Security Analysis And Portfolio Management - 11

Multiple Choice Single Answer
Question The present value of all the future cash payments to be
paid on the security to the investor is termed as :-
Correct Answer Intrinsic value of a security
Your Answer Intrinsic value of a security
Multiple Choice Single Answer
Question If the price of a share at the beginning of the year was
Rs.100/-, no dividend received during the year and the price at the end
is Rs.115/-. What is the rate of return?
Correct Answer 0.15
Your Answer 0.15
Multiple Choice Single Answer
Question What is the objective of Portfolio management?
Correct Answer To Minimize risk and maximize return
Your Answer To Minimize risk and maximize return
Multiple Choice Single Answer
Question Capital expenditure -depreciation +change in working capital -(new debt
issued - debt repaid) =
Correct Answer Equity reinvested in business
Your Answer Equity reinvested in business
Multiple Choice Single Answer
Question What is the percentage of variation the market and industry influence account
for?
Correct Answer 2/3rd
Your Answer 75%
Multiple Choice Single Answer
Question What is the rate of interest on the tax free bonds issue by the government?
Correct Answer 6.5%
Your Answer 6.5%
Multiple Choice Single Answer
Question Investments could be made in retail government securities through :-
Correct Answer Primary dealers
Your Answer Primary dealers
Question The growth rate is used to forecast future revenues and earnings and
are inputs in valuing :-
Correct Answer Stable firms
Your Answer High growth firms
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
Your Answer Under priced and over priced
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 The growth rate is used to forecast future revenues and earnings and
are inputs in valuing :-
Correct Answer Stable firms
Your Answer High growth firms
Multiple Choice Single Answer
Question How can transition phases be projected?
Correct Answer Transition phases are signalled by clearly definable price patterns
Your Answer Transition phases are signalled by clearly definable price patterns
Multiple Choice Single Answer
Question When was the Dow theory first published?
Correct Answer Between 1900 and 1902
Your Answer Between 1900 and 1902
Multiple Choice Single Answer
Question When was the first mutual fund set up?
Correct Answer 1963
Your Answer 1963
Multiple Choice Single Answer
Question What is the art of technical analysis?
Correct Answer To identify trend changes at an early stage and maintain investment
posture till the trend has reversed
Your Answer To identify trend changes at an early stage and maintain investment
posture till the trend has reversed
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
Your Answer The Dividend discount model
Multiple Choice Single Answer
Question How would you rate a portfolio with 90% investment in stocks?
Correct Answer Highly aggressive
Your Answer Highly aggressive
Multiple Choice Single Answer
Question What are primary trends?
Correct Answer Reflection of investor's attitudes towards unfolding fundamentals in the
business cycle
Your Answer Long term trends
Multiple Choice Single Answer
Question In a forward contract there is :-
Correct Answer No Exchange of cash
Your Answer No Exchange of cash
Multiple Choice Single Answer
Question Under EMH it is assumed that if markets are efficient, securities are
priced to provide a :-
Correct Answer Normal returns for their given level of risk
Your Answer Equal returns for their given level of risk
Multiple Choice Single Answer
Question The approach followed to assess the growth rate by looking at how
much a firm reinvests for future growth and the quality of its reinvestments
is :-
Correct Answer Estimating growth from a firm's fundamentals
Your Answer Earnings multiplier approach
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
Your Answer Time
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Question Dow Jones transportation average was previously known as ________.
Correct Answer Rail average
Your Answer Rail average
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Question The compounded annual return of Kisan Vikas patra is ________.
Correct Answer 0.084
Your Answer 0.084
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Question Under futures market ________ process provides for collection of losses
that have already occurred.
Correct Answer The daily settlement
Your Answer The daily settlement
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Question The regulations of SEBI with respect to mutual funds were fully revised in
the year ________.
Correct Answer 1996
Your Answer 1996
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Question The Dow theory states that there are simultaneously ________
movements in the stock market.
Correct Answer 3
Your Answer 3
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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 European option
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Question ________ ratio indicates the margin available after meeting the
manufacturing expenses.
Correct Answer Gross Profit margin
Your Answer Gross Profit margin
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Question Secondary reactions occurs because of ________ which arise in the
market as a result of over optimism and over pessimism.
Correct Answer Technical distortions
Your Answer Bearish trends
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Question Debentures rated as "A" are judged to offer ________ of timely payment of
interest and principal.
Correct Answer Adequate safety
Your Answer Adequate safety
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Question Debentures rated ________ are judged to offer sufficient safety of timely
payment of interest and repayment of principal.
Correct Answer "BBB"
Your Answer "BBB"
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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 ________ 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
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Question ________ bonds are generally called for prepayment after
interest rates have fallen, investors will not be able to find
comparable investment avenues.
Correct
Answer
Call risk
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Question ________ deal in futures to offset a pre-existing risk.
Correct
Answer
Hedger
Select The Blank
Question ________are good benchmark to compare the ratios for a firm.
Correct
Answer
Industry averages
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Question The ________ phase is characterized by resistance area and
support level.
Correct
Answer
Transition
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Question ________ measures the efficiency of credit management.
Correct
Answer
Average collection period
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Question 16 ________ is affected by the leverage decisions of the firm.
Correct Answer Return on equity
Your Answer Return on equity
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Question 20 ________ refers to the possibility that there may not be a readily available
market for the particular bond.
Correct Answer Liquidity risk
Your Answer Interest rate risk
Select The Blank
Question 21 The govt allowed public sector banks and institutions in mutual funds in
________.
Correct Answer Early 90's
Your Answer Early 90's
Select The Blank
Question 36 The 8% taxable savings bonds are repayable after ________ years.
Correct Answer 6
Your Answer 5
Select The Blank
Question 39 Security analysis serves the investment decision maker by identifying
________securities.
Correct Answer Under priced
Your Answer Blue chip
Select The Blank
Question 42 ________ absorbs the excess demand or supply generated by hedgers
and assume the risk of price fluctuations.
Correct Answer Speculators
Your Answer Brokers
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Question 44 A ________ rally for stocks generally takes place because of an improved
outlook for business conditions over what was anticipated.
Correct Answer Bear market
Your Answer Bullish market
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Question 1 UTI was set up in the year ________.
Correct Answer 1963
Your Answer 1963
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Question 6 An ________ is a series of equal payments or receipts occurring at regular
intervals of time.
Correct Answer Annuity
Your Answer Annuity
Select The Blank
Question 12 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
Your Answer Right but not obligation
Select The Blank
Question 13 Measures of ________ tells us what we can expect a typical or middle
data point of a distribution to be.
Correct Answer Central tendency
Your Answer Central tendency
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Question 28 ________ identified five forces that determine the intrinsic long run profit
attractiveness of a market or market segment.
Correct Answer Michael Porter
Your Answer Michael Porter
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Question 36 ________is a hybrid form of security which has characteristics of both
equity and debentures
Correct Answer Preference shares
Your Answer Preference shares
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Question 39 Debentures rated "BB" refers ________ of timely payment of interest and
principal.
Correct Answer Inadequate safety
Your Answer Inadequate safety
Select The Blank
Question 43 The Derivative market is divided into Future market and ________ market.
Correct Answer Options
Your Answer Options
Select The Blank
Question 46 The Dow theory was published in a series of editorials in the ________.
Correct Answer Wall street journal
Your Answer Wall street journal