Security Analysis & Portfolio Management SCDL Solved Exam Paper 62

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

 

Thanks To: Deepak Goyal

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
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.
Answer	Speculators
Select The Blank
Question	________ deal in futures to offset a pre-existing risk.
Answer	Hedger
Multiple Choice Single Answer
Question	Mr.Saurabh invests Rs. 5,000/- today. The rate of interest is 4% compounded annually. What will be the value of his investment after 5 years?
Answer	Rs. 6083/-
Multiple Choice Single Answer
Question	In estimating the growth of a firm, analyst's forecasts have an advantage over historical data-based models because :-
Answer	They incorporate more recent information about the firm and inputs future prospects
Multiple Choice Single Answer
Question	In a forward contract there is :-
Answer	No Exchange of cash
Multiple Choice Multiple Answer
Question	What are the features of trend lines
Answer	A simple and useful tool in technical analysis , Prices move in trends , The trend lines represent points of support and resistance
Select The Blank
Question	________ is the value at a certain future date today of a stream of cash flows that occurs over a period of time.
Answer	Future value
Select The Blank
Question	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.
Answer	Right but not obligation
Multiple Choice Multiple Answer
Question	What are the features of point and figure charts?
Answer	Charts are constructed using a combination of X's and O's known as boxes. , X's show that the prices are moving up , O's show that the prices are moving down
Multiple Choice Single Answer
Question	Which of these is a short-maturity debt issue?
Answer	Money market funds and gilts
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?
Answer	Rs.14.693/-
True/False
Question	When we invest in only one asset we are not exposed to any specific or market risk.
Answer	FALSE
Match The Following
Question	Answer
Expiration period for options	Nine months
The world's first largest options exchange	Chicago Board of options exchange
The most popular pricing options model published in the year 1973	Black Scholes
When the writer gives the buyer of the option the right to sell the underlying asset on or before the expiry date	Put option
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?
Answer	Rs. 37363/-
True/False
Question	When you are making an investment you are expecting certain future benefits from your investment.
Answer	TRUE
Match The Following
Question	Answer
Technical collaboration of Bharat Forge with SIFCO industries USA	1981
Bharat Forge was incorporated at Mumbai	1961
Shares of 100 each subdivided of Bharat forge	1971
930000 bonus shares issued by Bharat Forge	1976
Select The Blank
Question	________ ratio indicates the margin available after meeting the manufacturing expenses.
Answer	Gross Profit margin
Multiple Choice Multiple Answer
Question	Gilt Edged Securities are :-
Answer	Central Govt , State Govt. , Quasi-Govt
Multiple Choice Single Answer
Question	Mr. Suresh is expecting to receive Rs.1,50,000/- at the end of 3 years. He wanted to know what is the present value of this amount, if the rate of interest is 9% p.a ?
Answer	Rs.1,15,827/-
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 :-
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
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.
Answer	TRUE
Multiple Choice Single Answer
Question	Which market is affected with the improving and higher growth rate in economy?
Answer	Stock market
True/False
Question	The price earning ratio can be estimated for the firms with negative earnings per share.
Answer	FALSE
Multiple Choice Multiple Answer
Question	The growth rate in the initial phase is not constant but declines linearly over time to reach the stable growth rate in steady state is a phenomena of :-
Answer	H- Model for valuing growth , H-Two stage model for growth , H-Model unlike the classic two stage model
Multiple Choice Single Answer
Question	How did Dow use the behaviour of stock markets?
Answer	As a barometer of business conditions rather than a basis for forecasting stock prices
True/False
Question	The normal relationship is for the volume to expand on rallies and contract on declines.
Answer	TRUE
Multiple Choice Multiple Answer
Question	What were the objectives for 2002-03 the chairman of Bharat forge had emphasised on in the annual report for 2001 - 02
Answer	Maintain aggressive exports thrust , Increase shares of value added products , Continue reducing costs
Multiple Choice Multiple Answer
Question	Which are the different types of accounts offered to investors by the stock brokers?
Answer	Cash trading , Margin trading
Multiple Choice Multiple Answer
Question	The return to the bond investor can be measured in terms of :-
Answer	Current yield , Yield to maturity , Realised yield
True/False
Question	Balance of payments surplus augments foreign reserves of the country and have a favourable impact on he exchange rate.
Answer	TRUE
Multiple Choice Multiple Answer
Question	What was the final analysis on the performance of Bharat forge for the year FY 02?
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.

 

 

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