Security Analysis & Portfolio Management SCDL Solved Exam Paper 40

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Multiple Choice Single Answer
Question	In a forward contract there is :-
Correct Answer	No Exchange of cash
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
Select The Blank
Question	________ is the value at a certain future date today of a stream of cash flows that occurs over a period of time.
Correct Answer	Future value
Select The Blank
Question	An option is a contract which gives the buyer ________ to buy or sell shares of the underlying security at a specific price on or before a specific date.
Correct Answer	Right but not obligation
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
Multiple Choice Single Answer
Question	Which of these is a short-maturity debt issue?
Correct Answer	Money market funds and gilts
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/-
True/False
Question	When we invest in only one asset we are not exposed to any specific or market risk.
Correct Answer	FALSE
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/-
True/False
Question	When you are making an investment you are expecting certain future benefits from your investment.
Correct Answer	TRUE
Select The Blank
Question	________ ratio indicates the margin available after meeting the manufacturing expenses.
Correct Answer	Gross Profit margin
Multiple Choice Multiple Answer
Question	Gilt Edged Securities are :-
Correct Answer	Central Govt , State Govt. , Quasi-Govt
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/-
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
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
Multiple Choice Single Answer
Question	Which market is affected with the improving and higher growth rate in economy?
Correct Answer	Stock market
True/False
Question	The price earning ratio can be estimated for the firms with negative earnings per share.
Correct Answer	FALSE
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 Single Answer
Question	How did Dow use the behaviour of stock markets?
Correct Answer	As a barometer of business conditions rather than a basis for forecasting stock prices
True/False
Question	The normal relationship is for the volume to expand on rallies and contract on declines.
Correct Answer	TRUE
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
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
Multiple Choice Multiple Answer
Question	The return to the bond investor can be measured in terms of :-
Correct Answer	Current yield , Yield to maturity , Realised yield
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
Multiple Choice Multiple Answer
Question	What was the final analysis on the performance of Bharat forge for the year FY 02?
Correct Answer	Aim to become US$1 billion Company by Fy 08 from US$100 million , Stock currently trades at 15 times its FY 05 consensus EPS forecasts , Stock will trade at an inexpensive PEG of 0.6x.
Multiple Choice Single Answer
Question	Agriculture account for how much portion of the economy?
Correct Answer	Quarter
True/False
Question	If rupee weakens against the dollar, it has favourable impact for the importers.
Correct Answer	FALSE
True/False
Question	The labour conditions do not play an important role in the industry analysis.
Correct Answer	FALSE
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
Select The Blank
Question	________ absorbs the excess demand or supply generated by hedgers and assume the risk of price fluctuations.
Correct Answer	Speculators

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