LIST OF ATTEMPTED QUESTIONS AND ANSWERS
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 Estimating growth from a firm's fundamentals
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
Multiple Choice Multiple Answer
Question What are the warning indicators to be considered before
analysing the financial statements of a firm ?
Correct Answer Growth in profits outstripping the revenue growth by a large
extent , Non operating expenses occur frequently , Accounting
rules changed frequently
Your Answer Growth in profits outstripping the revenue growth by a large
extent , Non operating expenses occur frequently , Accounting
rules changed frequently
Select The Blank
Question A security is said to be ________ if its current market price is
over its intrinsic value.
Correct Answer Over priced
Your Answer Over priced
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 Cash trading , Margin trading
Multiple Choice Single Answer
Question Mr. Suhas is expecting to receive Rs.1,00,000/- at the end of 7
years. He wanted to know what is the present value of this
amount, if the rate of interest is 7% p.a ?
Correct Answer Rs. 62,275/-
Your Answer Rs. 62,275/-
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 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/-
Match The Following
Question Correct Answer Your Answer
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
Average collection period Similar to debtors turnover Similar to debtors turnover
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
True/False
Question Investment decisions can be viewed as an integrated process to
which security analysis makes its unique contribution.
Correct Answer True
Your Answer True
Match The Following
Question Correct Answer Your Answer
Gross profit margin Indicates the margin
available after meeting the
manufacturing expenses
Indicates the margin
available after meeting the
manufacturing expenses
ROE Measure the profitability of
equity funds
Measure the profitability of
equity funds
Earnings power Measure the profitability of
operations without
considering the influence
of financial structure and
tax rate
Measure the profitability of
operations without
considering the influence
of financial structure and
tax rate
Net profit margin Ratio if net profit to sales Ratio if net profit to sales
Multiple Choice Single Answer
Question What is the highest denomination offered by Kisan Vikas patra
instruments?
Correct Answer 50000
Your Answer 50000
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
Your Answer Macro economic information that may impact future growth ,
Private information about the firm , Firm's specific information
and public information
Multiple Choice Single Answer
Question What is Flow-of-funds analysis?
Correct Answer Consists of an analysis of the financial positions of various
investor groups
Your Answer Consists of an analysis of the financial positions of various
investor groups
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
Select The Blank
Question The SEBI act was passed in the year ________.
Correct Answer 1992
Your Answer 1992
Select The Blank
Question The Derivative market is divided into Future market and
________ market.
Correct Answer Options
Your Answer Options
Select The Blank
Question ________seeks to safeguard against potential losses on the
outstanding position in futures market.
Correct Answer Initial margin
Your Answer Initial margin
Multiple Choice Single Answer
Question Mr.Rohan invests Rs.25,000/- today. The rate of interest is 6%
compounded annually. What will be the value of his investment
after 3 years?
Correct Answer Rs. 29775/-
Your Answer Rs. 29775/-
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 Adequate safety
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
Multiple Choice Multiple Answer
Question Which are the most popular types of orders placed through an
online trading account?
Correct Answer Limit orders , Market orders
Your Answer Limit orders , Market orders
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 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
Select The Blank
Question Security analysis serves the investment decision maker by
identifying ________securities.
Correct Answer Under priced
Your Answer Under priced
True/False
Question The sideways trend is essentially a transitional one which
separates the two major market movements.
Correct Answer True
Your Answer True
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 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
True/False
Question A firm uses a combination of equity and debt for financing its
assets.
Correct Answer True
Your Answer True
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
Your Answer Am forge industries , Kalyani Forge , EL Forge
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 Avenues can be broadly classified into the which type of assets?
Correct Answer Financial and Real
Your Answer Financial and Real
Multiple Choice Multiple Answer
Question The Two-Stage dividend discount model is based on the
assumption of :-
Correct Answer An initial phase where the growth is not a stable growth rate , A
subsequent steady state of growth rate being stable and lasts n
years , A stable growth phase lasts forever
Your Answer An initial phase where the growth is not a stable growth rate , A
stable growth phase lasts forever
True/False
Question A price rise accompanied by expanding volume denotes a
potential trend reversal.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question What could be a better approach to flow-of -funds analysis?
Correct Answer An examination of liquidity trends in the banking system
Your Answer An examination of liquidity trends in the banking system
Multiple Choice Single Answer
Question The historical growth rate and the past earnings of a firm are
used in valuing :-
Correct Answer Stable firms, but not appropriate for high growth firms
Your Answer Stable firms, but not appropriate for high growth firms
Multiple Choice Single Answer
Question What is the minimum investment amount in G-secs?
Correct Answer 1000
Your Answer 1000
True/False
Question With the introduction of on-line trading by NSE and BSE, the role
of regional stock exchanges have diminished.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Mr. Sharma is expecting to receive Rs. 50,000/- at the end of 5
years. He wanted to know what is the present value of this
amount, if the rate of interest is 6% p.a?
Correct Answer Rs. 37363/-
Your Answer Rs. 37363/-
Select The Blank
Question The Dow theory states that there are simultaneously ________
movements in the stock market.
Correct Answer 3
Your Answer 3
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 Single Answer
Question Mr. Tiwari is expecting to receive Rs.25,000/- at the end of 10
years. He wanted to know what is the present value of this
amount, if the rate of interest is 10% p.a:-
Correct Answer Rs. 9639/-
Your Answer Rs. 9639/-
Multiple Choice Single Answer
Question A derivative is a product whose value is derived from :-
Correct Answer Value of an underlying asset
Your Answer Value of an underlying asset
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
Multiple Choice Single Answer
Question What are sector specific funds?
Correct Answer Scheme which invest in certain sectors
Your Answer Scheme which invest in certain sectors
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
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