Security Analysis & Portfolio Management_7

6.

12.

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

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

a) b ) c) d ) 14.

17.

4% and 5% 3% and 4% 6% and 7% 5% and 6% The sideways trend is essentially a transitional one which separates the two major market movements.

True False What is the minimum investment amount in G-secs?

a) b ) c) d ) 30.

1000 10000 50000 100000 The Two-Stage dividend discount model is best suited for the firms that are :-

a) b ) c) d )

In high growth rate phase Expecting to maintain the growth rate phase steadily for a specific time period 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 Change method of stock valuation Inflating sales for current year by advancing sales for the following year Changing the management of the company frequently

b ) c) d )

Marks : 2 45.

What are the ways of measuring relative strength?

a)

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

b ) c) d )

46.

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

a)

Fundamental Analysis Intrinsic value analysis Economic Analysis Technical analysis

b ) c) d ) 49.

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

a) b ) c)

Higher levels of unemployment Unstable economy Higher levels of taxation Low levels of interest rates

d ) 55.

Why does every investor have different investment objectives?

a)

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 Every investor has different perception of the markets

b ) c) d )

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 , 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