This solved paper of SCDL Security
Analysis
& Portfolio Management of SCDL Pune has been contributed by Deepak Goyal
Thanks To: Deepak Goyal
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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
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Question
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How can the financial
statements can be manipulated while giving the estimates for growth?
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Answer
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Change method of rate of depreciation
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Question
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What are the ways of
measuring relative strength?
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Answer
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Calculate the rates of return and classify
securities that have earned superior historical returns
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Question
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The average investor
in the market is driven more by emotions than by rational analysis is a rule
of :-
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Answer
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Fundamental Analysis
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Question
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What levels if
increased will have unfavourable impact on the stock market?
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Answer
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Higher levels of unemployment
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Question
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Why does every
investor have different investment objectives?
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Answer
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Since every investor has a different set of
circumstances, needs and opportunities
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Question
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In a perfectly
efficient market all securities are correctly priced means there are no :-
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Answer
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High priced and low priced securities
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Multiple Choice Multiple Answer
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Question
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What are the different
types of profitability ratios?
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Answer
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Return on equity ,
Gross profit margin ratio , Earnings power
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Select The Blank
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Question
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Mutual fund is to be
registered with ________ before raising funds from public.
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Answer
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SEBI
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Multiple Choice Multiple Answer
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Question
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The security market is
the market for :-
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Answer
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Equity , Debt ,
Derivatives
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Multiple Choice Multiple Answer
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Question
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The Gordon growth
model is best suited for firms :-
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Answer
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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
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Multiple Choice Single Answer
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Question
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A security analysis is
done :-
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Answer
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For decision making
for investments
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Multiple Choice Single Answer
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Question
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The average investor
in the market is driven more by emotions than by rational analysis is a rule
of :-
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Answer
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Technical analysis
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Multiple Choice Single Answer
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Question
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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?
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Answer
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Rs. 6083/-
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Multiple Choice Single Answer
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Question
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What is the objective
of an income fund?
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Answer
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To provide regular and
steady income
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Multiple Choice Multiple Answer
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Question
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Explain what are
leverage ratios ?
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Answer
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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
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Multiple Choice Multiple Answer
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Question
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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?
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Answer
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Research and
development , Capital investment and focus on balance sheet , Overseas
acquisitions
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Multiple Choice Multiple Answer
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Question
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What were the
objectives for 2002-03 the chairman of Bharat forge had emphasised on in the
annual report for 2001 - 02
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Answer
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Maintain aggressive
exports thrust , Increase shares of value added products , Continue reducing
costs
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True/False
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Question
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A mutual fund is
required to dispatch the dividend warrants to the unit holders within thirty
days of the declaration of dividend.
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Answer
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TRUE
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Multiple Choice Single Answer
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Question
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What does lower level
of unemployment indicates?
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Answer
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Positive economic
conditions
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Multiple Choice Single Answer
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Question
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The GDP growth rate in
the economy in real terms has fluctuated between :-
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Answer
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4% and 5%
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Multiple Choice Single Answer
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Question
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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?
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Answer
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Rs. 29775/-
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Multiple Choice Single Answer
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Question
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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?
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Answer
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Rs.14.693/-
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True/False
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Question
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When you are making an
investment you are expecting certain future benefits from your investment.
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Answer
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TRUE
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Multiple Choice Single Answer
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Question
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What is the limitation
of Flow-of funds analysis method?
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Answer
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Cannot give indication
of the inclination of market participants to purchase stock
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True/False
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Question
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The returns of sector
specific funds are solely dependant on the performance of the respective
sectors / industries.
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Answer
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TRUE
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Multiple Choice Multiple Answer
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Question
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Which are the
different types of accounts offered to investors by the stock brokers?
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Answer
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Cash trading , Margin
trading
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Select The Blank
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Question
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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.
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Answer
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European option
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Select The Blank
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Question
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An investor with a
higher tolerance of risk should tilt his portfolio in favour of ________.
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Answer
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Stocks
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Note: Please tally the answers and verify them from
SCDL textbooks as
all answers might not be correct.
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