Security Analysis And Portfolio Management - 9

Multiple Choice Multiple Answer
Question 4 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 , Expanding marketing
capabilities and investing in new facilities ,
Mergers
Multiple Choice Multiple Answer
Question 5 Which of the following are important
momentum indicators used widely?
Correct Answer Rate of change (ROC) , Relative strength
indicator (RSI) , Moving average
convergence divergence(MACD)
Your Answer Rate of change (ROC) , Relative strength
indicator (RSI) , Moving average
convergence divergence(MACD)
Multiple Choice Multiple Answer
Question 14 Which ratios are commonly used?
Correct Answer Debt equity ratio , Interest coverage ratios ,
Debt service coverage ratios
Your Answer Debt equity ratio , Interest coverage ratios ,
Debt service coverage ratios
Multiple Choice Multiple Answer
Question 15 What were the Chairman's comments during
the speech in the Annual report of the FY
2002-03?
Correct Answer Best year in the history of the company ,
146% growth in exports , Highest pre and
post tax profits
Your Answer Best year in the history of the company ,
146% growth in exports , Highest pre and
post tax profits
Multiple Choice Multiple Answer
Question 20 Who are the constituents of a
mutual fund?
Correct Answer Sponsor & trustees , Asset
management company ,
Custodian
Your Answer Sponsor & trustees , Asset
management company ,
Custodian
Multiple Choice Multiple Answer
Question 26 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
Your Answer Term is for 8 years seven months , Provision
of premature withdrawal , Interest rate is 8.4%
compounded annually
Multiple Choice Multiple Answer
Question 38 The security analysis process will achieve :-
Correct Answer True picture of a company , Normal earning
power , Projection of future profitability
Your Answer True picture of a company , Normal earning
power , Projection of future profitability
Multiple Choice Multiple Answer
Question 41 The return to the bond investor can be
measured in terms of :-
Correct Answer Current yield , Yield to maturity , Realised
yield
Your Answer Yield to maturity , Realised yield
Multiple Choice Multiple Answer
Question 5 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 , Margin trading
Multiple Choice Multiple Answer
Question 7 What are the features of Retail government securities
(G-secs) ?
Correct Answer Safest investment option available , Demat account is
required for investment , Choice of tenure varies from
less than 1 year to 30 years
Your Answer Securities can be bought from the RBI , Safest
investment option available , Demat account is required
for investment
Multiple Choice Multiple Answer
Question 10 To measure the movement of stocks in the market
which indices were constructed by Dow?
Correct Answer Dow Jones industrial Average , Dow Jones
Transportation Average
Your Answer Dow Jones Transportation Average
Multiple Choice Multiple Answer
Question 16 The security market is the market for :-
Correct Answer Equity , Debt , Derivatives
Your Answer Equity , Debt , Bank deposits
Multiple Choice Multiple Answer
Question 18 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 , Flat trend
Multiple Choice Multiple Answer
Question 22 Mutual fund schemes could be broadly classified as :-
Correct Answer Open ended scheme , Close ended scheme
Your Answer Open ended scheme , Close ended scheme , Growth
schemes
Multiple Choice Multiple Answer
Question 24 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.
Your 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 Multiple Answer
Question 26 Gilt Edged Securities are :-
Correct Answer State Govt. , Quasi-Govt , Central Govt
Your Answer Central Govt , State Govt. , Quasi-Govt
Multiple Choice Multiple Answer
Question 33 What are the ways of measuring relative strength?
Correct Answer Calculate the rates of return and classify securities that
have earned superior historical returns , Calculating
certain ratios will help in analyzing whether a security
has relative strength
Your Answer Calculate the rates of return and classify securities that
have earned superior historical returns , Calculating
certain ratios will help in analyzing whether a security
has relative strength , Calculating the Return on
investment
Multiple Choice Multiple Answer
Question 44 What are the different types of profitability ratios?
Correct Answer Gross profit margin ratio , Earnings power , Return on
equity
Your Answer Gross profit margin ratio , Earnings power , Return on
equity
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 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
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
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
Your Answer Either to honour or walk away from the contract , To earn a profit
while restricting the downside risk , To use the options for
speculation
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
Your Answer Selecting a set of scrips to be used , Fixing starting date , Fixing
ending date
Multiple Choice Multiple Answer
Question How can the financial statements can be manipulated while
giving the estimates for growth?
Correct Answer Change method of rate of depreciation , Change method of stock
valuation , Inflating sales for current year by advancing sales for
the following year
Your Answer Change method of rate of depreciation , Change method of stock
valuation , Inflating sales for current year by advancing sales for
the following year
Multiple Choice Multiple Answer
Question The underlying assumptions of Technical analysis are that :-
Correct Answer Prices move in predictable patterns , Market value is determined
by supply & demand , Investors are emotional than being rational
Your Answer Prices move in predictable patterns , Investors are emotional
than being rational
Multiple Choice Multiple Answer
Question Which are the different styles of displaying charts?
Correct Answer Bar and line charts , Candle stick charts , Point and figure charts
Your Answer Candle stick charts , Point and figure charts , Bar and line charts
Multiple Choice Multiple Answer
Question What are the features of public provident scheme?
Correct Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is
available from 7th year
Your Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is
available from 7th year
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
Your 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 Characteristics of Preference shares are :-
Correct Answer Carry a fixed rate of dividend , Dividend payable out of profit ,
Redemption in 7 to 12 years
Your 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
Your 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 Multiple Answer
Question The security analysis process will achieve :-
Correct Answer True picture of a company , Normal earning power , Projection of
future profitability
Your Answer True picture of a company , Normal earning power , Projection of
future profitability
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
Your Answer Realised yield
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
Your Answer Interest is presently around 6% , Banks offer cheque facility for
investors making it convenient to withdraw
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 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
Multiple Choice Single Answer
Question Stock Exchanges are the part of :-
Correct Answer Secondary market
Your Answer Money Market
Multiple Choice Single Answer
Question The index futures symbols of BSE are represented as :-
Correct Answer BSX JAN 2005 (January contract)
Multiple Choice Single Answer
Question More than half the variation in stock price could be attributed
to which factor?
Correct Answer Market influence
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 Single Answer
Question A security analysis is done :-
Correct Answer For decision making for investments
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 What is a technical approach to investment?
Correct Answer A reflection of the idea that prices move in trends which are
determined by various factors
Multiple Choice Single Answer
Question A pledge of real assets as insurance against the non-payment
of default by the buyer represents
Correct Answer Collateral
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
Your Answer Charles.H.Dow
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
Your Answer Under valued or over valued
Multiple Choice Single Answer
Question When a firm can grow net profits by issuing equity, the expected
growth rate in net profits is determined by :-
Correct Answer Equity reinvestment rate X return on equity
Your Answer Price earning ratio X return on equity
Multiple Choice Single Answer
Question What is a load fund?
Correct Answer Fund charging a fee for entry and exit
Your Answer Fund charging a fee for entry and exit
Multiple Choice Single Answer
Question Investment is a risk free investment when :-
Correct Answer Actual return is = expected return
Your Answer Actual return is = expected return
Multiple Choice Single Answer
Question Debt instruments that have a maturity period of more than one
year are called as :-
Correct Answer Bonds
Your Answer Bonds
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/-
Multiple Choice Single Answer
Question Which of these is a short-maturity debt issue?
Correct Answer Money market funds and gilts
Your Answer Money market funds and gilts
Multiple Choice Single Answer
Question What is Support level?
Correct Answer A point where the prices become relatively attractive for buyers
Your Answer Market resistance to a price fall
Multiple Choice Single Answer
Question During the 1980's rate of savings in India has hovered around
what percentage?
Correct Answer 0.21
Your Answer 0.22
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
Your Answer Over valued
Multiple Choice Single Answer
Question The average historical growth rate can be calculated as :-
Correct Answer Arithmetic average or a geometric average
Your Answer Geometric average