Security Analysis & Portfolio Management SCDL Solved Exam Paper 46

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

Thanks To: Deepak Goal

Multiple Choice Single Answer
Question	Agriculture account for how much portion of the economy?
Correct Answer	Quarter
Multiple Choice Single Answer
Question	How did Dow use the behaviour of stock markets?
Correct Answer	As a barometer of business conditions rather than a basis for forecasting stock prices
Select The Blank
Question	________ take long or short positions only with the intention of making profits by getting out of the market when conditions favor them.
Correct Answer	Speculators
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 primary trends?
Correct Answer	Reflection of investor's attitudes towards unfolding fundamentals in the business cycle
Multiple Choice Single Answer
Question	Mr. Shekhar invests Rs.50,000/- in a scheme of LIC, the rate of interest is 8% compounded annually. What will be the value of his investment after 5 years?
Correct Answer	Rs. 73466/-
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
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/-
Select The Blank
Question	The Dow theory was published in a series of editorials in the ________.
Correct Answer	Wall street journal
True/False
Question	The price earning ratio is an increasing function of the payout ratio and the growth rate and a decreasing function of the riskiness of the firm.
Correct Answer	TRUE
Multiple Choice Single Answer
Question	The greater the deviation of the actual returns from the actual return :-
Correct Answer	Greater the variance
Multiple Choice Multiple Answer
Question	Features of PSU Bonds are :-
Correct Answer	No TDS , Transferable by endorsement , No stamp duty on transfer
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 Multiple Answer
Question	Which are the different types of accounts offered to investors by the stock brokers?
Correct Answer	Cash trading , Margin trading
Multiple Choice Single Answer
Question	In a forward contract there is :-
Correct 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
True/False
Question	If a rupee weakens against the dollars it has favourable impact for the exporters.
Correct Answer	TRUE
Multiple Choice Multiple Answer
Question	If option is given to you to receive Rs.1,000/- today or after one year, you will choose to receive it today because :-
Correct Answer	You can use the amount to generate returns over the next one year , The purchasing power of Rs.1,000/- today is more than what it will be one year from now , There is an element of uncertainty associated with the future receipt
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

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