LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question What are the different types of profitability ratios?
Correct Answer Return on equity , Gross profit margin ratio , Earnings power
Your Answer Return on equity , Gross profit margin ratio , Earnings power
Select The Blank
Question Mutual fund is to be registered with ________ before raising
funds from public.
Correct Answer SEBI
Your Answer SEBI
Multiple Choice Multiple Answer
Question The security market is the market for :-
Correct Answer Equity , Debt , Derivatives
Your Answer Equity , Debt , Bank deposits
Multiple Choice Multiple Answer
Question The Gordon growth model is best suited for firms :-
Correct Answer Growing at a rate equal to or lower that the growth in the
economy , Which have well established dividend payout ratio
policy , Whose earnings are steady and perpetual
Your Answer Growing at a rate equal to or lower that the growth in the
economy , Which have well established dividend payout ratio
policy
Multiple Choice Single Answer
Question A security analysis is done :-
Correct Answer For decision making for investments
Your Answer As per instruction of the company
Multiple Choice Single Answer
Question The average investor in the market is driven more by emotions
than by rational analysis is a rule of :-
Correct Answer Technical analysis
Your Answer Fundamental Analysis
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 What is the objective of an income fund?
Correct Answer To provide regular and steady income
Your Answer To provide guaranteed returns to investors
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
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 Focus on mergers , Research and development , Capital
investment and focus on balance sheet
Multiple Choice Multiple Answer
Question 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
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
Multiple Choice Single Answer
Question What does lower level of unemployment indicates?
Correct Answer Positive economic conditions
Your Answer Economic slowdown
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.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/-
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 When you are making an investment you are expecting certain
future benefits from your investment.
Correct Answer True
Your Answer True
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 Does not give specific information
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
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 General trading , Cash trading , Credit trading
Select The Blank
Question Under the options contract ________ gives the holder the right,
but not the obligation to buy or sell the underlying instrument
only on the expiry date.
Correct Answer European option
Your Answer American option
Select The Blank
Question An investor with a higher tolerance of risk should tilt his
portfolio
in favour of ________.
Correct Answer Stocks
Your Answer Bank deposits
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 Sideways
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 ,
HModel
unlike the classic two stage model
Your Answer H- Model for valuing growth , H-Two stage model for growth ,
HModel
unlike the classic two stage model
Select The Blank
Question Acid test ratio is more stringent measure of liquidity compared to
the ________.
Correct Answer Current ratio
Your Answer Current ratio
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
subsequent steady state of growth rate being stable and lasts n
years , A stable growth phase lasts forever
True/False
Question While calculating geometric mean calculation of root is not
important.
Correct Answer False
Your Answer False
True/False
Question The labour conditions do not play an important role in the
industry analysis.
Correct Answer False
Your Answer False
Select The Blank
Question ________ measures the efficiency of credit management.
Correct Answer Average collection period
Your Answer Average collection period
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 Which market is affected with the improving and higher growth
rate in economy?
Correct Answer Stock market
Your Answer Stock market
True/False
Question Certificate of Deposits offers high rate of interest than Treasury
Bills.
Correct Answer True
Your Answer True
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 Single Answer
Question What is Gross National Product ?
Correct Answer Gross income generated from within the country
Your Answer Gross income generated from within the country
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
True/False
Question A price rise accompanied by expanding volume denotes a
potential trend reversal.
Correct Answer False
Your Answer True
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 , Balance fund
Multiple Choice Multiple Answer
Question Features of PSU Bonds are :-
Correct Answer No TDS , Transferable by endorsement , No stamp duty on
transfer
Your Answer No TDS , Transferable by endorsement , No stamp duty on
transfer
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
Select The Blank
Question A line is defined as a price movement two or three weeks or
longer, during which period the price variation of both averages
moves within a price range of approximately________%.
Correct Answer 5
Your Answer 5
True/False
Question Following a decline, heavy volume with little price change is
indicative of accumulation and is normally a bearish factor.
Correct Answer False
Your Answer True
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
True/False
Question A segment is unattractive if the buyers possess strong or
growing bargaining powers.
Correct Answer True
Your Answer False
Select The Blank
Question ________ refers to the possibility that there may not be a readily
available market for the particular bond.
Correct Answer Liquidity risk
Your Answer Liquidity risk
Multiple Choice Single Answer
Question What is GDP at factor cost ?
Correct Answer Excludes net income received from abroad
Your Answer Includes indirect taxes
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
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