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

II. Dow Theory consider penetration at point Y to indicate bear market.

III. A conservative analyst consider point X to indicate the bear market.

IV. The reversal is confirmed at point ‘b’.

(a) Both (I) and (IV) above (b) Both (II) and (III) above

(c) (I), (II) and (IV) above (d) (I), (III) and (IV) above

(e) (II), (III) and (IV) above.
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18.
Which of the subsequent statements is/are actual with regard to insider trading as defined by SEBI (Insider Trading) regulations, 1992?

I. Only dealing in securities based on unpublished info is prohibited and communication of price sensitive info per se is not an offense.

II. Any significant modifications in policies, plans or operations of the company would be deemed to be price sensitive info.

III. Speculative info in print or electronic media would not be considered as published info.

(a) Only (I) above (b) Only (II) above

(c) Only (III) above (d) Both (I) and (II) above

(e) All (I), (II) and (III) above.
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19.
The current earning per share of Amrita Fertilizer Ltd. is Rs.5. The analyst of this company forecasts the 2 probable situations in the future. Firstly, if the market is good, company will retain 60% of its profit and invests the amount at 17.5%. Secondly, if market is bad, the company will pay the whole earnings as dividends. What will be reduce in amount of share price in later situation, assuming cost of equity to be 12%?

(a) Rs.20.83 (b) Rs.41.67 (c) Rs.105.66 (d) Rs.133.33 (e) Rs.147.33.
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Earning:   Approval pending.