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

(c)
Open orders are known as “good till cancelled” orders

(d)
In a market order, the investor is aware of the price at which the stock will be traded

(e)
In a stop limit order to buy, the investor can specify the maximum price that he is ready to pay for the stock.


< ans >

28.
Which of the subsequent principles of Real Estate Appraisal is/are true?

I. According to the Principle of Substitution, a rational owner will try to gain the maximum out of the resources he has.

II. According to the Principle of Change, price is function of demand and supply and value of property fluctuates with price.

III. According to the Principle of Marginal Productivity, the value of any factor of production or component of a property can add to or lower the value of the asset.

(a)
Only (I) above

(b)
Only (II) above

(c)
Only (III) above

(d)
Both (I) and (II) above

(e)
Both (II) and (III) above.


< ans >

29.
change in which of the subsequent accounting policies will not affect the profit figures reported ranging from 2 time periods?

(a)
Treatment of R & D expenditure

(b)
Treatment of gratuity liability

(c)
evaluation of Inventories

(d)
Treatment of depreciation provisions

(e)
Revaluation of financial investment for treasury operations.


< ans >

30.
Which of the subsequent statement(s) is/are not true?

I. Detachable warrants are issued separately and not as part of a bond or a debenture problem.

II. In naked warrants, the holder has the choice of converting the warrant into debt or equity or a few other asset of the issuer.

III. marriage warrants are attached to the host debentures and can be exercised only if the host debenture is surrendered.

IV. Callable warrants confer a right on the investor to sell the warrant back to the company at a fixed price before the expiry of a fixed period thereby limiting the risk.

(a)
Only (I) above

(b)
Only (II) above

(c)
Only (III) above

(d)
Both (I) and (IV) above

Earning:   Approval pending.