Security Analysis & Portfolio Management (MCQ, S & Short Answers)

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question Active investment managers :Correct Answer
Do not believe that markets are efficient , Puts efforts to search mispriced securities in the market , Are relatively active traders in securities to acquire abnormal returns Multiple Choice Multiple Answer Question Equity analysts provides estimates of earnings and earnings growth for future, using historical data and :Correct Answer Macro economic information that may impact future growth , Private information about the firm , Firm's specific information and public information Multiple Choice Multiple Answer Question What are the features of short-term trends? Correct Answer They last from 1 to 3 or 4 weeks , They interrupt the course of the intermediate cycle , They are usually influenced by random news events Multiple Choice Multiple Answer Question What are the features of trend lines Correct Answer A simple and useful tool in technical analysis , Prices move in trends , The trend lines represent points of support and resistance 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 Your Answer , Displays the correlation between the high and low prices 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 :Correct Answer H- Model for valuing growth , H-Two stage model for growth , H-Model unlike the classic two stage model Multiple Choice Multiple Answer Question What are the features of line charts? To download more stuff, visit > http://www.businessfellows.biz
Correct Answer It connects closing prices from one period to the next , It is ideal for securities with no high or low price data Multiple Choice Multiple Answer Question What are the ways of measuring relative strength? Correct Answer Calculate the rates of return and classify securities that have earned superior historical returns , Calculating certain ratios will help in analyzing whether a security has relative strength Your Answer Calculating the Return on investment 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 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? Correct Answer Research and development , Capital investment and focus on balance sheet , Overseas acquisitions Multiple Choice Multiple Answer Question The Two-Stage dividend discount model is best suited for the firms that are :Correct Answer In high growth rate phase , Expecting to maintain the growth rate phase steadily for a specific time period , Sources of high growth are expected to disappear after specific period of time
Multiple Choice Multiple Answer Question The features of bond are :Correct Answer Collateral , Call provision , Sinking fund and protective covenants
Multiple Choice Multiple Answer Question Correct Answer
Your Answer
What are the features of company fixed deposits? Interest rate offered is higher than banks , No benefits under 80 L , No TDS for interest income upto Rs. 5000 Interest rate offered is higher than banks , No
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benefits under 80 L , No TDS for interest income upto Rs. 5000 Multiple Choice Multiple Answer Question Correct Answer
Your Answer
What are the features of point and figure charts? 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 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
Your Answer
What are the features of post office monthly income scheme? Investor earns bonus of 10% on completion of term , Rate of return is 8 % , Interest payable monthly Rate of return is 8 % , Interest payable monthly , Investor earns bonus of 10% on completion of term
Multiple Choice Multiple Answer Question
Correct Answer
Your Answer
The firm issuing bonds operating sinking fund and repurchases bonds either :Calling in a certain number of bonds by lot , Buying bonds in the open market , Buying bonds issued to banks and financial institutions Calling in a certain number of bonds by lot , Buying bonds in the open market , Buying bonds issued to banks and financial institutions
If option is given to you to receive Rs.1,000/- today or after
Correct Answer
Your Answer
one year, you will choose to receive it today because :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 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
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The computation of return on a bond involves considering :The entire sequence of cash flows , The timing of cash flows , Calculating the internal rate of return The entire sequence of cash flows , The timing of cash flows , Calculating the internal rate of return
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What are the features of line charts? It connects closing prices from one period to the next , It is ideal for securities with no high or low price data It connects closing prices from one period to the next , It is ideal for securities with no high or low price data
Explain what are leverage ratios ? 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
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payments , Help in assessing the risk arising using the debt capital 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
Correct Answer
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What developments had taken place during the year 2000 in case of Bharat Forge Ltd.? Demerger of investment division and windmills , Nominee director of UTI resigned and ceased to be the director - nomination withdrawn by UTI Demerger of investment division and windmills , Nominee director of UTI resigned and ceased to be the director - nomination withdrawn by UTI
Your Answer
The investor in bonds receives income from :Interest payments at coupon rates , Capital gain/loss arising out of the sale of the bond , Redemption of the bond of the issuer at a contracted value Interest payments at coupon rates , Capital gain/loss arising out of the sale of the bond , Redemption of the bond of the issuer at a contracted value
Multiple Choice Multiple Answer Question 1 Correct Answer Your Answer Multiple Choice Multiple Answer Question 5 Correct Answer
Return can be in the form of :Dividends , Interests , Capital appreciation Dividends , Interests , Capital appreciation
What were the achievements of Bharat Forge during the year 2003? Secured second largest customer in China , Appointed a Company Secretary to act as compliance officer , New contracts won in passenger car components
Your Answer
Secured second largest customer in China , Appointed a Company Secretary to act as compliance officer , New contracts won in passenger car components
Multiple Choice Multiple Answer Question 35 Correct Answer
An option is :A contract between two parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee A contract between two parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee
Your Answer
Multiple Choice Multiple Answer Question 41 Correct Answer Your Answer
Formula for calculation of portfolio variance requires :Expected return on portfolio , Expected return on assets , Weight of asset in the portfolio Expected return on portfolio , Expected return on assets , Weight of asset in the portfolio
Multiple Choice Multiple Answer Question 46
Correct Answer Your Answer
What were the objectives for 2002-03 the chairman of Bharat forge had emphasised on in the annual report for 2001 - 02 Maintain aggressive exports thrust , Increase shares of value added products , Continue reducing costs Maintain aggressive exports thrust , Increase shares of value added products , Continue reducing costs
Multiple Choice Multiple Answer Question 47 Correct Answer Your Answer Multiple Choice Multiple Answer Question 4
Which are the most popular types of orders placed through an online trading account? Limit orders , Market orders Market orders , Hedging orders , Arbitrage orders A firm's growth is determined by how much is re-invested into new assets and the quality of these investments, and these includes :Acquisitions , Building distribution channels , Expanding marketing capabilities and investing in new facilities
Correct Answer
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Acquisitions , Expanding marketing capabilities and investing in new facilities , Mergers
Multiple Choice Multiple Answer Question 5 Correct Answer
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Which of the following are important momentum indicators used widely? Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD) Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD)
Multiple Choice Multiple Answer Question 14 Correct Answer Your Answer
Which ratios are commonly used? Debt equity ratio , Interest coverage ratios , Debt service coverage ratios Debt equity ratio , Interest coverage ratios , Debt service coverage ratios
Multiple Choice Multiple Answer Question 15
Correct Answer Your Answer
What were the Chairman's comments during the speech in the Annual report of the FY 2002-03? Best year in the history of the company , 146% growth in exports , Highest pre and post tax profits Best year in the history of the company , 146% growth in exports , Highest pre and post tax profits
Multiple Choice Multiple Answer Question 20 Who are the constituents of a mutual fund? Correct Answer Sponsor & trustees , Asset management company , Custodian Your Answer Sponsor & trustees , Asset management company , Custodian Multiple Choice Multiple Answer Question 26 What are the features of Kisan Vikas Patra? Correct Answer Term is for 8 years seven months , Provision of premature withdrawal , Interest rate is 8.4% compounded annually Term is for 8 years seven months , Provision of premature withdrawal , Interest rate is 8.4% compounded annually
Your Answer
Multiple Choice Multiple Answer Question 38 The security analysis process will achieve :Correct Answer Your Answer True picture of a company , Normal earning power , Projection of future profitability True picture of a company , Normal earning power , Projection of future profitability
Multiple Choice Multiple Answer Question 41 The return to the bond investor can be measured in terms of :Correct Answer Current yield , Yield to maturity , Realised yield Your Answer Yield to maturity , Realised yield
Multiple Choice Multiple Answer Question 5 Which are the different types of accounts offered to investors by the stock brokers? Correct Answer Cash trading , Margin trading Your Answer General trading , Cash trading , Margin trading
Multiple Choice Multiple Answer Question 7 What are the features of Retail government securities (G-secs) ? Correct Answer Safest investment option available , Demat account is required for investment , Choice of tenure varies from less than 1 year to 30 years Your Answer Securities can be bought from the RBI , Safest investment option available , Demat account is required for investment
Multiple Choice Multiple Answer Question 10 To measure the movement of stocks in the market which indices were constructed by Dow? Correct Answer Dow Jones industrial Average , Dow Jones Transportation Average Your Answer Dow Jones Transportation Average
Multiple Choice Multiple Answer Question 16 The security market is the market for :Correct Answer Your Answer Equity , Debt , Derivatives Equity , Debt , Bank deposits
Multiple Choice Multiple Answer
Question 18 Correct Answer Your Answer
In a typical stock market cycle which are the types of trends? Trends upward , Trend downward , Sideway trend Trends upward , Trend downward , Flat trend
Multiple Choice Multiple Answer Question 22 Mutual fund schemes could be broadly classified as :Correct Answer Your Answer Open ended scheme , Close ended scheme Open ended scheme , Close ended scheme , Growth schemes
Multiple Choice Multiple Answer Question 24 What was the final analysis on the performance of Bharat forge for the year FY 02? Correct 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. Your 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. Multiple Choice Multiple Answer Question 26 Gilt Edged Securities are :Correct Answer Your Answer State Govt. , Quasi-Govt , Central Govt Central Govt , State Govt. , Quasi-Govt
Multiple Choice Multiple Answer Question 33 What are the ways of measuring relative strength? Correct Answer Calculate the rates of return and classify securities that have earned superior historical returns , Calculating certain ratios will help in analyzing whether a security has relative strength Calculate the rates of return and classify securities that have earned superior historical returns , Calculating certain ratios will help in analyzing whether a security has relative strength , Calculating the Return on investment
Your Answer
Multiple Choice Multiple Answer Question 44 What are the different types of profitability ratios? Correct Answer Your Answer Gross profit margin ratio , Earnings power , Return on equity Gross profit margin ratio , Earnings power , Return on
equity
Multiple Choice Multiple Answer Question The Gordon growth model is best suited for firms :Correct 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 Growing at a rate equal to or lower that the growth in the economy , Which have well established dividend payout ratio policy
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Multiple Choice Multiple Answer Question The Two-Stage dividend discount model is based on the assumption of :Correct Answer An initial phase where the growth is not a stable growth rate , A subsequent steady state of growth rate being stable and lasts n years , A stable growth phase lasts forever Your Answer An initial phase where the growth is not a stable growth rate , A subsequent steady state of growth rate being stable and lasts n years , A stable growth phase lasts forever Multiple Choice Multiple Answer Question Features of PSU Bonds are :Correct Answer Your Answer No TDS , Transferable by endorsement , No stamp duty on transfer No TDS , Transferable by endorsement , No stamp duty on transfer
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 Your Answer Either to honour or walk away from the contract , To earn a profit while restricting the downside risk , To use the options for speculation Multiple Choice Multiple Answer Question Major steps involved in construction of a index are :Correct Answer Selecting a set of scrips to be used , Fixing starting date , Calculating market capitalisation Your Answer Selecting a set of scrips to be used , Fixing starting date , Fixing ending date Multiple Choice Multiple Answer Question How can the financial statements can be manipulated while giving the estimates for growth? Correct Answer Change method of rate of depreciation , Change method of stock valuation , Inflating sales for current year by advancing sales for
the following year Your Answer Change method of rate of depreciation , Change method of stock valuation , Inflating sales for current year by advancing sales for the following year
Multiple Choice Multiple Answer Question The underlying assumptions of Technical analysis are that :Correct Answer Prices move in predictable patterns , Market value is determined by supply & demand , Investors are emotional than being rational Your Answer Prices move in predictable patterns , Investors are emotional than being rational Multiple Choice Multiple Answer Question Which are the different styles of displaying charts? Correct Answer Bar and line charts , Candle stick charts , Point and figure charts Your Answer Candle stick charts , Point and figure charts , Bar and line charts
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 Your Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is available from 7th year Multiple Choice Multiple Answer Question Growth of the firm can be estimated through :Correct Answer Firm's past earnings/historical growth rate , Estimates made by equity research analyst who follow the firm , Estimates from a firm's fundamentals Your Answer Firm's past earnings/historical growth rate , Estimates made by equity research analyst who follow the firm , Estimates from a firm's fundamentals Multiple Choice Multiple Answer Question Characteristics of Preference shares are :Correct Answer Carry a fixed rate of dividend , Dividend payable out of profit , Redemption in 7 to 12 years Your Answer Carry a fixed rate of dividend , Dividend payable out of profit , Redemption in 7 to 12 years 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 Your 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
Multiple Choice Multiple Answer Question The security analysis process will achieve :Correct Answer True picture of a company , Normal earning power , Projection of future profitability Your Answer True picture of a company , Normal earning power , Projection of future profitability Multiple Choice Multiple Answer Question The return to the bond investor can be measured in terms of :Correct Answer Current yield , Yield to maturity , Realised yield Your Answer Realised yield
Multiple Choice Multiple Answer Question What are the features of bank deposits? Correct Answer Interest is presently around 6% , Benefits under section 80 L , Banks offer cheque facility for investors making it convenient to withdraw Your Answer Interest is presently around 6% , Banks offer cheque facility for investors making it convenient to withdraw Multiple Choice Multiple Answer Question What are the important macro economic indicators? Correct Answer GNP growth rate , Price Conditions , Monsoons Your Answer GNP growth rate , Price Conditions , Monsoons
Multiple Choice Single Answer Question When an investor invests in stock, expects to get the dividends and an expected price for the period the stock is held is the rule of :Correct Answer The General model Multiple Choice Single Answer Question Stock Exchanges are the part of :Correct Answer Your Answer Secondary market Money Market
Multiple Choice Single Answer Question The index futures symbols of BSE are represented as :Correct Answer BSX JAN 2005 (January contract) Multiple Choice Single Answer Question More than half the variation in stock price could be attributed to which factor? Correct Answer Market influence Multiple Choice Single Answer Question In India we have index futures contracts based on :Correct Answer S&P CNX Nifty and the BSE sensex Multiple Choice Single Answer Question In India, the futures on individual securities have been introduced from :Correct Answer 2001 Multiple Choice Single Answer Question What do you understand by the term redemption price? Correct Answer Price or NAV at which a scheme purchases its units Multiple Choice Single Answer Question A security analysis is done :Correct Answer For decision making for investments Multiple Choice Single Answer Question As per the exhibit 18-1 for individual stock futures on NSE, the price steps in respect of all futures contract admitted to the dealings of the exchange shall be :Correct Answer 0.05 Multiple Choice Single Answer Question What is a technical approach to investment? Correct Answer A reflection of the idea that prices move in trends which are determined by various factors
Multiple Choice Single Answer Question A pledge of real assets as insurance against the non-payment of default by the buyer represents Correct Answer Collateral Multiple Choice Single Answer Question Who developed Dow's Principles and organised them into a theory as it is known today? Correct Answer William Peter Hamilton Your Answer Charles.H.Dow
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 Your Answer Under valued or over valued
Multiple Choice Single Answer Question When a firm can grow net profits by issuing equity, the expected growth rate in net profits is determined by :Correct Answer Equity reinvestment rate X return on equity Your Answer Price earning ratio X return on equity
Multiple Choice Single Answer Question What is a load fund? Correct Answer Fund charging a fee for entry and exit Your Answer Fund charging a fee for entry and exit
Multiple Choice Single Answer Question Investment is a risk free investment when :Correct Answer Actual return is = expected return Your Answer Actual return is = expected return
Multiple Choice Single Answer Question Debt instruments that have a maturity period of more than one year are called as :Correct Answer Bonds Your Answer Bonds
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? Correct Answer Rs. 37363/Your Answer Rs. 37363/-
Multiple Choice Single Answer Question Which of these is a short-maturity debt issue? Correct Answer Money market funds and gilts Your Answer Money market funds and gilts
Multiple Choice Single Answer Question What is Support level? Correct Answer A point where the prices become relatively attractive for buyers Your Answer Market resistance to a price fall
Multiple Choice Single Answer Question During the 1980's rate of savings in India has hovered around what percentage? Correct Answer 0.21 Your Answer 0.22
Multiple Choice Single Answer Question A market that is trading at a Price earning ratio that is much higher than its historical norms is considered to be :Correct Answer Over valued Your Answer Over valued
Multiple Choice Single Answer Question The average historical growth rate can be calculated as :Correct Answer Arithmetic average or a geometric average Your Answer Geometric average
Multiple Choice Single Answer Question 4 What are short term trends? Correct Answer Trends which interrupt the course of the intermediate cycle
They are counter-cyclical trends within the confines of a primary trend Multiple Choice Single Answer Question 8 When the firm is not raising equity by issuing new shares, the growth rate in net profits is given by :Correct Answer Retention ratio X return on equity Your Answer Price earning ratio X return on equity
Your Answer
Multiple Choice Single Answer Question 9 The historical growth rate and the past earnings of a firm are used in valuing :Correct Answer Stable firms, but not appropriate for high growth firms Your Answer Consistent stable firms, but not appropriate for high growth firms
Multiple Choice Single Answer Question 10 Efficient market hypothesis is based on the assumption that market comprises of :Correct Answer Rational Investors Your Answer Heterogeneous investors
Multiple Choice Single Answer Question 11 Co variance of asset with market portfolio 85 and variance of market portfolio is 100 then beta is :Correct Answer 0.0085 Your Answer 0.0085
Multiple Choice Single Answer Question 13 Mr. Tiwari is expecting to receive Rs.25,000/- at the end of 10 years. He wanted to know what is the present value of this amount, if the rate of interest is 10% p.a:Correct Answer Rs. 9639/Your Answer Rs. 9639/-
Multiple Choice Single Answer Question 18 What does flow-of fund analysis help in understanding? Correct Answer Availability of money for the stock market Your Answer Financial strength of various companies
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Question 23
A security represent evidence of :-
Correct Answer A property right Your Answer Safety
Multiple Choice Single Answer Question 24 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? Correct Answer Rs. 6083/Your Answer Rs. 6083/-
Multiple Choice Single Answer Question 27 In India futures on individual securities have been introduced by :Correct Answer BSE & NSE Your Answer BSE & NSE
Multiple Choice Single Answer Question 43 The issuing firm enjoys the flexibility to call the bonds if the interest rates fall significantly and it can issue :Correct Answer New bonds at a lower rates Your Answer New bonds at a lower rates
Multiple Choice Single Answer Question 2 When was the first mutual fund set up? Correct Answer 1963 Your Answer 1963
Multiple Choice Single Answer Question 7 How can transition phases be projected? Correct Answer Transition phases are signalled by clearly definable price patterns Your Answer By working out the resistance and support levels
Multiple Choice Single Answer Question 8 If the price of a share at the beginning of the year was Rs.50/-, dividend received during the year was Rs.10/-per share and the price at the end is Rs.60/-. What is the rate of return? Correct Answer 0.4
Your Answer
0.2
Multiple Choice Single Answer Question 27 Investing in this avenue enable you participate in the equity market indirectly :Correct Answer Mutual Funds Your Answer Mutual Funds
Multiple Choice Single Answer Question 29 In any Economy, bridge is created between savers and who need the funds by this system :Correct Answer Financial Your Answer Economic
Multiple Choice Single Answer Question 30 Agriculture account for how much portion of the economy? Correct Answer Quarter Your Answer Three fourths
Multiple Choice Single Answer Question 37 Who operates the sinking fund under the sinking fund provision of a firm? Correct Answer The bond trustee or the issuer Your Answer The bond trustee or the issuer
Multiple Choice Single Answer Question 40 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 Your Answer As a barometer of business conditions rather than a basis for forecasting stock prices Multiple Choice Single Answer Question 42 The growth period in the industry life cycle is defined as :Correct Answer Period of rapid market acceptance and substantial profit improvement Your Answer Period of rapid market acceptance and substantial profit improvement Multiple Choice Single Answer Question 3 What is the limitation of Flow-of funds analysis method? Correct Answer Cannot give indication of the inclination of market participants to purchase stock
Your Answer
Cannot give indication of the inclination of market participants to purchase stock
Multiple Choice Single Answer Question 6 Sentiment indicators are based on what assumption Correct Answer Different groups of investors are consistent in their actions at major market turning points Your Answer Different groups of investors are consistent in their actions at major market turning points Multiple Choice Single Answer Question 12 An agreement to buy or sell a specified quantity of an asset at a certain future date or a certain price is know as :Correct Answer Forward contract Your Answer Futures contract
Multiple Choice Single Answer Question 25 What are intermediate trends? Correct Answer They are counter-cyclical trends within the confines of a primary trend Your Answer They are counter-cyclical trends within the confines of a primary trend Multiple Choice Single Answer Question 29 What are index funds? Correct Answer Investment in securities in the same weightage which replicates a particular index Your Answer Investment in securities in the same weightage which replicates a particular index Multiple Choice Single Answer Question 38 What are the assumptions of the Dow theory? Correct Answer Majority of stocks follow the underlying trend of the market most of the time Your Answer Majority of stocks follow the underlying trend of the market most of the time Multiple Choice Single Answer Question 39 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? Correct Answer Rs. 29775/Your Answer Rs. 29775/-
Question 41
How many measures of money supply are used commonly?
Correct Answer 2 Your Answer 2
Multiple Choice Single Answer Question 43 Under which simple model the value of the stock is the present value of expected dividends on it :Correct Answer The Dividend discount model Your Answer The Dividend growth model
Multiple Choice Single Answer Question 46 Avenues can be broadly classified into the which type of assets? Correct Answer Financial and Real Your Answer Tangible and Intangible
Multiple Choice Single Answer Question The average investor in the market is driven more by emotions than by rational analysis is a rule of :Correct Answer Technical analysis Your Answer Fundamental Analysis
Multiple Choice Single Answer Question What is the objective of an income fund? Correct Answer To provide regular and steady income Your Answer To provide guaranteed returns to investors
Multiple Choice Single Answer Question What does lower level of unemployment indicates? Correct Answer Positive economic conditions Your Answer Economic slowdown
Multiple Choice Single Answer Question The GDP growth rate in the economy in real terms has fluctuated between :Correct Answer 4% and 5% Your Answer 4% and 5%
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/Your Answer Rs.14.693/-
Multiple Choice Single Answer Question Which market is affected with the improving and higher growth rate in economy? Correct Answer Stock market Your Answer Stock market
Multiple Choice Single Answer Question What do you understand by money supply? Correct Answer Total money in existence at any given time Your Answer Total money in existence at any given time
Multiple Choice Single Answer Question What is Gross National Product ? Correct Answer Gross income generated from within the country Your Answer Gross income generated from within the country
Multiple Choice Single Answer Question The greater the deviation of the actual returns from the actual return :Correct Answer Greater the variance Your Answer Greater the variance
Multiple Choice Single Answer Question What is GDP at factor cost ? Correct Answer Excludes net income received from abroad Your Answer Includes indirect taxes
Multiple Choice Single Answer Question More than half the variation in stock price could be attributed to which factor?
Correct Answer Market influence Your Answer Market influence
Multiple Choice Single Answer Question Free Float index considers this to calculate market capitalisation :Correct Answer Actual no. of shares available Your Answer Actual no. of shares available
Multiple Choice Single Answer Question The Top-down approach is also known as :Correct Answer Economy-industry-company approach Your Answer Economy-industry-company approach
Multiple Choice Single Answer Question What is a technical approach to investment? Correct Answer A reflection of the idea that prices move in trends which are determined by various factors Your Answer A reflection of the idea that prices move in trends which are determined by various factors Multiple Choice Single Answer Question What are index funds? Correct Answer Investment in securities in the same weightage which replicates a particular index Your Answer Investment in securities in the same weightage which replicates a particular index 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 Your Answer A study of macro economical changes
Multiple Choice Single Answer Question The general dividend model is based on the principle of :Correct Answer Present value of the expected future cash flow Your Answer Present value of the expected future cash flow
Question
What are short term trends?
Correct Answer Trends which interrupt the course of the intermediate cycle Your Answer Trends which interrupt the course of the intermediate cycle
Multiple Choice Single Answer Question What is the aim of growth funds? Correct Answer To provide capital appreciation over medium to long term Your Answer To provide capital appreciation over medium to long term
Multiple Choice Single Answer Question This is not a stock exchange :Correct Answer Your Answer MCX MCX
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 Your Answer Normal returns for their given level of risk
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/Your Answer Rs. 73466/-
Multiple Choice Single Answer Question The price of the index futures contract is defined as :Correct Answer Your Answer Future price = Spot price + Carry cost Future price = Spot price + Carry cost
Multiple Choice Single Answer Question Financial assets can be classified as :Correct Answer Your Answer Marketable and non-marketable Marketable and non-marketable
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 ? Correct Answer Rs.1,15,827/Your Answer Rs.1,15,827/-
Multiple Choice Single Answer Question What is Flow-of-funds analysis? Correct Answer Consists of an analysis of the financial positions of various investor groups Your Answer Consists of an analysis of the financial positions of various investor groups Multiple Choice Single Answer Question Mr. Suhas is expecting to receive Rs.1,00,000/- at the end of 7 years. He wanted to know what is the present value of this amount, if the rate of interest is 7% p.a ? Correct Answer Rs. 62,275/Your Answer Rs. 62,275/-
Multiple Choice Single Answer Question What do you understand by term pioneering stage in the industry life cycle analysis? Correct Answer Slow sales growth product recently introduced Your Answer Slow sales growth product recently introduced
Multiple Choice Single Answer Question Till 1990's secular Indian economy's inflation rate has been of what percentage? Correct Answer 0.07 Your Answer 0.07
Multiple Choice Single Answer Question Credit rating companies assign ratings for which of these investments? Correct Answer Company deposits Your Answer Company deposits
Question
If index future is taken under futures contract, the underlying asset would be :Correct Answer Stock index Your Answer Stock index
Multiple Choice Single Answer Question What is balance of payments? Correct Answer Credit and debit transactions of a country Your Answer Credit and debit transactions of a company
Multiple Choice Single Answer Question Profits are non existent in pioneering stage because of :Correct Answer Heavy expenses on product introduction Your Answer Heavy expenses on product introduction
Multiple Choice Single Answer Question What is the indicator of buoyant economy? Correct Answer Increased level of housing construction activity Your Answer Increased level of housing construction activity
Multiple Choice Single Answer Question What does a transitional phase indicate? Correct Answer It marks the turning point between a rising and falling market Your Answer It marks the turning point between a rising and falling market
Multiple Choice Single Answer Question Dividend discount model is considered as the simplest model for :Correct Answer Valuing Equity Your Answer Valuing Equity
Multiple Choice Single Answer Question The present value of all the future cash payments to be paid on the security to the investor is termed as :Correct Answer Intrinsic value of a security Your Answer Intrinsic value of a security
Question If the price of a share at the beginning of the year was Rs.100/-, no dividend received during the year and the price at the end is Rs.115/-. What is the rate of return? Correct Answer 0.15 Your Answer 0.15
Multiple Choice Single Answer Question What is the objective of Portfolio management? Correct Answer To Minimize risk and maximize return Your Answer To Minimize risk and maximize return
Multiple Choice Single Answer Question Capital expenditure -depreciation +change in working capital -(new debt issued - debt repaid) = Correct Answer Equity reinvested in business Your Answer Equity reinvested in business Multiple Choice Single Answer Question What is the percentage of variation the market and industry influence account for? Correct Answer 2/3rd Your Answer 75%
Multiple Choice Single Answer Question What is the rate of interest on the tax free bonds issue by the government? Correct Answer 6.5% Your Answer 6.5% Multiple Choice Single Answer Question Investments could be made in retail government securities through :Correct Answer Primary dealers Your Answer Primary dealers
Question The growth rate is used to forecast future revenues and earnings and are inputs in valuing :Correct Answer Stable firms Your Answer High growth firms
Multiple Choice Single Answer Question The objective of fundamental analysis for a security in a market is to identify either it is :Correct Answer Under priced and over priced
Your Answer
Under priced and over priced
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 Your Answer Under valued or over valued
Multiple Choice Single Answer Question The growth rate is used to forecast future revenues and earnings and are inputs in valuing :Correct Answer Stable firms Your Answer High growth firms
Multiple Choice Single Answer Question How can transition phases be projected? Correct Answer Transition phases are signalled by clearly definable price patterns Your Answer Transition phases are signalled by clearly definable price patterns
Multiple Choice Single Answer Question When was the Dow theory first published? Correct Answer Between 1900 and 1902 Your Answer Between 1900 and 1902
Multiple Choice Single Answer Question When was the first mutual fund set up? Correct Answer 1963 Your Answer 1963
Multiple Choice Single Answer Question What is the art of technical analysis? Correct Answer To identify trend changes at an early stage and maintain investment posture till the trend has reversed Your Answer To identify trend changes at an early stage and maintain investment posture till the trend has reversed Multiple Choice Single Answer Question The expected price of the stock at the end of the holding period is determined by future dividends and the value of the stock is the
present value of dividends through infinity are the underlying assumptions of :Correct Answer The General model Your Answer The Dividend discount model
Multiple Choice Single Answer Question How would you rate a portfolio with 90% investment in stocks? Correct Answer Highly aggressive Your Answer Highly aggressive
Multiple Choice Single Answer Question What are primary trends? Correct Answer Reflection of investor's attitudes towards unfolding fundamentals in the business cycle Your Answer Long term trends Multiple Choice Single Answer Question In a forward contract there is :Correct Answer No Exchange of cash Your 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 Your Answer Equal returns for their given level of risk
Multiple Choice Single Answer Question The approach followed to assess the growth rate by looking at how much a firm reinvests for future growth and the quality of its reinvestments is :Correct Answer Estimating growth from a firm's fundamentals Your Answer Earnings multiplier approach
Select The Blank Question The possibility of reduction of risk through the construction of a portfolio depends on the value of ________ between the two assets. Correct Answer Correlation coefficient Your Answer Time
Select The Blank Question Dow Jones transportation average was previously known as ________. Correct Answer Rail average Your Answer Rail average
Select The Blank Question The compounded annual return of Kisan Vikas patra is ________. Correct Answer 0.084 Your Answer 0.084
Select The Blank Question Under futures market ________ process provides for collection of losses that have already occurred. Correct Answer The daily settlement Your Answer The daily settlement
Select The Blank Question The regulations of SEBI with respect to mutual funds were fully revised in the year ________. Correct Answer 1996 Your Answer 1996
Select The Blank Question The Dow theory states that there are simultaneously ________ movements in the stock market. Correct Answer 3 Your Answer 3
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. Correct Answer European option Your Answer European option
Select The Blank Question ________ ratio indicates the margin available after meeting the manufacturing expenses. Correct Answer Gross Profit margin
Your Answer
Gross Profit margin
Select The Blank Question Secondary reactions occurs because of ________ which arise in the market as a result of over optimism and over pessimism. Correct Answer Technical distortions Your Answer Bearish trends
Select The Blank Question Debentures rated as "A" are judged to offer ________ of timely payment of interest and principal. Correct Answer Adequate safety Your Answer Adequate safety
Select The Blank Question Debentures rated ________ are judged to offer sufficient safety of timely payment of interest and repayment of principal. Correct Answer "BBB" Your Answer "BBB"
Select The Blank Question The value of the stock in the ________ model is sensitive to the estimates of the growth rate. Correct The Gordons dividend growth Answer Select The Blank Question ________ is due to the fact that a borrower may not pay interest and/or principal on time. Correct Default risk Answer
Select The Blank Question A pattern which does not result in reversal of a trend but reaffirmation of the underlying trend is called ________. Correct Consolidation pattern Answer Select The Blank Question ________ bonds are generally called for prepayment after interest rates have fallen, investors will not be able to find To download more stuff, visit > http://www.businessfellows.biz
comparable investment avenues. Correct Answer Call risk
Select The Blank Question ________ deal in futures to offset a pre-existing risk. Correct Answer Hedger
Select The Blank Question ________are good benchmark to compare the ratios for a firm. Correct Answer Industry averages
Select The Blank Question The ________ phase is characterized by resistance area and support level. Correct Transition Answer Select The Blank Question ________ measures the efficiency of credit management. Correct Answer Average collection period
Select The Blank Question 16 ________ is affected by the leverage decisions of the firm. Correct Answer Return on equity Your Answer Return on equity
Select The Blank Question 20 ________ refers to the possibility that there may not be a readily available market for the particular bond. Correct Answer Liquidity risk Your Answer Interest rate risk
Select The Blank
Question 21
The govt allowed public sector banks and institutions in mutual funds in ________. Correct Answer Early 90's Your Answer Early 90's
Select The Blank Question 36 The 8% taxable savings bonds are repayable after ________ years. Correct Answer 6 Your Answer 5
Select The Blank Question 39 Security analysis serves the investment decision maker by identifying ________securities. Correct Answer Under priced Your Answer Blue chip
Select The Blank Question 42 ________ absorbs the excess demand or supply generated by hedgers and assume the risk of price fluctuations. Correct Answer Speculators Your Answer Brokers
Select The Blank Question 44 A ________ rally for stocks generally takes place because of an improved outlook for business conditions over what was anticipated. Correct Answer Bear market Your Answer Bullish market
Select The Blank Question 1 UTI was set up in the year ________. Correct Answer 1963 Your Answer 1963
Select The Blank Question 6 An ________ is a series of equal payments or receipts occurring at regular intervals of time. Correct Answer Annuity Your Answer Annuity
Select The Blank Question 12 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. Correct Answer Right but not obligation Your Answer Right but not obligation
Select The Blank Question 13 Measures of ________ tells us what we can expect a typical or middle data point of a distribution to be. Correct Answer Central tendency Your Answer Central tendency
Select The Blank Question 28 ________ identified five forces that determine the intrinsic long run profit attractiveness of a market or market segment. Correct Answer Michael Porter Your Answer Michael Porter
Select The Blank Question 36 ________is a hybrid form of security which has characteristics of both equity and debentures Correct Answer Preference shares Your Answer Preference shares
Select The Blank Question 39 Debentures rated "BB" refers ________ of timely payment of interest and principal. Correct Answer Inadequate safety Your Answer Inadequate safety
Select The Blank Question 43 The Derivative market is divided into Future market and ________ market. Correct Answer Options Your Answer Options
Select The Blank Question 46 The Dow theory was published in a series of editorials in the ________.
Correct Answer Wall street journal Your Answer Wall street journal
Select The Blank Question 1 ________ deal in futures to offset a pre-existing risk. Correct Answer Hedger Your Answer Speculator
Select The Blank Question 8 Under ________ EMH investors cannot earn abnormal/superior profits on securities on a consistent basis. Correct Answer Semi-strong form Your Answer Semi-strong form
Select The Blank Question 11 ________ 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 Your Answer Hedgers
Select The Blank Question 14 ________ model is based on the principle that an initial phase where the growth rate is not stable and subsequent steady growth rate and remains for the long-term. Correct Answer The Two-Stage dividend discount Your Answer The Gordons dividend growth
Select The Blank Question 17 ________ ratio is estimated by dividing the market value of a firm's assets by the replacement cost of these assets. Correct Answer Market value to replacement cost ratio Your Answer PEG ratio
Select The Blank Question 19 ________involves a simultaneous sale and repurchase agreement. Correct Answer Repos Your Answer Repos
Select The Blank Question 28 Current liabilities include all liabilities due in the next ________ and provisions. Correct Answer 12 months Your Answer 12 months
Select The Blank Question 30 S&P NSE 50 index is known as ________. Correct Answer NIFTY Your Answer NIFTY
Select The Blank Question 31 ________seeks to safeguard against potential losses on the outstanding position in futures market. Correct Answer Initial margin Your Answer Daily settlement
Select The Blank Question 35 ________ ratio is the ratio of net profit to the sales. Correct Answer Net Profit Margin Your Answer Net Profit Margin
Select The Blank Question Mutual fund is to be registered with ________ before raising funds from public. Correct Answer SEBI Your Answer SEBI
Select The Blank Question An investor with a higher tolerance of risk should tilt his portfolio in favour of ________. Correct Answer Stocks Your Answer Bank deposits
Select The Blank Question The ________ phase carries a lot of significance because it marks the turning point between a rising and a falling market. Correct Answer Transitional
Your Answer
Sideways
Select The Blank Question Acid test ratio is more stringent measure of liquidity compared to the ________. Correct Answer Current ratio Your Answer Current ratio
Select The Blank Question ________ measures the efficiency of credit management. Correct Answer Average collection period Your Answer Average collection period
Select The Blank Question ________ measures the profitability of operations without considering the influence of financial structure and tax rate. Correct Answer Earnings power Your Answer Earnings power
Select The Blank Question A line is defined as a price movement two or three weeks or longer, during which period the price variation of both averages moves within a price range of approximately________%. Correct Answer 5 Your Answer 5
Select The Blank Question ________ measures the profitability of equity funds invested in the firms. Correct Answer Return on equity Your Answer Return on equity
Select The Blank Question Risk can be referred as the ________ in the return with respect to the expected return. Correct Answer Volatility Your Answer Difference
Select The Blank
Question
All trades in the futures market are cash settled on a ________ basis.
Correct Answer T+1 Your Answer T+1
Select The Blank Question ________ ratio is the ratio of net profit to the sales. Correct Answer Net Profit Margin Your Answer Net Profit Margin
Select The Blank Question When a debenture is sold to the general public a ________ is appointed. Correct Answer Trustee Your Answer Brokers
Select The Blank Question A security is said to be ________ if its current market price is over its intrinsic value. Correct Answer Over priced Your Answer Over priced
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. Correct Answer Future value Your Answer Future value
Select The Blank Question Mutual fund is to be registered with ________ before raising funds from public. Correct Answer SEBI Your Answer SEBI
Select The Blank Question In a heads and shoulders formation the deeper the pattern, the greater is the ________ significance once it is completed Correct Answer Bearish Your Answer Bearish
Select The Blank Question The govt allowed public sector banks and institutions in mutual funds in ________. Correct Answer Early 90's Your Answer Early 90's
Select The Blank Question Under ________ EMH investors cannot earn abnormal/superior profits on securities on a consistent basis. Correct Answer Semi-strong form Your Answer Semi-strong form
Select The Blank Question The 6.________% tax saving bonds of government of India have a tenure of 5 years. Correct Answer 5 Your Answer 5
Select The Blank Question ________ is the ratio of the market price per share to the earnings per share. Correct Answer Price earning ratio Your Answer Price earning ratio
Select The Blank Question ________ absorbs the excess demand or supply generated by hedgers and assume the risk of price fluctuations. Correct Answer Speculators Your Answer Speculators
Select The Blank Question UTI was set up in the year ________. Correct Answer Your Answer 1963 1963
True/False Question
The normal relationship is for the volume to expand on rallies and contract on declines.
Correct Answer True/False Question Correct Answer True/False Question
True
In case of assured returns, A scheme cannot promise returns unless such returns are fully guaranteed by sponsor or AMC. True
A firm uses a combination of equity and debt for financing its assets. Correct Answer True
True/False Question
Policies of the government and the attitude of the government towards the industry have a considerable influence on the industry. Correct Answer True Investors in high tax bracket would benefit by investing in equity schemes. Correct Answer False 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 When we invest in only one asset we are not exposed to any specific or market risk. Correct Answer False Five paisa.com is an example of on line trading portal.
True/False Question
True/False Question
True/False Question
True/False Question
Correct Answer True 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
Bearish actions come from a series of declining peaks and troughs. Correct Answer True
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 Your Answer True/False Question True
With the use of diversification you can reduce the risk.
Correct Answer True Your Answer True/False Question True
A segment is unattractive if the buyers possess strong or growing bargaining powers. Correct Answer True Your Answer True
True/False Question
Risk on a portfolio of assets is always same as the risk on individual asset. Correct Answer False Your Answer False
True/False Question
Debt is less riskier source of finance than equity.
Correct Answer False Your Answer True
True/False Question
Post office monthly schemes have a 10 year tenor.
Correct Answer False Your Answer False
True/False
Question
With the introduction of on-line trading by NSE and BSE, the role of regional stock exchanges have diminished. Correct Answer True Your Answer True/False Question True
Penetration of a trend line denotes a bearish phase.
True/False Question
Passive investment managers believe that markets are inefficient and Active managers believe that markets are efficient. Correct Answer False Your Answer False
True/False Question 2
Currently in India index options are both European and American in nature. Correct Answer False Your Answer False
The cost structure remaining the same, better price realisation results in lower gross profit ratio. Correct Answer False Your Answer True
A segment is more attractive when there are actual or potential substitutes for the product. Correct Answer False Your Answer True
Bond ratings by credit rating agencies provide superior and low cost information to the investor serving as a basis for a proper risk-return trade off by investors. Correct Answer True Your Answer True
The arithmetic mean is a set of observations is calculated by finding the sum values and dividing by the number of observations. Correct Answer True Your Answer True
Investment in gilt edged securities carry a higher element of risk.
Following a decline, heavy volume with little price change is indicative of accumulation and is normally a bearish factor. Correct Answer False Your Answer True
Speculators buy or sell futures contract in an attempt to earn a profit. Correct Answer True Your Answer True
Investment decisions can be viewed as an integrated process to which security analysis makes its unique contribution. Correct Answer True Your Answer True
Given the accounting standards across firm, price to book value ratios can be compared across similar firms for signs of under valuation. Correct Answer True Your Answer True
Quick assets consist of current assets less inventories.
Correct Answer True
Your Answer
True
If a rupee weakens against the dollars it has favourable impact for the exporters. Correct Answer True Your Answer True
A price rise accompanied by expanding volume denotes a potential trend reversal. Correct Answer False Your Answer True
There may be convertible clause which gives the debenture holder the option to convert the debentures into equity shares. Correct Answer True Your Answer True PPF is a good retirement planning and tax saving vehicle.
Correct Answer True Your Answer True/False Question 2 True Bonds and Debentures represent long term debt instruments.
Correct Answer False Your Answer True/False Question 9 True
While calculating geometric mean calculation of root is not important. Correct Answer False Your Answer False
Certificate of Deposits offers high rate of interest than Treasury Bills. Correct Answer True
Your Answer
True
Sensex is the index of Calcutta Stock Exchange.
Correct Answer False Your Answer False
Fundamental analysis focuses on predicting the future price of a security and Technical analysis on estimating the intrinsic value of a security. Correct Answer False Your Answer True
If rupee weakens against the dollar, it has favourable impact for the importers. Correct Answer False Your Answer False
The risk associated to get the required rate of return on the stock is measure by market beta. Correct Answer True Your Answer True
The basic inputs of the general model are expected dividends and required rate of return on stock. Correct Answer True Your Answer True
European style options are more expensive than American style because they offer greater flexibility to the buyer. Correct Answer False Your Answer True
True/False Question
When you are making an investment you are expecting certain future benefits from your investment. Correct Answer True Your Answer True
True/False Question
The returns of sector specific funds are solely dependant on the performance of the respective sectors / industries. Correct Answer True Your Answer True
True/False Question
The labour conditions do not play an important role in the industry analysis. Correct Answer False Your Answer False
True/False Question Correct Answer Your Answer True/False Question
A rise in interest rates will push the market prises of outstanding bonds where as a fall in interest rates will depress the market prices down. False True
Because of statutory compulsion, generally Govt. securities are held by banks, financial institutions, insurance companies etc. Correct Answer True Your Answer True
True/False Question
The Asset management company of the mutual fund must have 50% independent directors. Correct Answer True Your 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
Your Answer
False
True/False Question
Investment in gilt edged securities carry a higher element of risk.
Correct Answer False Your Answer True/False Question False
American option gives the holder the right, but not the obligation to buy or sell the underlying instrument on or before the expiry date and the option can be exercised early. Correct Answer True Your Answer True
True/False Question
Prices of stocks usually move in trends.
Correct Answer True Your Answer True
True/False Question
The sideways trend is essentially a transitional one which separates the two major market movements. Correct Answer True Your Answer False
True/False Question
With the use of diversification you can reduce the risk.
Correct Answer True Your Answer True
True/False Question A higher value of current ratio indicates a better short term solvency of the firm. Correct Answer True
Your Answer True

True/False
Question The basic assumption of Technical analysis is that, price discounts everything and it is the outcome of all forces affecting a stock. Correct Answer True
Your 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 Your Answer True
True/False Question The price earning ratio can be estimated for the firms with negative earnings per share. Correct Answer False Your Answer True/False Question True
A share certificate indicates that the investor owns a certain number of shares. Correct Answer True Your Answer True
True/False Question
Balance of payments surplus augments foreign reserves of the country and have a favourable impact on he exchange rate. Correct Answer True Your Answer True
Select The Blank Question The ________ phase carries a lot of significance because it marks the turning point between a rising and a falling market. Correct Answer Transitional Your Answer True/False Question Transitional
Bonds and Debentures represent long term debt instruments.
True/False Question
A price rise accompanied by expanding volume denotes a potential trend reversal. Correct Answer False Your Answer False
Select The Blank Question The ________ phase is characterized by resistance area and support level. Correct Answer Transition Your Answer True/False Question Transition
Currently in India index options are both European and American in nature. Correct Answer False Your Answer False
Select The Blank Question Debentures rated as "A" are judged to offer ________ of timely payment of interest and principal. Correct Answer Adequate safety Your Answer True/False Question High safety
A rally that develops on contracting volumes is suspect and warns of a potential trend reversal in price Correct Answer True Your Answer True
Match The Following Question Price pattern Primary trend Intermediate trend Short term trend
Correct Answer Resistance level Last between 1-2 years
Your Answer Head and shoulders formation Last between 1-2 years
Last between 3 weeks to as Last between 3 weeks to as long as 6 months long as 6 months Last 1 to 3-4 weeks Last 1 to 3-4 weeks
Match The Following Question MCX Sensex Nifty Lifex

Match The Following Question Turnover ratios
Correct Answer Commodity Exchange BSE Index NSE Index ET Index
Your Answer Commodity Exchange BSE Index NSE Index Gold Index
Correct Answer Help measure the efficiency of utilisation of assets Debt / Equity Highly liquid assets
Your Answer Help measure the efficiency of utilisation of assets Debt / Equity Highly liquid assets
Debt Equity ratio Quick assets
Average collection period Similar to debtors turnover Similar to debtors turnover
Match The Following Question Development of Dow's principles Breadth Indicator Momentum indicator Trend lines Match The Following Question 26
Correct Answer William Peter Hamilton Advance/decline line MACD Useful tool in technical analysis Correct Answer
Your Answer Charles H.dow Moving average MACD Useful tool in technical analysis Your Answer Futures contract
Under options contract Cost of Carry model When you expect prices to fall, then, you take a long position by buying puts. When you expect prises to rise, then you take a short position by selling puts.
A contract where both the Futures contract parties are equally responsible The amount which the Option price buyer of the option has to pay to the option writer to induce him to accept the risk associated with the contract. NSE&BSE are regulated by Match The Following Question 24 Equity shares Government Securities Bank Deposits Mutual Funds Securities Exchange Board of India
Options contract
Transaction cost model
Securities Exchange Board of India
Correct Answer High risk No risk Low risk Average risk
Your Answer High risk Low risk No risk Average risk
Match The Following Question 33 Risk free investment Risk Variance Returns
Correct Answer
Your Answer
Actual returns = expected Actual returns = expected returns returns Volatility in the return Measure of dispersion Future benefits from investments Volatility in the return Measure of dispersion Future benefits from investments
Match The Following Question 20 H-Model For Valuing Growth
Correct Answer Initial growth rate is not constant but linearly falls over time to reach the stable growth rate Expected dividends and required rate of return
Your Answer Initial growth rate is not constant but linearly falls over time to reach the stable growth rate Expected dividends in the next period, cost of equity and expected growth rate in dividends
The general model
The Gordons Growth model
Expected dividends in the next period, cost of equity and expected growth rate in dividends Based on two extraordinary growth phase lasting n years and stable growth phase that lasts forever
Assessment of the growth rate by looking at how much a firm reinvests for future growth and the quality of its reinvestment Based on two extraordinary growth phase lasting n years and stable growth phase that lasts forever
The Two-Stage Dividend Discount Model
Match The Following Question 34
Correct Answer
Your Answer Future value of annuity
Future value of a series of Future value of annuity cash flows occurring at the end of each period. Value today of a stream of Present Value cash flows that occurs in future. Value at a certain future date today of a stream of cash flows that occurs over a period of time. Future Value
Future Value
Present Value
Series of equal payments Present value of annuity or receipts occurring at regular intervals of time. Match The Following Question Weak form model is also termed as Investors are rational Securities current prices fully reflect all historical information Framework on efficient capital markets, a review of theory and empirical work Match The Following Question
Present value of annuity
Correct Answer Random walk model Efficient market hypothesis Weak form EMH
Your Answer Random walk model Efficient market hypothesis Fama
Fama
Strong form
Correct Answer
Your Answer 1981
Technical collaboration of 1981 Bharat Forge with SIFCO
industries USA Bharat Forge was incorporated at Mumbai 1961 1961 1971 1976
Shares of 100 each 1971 subdivided of Bharat forge 930000 bonus shares issued by Bharat Forge Match The Following Question The yield to maturity is same as the 1976
Correct Answer
Your Answer
Geometric mean return or Geometric mean return or the internal rate of return the internal rate of return Debt instrument/Bonds
Periodic interest payments Debt instrument/Bonds and principal repayment at the time of maturity The actual yield earned by Realised yield an investor on a bond Present value interest factor of annuities and present value interest factor Yield to maturity
Realised yield Yield to maturity
1. Treasury Bills 2. Commercial Papers 3. Certificate of Deposits 4. Bonds 5 3
1. Foreign Institutional Investors 2. Government of India
3. Corporates 4. Banks and Financial Institutions 5. Central/State Govts/PSU's 6. Post Office
1. ROE 2. Earnings power 3. Net profit margin 4. Gross profit margin
3 1 2 6
1. Measure the profitability of operations without considering the influence of financial structure and tax rate 2. Ratio if net profit to sales 3. Measure the profitability of equity funds 4. Valuation ratio
5. Measures the profitability of debt funds 6. Indicates the margin available after meeting the manufacturing expenses 1. SEBI 2. NAV 3. AMFI 4. NSE 5 2 6
1
1. Nifty 2. Net asset value 3. Net average value 4. Association of merchant financers of India 5. Redressal of investor complaints 6. Association of mutual funds of India
Match The Following Question Growth of income Current income Stability of principal Appreciation
Correct Answer 40-60 % debt, 40-60 % equities Short term debt portfolio Fixed - income portfolio 75-100 % in equities
Your Answer 40-60 % debt, 40-60 % equities Fixed - income portfolio Short term debt portfolio 75-100 % in equities
Match The Following Question
Correct Answer
Your Answer Price to book value ratio
Ratio used as a measure of PEG ratio relative value The market value of the firms assets divided by the replacement cost of these assets Key determiner of revenue multiples
Market value to replacement Market value to replacement cost ratio cost ratio
Profit margin
Profit margin Price earning ratio
The market value of the Price to book value ratio equity in a firm reflects the markets expectations of the firms earnings power and cash flows. Match The Following Question
Correct Answer
Your Answer
Expiration period for options Nine months The world's first largest options exchange The most popular pricing options model published in the year 1973 Chicago Board of options exchange Black Scholes
Nine months New York board of Options exchange Black Scholes
When the writer gives the Put option buyer of the option the right to sell the underlying asset on or before the expiry date
Put option

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question Active investment managers :Correct Answer

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Multiple Choice Multiple Answer Question Correct Answer

Multiple Choice Multiple Answer Question

Multiple Choice Multiple Answer Question

If option is given to you to receive Rs.1,000/- today or after

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Multiple Choice Multiple Answer Question Correct Answer

Multiple Choice Multiple Answer Question Correct Answer

Multiple Choice Multiple Answer Question Correct Answer

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Multiple Choice Multiple Answer Question

Multiple Choice Multiple Answer Question Correct Answer

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Multiple Choice Multiple Answer Question 35 Correct Answer

Multiple Choice Multiple Answer Question 41 Correct Answer Your Answer

Multiple Choice Multiple Answer Question 46

Correct Answer Your Answer

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Acquisitions , Expanding marketing capabilities and investing in new facilities , Mergers

Multiple Choice Multiple Answer Question 5 Correct Answer

Multiple Choice Multiple Answer Question 14 Correct Answer Your Answer

Multiple Choice Multiple Answer Question 15

Correct Answer Your Answer

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Multiple Choice Multiple Answer

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Question 18 Correct Answer Your Answer

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Multiple Choice Single Answer

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A security represent evidence of :-

Correct Answer A property right Your Answer Safety

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Cannot give indication of the inclination of market participants to purchase stock

Multiple Choice Single Answer

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How many measures of money supply are used commonly?

Correct Answer 2 Your Answer 2

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Correct Answer Market influence Your Answer Market influence

Multiple Choice Single Answer

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What are short term trends?

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Multiple Choice Single Answer

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Multiple Choice Single Answer

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Under priced and over priced

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Gross Profit margin