Security Analysis And Portfolio Management - 15

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
Multiple Choice Single Answer
Question When was the Dow theory first published?
Correct Answer Between 1900 and 1902
Your Answer Between 1900 and 1902
Multiple Choice Single Answer
Question The objective of fundamental analysis for a security in a market is to
identify either it is :-
Correct Answer Under priced and over priced
Your Answer Under priced and over priced
True/False
Question There may be convertible clause which gives the debenture holder
the option to convert the debentures into equity shares.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Active investment managers :-
Correct Answer Do not believe that markets are efficient , Puts efforts to search
mispriced securities in the market , Are relatively active traders in
securities to acquire abnormal returns
Your Answer Do not believe that markets are efficient , Puts efforts to search
mispriced securities in the market , Are relatively active traders in
securities to acquire abnormal returns
Multiple Choice Multiple Answer
Question The Two-Stage dividend discount model is best suited for the firms
that are :-
Correct Answer In high growth rate phase , Expecting to maintain the growth rate
phase steadily for a specific time period , Sources of high growth are
expected to disappear after specific period of time
Your Answer In high growth rate phase , Expecting to maintain the growth rate
phase steadily for a specific time period , Expecting a established
dividend payout ratio
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 Multiple Answer
Question What are the features of short-term trends?
Correct Answer They last from 1 to 3 or 4 weeks , They interrupt the course of the
intermediate cycle , They are usually influenced by random news
events
Your Answer They last from 1 to 3 or 4 weeks , They interrupt the course of the
intermediate cycle , They are usually influenced by random news
events
Multiple Choice Multiple Answer
Question A firm's growth is determined by how much is re-invested 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 Acquisitions , Building distribution channels , Expanding marketing
capabilities and investing in new facilities
Select The Blank
Question S&P NSE 50 index is known as ________.
Correct Answer NIFTY
Your Answer NIFTY
Select The Blank
Question The margining system is future contract is based on ________
recommendations.
Correct Answer J R verma committee
Your Answer Fama committee
Multiple Choice Multiple Answer
Question The investor in bonds receives income from :-
Correct Answer Interest payments at coupon rates , Capital gain/loss arising out of
the sale of the bond , Redemption of the bond of the issuer at a
contracted value
Your Answer Interest payments at coupon rates , Capital gain/loss arising out of
the sale of the bond , Redemption of the bond of the issuer at a
contracted value
Multiple Choice Multiple Answer
Question Mutual fund schemes could be broadly classified as :-
Correct Answer Open ended scheme , Close ended scheme
Your Answer Open ended scheme , Close ended scheme
Multiple Choice Single Answer
Question How can transition phases be projected?
Correct Answer Transition phases are signalled by clearly definable price patterns
Your Answer Transition phases are signalled by clearly definable price patterns
Select The Blank
Question A pattern which does not result in reversal of a trend but reaffirmation
of the underlying trend is called ________.
Correct Answer Consolidation pattern
Your Answer Consolidation pattern
Select The Blank
Question When a debenture is sold to the general public a ________ is
appointed.
Correct Answer Trustee
Your Answer Trustee
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 reinvestments
is :-
Correct Answer Estimating growth from a firm's fundamentals
Your Answer Estimating growth from a firm's fundamentals
True/False
Question Certificate of Deposits offers high rate of interest than Treasury Bills.
Correct Answer True
Your Answer True
Select The Blank
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
Multiple Choice Multiple Answer
Question What are the features of candle stick charts?
Correct Answer Indicates in black if the closing price is lower than the opening price ,
Indicates in white if the closing price is higher than the opening price
Your Answer Indicates in black if the closing price is lower than the opening price ,
Indicates in white if the closing price is higher than the opening price
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)
Match The Following
Question Correct Answer Your Answer
Price pattern Resistance level Head and shoulders
formation
Primary trend Last between 1-2 years Resistance level
Intermediate trend Last between 3 weeks to as
long as 6 months
Last between 3 weeks to as
long as 6 months
Short term trend Last 1 to 3-4 weeks Last 1 to 3-4 weeks
Multiple Choice Single Answer
Question As per the framework presented by Fama, EMH can be divided as :-
Correct Answer The weak form, semi-strong form & strong form
Your Answer The weak form & the strong form
Select The Blank
Question ________ measures the profitability of operations without considering
the influence of financial structure and tax rate.
Correct Answer Earnings power
Your Answer Earnings power
Multiple Choice Single Answer
Question The Top-down approach is also known as :-
Correct Answer Economy-industry-company approach
Your Answer Economy-industry-company approach
True/False
Question The Asset management company of the mutual fund must have 50%
independent directors.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Characteristics of Preference shares are :-
Correct Answer Carry a fixed rate of dividend , Dividend payable out of profit ,
Redemption in 7 to 12 years
Your Answer Carry a fixed rate of dividend , Dividend payable out of profit ,
Redemption in 7 to 12 years
Multiple Choice Single Answer
Question A derivative is a product whose value is derived from :-
Correct Answer Value of an underlying asset
Your Answer Book value of an asset
Match The Following
Question Correct Answer Your Answer
H-Model For Valuing
Growth
Initial growth rate is not
constant but linearly falls
over time to reach the
stable growth rate
Expected dividends and
required rate of returns as
per the market price per
share to the earningsper
share
The general model Expected dividends and
required rate of return
Initial growth rate is not
constant but linearly falls
over time to reach the stable
growth rate
The Gordons Growth model Expected dividends in the
next period, cost of equity
and expected growth rate in
dividends
Based on two extraordinary
growth phase lasting n years
and stable growth phase that
lasts forever
The Two-Stage Dividend
Discount Model
Based on two extraordinary
growth phase lasting n
years and stable growth
phase that lasts forever
Expected dividends in the
next period, cost of equity
and expected growth rate in
dividends
Multiple Choice Single Answer
Question A pledge of real assets as insurance against the non-payment of
default by the buyer represents
Correct Answer Collateral
Your Answer Collateral
Select The Blank
Question ________ 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 Market value to replacement cost ratio
True/False
Question If rupee weakens against the dollar, it has favourable impact for the
importers.
Correct Answer False
Your Answer False
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 A higher value of current ratio indicates a better short term solvency
of the firm.
Correct Answer True
Your Answer True
True/False
Question Given the accounting standards across firm, price to book value
ratios can be compared across similar firms for signs of under
valuation.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Debt instruments that have a maturity period of one year or less are
called as:-
Correct Answer Money market instruments
Your Answer Bonds
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 made by equity
research analyst who follow the firm , Estimates from a firm's
fundamentals
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 Single Answer
Question What do you understand by money supply?
Correct Answer Total money in existence at any given time
Your Answer Total money in existence at any given time
Multiple Choice Multiple Answer
Question Explain what are leverage ratios ?
Correct Answer Help in assessing the risk arising using the debt capital , Debt equity
ratio and interest coverage ratio and DSCR are important leverage
ratios , Debt is riskier source of finance as it entails fixed outgo of
periodic payments
Your Answer Help in assessing the risk arising using the debt capital , Debt equity
ratio and interest coverage ratio and DSCR are important leverage
ratios , Debt is riskier source of finance as it entails fixed outgo of
periodic payments
Select The Blank
Question UTI was set up in the year ________.
Correct Answer 1963
Your Answer 1963
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 Single Answer
Question The bond issuing firm enjoys the flexibility of being able to call the
bonds if :-
Correct Answer Interest rates are falling
Your Answer Interest rates are constant
Multiple Choice Single Answer
Question What are short term trends?
Correct Answer Trends which interrupt the course of the intermediate cycle
Your Answer Trends which interrupt the course of the intermediate cycle
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 Post office monthly schemes have a 10 year tenor.
Correct Answer False
Your Answer False
True/False
Question A segment is more attractive when there are actual or potential
substitutes for the product.
Correct Answer True
Your Answer True