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

ques. Paper
Security Analysis – I (211) : April 2006


part A : Basic Concepts (30 Marks)



· This part consists of ques. with serial number one - 30.

· ans all ques..

· every ques. carries 1 mark.

· Maximum time for answering part A is 30 Minutes.





1.
Which of the subsequent statements is not actual with regard to Central Government Dated Securities?

(a) They can be held either in the form of promissory notes or stock certificates

(b) The price quotation of these securities are reported to stock exchange for inclusion in the official quotations list by the licensed dealers

(c) problem of these securities are handled by RBI

(d) Payment of interest on these securities is handled by the commercial banks for a fee

(e) Discount and Finance House of India offers 2 way quote in government securities in the secondary market.
< ans >

2.
In a portfolio consisting of 2 securities in which funds have been invested in equal proportions, 1 of the securities is a risk-free security and the other 1 is a risky security. The standard deviation of the portfolio will be equal to

(a) The standard deviation of the risky security

(b) Half the standard deviation of the risky security

(c) One-fourth of the standard deviation of the risky security

(d) Twice the standard deviation of the risky security

(e) Zero.
< ans >

3.
The ratio of the price of an equity share at the end of a 1-year period to its price at the beginning of the 1-year period is 5:4. What is the capital gain yield from the equity share?

(a) 20% (b) 25% (c) 60% (d) 75% (e) 80%.
< ans >

4.
HOEC Ltd. has the subsequent characteristic line variables as per the past behavior of prices. a = 2. 5% and ß = 1. 6. If the market index subsequently rises by 12% in 1 month and HOEC Ltd. stock price increases by 20%, what is the abnormal change in HOEC Ltd. stock price?

(a) –0.70% (b) –1.60% (c) –1.70% (d) –1.90% (e) –2.00%.
< ans >

5.
Which of the subsequent statement is/are not actual with respect to securities transaction tax?

I. For transaction relating to ‘option in securities’, value shall be the aggregate of the spot price and the choice premium.

II. For transaction relating to ‘futures’, value shall be the price at which such ‘futures’ is traded.

Earning:   Approval pending.