SCDL Papers: Security Analysis & Portfolio Management SCDL Exam - 30

Select The Blank
Question	The 8% taxable savings bonds are repayable after ________ years.
Correct Answer	6
True/False
Question	With the introduction of on-line trading by NSE and BSE, the role of regional stock exchanges have diminished.
Correct Answer	TRUE
Multiple Choice Multiple Answer
Question	Who are the constituents of a mutual fund?
Correct Answer	Sponsor & trustees , Asset management company , Custodian
Multiple Choice Single Answer
Question	How can transition phases be projected?
Correct Answer	Transition phases are signalled by clearly definable price patterns
Multiple Choice Multiple Answer
Question	What are the features of post office monthly income scheme?
Correct Answer	Rate of return is 8 % , Interest payable monthly , Investor earns bonus of 10% on completion of term
Multiple Choice Single Answer
Question	When was the Dow theory first published?
Correct Answer	Between 1900 and 1902
Multiple Choice Single Answer
Question	Credit rating companies assign ratings for which of these investments?
Correct Answer	Company deposits
Select The Blank
Question	When a debenture is sold to the general public a ________ is appointed.
Correct Answer	Trustee
Select The Blank
Question	A security is said to be ________ if its current market price is over its intrinsic value.
Correct Answer	Over priced
Multiple Choice Multiple Answer
Question	What are the different types of profitability ratios?
Correct Answer	Gross profit margin ratio , Earnings power , Return on equity
Multiple Choice Single Answer
Question	When was the first mutual fund set up?
Correct 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
True/False
Question	Bonds and Debentures represent long term debt instruments.
Correct Answer	FALSE
True/False
Question	American option gives the holder the right, but not the obligation to buy or sell the underlying instrument on or before the expiry date and the option can be exercised early.
Correct Answer	TRUE
Select The Blank
Question	________ is the ratio of the market price per share to the earnings per share.
Correct Answer	Price earning ratio
Multiple Choice Multiple Answer
Question	What are the warning indicators to be considered before analysing the financial statements of a firm ?
Correct Answer	Growth in profits outstripping the revenue growth by a large extent , Non operating expenses occur frequently , Accounting rules changed frequently
Select The Blank
Question	Under futures market ________ process provides for collection of losses that have already occurred.
Correct Answer	The daily settlement
Select The Blank
Question	Measures of ________ tells us what we can expect a typical or middle data point of a distribution to be.
Correct Answer	Central tendency
Multiple Choice Multiple Answer
Question	What developments had taken place during the year 2000 in case of Bharat Forge Ltd.?
Correct Answer	Demerger of investment division and windmills , Nominee director of UTI resigned and ceased to be the director - nomination withdrawn by UTI
Select The Blank
Question	The 6.________% tax saving bonds of government of India have a tenure of 5 years.
Correct Answer	5
Multiple Choice Multiple Answer
Question	An option is :-
Correct Answer	A contract between two parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee
True/False
Question	Currently in India index options are both European and American in nature.
Correct Answer	FALSE
Multiple Choice Multiple Answer
Question	Return can be in the form of :-
Correct Answer	Dividends , Interests , Capital appreciation
Multiple Choice Multiple Answer
Question	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)
Multiple Choice Multiple Answer
Question	In a typical stock market cycle which are the types of trends?
Correct Answer	Trends upward , Trend downward , Sideway trend
Multiple Choice Single Answer
Question	What is a resistance level?
Correct Answer	A point where there is opposition to further price rise
Select The Blank
Question	Debentures rated as "A" are judged to offer ________ of timely payment of interest and principal.
Correct Answer	Adequate safety
Multiple Choice Single Answer
Question	How would you rate a portfolio with 90% investment in stocks?
Correct 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
True/False
Question	Default is normally evaluated and indicated by the rating assigned to the debt instruments by independent credit ratings agencies.
Correct Answer	TRUE
Select The Blank
Question	The Dow theory was published in a series of editorials in the ________.
Correct Answer	Wall street journal
Multiple Choice Single Answer
Question	The growth period in the industry life cycle is defined as :-
Correct Answer	Period of rapid market acceptance and substantial profit improvement
Multiple Choice Single Answer
Question	What is the objective of Portfolio management?
Correct Answer	To Minimize risk and maximize return
True/False
Question	A rally that develops on contracting volumes is suspect and warns of a potential trend reversal in price
Correct Answer	TRUE
True/False
Question	Post office monthly schemes have a 10 year tenor.
Correct Answer	FALSE
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 re-investments is :-
Correct Answer	Estimating growth from a firm's fundamentals
Multiple Choice Single Answer
Question	Who operates the sinking fund under the sinking fund provision of a firm?
Correct Answer	The bond trustee or the issuer
True/False
Question	Bearish actions come from a series of declining peaks and troughs.
Correct Answer	TRUE
Multiple Choice Single Answer
Question	What is an open ended fund or scheme?
Correct Answer	Which is available for subscription and repurchase on a continuous basis
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

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