Institute of Chartered Financial Analysts of India (ICFAI) University 2006 Certification Finance Security Analysis-I - Question Paper

5.856
4.80
­­­–

(Capital expenditure – depreciation) (1 – debt ratio)
14.289
11.712
9.60

EPS
35.754
29.307
24.02


< TOP >

16.
ans : (d)

cause : Statement II is incorrect. A PFC does not measure every movement in price. PFC records modifications in prices that are larger than a specific amount. All other statements are actual with respect to Point and Figure Chart.

Therefore, choice (d) is the accurate ans.
< TOP >

17.
ans : (d)

cause : quantity is very heavy at the left shoulder, and continues to rise, albeit at a lower rate at the head. A noticeably low quantity accompanies the formation of the right shoulder. All other statements are actual with respect to head and shoulder trend.

Therefore, choice (d) is the accurate ans.
< TOP >

18.
ans : (c)

cause :



Therefore, choice (c) is the accurate ans.
< TOP >

19.
ans : (d)

cause : Test at 5% significance level :

Lower limit = - Z= 41.34 – 1.96 (4.45) = 32.62

= 41.34 + 1.96 (4.45) = 50.06

Test at 10% significance level :

Lower limit = - Z= 41.34 – 1.65 (4.45) = 33.99

= 41.34 + 1.65 (4.45) = 48.68

Test at 20% significance level :

Lower limit = - Z= 41.34 – 1.28 (4.45) = 35.64

= 41.34 + 1.28 (4.45) = 47.04

Since at 5% and 10% significance level the observed number (r) of 35 falls within the lower and upper limits, the prices are independent.

Therefore, choice (d) is the accurate ans.
< TOP >

20.
Answer: (d)

Reason: Statement III is incorrect. Infact the statement should be, provided the maturity, the change in bond price will be greater with an reduce in the bond’s YTM than the change in bond price with an equal increase in the bond’s YTM.

Therefore, choice (d) is the accurate ans.
< TOP >

21.
Answer: (b)

Reason: Forward rate after 1 year

Earning:   Approval pending.