Security Analysis & Portfolio Management_1

LIST OF ATTEMPTED QUESTIONS AND ANSWERS (Security Analysis & Portfolio Management_1) Question Bearish actions come from a series of declining peaks and troughs. Correct Answer

True

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

William Peter Hamilton

Your Answer

Charles.H.Dow

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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 Match The Following Question NSE&BSE are regulated by Under options contract A contract where both the parties are equally responsible 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.

Correct Answer Securities Exchange Board of India When you expect prices to fall, then, you take a long position by buying puts. Futures contract 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

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

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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 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

Ratio used as a measure of relative value The market value of the firms assets divided by the replacement cost of these assets Key determiner of revenue multiples The market value of the equity in a firm reflects the markets expectations of the firms earnings power and cash flows.

Your Answer PEG ratio Market value to replacement cost ratio Profit margin Price to book value ratio

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

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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 ******************************** Dow Jones transportation average was previously known as Road average Freight average.

Rail average Logistics average

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