LIST OF ATTEMPTED QUESTIONS AND ANSWERS
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
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
True/False
Question Penetration of a trend line denotes a bearish phase.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Free Float index considers this to calculate market
capitalisation :-
Correct Answer Actual no. of shares available
Your Answer Actual no. of shares available
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
Match The Following
Question Correct Answer Your Answer
Under options contract Cost of Carry model 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.
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 Transaction cost model
NSE&BSE are
regulated by
Securities Exchange
Board of India
Securities Exchange
Board of India
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 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 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
True/False
Question Investment in gilt edged securities carry a higher
element of risk.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question What was the final analysis on the performance of
Bharat forge for the year FY 02?
Correct Answer Stock currently trades at 15 times its FY 05 consensus
EPS forecasts , Stock will trade at an inexpensive
PEG of 0.6x. , Aim to become US$1 billion Company
by Fy 08 from US$100 million
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
True/False
Question With the use of diversification you can reduce the risk.
Correct Answer True
Your Answer True
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
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 Single Answer
Question What are primary trends?
Correct Answer Reflection of investor's attitudes towards unfolding
fundamentals in the business cycle
Your Answer Reflection of investor's attitudes towards unfolding
fundamentals in the business cycle
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 The Derivative market is divided into Future market
and ________ market.
Correct Answer Options
Your Answer Options
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 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 Slow sales growth product recently introduced
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 for subscription and repurchase on
a continuous basis
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
Select The Blank
Question ________is a hybrid form of security which has
characteristics of both equity and debentures
Correct Answer Preference shares
Your Answer Preference shares
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
Multiple Choice Multiple Answer
Question The underlying assumptions of Technical analysis are
that :-
Correct Answer Prices move in predictable patterns , Market value is
determined by supply & demand , Investors are
emotional than being rational
Your Answer Prices move in predictable patterns , Market value is
determined by supply & demand , Security has a
intrinsic value at any given time
Select The Blank
Question ________ ratio is the ratio of net profit to the sales.
Correct Answer Net Profit Margin
Your Answer Net Profit Margin
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 A firm's growth is determined by how much is reinvested
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 Expanding marketing capabilities and investing in new
facilities
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 Stock market movements
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
Select The Blank
Question Current liabilities include all liabilities due in the next
________ and provisions.
Correct Answer 12 months
Your Answer 12 months
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 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 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
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
Your Answer The Gordons dividend growth
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 regular and steady income
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 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
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
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 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
True/False
Question Because of statutory compulsion, generally Govt.
securities are held by banks, financial institutions,
insurance companies etc.
Correct Answer True
Your Answer True
Select The Blank
Question The ________ phase is characterized by resistance
area and support level.
Correct Answer Transition
Your Answer Horizontal
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 Single Answer
Question What is the minimum investment amount in G-secs?
Correct Answer 1000
Your Answer 1000
True/False
Question Sensex is the index of Calcutta Stock Exchange.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Investments could be made in retail government
securities through :-
Correct Answer Primary dealers
Your Answer Primary dealers
No comments:
Post a Comment