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

(e) (II), (III) and (IV) above.
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17.
Which of the subsequent statements is false with respect to Head and Shoulders price pattern?

(a) The left shoulder signifies the penultimate rally in the bull market

(b) Neckline is a line that joins the points from where the final rally starts and ends

(c) The right shoulder confirms the beginning of a bear market

(d) quantity is heavy at the left shoulder and continues to rise and is highest at the right shoulder

(e) Head and shoulders trend occurring at market bottoms is called inverted head and shoulder.
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18.
The closing prices of Torrent Cables Ltd. , on 5 consecutive trading days are as under:

Days
Closing Prices (Rs.)

0
274.90

1
275.60

2
272.00

3
268.00

4
270.00


The Relative Strength Index For Torrent Cable Ltd. is

(a) 47.35 (b) 49.75 (c) 50.25 (d) 50.50 (e) 51.00.
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19.
subsequent data pertains for the stock prices of Madhu sugars Ltd. for a certain period of time:

= 41.34

= 4.45

= 35

Stock prices of the company are independent at which of the subsequent level of significance?

I. Test at 5% level of significance.

II. Test at 10% level of significance.

III. Test at 20% level of significance.

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

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

(e) Both (II) and (III) above.
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20.
Which of the subsequent statements is/are actual with respect to bond price theorems?

I. For a provided difference ranging from YTM and coupon rate of the bonds, the longer the term to maturity, the greater will be the change in price with change in YTM.

Earning:   Approval pending.