Symbiosis International Education Centre 2008 M.B.A Business Administration Security analysis & portfolio management - Question Paper

LIST OF ATTEMPTED ques. AND ANSWERS
Multiple option Multiple ans
ques. Active investment managers :-
accurate ans Do not believe that markets are efficient , Puts efforts to search mispriced securities in the market , Are relatively active traders in securities to acquire abnormal returns


Multiple option Multiple ans
ques. Equity analysts provides estimates of earnings and earnings growth for future, using historical data and :-
accurate ans Macro economic info that may impact future growth , Private info about the firm , Firm's specific info and public info


Multiple option Multiple ans
ques. What are the features of short-term trends?
accurate ans They last from one to three or four weeks , They interrupt the course of the intermediate cycle , They are usually influenced by random news events


Multiple option Multiple ans
ques. What are the features of pattern lines
accurate ans A simple and useful tool in tech. analysis , Prices move in patterns , The pattern lines represent points of support and resistance


Multiple option Multiple ans
ques. What are the features of candle stick charts?
accurate ans Indicates in black if the closing price is lower than the opening price , shows in white if the closing price is higher than the opening price
Your ans , Displays the correlation ranging from the high and low prices
Multiple option Multiple ans
ques. The growth rate in the initial phase is not constant but declines linearly over time to reach the stable growth rate in steady state is a phenomena of :-
accurate ans H- Model for valuing growth , H-Two stage model for growth , H-Model unlike the classic 2 stage model


Multiple option Multiple ans
ques. What are the features of line charts?
accurate ans It connects closing prices from 1 period to the next , It is ideal for securities with no high or low price data


Multiple option Multiple ans
ques. What are the ways of measuring relative strength?
accurate ans Calculate the rates of return and classify securities that have earned superior historical returns , Calculating certain ratios will help in analyzing whether a security has relative strength
Your ans Calculating the Return on investment


Multiple option Multiple ans
ques. The Peer group of Bharat Forge consists of which all companies?
accurate ans Am forge industries , Kalyani Forge , EL Forge

Multiple option Multiple ans
ques. Which were the initiatives which the chairman stated would focus on in 2003-04 in the speech in annual report for the year 2003-03?
accurate ans Research and development , Capital investment and focus on balance sheet , Overseas acquisitions


Multiple option Multiple ans
ques. The Two-Stage dividend discount model is best suited for the firms that are :-
accurate ans In high growth rate phase , Expecting to maintain the growth rate phase steadily for a specific time period , Sources of high growth are expected to disappear after specific period of time



Multiple option Multiple ans
ques. The features of bond are :-
accurate ans Collateral , Call provision , Sinking fund and protective covenants



Multiple option Multiple ans
ques. What are the features of company fixed deposits?
accurate ans Interest rate offered is higher than banks , No benefits under 80 L , No TDS for interest income upto Rs. 5000
Your ans Interest rate offered is higher than banks , No benefits under 80 L , No TDS for interest income upto Rs. 5000


Multiple option Multiple ans
ques. What are the features of point and figure charts?
accurate ans Charts are constructed using a combination of X's and O's known as boxes. , X's show that the prices are moving up , O's show that the prices are moving down
Your ans Charts are constructed using a combination of X's and O's known as boxes. , X's show that the prices are moving up , O's show that the prices are moving down


Multiple option Multiple ans
ques. What are the features of post office monthly income scheme?
accurate ans Investor earns bonus of 10% on completion of term , Rate of return is eight % , Interest payable monthly
Your ans Rate of return is eight % , Interest payable monthly , Investor earns bonus of 10% on completion of term


Multiple option Multiple ans
ques. The firm issuing bonds operating sinking fund and repurchases bonds either :-
accurate ans Calling in a certain number of bonds by lot , Buying bonds in the open market , Buying bonds issued to banks and financial institutions
Your ans Calling in a certain number of bonds by lot , Buying bonds in the open market , Buying bonds issued to banks and financial institutions


Multiple option Multiple ans
ques. If choice is provided to you to receive Rs.1,000/- today or after 1 year, you will select to receive it today because :-
accurate ans You can use the amount to generate returns over the next 1 year , The purchasing power of Rs.1,000/- today is more than what it will be 1 year from now , There is an element of uncertainty associated with the future receipt
Your ans You can use the amount to generate returns over the next 1 year , The purchasing power of Rs.1,000/- today is more than what it will be 1 year from now , There is an element of uncertainty associated with the future receipt


Multiple option Multiple ans
ques. The calculation of return on a bond involves considering :-
accurate ans The entire sequence of cash flows , The timing of cash flows , Calculating the internal rate of return
Your ans The entire sequence of cash flows , The timing of cash flows , Calculating the internal rate of return


Multiple option Multiple ans
ques. What are the features of line charts?
accurate ans It connects closing prices from 1 period to the next , It is ideal for securities with no high or low price data
Your ans It connects closing prices from 1 period to the next , It is ideal for securities with no high or low price data


Multiple option Multiple ans
ques. Explain elaborate leverage ratios ?
accurate ans Debt equity ratio and interest coverage ratio and DSCR are important leverage ratios , Debt is riskier source of finance as it entails fixed outgo of periodic payments , Help in assessing the risk arising using the debt capital
Your ans Help in assessing the risk arising using the debt capital , Debt equity ratio and interest coverage ratio and DSCR are important leverage ratios , Debt is riskier source of finance as it entails fixed outgo of periodic payments


Multiple option Multiple ans
ques. What developments had taken place during the year 2000 in case of Bharat Forge Ltd.?
accurate ans Demerger of investment division and windmills , Nominee director of UTI resigned and ceased to be the director - nomination withdrawn by UTI
Your ans Demerger of investment division and windmills , Nominee director of UTI resigned and ceased to be the director - nomination withdrawn by UTI


Multiple option Multiple ans
ques. The investor in bonds receives income from :-
accurate ans Interest payments at coupon rates , Capital gain/loss arising out of the sale of the bond , Redemption of the bond of the issuer at a contracted value
Your ans Interest payments at coupon rates , Capital gain/loss arising out of the sale of the bond , Redemption of the bond of the issuer at a contracted value


Multiple option Multiple ans
ques. 1 Return can be in the form of :-
accurate ans Dividends , Interests , Capital appreciation
Your ans Dividends , Interests , Capital appreciation


Multiple option Multiple ans
ques. 5 What were the achievements of Bharat Forge during the year 2003?
accurate ans Secured 2nd largest customer in China , Appointed a Company Secretary to act as compliance officer , New contracts won in passenger car components
Your ans Secured 2nd largest customer in China , Appointed a Company Secretary to act as compliance officer , New contracts won in passenger car components




Multiple option Multiple ans
ques. 35 An choice is :-
accurate ans A contract ranging from 2 parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee
Your ans A contract ranging from 2 parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee


Multiple option Multiple ans
ques. 41 Formula for computation of portfolio variance requires :-
accurate ans Expected return on portfolio , Expected return on assets , Weight of asset in the portfolio
Your ans Expected return on portfolio , Expected return on assets , Weight of asset in the portfolio


Multiple option Multiple ans
ques. 46 What were the objectives for 2002-03 the chairman of Bharat forge had emphasised on in the annual report for 2001 - 02
accurate ans Maintain aggressive exports thrust , Increase shares of value added products , continue on reducing costs
Your ans Maintain aggressive exports thrust , Increase shares of value added products , continue on reducing costs


Multiple option Multiple ans
ques. 47 Which are the most popular kinds of orders placed through an online trading account?
accurate ans Limit orders , Market orders
Your ans Market orders , Hedging orders , Arbitrage orders
Multiple option Multiple ans
ques. 4 A firm's growth is determined by how much is re-invested into new assets and the quality of these investments, and these includes :-
accurate ans Acquisitions , Building distribution channels , Expanding marketing capabilities and investing in new facilities
Your ans Acquisitions , Expanding marketing capabilities and investing in new facilities , Mergers


Multiple option Multiple ans
ques. 5 Which of the subsequent are important momentum indicators used widely?
accurate ans Rate of change (ROC) , Relative strength indicator (RSI) , Moving avg. convergence divergence(MACD)
Your ans Rate of change (ROC) , Relative strength indicator (RSI) , Moving avg. convergence divergence(MACD)


Multiple option Multiple ans
ques. 14 Which ratios are commonly used?
accurate ans Debt equity ratio , Interest coverage ratios , Debt service coverage ratios
Your ans Debt equity ratio , Interest coverage ratios , Debt service coverage ratios


Multiple option Multiple ans
ques. 15 What were the Chairman's comments during the speech in the Annual report of the FY 2002-03?
accurate ans Best year in the history of the company , 146% growth in exports , Highest pre and post tax profits
Your ans Best year in the history of the company , 146% growth in exports , Highest pre and post tax profits


Multiple option Multiple ans
ques. 20 Who are the constituents of a mutual fund?
accurate ans Sponsor & trustees , Asset management company , Custodian
Your ans Sponsor & trustees , Asset management company , Custodian


Multiple option Multiple ans
ques. 26 What are the features of Kisan Vikas Patra?
accurate ans Term is for eight years 7 months , Provision of premature withdrawal , Interest rate is 8.4% compounded annually
Your ans Term is for eight years 7 months , Provision of premature withdrawal , Interest rate is 8.4% compounded annually


Multiple option Multiple ans
ques. 38 The security analysis process will achieve :-
accurate ans True picture of a company , Normal earning power , Projection of future profitability
Your ans True picture of a company , Normal earning power , Projection of future profitability


Multiple option Multiple ans
ques. 41 The return to the bond investor can be measured in terms of :-
accurate ans Current yield , Yield to maturity , Realised yield
Your ans Yield to maturity , Realised yield


Multiple option Multiple ans
ques. 5 Which are the various kinds of accounts offered to investors by the stock brokers?
accurate ans Cash trading , Margin trading
Your ans General trading , Cash trading , Margin trading
Multiple option Multiple ans
ques. 7 What are the features of Retail government securities (G-secs) ?
accurate ans Safest investment choice available , Demat account is needed for investment , option of tenure varies from less than one year to 30 years
Your ans Securities can be bought from the RBI , Safest investment choice available , Demat account is needed for investment



Multiple option Multiple ans
ques. 10 To measure the movement of stocks in the market which indices were constructed by Dow?
accurate ans Dow Jones industrial avg. , Dow Jones Transportation avg.
Your ans Dow Jones Transportation avg.



Multiple option Multiple ans
ques. 16 The security market is the market for :-
accurate ans Equity , Debt , Derivatives
Your ans Equity , Debt , Bank deposits

Multiple option Multiple ans
ques. 18 In a typical stock market cycle which are the kinds of trends?
accurate ans Trends upward , pattern downward , Sideway pattern
Your ans Trends upward , pattern downward , Flat pattern
Multiple option Multiple ans
ques. 22 Mutual fund schemes could be broadly classified as :-
accurate ans Open ended scheme , Close ended scheme
Your ans Open ended scheme , Close ended scheme , Growth schemes


Multiple option Multiple ans
ques. 24 What was the final analysis on the performance of Bharat forge for the year FY 02?
accurate ans Aim to become US$1 billion Company by Fy 08 from US$100 million , Stock currently trades at 15 times its FY 05 consensus EPS forecasts , Stock will trade at an inexpensive PEG of 0.6x.
Your ans Aim to become US$1 billion Company by Fy 08 from US$100 million , Stock currently trades at 15 times its FY 05 consensus EPS forecasts , Stock will trade at an inexpensive PEG of 0.6x.


Multiple option Multiple ans
ques. 26 Gilt Edged Securities are :-
accurate ans State Govt. , Quasi-Govt , Central Govt
Your ans Central Govt , State Govt. , Quasi-Govt


Multiple option Multiple ans
ques. 33 What are the ways of measuring relative strength?
accurate ans Calculate the rates of return and classify securities that have earned superior historical returns , Calculating certain ratios will help in analyzing whether a security has relative strength
Your ans Calculate the rates of return and classify securities that have earned superior historical returns , Calculating certain ratios will help in analyzing whether a security has relative strength , Calculating the Return on investment


Multiple option Multiple ans
ques. 44 What are the various kinds of profitability ratios?
accurate ans Gross profit margin ratio , Earnings power , Return on equity
Your ans Gross profit margin ratio , Earnings power , Return on equity


Multiple option Multiple ans
ques. The Gordon growth model is best suited for firms :-
accurate ans Growing at a rate equal to or lower that the growth in the economy , Which have well established dividend payout ratio policy , Whose earnings are steady and perpetual
Your ans Growing at a rate equal to or lower that the growth in the economy , Which have well established dividend payout ratio policy


Multiple option Multiple ans
ques. The Two-Stage dividend discount model is based on the assumption of :-
accurate ans An initial phase where the growth is not a stable growth rate , A following steady state of growth rate being stable and lasts n years , A stable growth phase lasts forever
Your ans An initial phase where the growth is not a stable growth rate , A following steady state of growth rate being stable and lasts n years , A stable growth phase lasts forever


Multiple option Multiple ans
ques. Features of PSU Bonds are :-
accurate ans No TDS , Transferable by endorsement , No stamp duty on transfer
Your ans No TDS , Transferable by endorsement , No stamp duty on transfer


Multiple option Multiple ans
ques. An choices contract allows the investor :-
accurate ans To earn a profit while restricting the downside risk , To use the choices for speculation , Either to honour or walk away from the contract
Your ans Either to honour or walk away from the contract , To earn a profit while restricting the downside risk , To use the choices for speculation


Multiple option Multiple ans
ques. Major steps involved in construction of a index are :-
accurate ans Selecting a set of scrips to be used , Fixing starting date , Calculating market capitalisation
Your ans Selecting a set of scrips to be used , Fixing starting date , Fixing ending date


Multiple option Multiple ans
ques. How can the financial statements can be manipulated while giving the estimates for growth?
accurate ans Change method of rate of depreciation , change method of stock evaluation , Inflating sales for current year by advancing sales for the subsequent year
Your ans Change method of rate of depreciation , change method of stock evaluation , Inflating sales for current year by advancing sales for the subsequent year


Multiple option Multiple ans
ques. The underlying assumptions of tech. analysis are that :-
accurate ans Prices move in predictable trends , Market value is determined by supply & demand , Investors are emotional than being rational
Your ans Prices move in predictable trends , Investors are emotional than being rational


Multiple option Multiple ans
ques. Which are the various styles of displaying charts?
accurate ans Bar and line charts , Candle stick charts , Point and figure charts
Your ans Candle stick charts , Point and figure charts , Bar and line charts


Multiple option Multiple ans
ques. What are the features of public provident scheme?
accurate ans 15 year instrument , Rate of interest is 8% , Partial withdrawal is available from seventh year
Your ans 15 year instrument , Rate of interest is 8% , Partial withdrawal is available from seventh year


Multiple option Multiple ans
ques. Growth of the firm can be estimated through :-
accurate ans Firm's past earnings/historical growth rate , Estimates made by equity research analyst who follow the firm , Estimates from a firm's fundamentals
Your ans Firm's past earnings/historical growth rate , Estimates made by equity research analyst who follow the firm , Estimates from a firm's fundamentals


Multiple option Multiple ans
ques. Characteristics of Preference shares are :-
accurate ans Carry a fixed rate of dividend , Dividend payable out of profit , Redemption in seven to 12 years
Your ans Carry a fixed rate of dividend , Dividend payable out of profit , Redemption in seven to 12 years


Multiple option Multiple ans
ques. What are the SEBI regulations with respect to mutual funds?
accurate ans Mutual funds to be registered with SEBI before the launching any scheme , 2/3rds of the directors of the trustee company must be independent , An AMC approved by SEBI manages the fund
Your ans Mutual funds to be registered with SEBI before the launching any scheme , 2/3rds of the directors of the trustee company must be independent , An AMC approved by SEBI manages the fund


Multiple option Multiple ans
ques. The security analysis process will achieve :-
accurate ans True picture of a company , Normal earning power , Projection of future profitability
Your ans True picture of a company , Normal earning power , Projection of future profitability


Multiple option Multiple ans
ques. The return to the bond investor can be measured in terms of :-
accurate ans Current yield , Yield to maturity , Realised yield
Your ans Realised yield


Multiple option Multiple ans
ques. What are the features of bank deposits?
accurate ans Interest is presently around 6% , Benefits under part 80 L , Banks offer cheque facility for investors making it convenient to withdraw
Your ans Interest is presently around 6% , Banks offer cheque facility for investors making it convenient to withdraw


Multiple option Multiple ans
ques. What are the important macro economic indicators?
accurate ans GNP growth rate , Price Conditions , Monsoons
Your ans GNP growth rate , Price Conditions , Monsoons





Multiple option Single ans
ques. When an investor invests in stock, expects to get the dividends and an expected price for the period the stock is held is the rule of :-
accurate ans The General model
Multiple option Single ans
ques. Stock Exchanges are the part of :-
accurate ans Secondary market
Your ans Money Market


Multiple option Single ans
ques. The index futures symbols of BSE are represented as :-
accurate ans BSX JAN 2005 (January contract)


Multiple option Single ans
ques. More than half the variation in stock price could be attributed to which factor?
accurate ans Market influence


Multiple option Single ans
ques. In India we have index futures contracts based on :-
accurate ans S&P CNX Nifty and the BSE sensex


Multiple option Single ans
ques. In India, the futures on individual securities have been introduced from :-
accurate ans 2001


Multiple option Single ans
ques. What do you understand by the term redemption price?
accurate ans Price or NAV at which a scheme purchases its units


Multiple option Single ans
ques. A security analysis is done :-
accurate ans For decision making for investments


Multiple option Single ans
ques. As per the exhibit 18-1 for individual stock futures on NSE, the price steps in respect of all futures contract admitted to the dealings of the exchange shall be :-
accurate ans 0.05


Multiple option Single ans
ques. What is a tech. approach to investment?
accurate ans A reflection of the idea that prices move in patterns which are determined by different factors


Multiple option Single ans
ques. A pledge of real assets as insurance against the non-payment of default by the buyer represents
accurate ans Collateral


Multiple option Single ans
ques. Who developed Dow's Principles and organised them into a theory as it is known today?
accurate ans William Peter Hamilton
Your ans Charles.H.Dow
Multiple option Single ans
ques. We can compare the price earning ratio of a market to its historical avg. to make judgements about, whether market is :-
accurate ans Under valued or over valued
Your ans Under valued or over valued


Multiple option Single ans
ques. When a firm can grow net profits by issuing equity, the expected growth rate in net profits is determined by :-
accurate ans Equity reinvestment rate X return on equity
Your ans Price earning ratio X return on equity


Multiple option Single ans
ques. What is a load fund?
accurate ans Fund charging a fee for entry and exit
Your ans Fund charging a fee for entry and exit


Multiple option Single ans
ques. Investment is a risk free investment when :-
accurate ans Actual return is = expected return
Your ans Actual return is = expected return


Multiple option Single ans
ques. Debt instruments that have a maturity period of more than 1 year are called as :-
accurate ans Bonds
Your ans Bonds


Multiple option Single ans
ques. Mr. Sharma is expecting to receive Rs. 50,000/- at the end of five years. He wanted to know what is the current value of this amount, if the rate of interest is 6% p.a?
accurate ans Rs. 37363/-
Your ans Rs. 37363/-


Multiple option Single ans
ques. Which of these is a short-maturity debt issue?
accurate ans Money market funds and gilts
Your ans Money market funds and gilts


Multiple option Single ans
ques. What is Support level?
accurate ans A point where the prices become relatively attractive for buyers
Your ans Market resistance to a price fall


Multiple option Single ans
ques. During the 1980's rate of savings in India has hovered around what percentage?
accurate ans 0.21
Your ans 0.22


Multiple option Single ans
ques. A market that is trading at a Price earning ratio that is much higher than its historical norms is considered to be :-
accurate ans Over valued
Your ans Over valued


Multiple option Single ans
ques. The avg. historical growth rate can be computed as :-
accurate ans Arithmetic avg. or a geometric avg.
Your ans Geometric avg.


Multiple option Single ans
ques. 4 What are short term trends?
accurate ans Trends which interrupt the course of the intermediate cycle
Your ans They are counter-cyclical patterns within the confines of a primary pattern
Multiple option Single ans
ques. 8 When the firm is not raising equity by issuing new shares, the growth rate in net profits is provided by :-
accurate ans Retention ratio X return on equity
Your ans Price earning ratio X return on equity


Multiple option Single ans
ques. 9 The historical growth rate and the past earnings of a firm are used in valuing :-
accurate ans Stable firms, but not improper for high growth firms
Your ans Consistent stable firms, but not improper for high growth firms


Multiple option Single ans
ques. 10 Efficient market hypothesis is based on the assumption that market comprises of :-
accurate ans Rational Investors
Your ans Heterogeneous investors


Multiple option Single ans
ques. 11 Co variance of asset with market portfolio 85 and variance of market portfolio is 100 then beta is :-
accurate ans 0.0085
Your ans 0.0085



Multiple option Single ans
ques. 13 Mr. Tiwari is expecting to receive Rs.25,000/- at the end of 10 years. He wanted to know what is the current value of this amount, if the rate of interest is 10% p.a:-
accurate ans Rs. 9639/-
Your ans Rs. 9639/-


Multiple option Single ans
ques. 18 What does flow-of fund analysis help in understanding?
accurate ans Availability of money for the stock market
Your ans Financial strength of different companies


Multiple option Single ans
ques. 23 A security represent evidence of :-
accurate ans A property right
Your ans Safety


Multiple option Single ans
ques. 24 Mr.Saurabh invests Rs. 5,000/- today. The rate of interest is 4% compounded annually. What will be the value of his investment after five years?
accurate ans Rs. 6083/-
Your ans Rs. 6083/-


Multiple option Single ans
ques. 27 In India futures on individual securities have been introduced by :-
accurate ans BSE & NSE
Your ans BSE & NSE


Multiple option Single ans
ques. 43 The issuing firm enjoys the flexibility to call the bonds if the interest rates fall significantly and it can problem :-
accurate ans New bonds at a lower rates
Your ans New bonds at a lower rates


Multiple option Single ans
ques. 2 When was the 1st mutual fund set up?
accurate ans 1963
Your ans 1963


Multiple option Single ans
ques. 7 How can transition phases be projected?
accurate ans Transition phases are signalled by clearly definable price trends
Your ans By working out the resistance and support levels


Multiple option Single ans
ques. 8 If the price of a share at the beginning of the year was Rs.50/-, dividend received during the year was Rs.10/-per share and the price at the end is Rs.60/-. What is the rate of return?
accurate ans 0.4
Your ans 0.2
Multiple option Single ans
ques. 27 Investing in this avenue enable you participate in the equity market indirectly :-
accurate ans Mutual Funds
Your ans Mutual Funds


Multiple option Single ans
ques. 29 In any Economy, bridge is created ranging from savers and who need the funds by this system :-
accurate ans Financial
Your ans Economic


Multiple option Single ans
ques. 30 Agriculture account for how much portion of the economy?
accurate ans Quarter
Your ans Three fourths


Multiple option Single ans
ques. 37 Who operates the sinking fund under the sinking fund provision of a firm?
accurate ans The bond trustee or the issuer
Your ans The bond trustee or the issuer
Multiple option Single ans
ques. 40 How did Dow use the behaviour of stock markets?
accurate ans As a barometer of business conditions rather than a basis for forecasting stock prices
Your ans As a barometer of business conditions rather than a basis for forecasting stock prices


Multiple option Single ans
ques. 42 The growth period in the industry life cycle is described as :-
accurate ans Period of rapid market acceptance and substantial profit improvement
Your ans Period of rapid market acceptance and substantial profit improvement
Multiple option Single ans
ques. 3 What is the limitation of Flow-of funds analysis method?
accurate ans Cannot provide indication of the inclination of market participants to purchase stock
Your ans Cannot provide indication of the inclination of market participants to purchase stock


Multiple option Single ans
ques. 6 Sentiment indicators are based on what assumption
accurate ans Different groups of investors are consistent in their actions at major market turning points
Your ans Different groups of investors are consistent in their actions at major market turning points


Multiple option Single ans
ques. 12 An agreement to buy or sell a specified volume of an asset at a certain future date or a certain price is know as :-
accurate ans Forward contract
Your ans Futures contract


Multiple option Single ans
ques. 25 What are intermediate trends?
accurate ans They are counter-cyclical patterns within the confines of a primary pattern
Your ans They are counter-cyclical patterns within the confines of a primary pattern


Multiple option Single ans
ques. 29 What are index funds?
accurate ans Investment in securities in the identical weightage which replicates a particular index
Your ans Investment in securities in the identical weightage which replicates a particular index


Multiple option Single ans
ques. 38 What are the assumptions of the Dow theory?
accurate ans Majority of stocks follow the underlying pattern of the market most of the time
Your ans Majority of stocks follow the underlying pattern of the market most of the time


Multiple option Single ans
ques. 39 Mr.Rohan invests Rs.25,000/- today. The rate of interest is 6% compounded annually. What will be the value of his investment after three years?
accurate ans Rs. 29775/-
Your ans Rs. 29775/-


Multiple option Single ans
ques. 41 How many measures of money supply are used commonly?
accurate ans 2
Your ans 2


Multiple option Single ans
ques. 43 Under which simple model the value of the stock is the current value of expected dividends on it :-
accurate ans The Dividend discount model
Your ans The Dividend growth model


Multiple option Single ans
ques. 46 Avenues can be broadly classified into the which kind of assets?
accurate ans Financial and Real
Your ans Tangible and Intangible


Multiple option Single ans
ques. The avg. investor in the market is driven more by emotions than by rational analysis is a rule of :-
accurate ans Technical analysis
Your ans Fundamental Analysis


Multiple option Single ans
ques. What is the objective of an income fund?
accurate ans To give regular and steady income
Your ans To give guaranteed returns to investors


Multiple option Single ans
ques. What does lower level of unemployment indicates?
accurate ans Positive economic conditions
Your ans Economic slowdown


Multiple option Single ans
ques. The GDP growth rate in the economy in real terms has fluctuated ranging from :-
accurate ans 4% and 5%
Your ans 4% and 5%


Multiple option Single ans
ques. Mr.Satish invests Rs.10,000/- today. The rate of interest is 8% compounded annually. What will be the value of his investment after five years?
accurate ans Rs.14.693/-
Your ans Rs.14.693/-


Multiple option Single ans
ques. Which market is affected with the improving and higher growth rate in economy?
accurate ans Stock market
Your ans Stock market


Multiple option Single ans
ques. What do you understand by money supply?
accurate ans Total money in existence at any provided time
Your ans Total money in existence at any provided time


Multiple option Single ans
ques. What is Gross National Product ?
accurate ans Gross income generated from within the country
Your ans Gross income generated from within the country


Multiple option Single ans
ques. The greater the deviation of the true returns from the true return :-
accurate ans Greater the variance
Your ans Greater the variance


Multiple option Single ans
ques. What is GDP at factor cost ?
accurate ans Excludes net income received from abroad
Your ans Includes indirect taxes


Multiple option Single ans
ques. More than half the variation in stock price could be attributed to which factor?
accurate ans Market influence
Your ans Market influence
Multiple option Single ans
ques. Free Float index considers this to compute market capitalisation :-
accurate ans Actual no. of shares available
Your ans Actual no. of shares available


Multiple option Single ans
ques. The Top-down approach is also known as :-
accurate ans Economy-industry-company approach
Your ans Economy-industry-company approach


Multiple option Single ans
ques. What is a tech. approach to investment?
accurate ans A reflection of the idea that prices move in patterns which are determined by different factors
Your ans A reflection of the idea that prices move in patterns which are determined by different factors


Multiple option Single ans
ques. What are index funds?
accurate ans Investment in securities in the identical weightage which replicates a particular index
Your ans Investment in securities in the identical weightage which replicates a particular index


Multiple option Single ans
ques. What could be a better approach to flow-of -funds analysis?
accurate ans An exam of liquidity patterns in the banking system
Your ans A study of macro economical modifications


Multiple option Single ans
ques. The general dividend model is based on the principle of :-
accurate ans Present value of the expected future cash flow
Your ans Present value of the expected future cash flow



Multiple option Single ans
ques. What are short term trends?
accurate ans Trends which interrupt the course of the intermediate cycle
Your ans Trends which interrupt the course of the intermediate cycle

Multiple option Single ans
ques. What is the aim of growth funds?
accurate ans To give capital appreciation over medium to long term
Your ans To give capital appreciation over medium to long term

Multiple option Single ans
ques. This is not a stock exchange :-
accurate ans MCX
Your ans MCX
Multiple option Single ans
ques. Under EMH it is presumed that if markets are efficient, securities are priced to give a :-
accurate ans Normal returns for their provided level of risk
Your ans Normal returns for their provided level of risk


Multiple option Single ans
ques. Mr. Shekhar invests Rs.50,000/- in a scheme of LIC, the rate of interest is 8% compounded annually. What will be the value of his investment after five years?
accurate ans Rs. 73466/-
Your ans Rs. 73466/-


Multiple option Single ans
ques. The price of the index futures contract is described as :-
accurate ans Future price = Spot price + Carry cost
Your ans Future price = Spot price + Carry cost


Multiple option Single ans
ques. Financial assets can be classified as :-
accurate ans Marketable and non-marketable
Your ans Marketable and non-marketable






Multiple option Single ans
ques. Mr. Suresh is expecting to receive Rs.1,50,000/- at the end of three years. He wanted to know what is the current value of this amount, if the rate of interest is 9% p.a ?
accurate ans Rs.1,15,827/-
Your ans Rs.1,15,827/-


Multiple option Single ans
ques. What is Flow-of-funds analysis?
accurate ans Consists of an analysis of the financial positions of different investor groups
Your ans Consists of an analysis of the financial positions of different investor groups


Multiple option Single ans
ques. Mr. Suhas is expecting to receive Rs.1,00,000/- at the end of seven years. He wanted to know what is the current value of this amount, if the rate of interest is 7% p.a ?
accurate ans Rs. 62,275/-
Your ans Rs. 62,275/-


Multiple option Single ans
ques. What do you understand by term pioneering stage in the industry life cycle analysis?
accurate ans Slow sales growth product recently introduced
Your ans Slow sales growth product recently introduced


Multiple option Single ans
ques. Till 1990's secular Indian economy's inflation rate has been of what percentage?
accurate ans 0.07
Your ans 0.07

Multiple option Single ans
ques. Credit rating companies assign ratings for which of these investments?
accurate ans Company deposits
Your ans Company deposits


Multiple option Single ans
ques. If index future is taken under futures contract, the underlying asset would be :-
accurate ans Stock index
Your ans Stock index
Multiple option Single ans
ques. What is balance of payments?
accurate ans Credit and debit transactions of a country
Your ans Credit and debit transactions of a company


Multiple option Single ans
ques. Profits are non existent in pioneering stage because of :-
accurate ans Heavy expenses on product introduction
Your ans Heavy expenses on product introduction


Multiple option Single ans
ques. What is the indicator of buoyant economy?
accurate ans Increased level of housing construction activity
Your ans Increased level of housing construction activity
Multiple option Single ans
ques. What does a transitional phase indicate?
accurate ans It marks the turning point ranging from a rising and falling market
Your ans It marks the turning point ranging from a rising and falling market


Multiple option Single ans
ques. Dividend discount model is considered as the simplest model for :-
accurate ans Valuing Equity
Your ans Valuing Equity





Multiple option Single ans
ques. The current value of all the future cash payments to be paid on the security to the investor is termed as :-
accurate ans Intrinsic value of a security
Your ans Intrinsic value of a security


Multiple option Single ans
ques. If the price of a share at the beginning of the year was Rs.100/-, no dividend received during the year and the price at the end is Rs.115/-. What is the rate of return?
accurate ans 0.15
Your ans 0.15


Multiple option Single ans
ques. What is the objective of Portfolio management?
accurate ans To Minimize risk and maximize return
Your ans To Minimize risk and maximize return


Multiple option Single ans
ques. Capital expenditure -depreciation +change in working capital -(new debt issued - debt repaid) =
accurate ans Equity reinvested in business
Your ans Equity reinvested in business

Multiple option Single ans
ques. What is the percentage of variation the market and industry influence account for?
accurate ans 2/3rd
Your ans 75%



Multiple option Single ans
ques. What is the rate of interest on the tax free bonds problem by the government?
accurate ans 6.5%
Your ans 6.5%

Multiple option Single ans
ques. Investments could be made in retail government securities through :-
accurate ans Primary dealers
Your ans Primary dealers

ques. The growth rate is used to forecast future revenues and earnings and are inputs in valuing :-
accurate ans Stable firms
Your ans High growth firms


Multiple option Single ans
ques. The objective of fundamental analysis for a security in a market is to identify either it is :-
accurate ans Under priced and over priced
Your ans Under priced and over priced


Multiple option Single ans
ques. We can compare the price earning ratio of a market to its historical avg. to make judgements about, whether market is :-
accurate ans Under valued or over valued
Your ans Under valued or over valued


Multiple option Single ans
ques. The growth rate is used to forecast future revenues and earnings and are inputs in valuing :-
accurate ans Stable firms
Your ans High growth firms


Multiple option Single ans
ques. How can transition phases be projected?
accurate ans Transition phases are signalled by clearly definable price trends
Your ans Transition phases are signalled by clearly definable price trends


Multiple option Single ans
ques. When was the Dow theory 1st published?
accurate ans Between 1900 and 1902
Your ans Between 1900 and 1902


Multiple option Single ans
ques. When was the 1st mutual fund set up?
accurate ans 1963
Your ans 1963


Multiple option Single ans
ques. What is the art of tech. analysis?
accurate ans To identify pattern modifications at an early stage and maintain investment posture till the pattern has reversed
Your ans To identify pattern modifications at an early stage and maintain investment posture till the pattern has reversed


Multiple option Single ans
ques. The expected price of the stock at the end of the holding period is determined by future dividends and the value of the stock is the current value of dividends through infinity are the underlying assumptions of :-
accurate ans The General model
Your ans The Dividend discount model


Multiple option Single ans
ques. How would you rate a portfolio with 90% investment in stocks?
accurate ans Highly aggressive
Your ans Highly aggressive
Multiple option Single ans
ques. What are primary trends?
accurate ans Reflection of investor's attitudes towards unfolding fundamentals in the business cycle
Your ans Long term patterns


Multiple option Single ans
ques. In a forward contract there is :-
accurate ans No Exchange of cash
Your ans No Exchange of cash
Multiple option Single ans
ques. Under EMH it is presumed that if markets are efficient, securities are priced to give a :-
accurate ans Normal returns for their provided level of risk
Your ans Equal returns for their provided level of risk
Multiple option Single ans
ques. The approach followed to assess the growth rate by looking at how much a firm reinvests for future growth and the quality of its re-investments is :-
accurate ans Estimating growth from a firm's fundamentals
Your ans Earnings multiplier approach



choose The Blank
ques. The possibility of reduction of risk through the construction of a portfolio depends on the value of ________ ranging from the 2 assets.
accurate ans Correlation coefficient
Your ans Time


choose The Blank
ques. Dow Jones transportation avg. was previously known as ________.
accurate ans Rail avg.
Your ans Rail avg.


choose The Blank
ques. The compounded annual return of Kisan Vikas patra is ________.
accurate ans 0.084
Your ans 0.084


choose The Blank
ques. Under futures market ________ process provides for collection of losses that have already occurred.
accurate ans The daily settlement
Your ans The daily settlement


choose The Blank
ques. The regulations of SEBI with respect to mutual funds were fully revised in the year ________.
accurate ans 1996
Your ans 1996


choose The Blank
ques. The Dow theory states that there are simultaneously ________ movements in the stock market.
accurate ans 3
Your ans 3


choose The Blank
ques. Under the choices contract ________ provide the holder the right, but not the obligation to buy or sell the underlying instrument only on the expiry date.
accurate ans European choice
Your ans European choice


choose The Blank
ques. ________ ratio shows the margin available after meeting the manufacturing expenses.
accurate ans Gross Profit margin
Your ans Gross Profit margin


choose The Blank
ques. Secondary reactions occurs because of ________ which arise in the market as a outcome of over optimism and over pessimism.
accurate ans Technical distortions
Your ans Bearish patterns


choose The Blank
ques. Debentures rated as "A" are judged to offer ________ of timely payment of interest and principal.
accurate ans Adequate safety
Your ans Adequate safety


choose The Blank
ques. Debentures rated ________ are judged to offer sufficient safety of timely payment of interest and repayment of principal.
accurate ans "BBB"
Your ans "BBB"



choose The Blank
ques. The value of the stock in the ________ model is sensitive to the estimates of the growth rate.
accurate ans The Gordons dividend growth


choose The Blank
ques. ________ is due to the fact that a borrower may not pay interest and/or principal on time.
accurate ans Default risk




choose The Blank
ques. A trend which does not outcome in reversal of a pattern but reaffirmation of the underlying pattern is called ________.
accurate ans Consolidation trend


choose The Blank
ques. ________ bonds are generally called for prepayment after interest rates have fallen, investors will not be able to obtain comparable investment avenues.
accurate ans Call risk


choose The Blank
ques. ________ deal in futures to offset a pre-existing risk.
accurate ans Hedger


choose The Blank
ques. ________are good benchmark to compare the ratios for a firm.
accurate ans Industry averages


choose The Blank
ques. The ________ phase is characterized by resistance area and support level.
accurate ans Transition


choose The Blank
ques. ________ measures the efficiency of credit management.
accurate ans Average collection period







choose The Blank
ques. 16 ________ is affected by the leverage decisions of the firm.
accurate ans Return on equity
Your ans Return on equity


choose The Blank
ques. 20 ________ refers to the possibility that there may not be a readily available market for the particular bond.
accurate ans Liquidity risk
Your ans Interest rate risk


choose The Blank
ques. 21 The govt allowed public sector banks and institutions in mutual funds in ________.
accurate ans Early 90's
Your ans Early 90's


choose The Blank
ques. 36 The 8% taxable savings bonds are repayable after ________ years.
accurate ans 6
Your ans 5


choose The Blank
ques. 39 Security analysis serves the investment decision maker by identifying ________securities.
accurate ans Under priced
Your ans Blue chip


choose The Blank
ques. 42 ________ absorbs the excess demand or supply generated by hedgers and presume the risk of price fluctuations.
accurate ans Speculators
Your ans Brokers


choose The Blank
ques. 44 A ________ rally for stocks generally takes place because of an improved outlook for business conditions over what was anticipated.
accurate ans Bear market
Your ans Bullish market


choose The Blank
ques. 1 UTI was set up in the year ________.
accurate ans 1963
Your ans 1963


choose The Blank
ques. 6 An ________ is a series of equal payments or receipts occurring at regular intervals of time.
accurate ans Annuity
Your ans Annuity


choose The Blank
ques. 12 An choice is a contract which provide the buyer ________ to buy or sell shares of the underlying security at a specific price on or before a specific date.
accurate ans Right but not obligation
Your ans Right but not obligation


choose The Blank
ques. 13 Measures of ________ tells us what we can expect a typical or middle data point of a distribution to be.
accurate ans Central tendency
Your ans Central tendency


choose The Blank
ques. 28 ________ identified 5 forces that determine the intrinsic long run profit attractiveness of a market or market segment.
accurate ans Michael Porter
Your ans Michael Porter


choose The Blank
ques. 36 ________is a hybrid form of security which has characteristics of both equity and debentures
accurate ans Preference shares
Your ans Preference shares


choose The Blank
ques. 39 Debentures rated "BB" refers ________ of timely payment of interest and principal.
accurate ans Inadequate safety
Your ans Inadequate safety


choose The Blank
ques. 43 The Derivative market is divided into Future market and ________ market.
accurate ans Options
Your ans Options


choose The Blank
ques. 46 The Dow theory was published in a series of editorials in the ________.
accurate ans Wall street journal
Your ans Wall street journal


choose The Blank
ques. 1 ________ deal in futures to offset a pre-existing risk.
accurate ans Hedger
Your ans Speculator


choose The Blank
ques. 8 Under ________ EMH investors cannot earn abnormal/superior profits on securities on a consistent basis.
accurate ans Semi-strong form
Your ans Semi-strong form


choose The Blank
ques. 11 ________ take long or short positions only with the intention of making profits by getting out of the market when conditions favor them.
accurate ans Speculators
Your ans Hedgers


choose The Blank
ques. 14 ________ model is based on the principle that an initial phase where the growth rate is not stable and following steady growth rate and remains for the long-term.
accurate ans The Two-Stage dividend discount
Your ans The Gordons dividend growth


choose The Blank
ques. 17 ________ ratio is estimated by dividing the market value of a firm's assets by the replacement cost of these assets.
accurate ans Market value to replacement cost ratio
Your ans PEG ratio


choose The Blank
ques. 19 ________involves a simultaneous sale and repurchase agreement.
accurate ans Repos
Your ans Repos


choose The Blank
ques. 28 Current liabilities include all liabilities due in the next ________ and provisions.
accurate ans 12 months
Your ans 12 months


choose The Blank
ques. 30 S&P NSE 50 index is known as ________.
accurate ans NIFTY
Your ans NIFTY


choose The Blank
ques. 31 ________seeks to safeguard against potential losses on the outstanding position in futures market.
accurate ans Initial margin
Your ans Daily settlement


choose The Blank
ques. 35 ________ ratio is the ratio of net profit to the sales.
accurate ans Net Profit Margin
Your ans Net Profit Margin


choose The Blank
ques. Mutual fund is to be registered with ________ before raising funds from public.
accurate ans SEBI
Your ans SEBI


choose The Blank
ques. An investor with a higher tolerance of risk should tilt his portfolio in favour of ________.
accurate ans Stocks
Your ans Bank deposits


choose The Blank
ques. The ________ phase carries a lot of significance because it marks the turning point ranging from a rising and a falling market.
accurate ans Transitional
Your ans Sideways


choose The Blank
ques. Acid test ratio is more stringent measure of liquidity compared to the ________.
accurate ans Current ratio
Your ans Current ratio


choose The Blank
ques. ________ measures the efficiency of credit management.
accurate ans Average collection period
Your ans Average collection period


choose The Blank
ques. ________ measures the profitability of operations without considering the influence of financial structure and tax rate.
accurate ans Earnings power
Your ans Earnings power


choose The Blank
ques. A line is described as a price movement 2 or 3 weeks or longer, during which period the price variation of both averages moves within a price range of approximately________%.
accurate ans 5
Your ans 5


choose The Blank
ques. ________ measures the profitability of equity funds invested in the firms.
accurate ans Return on equity
Your ans Return on equity




choose The Blank
ques. Risk can be referred as the ________ in the return with respect to the expected return.
accurate ans Volatility
Your ans Difference


choose The Blank
ques. All trades in the futures market are cash settled on a ________ basis.
accurate ans T+1
Your ans T+1


choose The Blank
ques. ________ ratio is the ratio of net profit to the sales.
accurate ans Net Profit Margin
Your ans Net Profit Margin


choose The Blank
ques. When a debenture is sold to the general public a ________ is appointed.
accurate ans Trustee
Your ans Brokers


choose The Blank
ques. A security is stated to be ________ if its current market price is over its intrinsic value.
accurate ans Over priced
Your ans Over priced


choose The Blank
ques. ________ is the value at a certain future date today of a stream of cash flows that occurs over a period of time.
accurate ans Future value
Your ans Future value


choose The Blank
ques. Mutual fund is to be registered with ________ before raising funds from public.
accurate ans SEBI
Your ans SEBI


choose The Blank
ques. In a heads and shoulders formation the deeper the pattern, the greater is the ________ significance once it is completed
accurate ans Bearish
Your ans Bearish


choose The Blank
ques. The govt allowed public sector banks and institutions in mutual funds in ________.
accurate ans Early 90's
Your ans Early 90's


choose The Blank
ques. Under ________ EMH investors cannot earn abnormal/superior profits on securities on a consistent basis.
accurate ans Semi-strong form
Your ans Semi-strong form


choose The Blank
ques. The 6.________% tax saving bonds of government of India have a tenure of five years.
accurate ans 5
Your ans 5


choose The Blank
ques. ________ is the ratio of the market price per share to the earnings per share.
accurate ans Price earning ratio
Your ans Price earning ratio


choose The Blank
ques. ________ absorbs the excess demand or supply generated by hedgers and presume the risk of price fluctuations.
accurate ans Speculators
Your ans Speculators


choose The Blank
ques. UTI was set up in the year ________.
accurate ans 1963
Your ans 1963


True/False
ques. The normal relationship is for the quantity to expand on rallies and contract on declines.
accurate ans True


True/False
ques. In case of assured returns, A scheme cannot promise returns unless such returns are fully guaranteed by sponsor or AMC.
accurate ans True


True/False
ques. A firm uses a combination of equity and debt for financing its assets.
accurate ans True

True/False
ques. Policies of the government and the attitude of the government towards the industry have a considerable influence on the industry.
accurate ans True
True/False
ques. Investors in high tax bracket would benefit by investing in equity schemes.
accurate ans False
True/False
ques. The price earning ratio is an increasing function of the payout ratio and the growth rate and a decreasing function of the riskiness of the firm.
accurate ans True
True/False
ques. When we invest in only 1 asset we are not exposed to any specific or market risk.
accurate ans False
True/False
ques. Five paisa.com is an example of on line trading portal.
accurate ans True
True/False
ques. A mutual fund is needed to dispatch the dividend warrants to the unit holders within thirty days of the declaration of dividend.
accurate ans True
True/False
ques. Bearish actions come from a series of declining peaks and troughs.
accurate ans True
True/False
ques. Default is normally evaluated and indicated by the rating assigned to the debt instruments by independent credit ratings agencies.
accurate ans True
Your ans True


True/False
ques. With the use of diversification you can decrease the risk.
accurate ans True
Your ans True


True/False
ques. A segment is unattractive if the buyers possess strong or growing bargaining powers.
accurate ans True
Your ans True


True/False
ques. Risk on a portfolio of assets is always identical as the risk on individual asset.
accurate ans False
Your ans False


True/False
ques. Debt is less riskier source of finance than equity.
accurate ans False
Your ans True


True/False
ques. Post office monthly schemes have a 10 year tenor.
accurate ans False
Your ans False


True/False
ques. With the introduction of on-line trading by NSE and BSE, the role of regional stock exchanges have diminished.
accurate ans True
Your ans True

True/False
ques. Penetration of a pattern line denotes a bearish phase.
accurate ans False
Your ans True


True/False
ques. Passive investment managers believe that markets are inefficient and Active managers believe that markets are efficient.
accurate ans False
Your ans False


True/False
ques. 2 Currently in India index choices are both European and American in nature.
accurate ans False
Your ans False


True/False
ques. 3 The cost structure remaining the same, better price realisation outcomes in lower gross profit ratio.
accurate ans False
Your ans True


True/False
ques. 6 A segment is more attractive when there are true or potential substitutes for the product.
accurate ans False
Your ans True
True/False
ques. 15 Bond ratings by credit rating agencies give superior and low cost info to the investor serving as a basis for a proper risk-return trade off by investors.
accurate ans True
Your ans True


True/False
ques. 29 The arithmetic mean is a set of observations is computed by finding the sum values and dividing by the number of observations.
accurate ans True
Your ans True


True/False
ques. 30 Investment in gilt edged securities carry a higher element of risk.
accurate ans False
Your ans True


True/False
ques. 37 Following a decline, heavy quantity with little price change is indicative of accumulation and is normally a bearish factor.
accurate ans False
Your ans True


True/False
ques. 45 Speculators buy or sell futures contract in an attempt to earn a profit.
accurate ans True
Your ans True
True/False
ques. 11 Investment decisions can be viewed as an integrated process to which security analysis makes its unique contribution.
accurate ans True
Your ans True
True/False
ques. 17 Given the accounting standards across firm, price to book value ratios can be compared across similar firms for signs of under evaluation.
accurate ans True
Your ans True


True/False
ques. 18 Quick assets consist of current assets less inventories.
accurate ans True
Your ans True


True/False
ques. 22 If a rupee weakens against the dollars it has favourable impact for the exporters.
accurate ans True
Your ans True


True/False
ques. 23 A price rise accompanied by expanding quantity denotes a potential pattern reversal.
accurate ans False
Your ans True


True/False
ques. 35 There may be convertible clause which provide the debenture holder the choice to convert the debentures into equity shares.
accurate ans True
Your ans True
True/False
ques. 47 PPF is a good retirement planning and tax saving vehicle.
accurate ans True
Your ans True
True/False
ques. 2 Bonds and Debentures represent long term debt instruments.
accurate ans False
Your ans True


True/False
ques. 9 While calculating geometric mean computation of root is not important.
accurate ans False
Your ans False


True/False
ques. 13 Certificate of Deposits offers high rate of interest than Treasury Bills.
accurate ans True
Your ans True


True/False
ques. 21 Sensex is the index of Calcutta Stock Exchange.
accurate ans False
Your ans False


True/False
ques. 27 Fundamental analysis focuses on predicting the future price of a security and tech. analysis on estimating the intrinsic value of a security.
accurate ans False
Your ans True


True/False
ques. 32 If rupee weakens against the dollar, it has favourable impact for the importers.
accurate ans False
Your ans False


True/False
ques. 36 The risk associated to get the needed rate of return on the stock is measure by market beta.
accurate ans True
Your ans True


True/False
ques. 40 The basic inputs of the general model are expected dividends and needed rate of return on stock.
accurate ans True
Your ans True


True/False
ques. 42 European style choices are more expensive than American style because they offer greater flexibility to the buyer.
accurate ans False
Your ans True




True/False
ques. When you are making an investment you are expecting certain future benefits from your investment.
accurate ans True
Your ans True


True/False
ques. The returns of sector specific funds are solely dependant on the performance of the respective sectors / industries.
accurate ans True
Your ans True


True/False
ques. The labour conditions do not play an important role in the industry analysis.
accurate ans False
Your ans False

True/False
ques. A rise in interest rates will push the market prises of outstanding bonds where as a fall in interest rates will depress the market prices down.
accurate ans False
Your ans True


True/False
ques. Because of statutory compulsion, generally Govt. securities are held by banks, financial institutions, insurance companies etc.
accurate ans True
Your ans True



True/False
ques. The Asset management company of the mutual fund must have 50% independent directors.
accurate ans True
Your ans True


True/False
ques. In case of fixed income securities like debentures, you get the return in the form of dividend.
accurate ans False
Your ans False


True/False
ques. Investment in gilt edged securities carry a higher element of risk.
accurate ans False
Your ans False
True/False
ques. American choice provide the holder the right, but not the obligation to buy or sell the underlying instrument on or before the expiry date and the choice can be exercised early.
accurate ans True
Your ans True


True/False
ques. Prices of stocks usually move in patterns.
accurate ans True
Your ans True


True/False
ques. The sideways pattern is essentially a transitional 1 which separates the 2 major market movements.
accurate ans True
Your ans False


True/False
ques. With the use of diversification you can decrease the risk.
accurate ans True
Your ans True





True/False
ques. A higher value of current ratio shows a better short term solvency of the firm.
accurate ans actual
Your ans actual

True/False
ques. The basic assumption of tech. analysis is that, price discounts every thing and it is the result of all forces affecting a stock.
accurate ans actual
Your ans actual

True/False
ques. Fixed assets turnover ratio measures the efficiency of utilisation of total assets, fixed as well as current.
accurate ans actual
Your ans actual

True/False
ques. The price earning ratio can be estimated for the firms with negative earnings per share.
accurate ans False
Your ans True


True/False
ques. A share certificate shows that the investor owns a certain number of shares.
accurate ans True
Your ans True


True/False
ques. Balance of payments surplus augments foreign reserves of the country and have a favourable impact on he exchange rate.
accurate ans True
Your ans True


choose The Blank
ques. The ________ phase carries a lot of significance because it marks the turning point ranging from a rising and a falling market.
accurate ans Transitional
Your ans Transitional


True/False
ques. Bonds and Debentures represent long term debt instruments.
accurate ans False
Your ans True



True/False
ques. A price rise accompanied by expanding quantity denotes a potential pattern reversal.
accurate ans False
Your ans False
choose The Blank
ques. The ________ phase is characterized by resistance area and support level.
accurate ans Transition
Your ans Transition


True/False
ques. Currently in India index choices are both European and American in nature.
accurate ans False
Your ans False


choose The Blank
ques. Debentures rated as "A" are judged to offer ________ of timely payment of interest and principal.
accurate ans Adequate safety
Your ans High safety


True/False
ques. A rally that develops on contracting quantities is suspect and warns of a potential pattern reversal in price
accurate ans True
Your ans True



Match The subsequent
Question Correct Answer Your ans

Price pattern Resistance level Head and shoulders formation

Primary trend Last ranging from 1-2 years Last ranging from 1-2 years

Intermediate trend Last ranging from three weeks to as long as six months Last ranging from three weeks to as long as six months

Short term trend Last one to 3-4 weeks Last one to 3-4 weeks



Match The subsequent
Question Correct Answer Your ans

MCX Commodity Exchange Commodity Exchange

Sensex BSE Index BSE Index

Nifty NSE Index NSE Index

Lifex ET Index Gold Index



Match The subsequent
Question Correct Answer Your ans

Turnover ratios Help measure the efficiency of utilisation of assets Help measure the efficiency of utilisation of assets

Debt Equity ratio Debt / Equity Debt / Equity

Quick assets Highly liquid assets Highly liquid assets

avg. collection period Similar to debtors turnover Similar to debtors turnover



Match The subsequent
Question Correct Answer Your ans

Development of Dow's principles William Peter Hamilton Charles H.dow

Breadth Indicator Advance/decline line Moving avg.

Momentum indicator MACD MACD

pattern lines Useful tool in tech. analysis Useful tool in tech. analysis

Match The subsequent
ques. 26 Correct Answer Your ans

Under choices contract When you expect prices to fall, then, you take a long position by buying puts. When you expect prises to rise, then you take a short position by selling puts. Cost of Carry model Futures contract

A contract where both the parties are equally responsible Futures contract Options contract

The amount which the buyer of the choice has to pay to the choice author to induce him to accept the risk associated with the contract. Option price Transaction cost model

NSE&BSE are regulated by Securities Exchange Board of India Securities Exchange Board of India



Match The subsequent
ques. 24 Correct Answer Your ans

Equity shares High risk High risk

Government Securities No risk Low risk

Bank Deposits Low risk No risk

Mutual Funds Average risk Average risk



Match The subsequent
ques. 33 Correct Answer Your ans

Risk free investment Actual returns = expected returns Actual returns = expected returns

Risk Volatility in the return Volatility in the return

Variance Measure of dispersion Measure of dispersion

Returns Future benefits from investments Future benefits from investments



Match The subsequent
ques. 20 Correct Answer Your ans

H-Model For Valuing Growth Initial growth rate is not constant but linearly falls over time to reach the stable growth rate Initial growth rate is not constant but linearly falls over time to reach the stable growth rate

The general model Expected dividends and needed rate of return Expected dividends in the next period, cost of equity and expected growth rate in dividends

The Gordons Growth model Expected dividends in the next period, cost of equity and expected growth rate in dividends Assessment of the growth rate by looking at how much a firm reinvests for future growth and the quality of its reinvestment

The Two-Stage Dividend Discount Model Based on 2 extraordinary growth phase lasting n years and stable growth phase that lasts forever Based on 2 extraordinary growth phase lasting n years and stable growth phase that lasts forever



Match The subsequent
ques. 34 Correct Answer Your ans

Future value of a series of cash flows occurring at the end of every period. Future value of annuity Future value of annuity

Value today of a stream of cash flows that occurs in future. Present Value Future Value

Value at a certain future date today of a stream of cash flows that occurs over a period of time. Future Value Present Value

Series of equal payments or receipts occurring at regular intervals of time. Present value of annuity Present value of annuity



Match The subsequent
Question Correct Answer Your ans

Weak form model is also termed as Random walk model Random walk model

Investors are rational Efficient market hypothesis Efficient market hypothesis

Securities current prices fully reflect all historical information Weak form EMH Fama

Framework on efficient capital markets, a review of theory and empirical work Fama Strong form



Match The subsequent
Question Correct Answer Your ans

tech. collaboration of Bharat Forge with SIFCO industries USA 1981 1981

Bharat Forge was incorporated at Mumbai 1961 1961

Shares of 100 every subdivided of Bharat forge 1971 1971

930000 bonus shares issued by Bharat Forge 1976 1976



Match The subsequent
Question Correct Answer Your ans

The yield to maturity is identical as the Geometric mean return or the internal rate of return Geometric mean return or the internal rate of return

Periodic interest payments and principal repayment at the time of maturity Debt instrument/Bonds Debt instrument/Bonds

The true yield earned by an investor on a bond Realised yield Realised yield

current value interest factor of annuities and current value interest factor Yield to maturity Yield to maturity







1. Treasury Bills
1. Foreign Institutional Investors

2. Commercial Papers 3
2. Government of India

3. Certificate of Deposits
3. Corporates

4. Bonds five 4. Banks and Financial Institutions

5. Central/State Govts/PSU's

6. Post Office


1. ROE three 1. Measure the profitability of operations without considering the influence of financial structure and tax rate

2. Earnings power one 2. Ratio if net profit to sales

3. Net profit margin two 3. Measure the profitability of equity funds

4. Gross profit margin six 4. evaluation ratio

5. Measures the profitability of debt funds

6. shows the margin available after meeting the manufacturing expenses


1. SEBI five 1. Nifty

2. NAV two 2. Net asset value

3. AMFI six 3. Net avg. value

4. NSE
4. Association of merchant financers of India

5. Redressal of investor complaints

6. Association of mutual funds of India


Match The subsequent
Question Correct Answer Your ans

Growth of income 40-60 % debt, 40-60 % equities 40-60 % debt, 40-60 % equities

Current income Short term debt portfolio Fixed - income portfolio

Stability of principal Fixed - income portfolio Short term debt portfolio

Appreciation 75-100 % in equities 75-100 % in equities


Match The subsequent
Question Correct Answer Your ans

Ratio used as a measure of relative value PEG ratio Price to book value ratio

The market value of the firms assets divided by the replacement cost of these assets Market value to replacement cost ratio Market value to replacement cost ratio

Key determiner of revenue multiples Profit margin Profit margin

The market value of the equity in a firm reflects the markets expectations of the firms earnings power and cash flows. Price to book value ratio Price earning ratio


Match The subsequent
Question Correct Answer Your ans

Expiration period for options Nine months Nine months

The world's 1st largest choices exchange Chicago Board of choices exchange New York board of choices exchange

The most popular pricing choices model published in the year 1973 Black Scholes Black Scholes

When the author provide the buyer of the choice the right to sell the underlying asset on or before the expiry date Put option Put choice

Earning:   Approval pending.