LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question Risk on a portfolio of assets is always same as the risk on
individual asset.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question The price of the index futures contract is defined as :-
Correct Answer Future price = Spot price + Carry cost
Your Answer Future price = Spot price + Carry cost
Multiple Choice Single Answer
Question In India we have index futures contracts based on :-
Correct Answer S&P CNX Nifty and the BSE sensex
Your Answer S&P CNX Nifty and the BSE sensex
Match The Following
Question Correct Answer Your Answer
Future value of a series of
cash flows occurring at
the end of each period.
Future value of annuity Future value of annuity
Value today of a stream of
cash flows that occurs in
future.
Present Value Present Value
Value at a certain future
date today of a stream of
cash flows that occurs
over a period of time.
Future Value Future Value
Series of equal payments
or receipts occurring at
regular intervals of time.
Present value of annuity Present value of annuity
True/False
Question Bond ratings by credit rating agencies provide superior and low
cost information to the investor serving as a basis for a proper
risk-return trade off by investors.
Correct Answer True
Your Answer True
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
Select The Blank
Question Risk can be referred as the ________ in the return with respect
to the expected return.
Correct Answer Volatility
Your Answer Volatility
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
Your Answer Bar and line charts , Candle stick charts , Point and figure charts
True/False
Question A higher value of current ratio indicates a better short term
solvency of the firm.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What are the features of trend lines
Correct Answer A simple and useful tool in technical analysis , Prices move in
trends , The trend lines represent points of support and
resistance
Your Answer A simple and useful tool in technical analysis , Prices move in
trends , The trend lines represent points of support and
resistance
Multiple Choice Single Answer
Question The GDP growth rate in the economy in real terms has
fluctuated between :-
Correct Answer 4% and 5%
Your Answer 4% and 5%
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 Single Answer
Question More than half the variation in stock price could be attributed to
which factor?
Correct Answer Market influence
Your Answer Market influence
Match The Following
Question Correct Answer Your Answer
Technical collaboration of
Bharat Forge with SIFCO
industries USA
1981 1981
Bharat Forge was
incorporated at Mumbai
1961 1961
Shares of 100 each
subdivided of Bharat forge
1971 1971
930000 bonus shares
issued by Bharat Forge
1976 1976
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
Multiple Choice Single Answer
Question What does lower level of unemployment indicates?
Correct Answer Positive economic conditions
Your Answer Positive economic conditions
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
Select The Blank
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 Transitional
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
Select The Blank
Question The 8% taxable savings bonds are repayable after ________
years.
Correct Answer 6
Your Answer 6
Multiple Choice Multiple Answer
Question The features of bond are :-
Correct Answer Collateral , Call provision , Sinking fund and protective
covenants
Your Answer Collateral , Call provision , Sinking fund and protective
covenants
Multiple Choice Multiple Answer
Question An options contract allows the investor :-
Correct Answer To earn a profit while restricting the downside risk , To use the
options for speculation , Either to honour or walk away from the
contract
Your Answer To earn a profit while restricting the downside risk , To use the
options for speculation , Either to honour or walk away from the
contract
Select The Blank
Question Current liabilities include all liabilities due in the next ________
and provisions.
Correct Answer 12 months
Your Answer 3 months
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 Mutual fund schemes could be broadly classified as :-
Correct Answer Open ended scheme , Close ended scheme
Your Answer Open ended scheme , Close ended scheme
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
Select The Blank
Question ________ 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 Two-Stage dividend discount
True/False
Question The cost structure remaining the same, better price realisation
results in lower gross profit ratio.
Correct Answer False
Your Answer False
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
Multiple Choice Multiple Answer
Question What were the achievements of Bharat Forge during the year
2003?
Correct Answer Secured second largest customer in China , Appointed a
Company Secretary to act as compliance officer , New contracts
won in passenger car components
Your Answer Secured second largest customer in China , Appointed a
Company Secretary to act as compliance officer , New contracts
won in passenger car components
Multiple Choice Single Answer
Question The financial contract between the issuer and the purchaser of
the bonds is termed as :-
Correct Answer Bond indenture
Your Answer Bond indenture
True/False
Question With the use of diversification you can reduce the risk.
Correct Answer True
Your Answer True
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
Select The Blank
Question Dow Jones transportation average was previously known as
________.
Correct Answer Rail average
Your Answer Rail average
Multiple Choice Multiple Answer
Question What are the features of company fixed deposits?
Correct Answer Interest rate offered is higher than banks , No benefits under 80
L , No TDS for interest income upto Rs. 5000
Your Answer Interest rate offered is higher than banks , No benefits under 80
L , No TDS for interest income upto Rs. 5000
Multiple Choice Single Answer
Question In estimating the growth of a firm, analyst's forecasts have an
advantage over historical data-based models because :-
Correct Answer They incorporate more recent information about the firm and
inputs future prospects
Your Answer They incorporate more recent information about the firm and
inputs future prospects
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 less borrowings
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 Weak form
Multiple Choice Single Answer
Question What is the limitation of Flow-of funds analysis method?
Correct Answer Cannot give indication of the inclination of market participants to
purchase stock
Your Answer Cannot give indication of the inclination of market participants to
purchase stock
Select The Blank
Question ________ measures the profitability of equity funds invested in
the firms.
Correct Answer Return on equity
Your Answer Return on equity
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/-
True/False
Question Equity shares is a high return high risk instrument.
Correct Answer True
Your Answer True
True/False
Question The returns of sector specific funds are solely dependant on the
performance of the respective sectors / industries.
Correct Answer True
Your Answer True
True/False
Question Certificate of Deposits offers high rate of interest than Treasury
Bills.
Correct Answer True
Your Answer True
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 Single Answer
Question Mr. Suresh is expecting to receive Rs.1,50,000/- at the end of 3
years. He wanted to know what is the present value of this
amount, if the rate of interest is 9% p.a ?
Correct Answer Rs.1,15,827/-
Your Answer Rs.1,15,827/-
Multiple Choice Multiple Answer
Question Major steps involved in construction of a index are :-
Correct Answer Selecting a set of scrips to be used , Fixing starting date ,
Calculating market capitalisation
Your Answer Selecting a set of scrips to be used , Fixing starting date ,
Calculating market capitalisation
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