Security Analysis And Portfolio Management - 12

Select The Blank
Question 1 ________ deal in futures to offset a pre-existing risk.
Correct Answer Hedger
Your Answer Speculator
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Question 8 Under ________ EMH investors cannot earn abnormal/superior profits on
securities on a consistent basis.
Correct Answer Semi-strong form
Your Answer Semi-strong form
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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 Answer Speculators
Your Answer Hedgers
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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 The Two-Stage dividend discount
Your Answer The Gordons dividend growth
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Question 17 ________ 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 PEG ratio
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Question 19 ________involves a simultaneous sale and repurchase agreement.
Correct Answer Repos
Your Answer Repos
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Question 28 Current liabilities include all liabilities due in the next ________ and
provisions.
Correct Answer 12 months
Your Answer 12 months
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Question 30 S&P NSE 50 index is known as ________.
Correct Answer NIFTY
Your Answer NIFTY
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Question 31 ________seeks to safeguard against potential losses on the outstanding
position in futures market.
Correct Answer Initial margin
Your Answer Daily settlement
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Question 35 ________ ratio is the ratio of net profit to the sales.
Correct Answer Net Profit Margin
Your Answer Net Profit Margin
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Question Mutual fund is to be registered with ________ before raising funds from
public.
Correct Answer SEBI
Your Answer SEBI
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Question An investor with a higher tolerance of risk should tilt his portfolio in favour
of ________.
Correct Answer Stocks
Your Answer Bank deposits
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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
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Question Acid test ratio is more stringent measure of liquidity compared to the
________.
Correct Answer Current ratio
Your Answer Current ratio
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Question ________ measures the efficiency of credit management.
Correct Answer Average collection period
Your Answer Average collection period
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Question ________ measures the profitability of operations without considering the
influence of financial structure and tax rate.
Correct Answer Earnings power
Your Answer Earnings power
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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
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Question ________ measures the profitability of equity funds invested in the firms.
Correct Answer Return on equity
Your Answer Return on equity
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Question Risk can be referred as the ________ in the return with respect to the
expected return.
Correct Answer Volatility
Your Answer Difference
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Question All trades in the futures market are cash settled on a ________ basis.
Correct Answer T+1
Your Answer T+1
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Question ________ ratio is the ratio of net profit to the sales.
Correct Answer Net Profit Margin
Your Answer Net Profit Margin
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Question When a debenture is sold to the general public a ________ is appointed.
Correct Answer Trustee
Your Answer Brokers
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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
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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
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Question Mutual fund is to be registered with ________ before raising funds from
public.
Correct Answer SEBI
Your Answer SEBI
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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
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Question The govt allowed public sector banks and institutions in mutual funds in
________.
Correct Answer Early 90's
Your Answer Early 90's
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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
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Question The 6.________% tax saving bonds of government of India have a tenure
of 5 years.
Correct Answer 5
Your Answer 5
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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
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Question ________ absorbs the excess demand or supply generated by hedgers
and assume the risk of price fluctuations.
Correct Answer Speculators
Your Answer Speculators
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Question UTI was set up in the year ________.
Correct Answer 1963
Your Answer 1963
True/False
Question The normal relationship is for the volume to expand on rallies and
contract on declines.
Correct Answer True
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
True/False
Question A firm uses a combination of equity and debt for financing its
assets.
Correct Answer True
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
True/False
Question Investors in high tax bracket would benefit by investing in
equity schemes.
Correct Answer False
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
True/False
Question When we invest in only one asset we are not exposed to any
specific or market risk.
Correct Answer False
True/False
Question Five paisa.com is an example of on line trading portal.
Correct Answer True
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
True/False
Question Bearish actions come from a series of declining peaks and
troughs.
Correct Answer True
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 With the use of diversification you can reduce the risk.
Correct Answer True
Your Answer True
True/False
Question A segment is unattractive if the buyers possess strong or
growing bargaining powers.
Correct Answer True
Your Answer True
True/False
Question Risk on a portfolio of assets is always same as the risk on
individual asset.
Correct Answer False
Your Answer False
True/False
Question Debt is less riskier source of finance than equity.
Correct Answer False
Your Answer True
True/False
Question Post office monthly schemes have a 10 year tenor.
Correct Answer False
Your Answer False
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 Penetration of a trend line denotes a bearish phase.
Correct Answer False
Your Answer True
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