LIST OF ATTEMPTED QUESTIONS AND ANSWERS
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
Multiple Choice Multiple Answer
Question Equity analysts provides estimates of earnings and earnings
growth for future, using historical data and :-
Correct Answer Macro economic information that may impact future growth ,
Private information about the firm , Firm's specific information
and public information
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
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
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 , Displays the correlation between the high and low prices
Multiple Choice Multiple Answer
Question The growth rate in the initial phase is not constant but declines
linearly over time to reach the stable growth rate in steady state
is a phenomena of :-
Correct Answer H- Model for valuing growth , H-Two stage model for growth ,
H-Model unlike the classic two stage model
Multiple Choice Multiple Answer
Question What are the features of line charts?
Correct Answer It connects closing prices from one period to the next , It is
ideal for securities with no high or low price data
Multiple Choice Multiple Answer
Question What are the ways of measuring relative strength?
Correct Answer Calculate the rates of return and classify securities that have
earned superior historical returns , Calculating certain ratios
will help in analyzing whether a security has relative strength
Your Answer Calculating the Return on investment
Multiple Choice Multiple Answer
Question The Peer group of Bharat Forge consists of which all
companies?
Correct Answer Am forge industries , Kalyani Forge , EL Forge
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
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
Multiple Choice Multiple Answer
Question The features of bond are :-
Correct Answer Collateral , Call provision , Sinking fund and protective
covenants
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 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 Multiple Answer
Question What are the features of post
office monthly income scheme?
Correct Answer Investor earns bonus of 10% on
completion of term , Rate of
return is 8 % , Interest payable
monthly
Your Answer Rate of return is 8 % , Interest
payable monthly , Investor earns
bonus of 10% on completion of
term
Multiple Choice Multiple Answer
Question The firm issuing bonds
operating sinking fund and
repurchases bonds either :-
Correct Answer Calling in a certain number
of bonds by lot , Buying
bonds in the open market ,
Buying bonds issued to
banks and financial
institutions
Your Answer Calling in a certain number
of bonds by lot , Buying
bonds in the open market ,
Buying bonds issued to
banks and financial
institutions
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 Multiple Answer
Question The computation of return on a
bond involves considering :-
Correct Answer The entire sequence of cash flows
, The timing of cash flows ,
Calculating the internal rate of
return
Your Answer The entire sequence of cash flows
, The timing of cash flows ,
Calculating the internal rate of
return
Multiple Choice Multiple Answer
Question What are the features of line
charts?
Correct Answer It connects closing prices from one
period to the next , It is ideal for
securities with no high or low price
data
Your Answer It connects closing prices from one
period to the next , It is ideal for
securities with no high or low price
data
Multiple Choice Multiple Answer
Question Explain what are leverage ratios ?
Correct Answer 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 , Help in assessing the
risk arising using the debt capital
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
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
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 1 Return can be in the form of :-
Correct Answer Dividends , Interests , Capital appreciation
Your Answer Dividends , Interests , Capital appreciation
Multiple Choice Multiple Answer
Question 5 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 Multiple Answer
Question 35 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
Multiple Choice Multiple Answer
Question 41 Formula for calculation of portfolio variance
requires :-
Correct Answer Expected return on portfolio , Expected return on
assets , Weight of asset in the portfolio
Your Answer Expected return on portfolio , Expected return on
assets , Weight of asset in the portfolio
Multiple Choice Multiple Answer
Question 46 What were the objectives for 2002-03 the
chairman of Bharat forge had emphasised on in
the annual report for 2001 - 02
Correct Answer Maintain aggressive exports thrust , Increase
shares of value added products , Continue
reducing costs
Your Answer Maintain aggressive exports thrust , Increase
shares of value added products , Continue
reducing costs
Multiple Choice Multiple Answer
Question 47 Which are the most popular types of orders
placed through an online trading account?
Correct Answer Limit orders , Market orders
Your Answer Market orders , Hedging orders , Arbitrage orders
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