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Friday, February 13, 2015

Security Analysis & Portfolio Management SCDL Solved Exam Paper 42

This solved paper of SCDL Security Analysis & Portfolio Management of SCDL Pune has been contributed by Deepak Goyal

 Thanks To: Deepak Goal


Multiple Choice Multiple Answer
Question 
An options contract allows the investor :-
Correct Answer 
To earn a profit while restricting the downside risk , To use the options for speculation , Either to honour or walk away from the contract
True/False
Question 
The basic assumption of Technical analysis is that, price discounts everything and it is the outcome of all forces affecting a stock.
Correct Answer 
TRUE
Select The Blank
Question 
Secondary reactions occurs because of ________ which arise in the market as a result of over optimism and over pessimism.
Correct Answer 
Technical distortions
Select The Blank
Question 
In a heads and shoulders formation the deeper the pattern, the greater is the ________ significance once it is completed
Correct Answer 
Bearish
True/False
Question 
Debt is less riskier source of finance than equity.
Correct Answer 
FALSE
True/False
Question 
The arithmetic mean is a set of observations is calculated by finding the sum values and dividing by the number of observations.
Correct Answer 
TRUE
Multiple Choice Single Answer
Question 
What does flow-of fund analysis help in understanding?
Correct Answer 
Availability of money for the stock market
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 
Growth of the firm can be estimated through :-
Correct Answer 
Firm's past earnings/historical growth rate , Estimates made by equity research analyst who follow the firm , Estimates from a firm's fundamentals
Multiple Choice Multiple Answer
Question 
The security analysis process will achieve :-
Correct Answer 
True picture of a company , Normal earning power , Projection of future profitability
Multiple Choice Single Answer
Question 
The general dividend model is based on the principle of :-
Correct Answer 
Present value of the expected future cash flow
Multiple Choice Single Answer
Question 
The index futures symbols of BSE are represented as :-
Correct Answer 
BSX JAN 2005 (January contract)
Multiple Choice Multiple Answer
Question 
What are the features of bank deposits?
Correct Answer 
Interest is presently around 6% , Benefits under section 80 L , Banks offer cheque facility for investors making it convenient to withdraw
True/False
Question 
Risk on a portfolio of assets is always same as the risk on individual asset.
Correct Answer 
FALSE
Select The Blank
Question 
UTI was set up in the year ________.
Correct Answer 
1963
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 
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
Multiple Choice Multiple Answer
Question 
The return to the bond investor can be measured in terms of :-
Correct Answer 
Realised yield , Current yield , Yield to maturity
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
Select The Blank
Question 
Debentures rated "BB" refers ________ of timely payment of interest and principal.
Correct Answer 
Inadequate safety
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
Multiple Choice Single Answer
Question 
When the firm is not raising equity by issuing new shares, the growth rate in net profits is given by :-
Correct Answer 
Retention ratio X return on equity
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 
Characteristics of Preference shares are :-
Correct Answer 
Carry a fixed rate of dividend , Dividend payable out of profit , Redemption in 7 to 12 years
Multiple Choice Multiple Answer
Question 
What are the SEBI regulations with respect to mutual funds?
Correct Answer 
Mutual funds to be registered with SEBI before the launching any scheme , 2/3rds of the directors of the trustee company must be independent , An AMC approved by SEBI manages the fund
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 
We can compare the price earning ratio of a market to its historical average to make judgements about, whether market is :-
Correct Answer 
Under valued or over valued
Multiple Choice Single Answer
Question 
The growth rate is used to forecast future revenues and earnings and are inputs in valuing :-
Correct Answer 
Stable firms
Multiple Choice Single Answer
Question 
A security analysis is done :-
Correct Answer 
For decision making for investments
Multiple Choice Multiple Answer
Question 
Which ratios are commonly used?
Correct Answer 
Debt equity ratio , Interest coverage ratios , Debt service coverage ratios
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
Match The Following
Question
Correct Answer
Growth of income
40-60 % debt, 40-60 % equities
Current income
Short term debt portfolio
Stability of principal
Fixed - income portfolio
Appreciation
75-100 % in equities


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

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