SEBI manages the fund Mutual funds to be registered with SEBI before the launching any scheme , 2/3rds of the directors of the trustee company must be independent , An AMC approved by SEBI manages the fund

Multiple Choice Multiple Answer Question The security analysis process will achieve :Correct Answer Your Answer

True picture of a company , Normal earning power , Projection of future profitability True picture of a company , Normal earning power , Projection of future profitability

Multiple Choice Multiple Answer Question The return to the bond investor can be measured in terms of :Correct Answer Your Answer

Current yield , Yield to maturity , Realised yield Realised yield

Multiple Choice Multiple Answer Question What are the features of bank deposits? Correct Answer Your Answer

Interest is presently around 6% , Benefits under section 80 L , Banks offer cheque facility for investors making it convenient to withdraw Interest is presently around 6% , Banks offer cheque facility for investors making it convenient to withdraw

Multiple Choice Multiple Answer Question What are the important macro economic indicators? Correct Answer Your Answer

GNP growth rate , Price Conditions , Monsoons GNP growth rate , Price Conditions , Monsoons

Multiple Choice Single Answer Question When an investor invests in stock, expects to get the dividends and an expected price for the period the stock is held is the rule of :Correct Answer The General model Multiple Choice Single Answer Question Stock Exchanges are the part of :Correct Answer

Secondary market

Your Answer

Money Market

Multiple Choice Single Answer Question The index futures symbols of BSE are represented as :Correct Answer

BSX JAN 2005 (January contract)

Multiple Choice Single Answer Question More than half the variation in stock price could be attributed to which factor? Correct Market influence Answer Multiple Choice Single Answer Question In India we have index futures contracts based on :Correct Answer

S&P CNX Nifty and the BSE sensex

Multiple Choice Single Answer Question In India, the futures on individual securities have been introduced from :Correct 2001 Answer Multiple Choice Single Answer Question What do you understand by the term redemption price? Correct Answer

Price or NAV at which a scheme purchases its units

Multiple Choice Single Answer Question A security analysis is done :Correct Answer

For decision making for investments

Multiple Choice Single Answer Question As per the exhibit 18-1 for individual stock futures on NSE, the price steps in respect of all futures contract admitted to the dealings of the exchange shall be :Correct 0.05 Answer Multiple Choice Single Answer Question What is a technical approach to investment? Correct Answer

A reflection of the idea that prices move in trends which are determined by various factors

Multiple Choice Single Answer Question A pledge of real assets as insurance against the non-payment of default by the buyer represents Correct Collateral Answer Multiple Choice Single Answer Question Who developed Dow's Principles and organised them into a theory as it is known today? Correct William Peter Hamilton Answer Your Answer Charles.H.Dow Multiple Choice Single Answer Question We can compare the price earning ratio of a market to its historical average to make judgements about, whether market is :Correct Under valued or over valued Answer Your Answer Under valued or over valued Multiple Choice Single Answer Question When a firm can grow net profits by issuing equity, the expected growth rate in net profits is determined by :Correct Equity reinvestment rate X return on equity Answer Your Answer Price earning ratio X return on equity Multiple Choice Single Answer Question What is a load fund? Correct Answer Your Answer

Fund charging a fee for entry and exit Fund charging a fee for entry and exit

Multiple Choice Single Answer Question Investment is a risk free investment when :Correct Answer Your Answer

Actual return is = expected return Actual return is = expected return

Multiple Choice Single Answer Question Debt instruments that have a maturity period of more than one year are called as :Correct Bonds Answer Your Answer Bonds Multiple Choice Single Answer Question Mr. Sharma is expecting to receive Rs. 50,000/- at the end of 5 years. He wanted to know what is the present value of this amount, if the rate of interest is 6% p.a? Correct Rs. 37363/Answer Your Answer Rs. 37363/Multiple Choice Single Answer Question Which of these is a short-maturity debt issue? Correct Answer Your Answer

Money market funds and gilts Money market funds and gilts

Multiple Choice Single Answer Question What is Support level? Correct Answer Your Answer

A point where the prices become relatively attractive for buyers Market resistance to a price fall

Multiple Choice Single Answer Question During the 1980's rate of savings in India has hovered around what percentage? Correct 0.21 Answer Your Answer 0.22 Multiple Choice Single Answer Question A market that is trading at a Price earning ratio that is much higher than its historical norms is considered to be :Correct Over valued Answer

Your Answer

Over valued

Multiple Choice Single Answer Question The average historical growth rate can be calculated as :Correct Answer Your Answer

Arithmetic average or a geometric average Geometric average

Multiple Choice Single Answer Question 4 What are short term trends? Correct Answer Your Answer

Trends which interrupt the course of the intermediate cycle

They are counter-cyclical trends within the confines of a primary trend Multiple Choice Single Answer Question 8 When the firm is not raising equity by issuing new shares, the growth rate in net profits is given by :Correct Retention ratio X return on equity Answer Your Answer Price earning ratio X return on equity Multiple Choice Single Answer Question 9 The historical growth rate and the past earnings of a firm are used in valuing :Correct Stable firms, but not appropriate for high growth firms Answer Your Answer Consistent stable firms, but not appropriate for high growth firms Multiple Choice Single Answer Question 10 Efficient market hypothesis is based on the assumption that market comprises of :Correct Rational Investors Answer Your Answer Heterogeneous investors Multiple Choice Single Answer Question 11 Co variance of asset with market portfolio 85 and variance of market portfolio is 100 then beta is :Correct 0.0085 Answer Your Answer 0.0085

Multiple Choice Single Answer

Question 13 Correct Answer Your Answer

Mr. Tiwari is expecting to receive Rs.25,000/- at the end of 10 years. He wanted to know what is the present value of this amount, if the rate of interest is 10% p.a:Rs. 9639/Rs. 9639/-

Multiple Choice Single Answer Question 18 What does flow-of fund analysis help in understanding? Correct Answer Your Answer

Availability of money for the stock market Financial strength of various companies

Multiple Choice Single Answer Question 23 A security represent evidence of :Correct Answer Your Answer

A property right Safety

Multiple Choice Single Answer Question 24 Mr.Saurabh invests Rs. 5,000/- today. The rate of interest is 4% compounded annually. What will be the value of his investment after 5 years? Correct Rs. 6083/Answer Your Answer Rs. 6083/Multiple Choice Single Answer Question 27 In India futures on individual securities have been introduced by :Correct BSE & NSE Answer Your Answer BSE & NSE

Multiple Choice Single Answer Question 43 The issuing firm enjoys the flexibility to call the bonds if the interest rates fall significantly and it can issue :Correct New bonds at a lower rates Answer Your Answer New bonds at a lower rates Multiple Choice Single Answer Question 2 When was the first mutual fund set up? Correct

1963

Answer Your Answer

1963

Multiple Choice Single Answer Question 7 How can transition phases be projected? Correct Answer Your Answer

Transition phases are signalled by clearly definable price patterns By working out the resistance and support levels

Multiple Choice Single Answer Question 8 If the price of a share at the beginning of the year was Rs.50/-, dividend received during the year was Rs.10/-per share and the price at the end is Rs.60/-. What is the rate of return? Correct 0.4 Answer Your Answer 0.2 Multiple Choice Single Answer Question 27 Investing in this avenue enable you participate in the equity market indirectly :Correct Mutual Funds Answer Your Answer Mutual Funds Multiple Choice Single Answer Question 29 In any Economy, bridge is created between savers and who need the funds by this system :Correct Financial Answer Your Answer Economic

Multiple Choice Single Answer Question 30 Agriculture account for how much portion of the economy? Correct Answer Your Answer

Quarter Three fourths

Multiple Choice Single Answer Question 37 Who operates the sinking fund under the sinking fund provision of a firm? Correct The bond trustee or the issuer Answer Your Answer The bond trustee or the issuer Multiple Choice Single Answer Question 40 How did Dow use the behaviour of stock markets?

Correct Answer Your Answer

As a barometer of business conditions rather than a basis for forecasting stock prices As a barometer of business conditions rather than a basis for forecasting stock prices

Multiple Choice Single Answer Question 42 The growth period in the industry life cycle is defined as :Correct Answer Your Answer

Period of rapid market acceptance and substantial profit improvement Period of rapid market acceptance and substantial profit improvement Multiple Choice Single Answer Question 3 What is the limitation of Flow-of funds analysis method?

Correct Answer Your Answer

Cannot give indication of the inclination of market participants to purchase stock Cannot give indication of the inclination of market participants to purchase stock

Multiple Choice Single Answer Question 6 Sentiment indicators are based on what assumption Correct Answer Your Answer

Different groups of investors are consistent in their actions at major market turning points Different groups of investors are consistent in their actions at major market turning points

Multiple Choice Single Answer Question 12 An agreement to buy or sell a specified quantity of an asset at a certain future date or a certain price is know as :Correct Forward contract Answer Your Answer Futures contract Multiple Choice Single Answer Question 25 What are intermediate trends? Correct Answer Your Answer

They are counter-cyclical trends within the confines of a primary trend They are counter-cyclical trends within the confines of a primary trend

Multiple Choice Single Answer Question 29 What are index funds? Correct Answer Your Answer

Investment in securities in the same weightage which replicates a particular index Investment in securities in the same weightage which replicates a particular index

Multiple Choice Single Answer

Question 38 Correct Answer Your Answer

What are the assumptions of the Dow theory? Majority of stocks follow the underlying trend of the market most of the time Majority of stocks follow the underlying trend of the market most of the time

Multiple Choice Single Answer Question 39 Mr.Rohan invests Rs.25,000/- today. The rate of interest is 6% compounded annually. What will be the value of his investment after 3 years? Correct Rs. 29775/Answer Your Answer Rs. 29775/-

Multiple Choice Single Answer Question 41 How many measures of money supply are used commonly? Correct Answer Your Answer

2 2

Multiple Choice Single Answer Question 43 Under which simple model the value of the stock is the present value of expected dividends on it :Correct The Dividend discount model Answer Your Answer The Dividend growth model

Multiple Choice Single Answer Question 46 Avenues can be broadly classified into the which type of assets? Correct Financial and Real Answer Your Answer Tangible and Intangible Multiple Choice Single Answer Question The average investor in the market is driven more by emotions than by rational analysis is a rule of :Correct Technical analysis Answer Your Answer Fundamental Analysis

Multiple Choice Single Answer Question What is the objective of an income fund? Correct Answer

To provide regular and steady income

Your Answer

To provide guaranteed returns to investors

Multiple Choice Single Answer Question What does lower level of unemployment indicates? Correct Answer Your Answer

Positive economic conditions Economic slowdown

Multiple Choice Single Answer Question The GDP growth rate in the economy in real terms has fluctuated between :Correct 4% and 5% Answer Your Answer 4% and 5%

Multiple Choice Single Answer Question Mr.Satish invests Rs.10,000/- today. The rate of interest is 8% compounded annually. What will be the value of his investment after 5 years? Correct Rs.14.693/Answer Your Answer Rs.14.693/Multiple Choice Single Answer Question Which market is affected with the improving and higher growth rate in economy? Correct Stock market Answer Your Answer Stock market

Multiple Choice Single Answer Question What do you understand by money supply? Correct Answer Your Answer

Total money in existence at any given time Total money in existence at any given time

Multiple Choice Single Answer Question What is Gross National Product ? Correct Answer Your Answer

Gross income generated from within the country Gross income generated from within the country

Multiple Choice Single Answer Question The greater the deviation of the actual returns from the actual return :Correct Greater the variance Answer Your Answer Greater the variance Multiple Choice Single Answer Question What is GDP at factor cost ? Correct Answer Your Answer

Excludes net income received from abroad Includes indirect taxes

Multiple Choice Single Answer Question More than half the variation in stock price could be attributed to which factor? Correct Market influence Answer Your Answer Market influence Multiple Choice Single Answer Question Free Float index considers this to calculate market capitalisation :Correct Actual no. of shares available Answer Your Answer Actual no. of shares available Multiple Choice Single Answer Question The Top-down approach is also known as :Correct Answer Your Answer

Economy-industry-company approach Economy-industry-company approach

Multiple Choice Single Answer Question What is a technical approach to investment? Correct Answer Your Answer

A reflection determined A reflection determined

of the idea that prices move in trends which are by various factors of the idea that prices move in trends which are by various factors

Multiple Choice Single Answer Question What are index funds? Correct Answer Your Answer

Investment in securities in the same weightage which replicates a particular index Investment in securities in the same weightage which replicates a particular index

Multiple Choice Single Answer Question What could be a better approach to flow-of -funds analysis? Correct Answer Your Answer

An examination of liquidity trends in the banking system A study of macro economical changes

Multiple Choice Single Answer Question The general dividend model is based on the principle of :Correct Answer Your Answer

Present value of the expected future cash flow Present value of the expected future cash flow

Multiple Choice Single Answer Question What are short term trends? Correct Answer Your Answer

Trends which interrupt the course of the intermediate cycle Trends which interrupt the course of the intermediate cycle

Multiple Choice Single Answer Question What is the aim of growth funds? Correct Answer Your Answer

To provide capital appreciation over medium to long term To provide capital appreciation over medium to long term

Multiple Choice Single Answer Question This is not a stock exchange :Correct Answer

MCX

Your Answer

MCX

Multiple Choice Single Answer Question Under EMH it is assumed that if markets are efficient, securities are priced to provide a :Correct Answer Normal returns for their given level of risk Your Answer

Normal returns for their given level of risk

Multiple Choice Single Answer Question Mr. Shekhar invests Rs.50,000/- in a scheme of LIC, the rate of interest is 8% compounded annually. What will be the value of his investment after 5 years?

Correct Answer

Rs. 73466/-

Your Answer

Rs. 73466/-

Multiple Choice Single Answer Question The price of the index futures contract is defined as :Correct Answer

Future price = Spot price + Carry cost

Your Answer

Future price = Spot price + Carry cost

Multiple Choice Single Answer Question Financial assets can be classified as :Correct Answer

Marketable and non-marketable

Your Answer

Marketable and non-marketable

Multiple Choice Single Answer Question Mr. Suresh is expecting to receive Rs.1,50,000/- at the end of 3 years. He wanted to know what is the present value of this amount, if the rate of interest is 9% p.a ? Correct Rs.1,15,827/Answer Your Answer Rs.1,15,827/Multiple Choice Single Answer Question What is Flow-of-funds analysis? Correct Answer Your Answer

Consists of an analysis of the financial positions of various investor groups Consists of an analysis of the financial positions of various investor groups

Multiple Choice Single Answer Question Mr. Suhas is expecting to receive Rs.1,00,000/- at the end of 7 years. He wanted to know what is the present value of this amount, if the rate of interest is 7% p.a ? Correct Rs. 62,275/Answer Your Answer Rs. 62,275/Multiple Choice Single Answer Question What do you understand by term pioneering stage in the industry life cycle analysis?

Correct Answer Your Answer

Slow sales growth product recently introduced Slow sales growth product recently introduced

Multiple Choice Single Answer Question Till 1990's secular Indian economy's inflation rate has been of what percentage? Correct 0.07 Answer Your Answer 0.07 Multiple Choice Single Answer Question Credit rating companies assign ratings for which of these investments? Correct Company deposits Answer Your Answer Company deposits Multiple Choice Single Answer Question If index future is taken under futures contract, the underlying asset would be :Correct Stock index Answer Your Answer Stock index Multiple Choice Single Answer Question What is balance of payments? Correct Answer Your Answer

Credit and debit transactions of a country Credit and debit transactions of a company

Multiple Choice Single Answer Question Profits are non existent in pioneering stage because of :Correct Answer Your Answer

Heavy expenses on product introduction Heavy expenses on product introduction

Multiple Choice Single Answer Question What is the indicator of buoyant economy? Correct Answer Your Answer

Increased level of housing construction activity Increased level of housing construction activity

Multiple Choice Single Answer Question What does a transitional phase indicate?

Correct Answer Your Answer

It marks the turning point between a rising and falling market It marks the turning point between a rising and falling market

Multiple Choice Single Answer Question Dividend discount model is considered as the simplest model for :Correct Valuing Equity Answer Your Answer Valuing Equity

Multiple Choice Single Answer Question The present value of all the future cash payments to be paid on the security to the investor is termed as :Correct Answer Intrinsic value of a security Your Answer Intrinsic value of a security Multiple Choice Single Answer Question If the price of a share at the beginning of the year was Rs.100/-, no dividend received during the year and the price at the end is Rs.115/-. What is the rate of return? Correct Answer 0.15 Your Answer 0.15 Multiple Choice Single Answer Question What is the objective of Portfolio management? Correct Answer To Minimize risk and maximize return Your Answer To Minimize risk and maximize return

Multiple Choice Single Answer Question Capital expenditure -depreciation +change in working capital -(new debt issued - debt repaid) = Correct Answer Equity reinvested in business Your Answer Equity reinvested in business Multiple Choice Single Answer Question What is the percentage of variation the market and industry influence account for? Correct Answer 2/3rd Your Answer 75%

Multiple Choice Single Answer

Question What is the rate of interest on the tax free bonds issue by the government? Correct Answer 6.5% Your Answer 6.5% Multiple Choice Single Answer Question Investments could be made in retail government securities through :Correct Answer Primary dealers Your Answer Primary dealers Question

The growth rate is used to forecast future revenues and earnings and are inputs in valuing :Correct Answer Stable firms Your Answer

High growth firms

Multiple Choice Single Answer Question The objective of fundamental analysis for a security in a market is to identify either it is :Correct Answer Under priced and over priced Your Answer

Under priced and over priced

Multiple Choice Single Answer Question We can compare the price earning ratio of a market to its historical average to make judgements about, whether market is :Correct Answer Under valued or over valued Your Answer

Under valued or over valued

Multiple Choice Single Answer Question The growth rate is used to forecast future revenues and earnings and are inputs in valuing :Correct Answer Stable firms Your Answer

High growth firms

Multiple Choice Single Answer Question How can transition phases be projected? Correct Answer Transition phases are signalled by clearly definable price patterns Your Answer

Transition phases are signalled by clearly definable price patterns

Multiple Choice Single Answer Question When was the Dow theory first published?

Correct Answer Between 1900 and 1902 Your Answer

Between 1900 and 1902

Multiple Choice Single Answer Question When was the first mutual fund set up? Correct Answer 1963 Your Answer

1963

Multiple Choice Single Answer Question What is the art of technical analysis? Correct Answer To identify trend changes at an early stage and maintain investment posture till the trend has reversed Your Answer To identify trend changes at an early stage and maintain investment posture till the trend has reversed Multiple Choice Single Answer Question The expected price of the stock at the end of the holding period is determined by future dividends and the value of the stock is the present value of dividends through infinity are the underlying assumptions of :Correct Answer The General model Your Answer

The Dividend discount model

Multiple Choice Single Answer Question How would you rate a portfolio with 90% investment in stocks? Correct Answer Highly aggressive Your Answer

Highly aggressive

Multiple Choice Single Answer Question What are primary trends? Correct Answer Reflection of investor's attitudes towards unfolding fundamentals in the business cycle Your Answer Long term trends Multiple Choice Single Answer Question In a forward contract there is :Correct Answer No Exchange of cash Your Answer

No Exchange of cash

Multiple Choice Single Answer

Question

Under EMH it is assumed that if markets are efficient, securities are priced to provide a :Correct Answer Normal returns for their given level of risk Your Answer

Equal returns for their given level of risk

Multiple Choice Single Answer Question The approach followed to assess the growth rate by looking at how much a firm reinvests for future growth and the quality of its re-investments is :Correct Answer Estimating growth from a firm's fundamentals Your Answer

Earnings multiplier approach

Select The Blank Question The possibility of reduction of risk through the construction of a portfolio depends on the value of ________ between the two assets. Correct Correlation coefficient Answer Your Answer Time Select The Blank Question Dow Jones transportation average was previously known as ________. Correct Answer Your Answer

Rail average Rail average

Select The Blank Question The compounded annual return of Kisan Vikas patra is ________. Correct Answer Your Answer

0.084 0.084

Select The Blank Question Under futures market ________ process provides for collection of losses that have already occurred. Correct The daily settlement Answer Your Answer The daily settlement Select The Blank Question The regulations of SEBI with respect to mutual funds were fully revised in the year ________. Correct 1996 Answer

Your Answer

1996

Select The Blank Question The Dow theory states that there are simultaneously ________ movements in the stock market. Correct 3 Answer Your Answer 3 Select The Blank Question Under the options contract ________ gives the holder the right, but not the obligation to buy or sell the underlying instrument only on the expiry date. Correct European option Answer Your Answer European option

Select The Blank Question ________ ratio indicates the margin available after meeting the manufacturing expenses. Correct Gross Profit margin Answer Your Answer Gross Profit margin Select The Blank Question Secondary reactions occurs because of ________ which arise in the market as a result of over optimism and over pessimism. Correct Technical distortions Answer Your Answer Bearish trends Select The Blank Question Debentures rated as "A" are judged to offer ________ of timely payment of interest and principal. Correct Adequate safety Answer Your Answer Adequate safety

Select The Blank Question Debentures rated ________ are judged to offer sufficient safety of timely payment of interest and repayment of principal. Correct "BBB" Answer Your Answer "BBB"

Select The Blank Question The value of the stock in the ________ model is sensitive to the estimates of the growth rate. Correct Answer The Gordons dividend growth Select The Blank Question ________ is due to the fact that a borrower may not pay interest and/or principal on time. Correct Answer Default risk

Select The Blank Question A pattern which does not result in reversal of a trend but reaffirmation of the underlying trend is called ________. Correct Answer Consolidation pattern Select The Blank Question ________ bonds are generally called for prepayment after interest rates have fallen, investors will not be able to find comparable investment avenues. Correct Answer Call risk Select The Blank Question ________ deal in futures to offset a pre-existing risk. Correct Answer

Hedger

Select The Blank Question ________are good benchmark to compare the ratios for a firm. Correct Answer

Industry averages

Select The Blank Question The ________ phase is characterized by resistance area and support level. Correct Answer

Transition

Select The Blank Question ________ measures the efficiency of credit management. Correct Answer

Average collection period

Select The Blank Question 16 ________ is affected by the leverage decisions of the firm. Correct Answer Your Answer

Return on equity Return on equity

Select The Blank Question 20 ________ refers to the possibility that there may not be a readily available market for the particular bond. Correct Liquidity risk Answer Your Answer Interest rate risk Select The Blank Question 21 The govt allowed public sector banks and institutions in mutual funds in ________. Correct Early 90's Answer Your Answer Early 90's Select The Blank Question 36 The 8% taxable savings bonds are repayable after ________ years. Correct Answer Your Answer

6 5

Select The Blank Question 39 Security analysis serves the investment decision maker by identifying ________securities. Correct Under priced Answer Your Answer Blue chip Select The Blank Question 42 ________ absorbs the excess demand or supply generated by hedgers and assume the risk of price fluctuations. Correct Speculators Answer Your Answer Brokers Select The Blank Question 44 A ________ rally for stocks generally takes place because of an improved outlook for business conditions over what was anticipated.

Correct Answer Your Answer

Bear market Bullish market

Select The Blank Question 1 UTI was set up in the year ________. Correct Answer Your Answer

1963 1963

Select The Blank Question 6 An ________ is a series of equal payments or receipts occurring at regular intervals of time. Correct Annuity Answer Your Answer Annuity Select The Blank Question 12 An option is a contract which gives the buyer ________ to buy or sell shares of the underlying security at a specific price on or before a specific date. Correct Right but not obligation Answer Your Answer Right but not obligation Select The Blank Question 13 Measures of ________ tells us what we can expect a typical or middle data point of a distribution to be. Correct Central tendency Answer Your Answer Central tendency Select The Blank Question 28 ________ identified five forces that determine the intrinsic long run profit attractiveness of a market or market segment. Correct Michael Porter Answer Your Answer Michael Porter Select The Blank Question 36 ________is a hybrid form of security which has characteristics of both equity and debentures Correct Preference shares Answer Your Answer Preference shares

Select The Blank Question 39 Debentures rated "BB" refers ________ of timely payment of interest and principal. Correct Inadequate safety Answer Your Answer Inadequate safety Select The Blank Question 43 The Derivative market is divided into Future market and ________ market. Correct Options Answer Your Answer Options Select The Blank Question 46 The Dow theory was published in a series of editorials in the ________. Correct Answer Your Answer

Wall street journal Wall street journal

Select The Blank Question 1 ________ deal in futures to offset a pre-existing risk. Correct Answer Your Answer

Hedger Speculator

Select The Blank Question 8 Under ________ EMH investors cannot earn abnormal/superior profits on securities on a consistent basis. Correct Semi-strong form Answer Your Answer Semi-strong form

Select The Blank Question 11 ________ take long or short positions only with the intention of making profits by getting out of the market when conditions favor them. Correct Speculators Answer Your Answer Hedgers Select The Blank Question 14 ________ model is based on the principle that an initial phase where the growth rate is not stable and subsequent steady growth rate and remains for the long-term.

Correct Answer Your Answer

The Two-Stage dividend discount The Gordons dividend growth

Select The Blank Question 17 ________ ratio is estimated by dividing the market value of a firm's assets by the replacement cost of these assets. Correct Market value to replacement cost ratio Answer Your Answer PEG ratio

Select The Blank Question 19 ________involves a simultaneous sale and repurchase agreement. Correct Answer Your Answer

Repos Repos

Select The Blank Question 28 Current liabilities include all liabilities due in the next ________ and provisions. Correct 12 months Answer Your Answer 12 months

Select The Blank Question 30 S&P NSE 50 index is known as ________. Correct Answer Your Answer

NIFTY NIFTY

Select The Blank Question 31 ________seeks to safeguard against potential losses on the outstanding position in futures market. Correct Initial margin Answer Your Answer Daily settlement

Select The Blank Question 35 ________ ratio is the ratio of net profit to the sales. Correct Answer Your Answer

Net Profit Margin Net Profit Margin

Select The Blank Question Mutual fund is to be registered with ________ before raising funds from public. Correct SEBI Answer Your Answer SEBI

Select The Blank Question An investor with a higher tolerance of risk should tilt his portfolio in favour of ________. Correct Stocks Answer Your Answer Bank deposits

Select The Blank Question The ________ phase carries a lot of significance because it marks the turning point between a rising and a falling market. Correct Transitional Answer Your Answer Sideways

Select The Blank Question Acid test ratio is more stringent measure of liquidity compared to the ________. Correct Current ratio Answer Your Answer Current ratio

Select The Blank Question ________ measures the efficiency of credit management. Correct Answer Your Answer

Average collection period Average collection period

Select The Blank Question ________ measures the profitability of operations without considering the influence of financial structure and tax rate. Correct Earnings power Answer Your Answer Earnings power Select The Blank Question A line is defined as a price movement two or three weeks or longer, during which period the price variation of both averages moves within a price range of approximately________%.

Correct Answer Your Answer

5 5

Select The Blank Question ________ measures the profitability of equity funds invested in the firms. Correct Answer Your Answer

Return on equity Return on equity

Select The Blank Question Risk can be referred as the ________ in the return with respect to the expected return. Correct Volatility Answer Your Answer Difference Select The Blank Question All trades in the futures market are cash settled on a ________ basis. Correct Answer Your Answer

T+1 T+1

Select The Blank Question ________ ratio is the ratio of net profit to the sales. Correct Answer Your Answer

Net Profit Margin Net Profit Margin

Select The Blank Question When a debenture is sold to the general public a ________ is appointed. Correct Answer Your Answer

Trustee Brokers

Select The Blank Question A security is said to be ________ if its current market price is over its intrinsic value. Correct Over priced Answer Your Answer Over priced

Select The Blank Question ________ is the value at a certain future date today of a stream of cash flows that occurs over a period of time. Correct Future value Answer Your Answer Future value Select The Blank Question Mutual fund is to be registered with ________ before raising funds from public. Correct SEBI Answer Your Answer SEBI Select The Blank Question In a heads and shoulders formation the deeper the pattern, the greater is the ________ significance once it is completed Correct Bearish Answer Your Answer Bearish

Select The Blank Question The govt allowed public sector banks and institutions in mutual funds in ________. Correct Early 90's Answer Your Answer Early 90's Select The Blank Question Under ________ EMH investors cannot earn abnormal/superior profits on securities on a consistent basis. Correct Semi-strong form Answer Your Answer Semi-strong form Select The Blank Question The 6.________% tax saving bonds of government of India have a tenure of 5 years. Correct 5 Answer Your Answer 5

Select The Blank Question ________ is the ratio of the market price per share to the earnings per share.

Correct Answer Your Answer

Price earning ratio Price earning ratio

Select The Blank Question ________ absorbs the excess demand or supply generated by hedgers and assume the risk of price fluctuations. Correct Speculators Answer Your Answer Speculators

Select The Blank Question UTI was set up in the year ________. Correct Answer 1963 Your Answer 1963

True/False Question Correct Answer True/False Question Correct Answer True/False Question Correct Answer True/False Question Correct Answer True/False

The normal relationship is for the volume to expand on rallies and contract on declines. True

In case of assured returns, A scheme cannot promise returns unless such returns are fully guaranteed by sponsor or AMC. True

A firm uses a combination of equity and debt for financing its assets. True

Policies of the government and the attitude of the government towards the industry have a considerable influence on the industry. True

Question Correct Answer True/False Question Correct Answer True/False Question Correct Answer True/False Question Correct Answer True/False Question Correct Answer True/False Question Correct Answer

True/False Question

Correct Answer Your Answer True/False Question Correct Answer Your Answer True/False Question

Investors in high tax bracket would benefit by investing in equity schemes. False The price earning ratio is an increasing function of the payout ratio and the growth rate and a decreasing function of the riskiness of the firm. True When we invest in only one asset we are not exposed to any specific or market risk. False Five paisa.com is an example of on line trading portal. True A mutual fund is required to dispatch the dividend warrants to the unit holders within thirty days of the declaration of dividend. True Bearish actions come from a series of declining peaks and troughs. True Default is normally evaluated and indicated by the rating assigned to the debt instruments by independent credit ratings agencies. True True

With the use of diversification you can reduce the risk. True True

A segment is unattractive if the buyers possess strong or growing bargaining powers.

Correct Answer Your Answer True/False Question Correct Answer Your Answer True/False Question Correct Answer Your Answer True/False Question Correct Answer Your Answer

True/False Question Correct Answer Your Answer True/False Question Correct Answer Your Answer True/False Question Correct Answer Your Answer

True True

Risk on a portfolio of assets is always same as the risk on individual asset. False False

Debt is less riskier source of finance than equity. False True

Post office monthly schemes have a 10 year tenor. False False

With the introduction of on-line trading by NSE and BSE, the role of regional stock exchanges have diminished. True True

Penetration of a trend line denotes a bearish phase. False True

Passive investment managers believe that markets are inefficient and Active managers believe that markets are efficient. False False

True/False Question 2 Correct Answer Your Answer True/False Question 3 Correct Answer Your Answer True/False Question 6 Correct Answer Your Answer True/False Question 15 Correct Answer Your Answer True/False Question 29 Correct Answer Your Answer True/False Question 30 Correct Answer Your Answer True/False Question 37 Correct Answer

Currently in India index options are both European and American in nature. False False

The cost structure remaining the same, better price realisation results in lower gross profit ratio. False True

A segment is more attractive when there are actual or potential substitutes for the product. False True Bond ratings by credit rating agencies provide superior and low cost information to the investor serving as a basis for a proper risk-return trade off by investors. True True

The arithmetic mean is a set of observations is calculated by finding the sum values and dividing by the number of observations. True True

Investment in gilt edged securities carry a higher element of risk. False True

Following a decline, heavy volume with little price change is indicative of accumulation and is normally a bearish factor. False

Your Answer True/False Question 45 Correct Answer Your Answer True/False Question 11 Correct Answer Your Answer True/False Question 17 Correct Answer Your Answer True/False Question 18 Correct Answer Your Answer True/False Question 22 Correct Answer Your Answer True/False Question 23 Correct Answer Your Answer

True/False Question 35

True

Speculators buy or sell futures contract in an attempt to earn a profit. True True Investment decisions can be viewed as an integrated process to which security analysis makes its unique contribution. True True Given the accounting standards across firm, price to book value ratios can be compared across similar firms for signs of under valuation. True True

Quick assets consist of current assets less inventories. True True

If a rupee weakens against the dollars it has favourable impact for the exporters. True True

A price rise accompanied by expanding volume denotes a potential trend reversal. False True

There may be convertible clause which gives the debenture holder the option to convert the debentures into equity shares.

Correct Answer Your Answer True/False Question 47 Correct Answer Your Answer True/False Question 2 Correct Answer Your Answer True/False Question 9 Correct Answer Your Answer True/False Question 13 Correct Answer Your Answer True/False Question 21 Correct Answer Your Answer True/False Question 27 Correct Answer Your Answer

True/False

True True PPF is a good retirement planning and tax saving vehicle. True True Bonds and Debentures represent long term debt instruments. False True

While calculating geometric mean calculation of root is not important. False False

Certificate of Deposits offers high rate of interest than Treasury Bills. True True

Sensex is the index of Calcutta Stock Exchange. False False

Fundamental analysis focuses on predicting the future price of a security and Technical analysis on estimating the intrinsic value of a security. False True

Question 32 Correct Answer Your Answer True/False Question 36 Correct Answer Your Answer True/False Question 40 Correct Answer Your Answer

True/False Question 42 Correct Answer Your Answer

True/False Question Correct Answer Your Answer True/False Question Correct Answer Your Answer

True/False Question Correct Answer

If rupee weakens against the dollar, it has favourable impact for the importers. False False

The risk associated to get the required rate of return on the stock is measure by market beta. True True

The basic inputs of the general model are expected dividends and required rate of return on stock. True True

European style options are more expensive than American style because they offer greater flexibility to the buyer. False True

When you are making an investment you are expecting certain future benefits from your investment. True True

The returns of sector specific funds are solely dependant on the performance of the respective sectors / industries. True True

The labour conditions do not play an important role in the industry analysis. False

Your Answer True/False Question

False

Correct Answer

A rise in interest rates will push the market prises of outstanding bonds where as a fall in interest rates will depress the market prices down. False

Your Answer

True

True/False Question Correct Answer Your Answer

True/False Question Correct Answer Your Answer True/False Question Correct Answer Your Answer

True/False Question Correct Answer Your Answer True/False Question Correct Answer Your Answer

Because of statutory compulsion, generally Govt. securities are held by banks, financial institutions, insurance companies etc. True True

The Asset management company of the mutual fund must have 50% independent directors. True True

In case of fixed income securities like debentures, you get the return in the form of dividend. False False

Investment in gilt edged securities carry a higher element of risk. False False American option gives the holder the right, but not the obligation to buy or sell the underlying instrument on or before the expiry date and the option can be exercised early. True True

True/False Question Correct Answer Your Answer

True/False Question Correct Answer Your Answer

True/False Question Correct Answer Your Answer

Prices of stocks usually move in trends. True True

The sideways trend is essentially a transitional one which separates the two major market movements. True False

With the use of diversification you can reduce the risk. True True

True/False Question A higher value of current ratio indicates a better short term solvency of the firm. Correct Answer True

Your Answer True True/False Question The basic assumption of Technical analysis is that, price discounts everything and it is the outcome of all forces affecting a stock. Correct Answer True

Your Answer True True/False Question Fixed assets turnover ratio measures the efficiency of utilisation of total assets, fixed as well as current. Correct Answer True Your Answer True True/False Question

The price earning ratio can be estimated for the firms with negative earnings per share. Correct Answer False Your Answer

True

True/False Question

A share certificate indicates that the investor owns a certain number of shares. Correct Answer True Your Answer

True

True/False Question

Balance of payments surplus augments foreign reserves of the country and have a favourable impact on he exchange rate. Correct Answer True Your Answer

True

Select The Blank Question The ________ phase carries a lot of significance because it marks the turning point between a rising and a falling market. Correct Answer Transitional Your Answer

Transitional

True/False Question

Bonds and Debentures represent long term debt instruments.

Correct Answer False Your Answer

True

True/False Question

A price rise accompanied by expanding volume denotes a potential trend reversal. Correct Answer False Your Answer

False

Select The Blank Question The ________ phase is characterized by resistance area and support level. Correct Answer Transition Your Answer True/False Question

Transition

Currently in India index options are both European and American in nature.

Correct Answer False Your Answer

False

Select The Blank Question Debentures rated as "A" are judged to offer ________ of timely payment of interest and principal. Correct Answer Adequate safety Your Answer

High safety

True/False Question

A rally that develops on contracting volumes is suspect and warns of a potential trend reversal in price Correct Answer True Your Answer

True

Match The Following Question Correct Answer Your Answer Price pattern Resistance level Head and shoulders formation Primary trend Last between 1-2 years Last between 1-2 years Intermediate trend Last between 3 weeks to as long as 6 months Last between 3 weeks to as long as 6 months Short term trend Last 1 to 3-4 weeks Last 1 to 3-4 weeks

Match The Following Question

Correct Answer Your Answer MCX Commodity Exchange Commodity Exchange Sensex BSE Index BSE Index Nifty NSE Index NSE Index Lifex ET Index Gold Index

Match The Following Question Correct Answer Your Answer Turnover ratios Help measure the efficiency of utilisation of assets Help measure the efficiency of utilisation of assets Debt Equity ratio Debt / Equity Debt / Equity Quick assets Highly liquid assets Highly liquid assets Average collection period Similar to debtors turnover Similar to debtors turnover

Match The Following Question Correct Answer Your Answer Development of Dow's principles William Peter Hamilton Charles H.dow Breadth Indicator Advance/decline line Moving average Momentum indicator MACD MACD Trend lines Useful tool in technical analysis Useful tool in technical analysis Match The Following Question 26 Correct Answer Your Answer Under options contract When you expect prices to fall, then, you take a long position by buying puts. When you expect prises to rise, then you take a short position by selling puts. Cost of Carry model Futures contract A contract where both the parties are equally responsible Futures contract Options contract The amount which the buyer of the option has to pay to the option writer to induce him to accept the risk associated with the contract. Option price Transaction cost model NSE&BSE are regulated by Securities Exchange Board of India Securities Exchange Board of India

Match The Following Question 24 Correct Answer Your Answer Equity shares High risk High risk Government Securities No risk Low risk Bank Deposits Low risk No risk Mutual Funds Average risk Average risk

Match The Following Question 33 Correct Answer Your Answer Risk free investment Actual returns = expected returns Actual returns = expected returns Risk Volatility in the return Volatility in the return Variance Measure of dispersion Measure of dispersion Returns Future benefits from investments Future benefits from investments

Match The Following Question 20 Correct Answer Your Answer H-Model For Valuing Growth Initial growth rate is not constant but linearly falls over time to reach the stable growth rate Initial growth rate is not constant but linearly falls over time to reach the stable growth rate The general model Expected dividends and required rate of return Expected dividends in the next period, cost of equity and expected growth rate in dividends The Gordons Growth model Expected dividends in the next period, cost of equity and expected growth rate in dividends Assessment of the growth rate by looking at how much a firm reinvests for future growth and the quality of its reinvestment The Two-Stage Dividend Discount Model Based on two extraordinary growth phase lasting n years and stable growth phase that lasts forever Based on two extraordinary growth phase lasting n years and stable growth phase that lasts forever

Match The Following Question 34 Correct Answer Your Answer Future value of a series of cash flows occurring at the end of each period. Future value of annuity Future value of annuity Value today of a stream of cash flows that occurs in future. Present Value Future Value Value at a certain future date today of a stream of cash flows that occurs over a period of time. Future Value

Present Value Series of equal payments or receipts occurring at regular intervals of time. Present value of annuity Present value of annuity

Match The Following Question Correct Answer Your Answer Weak form model is also termed as Random walk model Random walk model Investors are rational Efficient market hypothesis Efficient market hypothesis Securities current prices fully reflect all historical information Weak form EMH Fama Framework on efficient capital markets, a review of theory and empirical work Fama Strong form

Match The Following Question Correct Answer Your Answer Technical collaboration of Bharat Forge with SIFCO industries USA 1981 1981 Bharat Forge was incorporated at Mumbai 1961 1961 Shares of 100 each subdivided of Bharat forge 1971

1971 930000 bonus shares issued by Bharat Forge 1976 1976

Match The Following Question Correct Answer Your Answer The yield to maturity is same as the Geometric mean return or the internal rate of return Geometric mean return or the internal rate of return Periodic interest payments and principal repayment at the time of maturity Debt instrument/Bonds Debt instrument/Bonds The actual yield earned by an investor on a bond Realised yield Realised yield Present value interest factor of annuities and present value interest factor Yield to maturity Yield to maturity

1. Treasury Bills

1. Foreign Institutional

2. Commercial Papers

Investors 2. Government of

3

India 3. Certificate of Deposits 4. Bonds

3. Corporates 5

4. Banks and Financial Institutions 5. Central/State Govts/PSU's

6. Post Office 1. ROE

3

2. Earnings power 3. Net profit margin 4. Gross profit margin

1

1. Measure the profitability of operations without considering the influence of financial structure and tax rate 2. Ratio if net profit to sales

2

3. Measure the profitability of equity funds

6

4. Valuation ratio 5. Measures the profitability of debt funds 6. Indicates the margin available after meeting the manufacturing expenses

1. SEBI

5

2. NAV

2

3. AMFI

6

4. NSE

1. Nifty 2. Net asset value 3. Net average value 4. Association of merchant financers of India 5. Redressal of investor complaints 6. Association of mutual funds of India

Match The Following Question Correct Answer Your Answer Growth of income 40-60 % debt, 40-60 % equities 40-60 % debt, 40-60 % equities Current income Short term debt portfolio Fixed - income portfolio Stability of principal Fixed - income portfolio Short term debt portfolio

Appreciation 75-100 % in equities 75-100 % in equities

Match The Following Question Correct Answer Your Answer Ratio used as a measure of relative value PEG ratio Price to book value ratio The market value of the firms assets divided by the replacement cost of these assets Market value to replacement cost ratio Market value to replacement cost ratio Key determiner of revenue multiples Profit margin Profit margin The market value of the equity in a firm reflects the markets expectations of the firms earnings power and cash flows. Price to book value ratio Price earning ratio

Match The Following Question Correct Answer Your Answer Expiration period for options Nine months Nine months The world's first largest options exchange Chicago Board of options exchange New York board of Options exchange

The most popular pricing options model published in the year 1973 Black Scholes Black Scholes When the writer gives the buyer of the option the right to sell the underlying asset on or before the expiry date Put option Put option

What is the objective of fundamental analysis?

a)

To establish relationship between economic, industrial and company indicators with a view to forecast the earnings and dividends of the company

b) Analyse the macro economic environment

c)

Analyse the company and sector profitability To establish relationship between economic, industrial and company indicators and compare it with the other sector

d)

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The Blank Question ________ is affected by the leverage decisions of the firm. Correct Answer Return on equity Your Answer Price earning ratio

Multiple Choice Multiple Answer Question The investor in bonds receives income from :Correct Answer Interest payments at coupon rates , Capital gain/loss arising out of the sale of the bond , Redemption of the bond of the issuer at a contracted value Your Answer Capital gain/loss arising out of the sale of the bond , Redemption of the bond of the issuer at a contracted value , Interest payments at coupon rates

Multiple Choice Single Answer Question Mr. Sharma is expecting to receive Rs. 50,000/- at the end of 5 years. He wanted to know what is the present value of this amount, if the rate of interest is 6% p.a? Correct Answer Rs. 37363/Your Answer Rs. 37363/-

Multiple Choice Single Answer Question Mr. Suresh is expecting to receive Rs.1,50,000/- at the end of 3 years. He wanted to know what is the present value of this amount, if the rate of interest is 9% p.a ? Correct Answer Rs.1,15,827/Your Answer Rs.1,15,827/-

Multiple Choice Multiple Answer

Question Equity analysts provides estimates of earnings and earnings growth for future, using historical data and :Correct Answer Macro economic information that may impact future growth , Private information about the firm , Firm's specific information and public information Your Answer Macro economic information that may impact future growth , Private information about the firm , Firm's specific information and public information

Multiple Choice Multiple Answer Question What are the features of company fixed deposits? Correct Answer Interest rate offered is higher than banks , No benefits under 80 L , No TDS for interest income upto Rs. 5000 Your Answer Interest rate offered is higher than banks , No benefits under 80 L , No TDS for interest income upto Rs. 5000

True/False Question A firm uses a combination of equity and debt for financing its assets. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question The Peer group of Bharat Forge consists of which all companies? Correct Answer Am forge industries , Kalyani Forge , EL Forge

Your Answer Am forge industries , Kalyani Forge , EL Forge

Multiple Choice Single Answer Question Mr.Rohan invests Rs.25,000/- today. The rate of interest is 6% compounded annually. What will be the value of his investment after 3 years? Correct Answer Rs. 29775/Your Answer Rs. 29775/-

Multiple Choice Single Answer Question Mr. Suhas is expecting to receive Rs.1,00,000/- at the end of 7 years. He wanted to know what is the present value of this amount, if the rate of interest is 7% p.a ? Correct Answer Rs. 62,275/Your Answer Rs. 62,275/-

True/False Question A rally that develops on contracting volumes is suspect and warns of a potential trend reversal in price Correct Answer True Your Answer True

Select The Blank

Question ________ is the value today of a stream of cash flows that occurs in future. Correct Answer Present value Your Answer Present value

Multiple Choice Multiple Answer Question If option is given to you to receive Rs.1,000/- today or after one year, you will choose to receive it today because :Correct Answer You can use the amount to generate returns over the next one year , The purchasing power of Rs.1,000/- today is more than what it will be one year from now , There is an element of uncertainty associated with the future receipt Your Answer You can use the amount to generate returns over the next one year , The purchasing power of Rs.1,000/- today is more than what it will be one year from now , There is an element of uncertainty associated with the future receipt

Multiple Choice Multiple Answer Question What are the features of line charts? Correct Answer It connects closing prices from one period to the next , It is ideal for securities with no high or low price data Your Answer It connects closing prices from one period to the next , It is ideal for securities with no high or low price data

Multiple Choice Single Answer Question What is the objective of Portfolio management?

Correct Answer To Minimize risk and maximize return Your Answer To Minimize risk and maximize return

True/False Question The risk associated to get the required rate of return on the stock is measure by market beta. Correct Answer True Your Answer True

Match The Following Question Correct Answer Your Answer

Growth of income 40-60 % debt, 40-60 % equities 40-60 % debt, 40-60 % equities

Current income Short term debt portfolio Short term debt portfolio

Stability of principal Fixed - income portfolio Fixed - income portfolio

Appreciation 75-100 % in equities 75-100 % in equities

Select The Blank Question ________ refers to the possibility that there may not be a readily available market for the particular bond. Correct Answer Liquidity risk Your Answer Liquidity risk

True/False Question The cost structure remaining the same, better price realisation results in lower gross profit ratio. Correct Answer False Your Answer False

True/False Question Five paisa.com is an example of on line trading portal. Correct Answer True Your Answer True

Multiple Choice Single Answer Question What is balance of payments?

Correct Answer Credit and debit transactions of a country Your Answer Credit and debit transactions of a country

Select The Blank Question ________ absorbs the excess demand or supply generated by hedgers and assume the risk of price fluctuations. Correct Answer Speculators Your Answer Speculators

Multiple Choice Multiple Answer Question Major steps involved in construction of a index are :Correct Answer Selecting a set of scrips to be used , Fixing starting date , Calculating market capitalisation Your Answer Selecting a set of scrips to be used , Fixing starting date , Calculating market capitalisation

Multiple Choice Single Answer Question In any Economy, bridge is created between savers and who need the funds by this system :Correct Answer Financial Your Answer Financial

Select The Blank Question ________ is the value at a certain future date today of a stream of cash flows that occurs over a period of time. Correct Answer Future value Your Answer Future value

Multiple Choice Single Answer Question How many measures of money supply are used commonly? Correct Answer 2 Your Answer 2

True/False Question PPF is a good retirement planning and tax saving vehicle. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question The security analysis process will achieve :Correct Answer True picture of a company , Normal earning power , Projection of future profitability

Your Answer True picture of a company , Normal earning power , Projection of future profitability

Select The Blank Question ________ bonds are generally called for prepayment after interest rates have fallen, investors will not be able to find comparable investment avenues. Correct Answer Call risk Your Answer Call risk

Select The Blank Question Debentures rated "BB" refers ________ of timely payment of interest and principal. Correct Answer Inadequate safety Your Answer Inadequate safety

Multiple Choice Single Answer Question What is the goal of the Dow theory? Correct Answer To determine changes in the primary or major movement in the market Your Answer To determine changes in the primary or major movement in the market

Multiple Choice Multiple Answer

Question Who are the constituents of a mutual fund? Correct Answer Sponsor & trustees , Asset management company , Custodian Your Answer Sponsor & trustees , Asset management company , Custodian

Multiple Choice Single Answer Question What is the indicator of buoyant economy? Correct Answer Increased level of housing construction activity Your Answer Increased level of housing construction activity

Multiple Choice Multiple Answer Question What were the achievements of Bharat Forge during the year 2003? Correct Answer Secured second largest customer in China , Appointed a Company Secretary to act as compliance officer , New contracts won in passenger car components Your Answer Secured second largest customer in China , Appointed a Company Secretary to act as compliance officer , New contracts won in passenger car components

Select The Blank Question The 6.________% tax saving bonds of government of India have a tenure of 5 years. Correct Answer 5 Your Answer 5

Select The Blank Question The compounded annual return of Kisan Vikas patra is ________. Correct Answer 0.084 Your Answer 0.084

True/False Question The labour conditions do not play an important role in the industry analysis. Correct Answer False Your Answer False

Select The Blank Question ________ is also known as random walk model. Correct Answer Weak form EMH Your Answer Weak form EMH

Multiple Choice Single Answer Question Futures contract on individual securities shall expire on the last Thursday of the expiry month and if the last Thursday is a trading holiday then the contract shall expire on the :Correct Answer Previous day

Your Answer Previous day

Match The Following Question Correct Answer Your Answer

Technical collaboration of Bharat Forge with SIFCO industries USA 1981 1981

Bharat Forge was incorporated at Mumbai 1961 1961

Shares of 100 each subdivided of Bharat forge 1971 1971

930000 bonus shares issued by Bharat Forge 1976 1976

Select The Blank Question ________ ratio is estimated by dividing the market value of a firm's assets by the replacement cost of these assets. Correct Answer Market value to replacement cost ratio Your Answer Market value to replacement cost ratio

Select The Blank Question Debentures rated ________ are judged to offer sufficient safety of timely payment of interest and repayment of principal. Correct Answer "BBB" Your Answer "BBB"

Multiple Choice Single Answer Question As per the exhibit 18-1 for individual stock futures on NSE, the price steps in respect of all futures contract admitted to the dealings of the exchange shall be :Correct Answer 0.05 Your Answer 0.05

Multiple Choice Multiple Answer Question The return to the bond investor can be measured in terms of :Correct Answer Current yield , Yield to maturity , Realised yield Your Answer Current yield , Yield to maturity , Realised yield

Multiple Choice Single Answer Question A derivative is a product whose value is derived from :Correct Answer Value of an underlying asset

Your Answer Value of an underlying asset

Multiple Choice Single Answer Question Mr. Shekhar invests Rs.50,000/- in a scheme of LIC, the rate of interest is 8% compounded annually. What will be the value of his investment after 5 years? Correct Answer Rs. 73466/Your Answer Rs. 73466/-

Multiple Choice Single Answer Question What is the limitation of Flow-of funds analysis method? Correct Answer Cannot give indication of the inclination of market participants to purchase stock Your Answer Cannot give indication of the inclination of market participants to purchase stock