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nomination withdrawn by UTI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nomination withdrawn by UTI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/-
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