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Tuesday, February 9, 2016

Security Analysis & Portfolio Management SCDL Solved Exam Paper 60

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
  Question 
How can the financial statements can be manipulated while giving the estimates for growth?
  Answer 
 Change method of rate of depreciation
  Question 
What are the ways of measuring relative strength?
  Answer 
 Calculate the rates of return and classify securities that have earned superior historical returns
  Question 
The average investor in the market is driven more by emotions than by rational analysis is a rule of :-
  Answer 
 Fundamental Analysis
  Question 
What levels if increased will have unfavourable impact on the stock market?
  Answer 
 Higher levels of unemployment
  Question 
Why does every investor have different investment objectives?
  Answer 
 Since every investor has a different set of circumstances, needs and opportunities
  Question 
In a perfectly efficient market all securities are correctly priced means there are no :-
  Answer 
 High priced and low priced securities
 Multiple Choice Multiple Answer
  Question 
What are the different types of profitability ratios?
  Answer 
Return on equity , Gross profit margin ratio , Earnings power
 Select The Blank
  Question 
Mutual fund is to be registered with ________ before raising funds from public.
  Answer 
SEBI
 Multiple Choice Multiple Answer
  Question 
The security market is the market for :-
  Answer 
Equity , Debt , Derivatives
 Multiple Choice Multiple Answer
  Question 
The Gordon growth model is best suited for firms :-
  Answer 
Growing at a rate equal to or lower that the growth in the economy , Which have well established dividend payout ratio policy , Whose earnings are steady and perpetual
 Multiple Choice Single Answer
  Question 
A security analysis is done :-
  Answer 
For decision making for investments
 Multiple Choice Single Answer
  Question 
The average investor in the market is driven more by emotions than by rational analysis is a rule of :-
  Answer 
Technical analysis
 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 
What is the objective of an income fund?
  Answer 
To provide regular and steady income
 Multiple Choice Multiple Answer
  Question 
Explain what are leverage ratios ?
  Answer 
Help in assessing the risk arising using the debt capital , Debt equity ratio and interest coverage ratio and DSCR are important leverage ratios , Debt is riskier source of finance as it entails fixed outgo of periodic payments
 Multiple Choice Multiple Answer
  Question 
Which were the initiatives which the chairman said would focus on in 2003-04 in the speech in annual report for the year 2003-03?
  Answer 
Research and development , Capital investment and focus on balance sheet , Overseas acquisitions
 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
 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 
What does lower level of unemployment indicates?
  Answer 
Positive economic conditions
 Multiple Choice Single Answer
  Question 
The GDP growth rate in the economy in real terms has fluctuated between :-
  Answer 
4% and 5%
 Multiple Choice Single Answer
  Question 
Mr.Rohan invests Rs.25,000/- today. The rate of interest is 6% compounded annually. What will be the value of his investment after 3 years?
  Answer 
Rs. 29775/-
 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 you are making an investment you are expecting certain future benefits from your investment.
  Answer 
TRUE
 Multiple Choice Single Answer
  Question 
What is the limitation of Flow-of funds analysis method?
  Answer 
Cannot give indication of the inclination of market participants to purchase stock
 True/False
  Question 
The returns of sector specific funds are solely dependant on the performance of the respective sectors / industries.
  Answer 
TRUE
 Multiple Choice Multiple Answer
  Question 
Which are the different types of accounts offered to investors by the stock brokers?
  Answer 
Cash trading , Margin trading
 Select The Blank
  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.
  Answer 
European option
 Select The Blank
  Question 
An investor with a higher tolerance of risk should tilt his portfolio in favour of ________.
  Answer 
Stocks
 
Note: Please tally the answers and verify them from SCDL textbooks as all answers might not be correct.
 

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