Security Analysis & Portfolio Management SCDL Solved Exam Paper 38

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

 

Thanks To: Deepak Goyal

 

 

 Multiple Choice Multiple Answer

  Question   The firm issuing bonds operating sinking fund and repurchases bonds either :-

  Correct Answer   Calling in a certain number of bonds by lot , Buying bonds in the open market , Buying bonds issued to banks and financial institutions 

 

 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

 

 True/False

  Question   Fixed assets turnover ratio measures the efficiency of utilisation of total assets, fixed as well as current.

  Correct Answer   True

 

 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

 

 True/False

  Question   The risk associated to get the required rate of return on the stock is measure by market beta.

  Correct Answer   True

 

 Select The Blank

  Question   Acid test ratio is more stringent measure of liquidity compared to the ________.

  Correct Answer   Current ratio

 

 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 

 

 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

 

 True/False

  Question   In case of fixed income securities like debentures, you get the return in the form of dividend.

  Correct Answer   False

 

 Multiple Choice Single Answer

  Question   What are the assumptions of the Dow theory?

  Correct Answer   Majority of stocks follow the underlying trend of the market most of the time

 

 Multiple Choice Multiple Answer

  Question   The Peer group of Bharat Forge consists of which all companies?

  Correct Answer   Am forge industries , Kalyani Forge , EL Forge 

 

 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   What is the rate of interest on the tax free bonds issue by the government?

  Correct Answer   6.5%

 

 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 

    

 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 

 

 Multiple Choice Single Answer

  Question   Investments could be made in retail government securities through :-

  Correct Answer   Primary dealers

 

 Multiple Choice Multiple Answer

  Question   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 

 

 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 

 

 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/-

 

 Multiple Choice Multiple Answer

  Question   What were the achievements of Bharat Forge during the year 2003?

  Correct Answer   Secured second largest customer in China , Appointed a Company Secretary to act as compliance officer , New contracts won in passenger car components 

 

 Match The Following

Question -- Correct Answer

Weak form model is also termed as -- Random walk model

Investors are rational -- Efficient market hypothesis

Securities current prices fully reflect all historical information -- Weak form EMH

Framework on efficient capital markets, a review of theory and empirical work -- Fama

   

 True/False

  Question   Quick assets consist of current assets less inventories.

  Correct Answer   True

             

 Select The Blank

  Question        ________ measures the profitability of operations without considering the influence of financial structure and tax rate.

  Correct Answer         Earnings power

 

 True/False

  Question        While calculating geometric mean calculation of root is not important.

  Correct Answer         False

 

 Multiple Choice Single Answer

  Question        What could be a better approach to flow-of -funds analysis?

  Correct Answer         An examination of liquidity trends in the banking system

 

 True/False

  Question        The Asset management company of the mutual fund must have 50% independent directors.

  Correct Answer         True

 

 True/False

  Question        A higher value of current ratio indicates a better short term solvency of the firm.

  Correct Answer         True

 

 Multiple Choice Single Answer

  Question        Investment is a risk free investment when :-

  Correct Answer         Actual return is = expected return

             

 Select The Blank

  Question        The govt allowed public sector banks and institutions in mutual funds in ________.

  Correct Answer         Early 90's

 

 True/False

  Question        The returns of sector specific funds are solely dependant on the performance of the respective sectors / industries.

  Correct Answer         True

 

 Multiple Choice Single Answer

  Question        The price of the index futures contract is defined as :-

  Correct Answer         Future price = Spot price + Carry cost

 

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