Thursday, March 28, 2013

SCDL Papers: Security Analysis & Portfolio Management SCDL Exam - 29


 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
 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
 Multiple Choice Single Answer
  Question  
When an investor invests in stock, expects to get the dividends and an expected price for the period the stock is held is the rule of :-
  Correct Answer  
The General model
 True/False
  Question  
In case of assured returns, A scheme cannot promise returns unless such returns are fully guaranteed by sponsor or AMC.
  Correct Answer  
TRUE
 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
 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
 Select The Blank
  Question  
The ________ phase is characterized by resistance area and support level.
  Correct Answer  
Transition
 Multiple Choice Single Answer
  Question  
In India we have index futures contracts based on :-
  Correct Answer  
S&P CNX Nifty and the BSE sensex
 Multiple Choice Single Answer
  Question  
In India, the futures on individual securities have been introduced from :-
  Correct Answer  
2001
 Multiple Choice Single Answer
  Question  
What do you understand by the term redemption price?
  Correct Answer  
Price or NAV at which a scheme purchases its units
 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
 True/False
  Question  
Five paisa.com is an example of on line trading portal.
  Correct Answer  
TRUE
 Select The Blank
  Question  
Dow Jones transportation average was previously known as ________.
  Correct Answer  
Rail average
 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 Single Answer
  Question  
As per the exhibit 18-1 for individual stock futures on NSE, the price steps in respect of all futures contract admitted to the dealings of the exchange shall be :-
  Correct Answer  
0.05
 Multiple Choice Single Answer
  Question  
Who developed Dow's Principles and organised them into a theory as it is known today?
  Correct Answer  
William Peter Hamilton
 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
 Select The Blank
  Question  
________are good benchmark to compare the ratios for a firm.
  Correct Answer  
Industry averages
 Multiple Choice Single Answer
  Question  
A market that is trading at a Price earning ratio that is much higher than its historical norms is considered to be :-
  Correct Answer  
Over valued
 Multiple Choice Single Answer
  Question  
What are short term trends?
  Correct Answer  
Trends which interrupt the course of the intermediate cycle
 True/False
  Question  
European style options are more expensive than American style because they offer greater flexibility to the buyer.
  Correct Answer  
FALSE
 Multiple Choice Single Answer
  Question  
More than half the variation in stock price could be attributed to which factor?
  Correct Answer  
Market influence
 Select The Blank
  Question  
A ________ rally for stocks generally takes place because of an improved outlook for business conditions over what was anticipated.
  Correct Answer  
Bear market
 Multiple Choice Multiple Answer
  Question  
What are the features of Kisan Vikas Patra?
  Correct Answer  
Term is for 8 years seven months , Provision of premature withdrawal , Interest rate is 8.4% compounded annually
 Multiple Choice Single Answer
  Question  
Capital expenditure -depreciation +change in working capital -(new debt issued - debt repaid) =
  Correct Answer  
Equity reinvested in business
 Multiple Choice Single Answer
  Question  
What levels if increased will have unfavourable impact on the stock market?
  Correct Answer  
Higher levels of taxation
 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
 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
 Select The Blank
  Question  
The Derivative market is divided into Future market and ________ market.
  Correct Answer  
Options
 Multiple Choice Multiple Answer
  Question  
The features of bond are :-
  Correct Answer  
Collateral , Call provision , Sinking fund and protective covenants
 Multiple Choice Single Answer
  Question  
In India futures on individual securities have been introduced by :-
  Correct Answer  
BSE & NSE
 Multiple Choice Single Answer
  Question  
The expected price of the stock at the end of the holding period is determined by future dividends and the value of the stock is the present value of dividends through infinity are the underlying assumptions of :-
  Correct Answer  
The General model
 True/False
  Question  
Sensex is the index of Calcutta Stock Exchange.
  Correct Answer  
FALSE
 Multiple Choice Single Answer
  Question  
What is GDP at factor cost ?
  Correct Answer  
Excludes net income received from abroad
 True/False
  Question  
Quick assets consist of current assets less inventories.
  Correct Answer  
TRUE
 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
 Select The Blank
  Question  
Mutual fund is to be registered with ________ before raising funds from public.
  Correct Answer  
SEBI
 Multiple Choice Single Answer
  Question  
A security analysis is done :-
  Correct Answer  
For decision making for investments
 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
 Multiple Choice Single Answer
  Question  
What is the objective of an income fund?
  Correct Answer  
To provide regular and steady income
 Multiple Choice Single Answer
  Question  
What does lower level of unemployment indicates?
  Correct Answer  
Positive economic conditions
 Multiple Choice Single Answer
  Question  
The GDP growth rate in the economy in real terms has fluctuated between :-
  Correct Answer  
4% and 5%
 Select The Blank
  Question  
An investor with a higher tolerance of risk should tilt his portfolio in favour of ________.
  Correct Answer  
Stocks
 Multiple Choice Single Answer
  Question  
Avenues can be broadly classified into the which type of assets?
  Correct Answer  
Financial and Real
 Multiple Choice Multiple Answer
  Question  
Mutual fund schemes could be broadly classified as :-
  Correct Answer  
Open ended scheme , Close ended scheme
 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
 Multiple Choice Single Answer
  Question  
The issuing firm enjoys the flexibility to call the bonds if the interest rates fall significantly and it can issue :-
  Correct Answer  
New bonds at a lower rates
 True/False
  Question  
If a rupee weakens against the dollars it has favourable impact for the exporters.
  Correct Answer  
TRUE
 Multiple Choice Single Answer
  Question  
What is the percentage of variation the market and industry influence account for?
  Correct Answer  
2/3rd
 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






Note: Please tally the answers and verify them from SCDL textbooks as all answers might not be correct. 

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