True

False

a)

b)

c)

d)

4% and 5%

3% and 4%

6% and 7%

5% and 6%

True

False

a)

b)

c)

d)

1000

10000

50000

100000

a)

b)

c)

d)

In high growth rate phase

Expecting to maintain the growth rate phase steadily for a specific time period

Expecting a established dividend payout ratio

Sources of high growth are expected to disappear after specific period of time

6.	A segment is more attractive when there are actual or potential substitutes for the product.
12.	The GDP growth rate in the economy in real terms has fluctuated between :-
14.	The sideways trend is essentially a transitional one which separates the two major market movements.
17.	What is the minimum investment amount in G-secs?
30.	The Two-Stage dividend discount model is best suited for the firms that are :-

a)

b)

c)

d)

Change method of rate of depreciation

Change method of stock valuation

Inflating sales for current year by advancing sales for the following year

Changing the management of the company frequently

How can the financial statements can be manipulated while giving the estimates for growth?

Marks : 2 

a)

b)

c)

d)

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

Working out the high and low price fluctuations

45.	What are the ways of measuring relative strength?

a)

b)

c)

d)

Fundamental Analysis

Intrinsic value analysis

Economic Analysis

Technical analysis

46.	The average investor in the market is driven more by emotions than by rational analysis is a rule of :-

a)

b)

c)

d)

Higher levels of unemployment

Unstable economy

Higher levels of taxation

Low levels of interest rates

a)

b)

c)

d)

Since every investor has a different set of circumstances, needs and opportunities

Since it depends on their investment strategies

Every investor has different risk bearing capacities

Every investor has different perception of the markets

49.	What levels if increased will have unfavourable impact on the stock market?
55.	Why does every investor have different investment objectives?

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 True/False

  Question  

In case of assured returns, A scheme cannot promise returns unless such returns are fully guaranteed by sponsor or AMC.

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Multiple Answer

  Question  

What are the features of short-term trends?

  Correct Answer  

They last from 1 to 3 or 4 weeks , They interrupt the course of the intermediate cycle , They are usually influenced by random news events

  Your Answer  

They last from 1 to 3 or 4 weeks , They interrupt the course of the intermediate cycle , They are usually influenced by random news events

 

 Multiple Choice Single Answer

  Question  

Who operates the sinking fund under the sinking fund provision of a firm?

  Correct Answer  

The bond trustee or the issuer

  Your Answer  

The bond trustee or the issuer

 

 True/False

  Question  

Certificate of Deposits offers high rate of interest than Treasury Bills.

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Multiple Answer

  Question  

What developments had taken place during the year 2000 in case of Bharat Forge Ltd.?

  Correct Answer  

Demerger of investment division and windmills , Nominee director of UTI resigned and ceased to be the director - nomination withdrawn by UTI

  Your Answer  

Demerger of investment division and windmills , Nominee director of UTI resigned and ceased to be the director - nomination withdrawn by UTI

 

 True/False

  Question  

While calculating geometric mean calculation of root is not important.

  Correct Answer  

False

  Your Answer  

False

 

 Multiple Choice Single Answer

  Question  

The objective of fundamental analysis for a security in a market is to identify either it is :-

  Correct Answer  

Under priced and over priced

  Your Answer  

Under priced and over priced

 

 True/False

  Question  

A higher value of current ratio indicates a better short term solvency of the firm.

  Correct Answer  

True

  Your Answer  

True

 

 True/False

  Question  

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.

  Correct Answer  

False

  Your Answer  

False

 

 Select The Blank

  Question  

The ________ phase carries a lot of significance because it marks the turning point between a rising and a falling market.

  Correct Answer  

Transitional

  Your Answer  

Transitional

 

 Match The Following

Question

Correct Answer

Your Answer

Equity shares

High risk

High risk

Government Securities

No risk

No risk

Bank Deposits

Low risk

Low risk

Mutual Funds

Average risk

Average risk

 

 Select The Blank

  Question  

Secondary reactions occurs because of ________ which arise in the market as a result of over optimism and over pessimism.

  Correct Answer  

Technical distortions

  Your Answer  

Technical distortions

 

 True/False

  Question  

Bearish actions come from a series of declining peaks and troughs.

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Single Answer

  Question  

What is an open ended fund or scheme?

  Correct Answer  

Which is available for subscription and repurchase on a continuous basis

  Your Answer  

Which is available only for subscription on a continuous basis

 

 Match The Following

Question

Correct Answer

Your Answer

Turnover ratios

Help measure the efficiency of utilisation of assets

How fast the inventory is being converted

Debt Equity ratio

Debt / Equity

Debt / Equity

Quick assets

Highly liquid assets

Highly liquid assets

Average collection period

Similar to debtors turnover

Similar to debtors turnover

 

 Multiple Choice Single Answer

  Question  

The present value of all the future cash payments to be paid on the security to the investor is termed as :-

  Correct Answer  

Intrinsic value of a security

  Your Answer  

Intrinsic value of a security

 

 Select The Blank

  Question  

Dow Jones transportation average was previously known as ________.

  Correct Answer  

Rail average

  Your Answer  

Rail average

 

 True/False

  Question  

The basic assumption of Technical analysis is that, price discounts everything and it is the outcome of all forces affecting a stock.

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Multiple Answer

  Question  

The commonly used charts to measure the movements in price under the technical analysis are :-

  Correct Answer  

Line Charts , Bar Charts , Point and Figure Charts

  Your Answer  

Line Charts , Bar Charts , Point and Figure Charts

 

 Multiple Choice Multiple Answer

  Question  

What are the important macro economic indicators?

  Correct Answer  

GNP growth rate , Price Conditions , Monsoons

  Your Answer  

GNP growth rate , Price Conditions , Monsoons

 

 Select The Blank

  Question  

A security is said to be ________ if its current market price is over its intrinsic value.

  Correct Answer  

Over priced

  Your Answer  

Over priced

 

 Multiple Choice Single Answer

  Question  

What do you understand by the term redemption price?

  Correct Answer  

Price or NAV at which a scheme purchases its units

  Your Answer  

Price or NAV at which a scheme purchases its units

 

 Select The Blank

  Question  

________ is due to the fact that a borrower may not pay interest and/or principal on time.

  Correct Answer  

Default risk

  Your Answer  

Default risk

 

 Multiple Choice Multiple Answer

  Question  

What are the features of Kisan Vikas Patra?

  Correct Answer  

Term is for 8 years seven months , Provision of premature withdrawal , Interest rate is 8.4% compounded annually

  Your Answer  

Term is for 8 years seven months , Provision of premature withdrawal , Tax benefits under 80 L available

 

 Multiple Choice Single Answer

  Question  

What could be a better approach to flow-of -funds analysis?

  Correct Answer  

An examination of liquidity trends in the banking system

  Your Answer  

An examination of liquidity trends in the banking system

 

 True/False

  Question  

Fundamental analysis focuses on predicting the future price of a security and Technical analysis on estimating the intrinsic value of a security.

  Correct Answer  

False

  Your Answer  

False

 

 Multiple Choice Single Answer

  Question  

What is a technical approach to investment?

  Correct Answer  

A reflection of the idea that prices move in trends which are determined by various factors

  Your Answer  

A reflection of the idea that prices move in trends which are determined by various factors

 

 Select The Blank

  Question  

The 8% taxable savings bonds are repayable after ________ years.

  Correct Answer  

6

  Your Answer  

6

 

 Select The Blank

  Question  

Acid test ratio is more stringent measure of liquidity compared to the ________.

  Correct Answer  

Current ratio

  Your Answer  

Current ratio

 

 Select The Blank

  Question  

An ________ is a series of equal payments or receipts occurring at regular intervals of time.

  Correct Answer  

Annuity

  Your Answer  

Annuity

 

 Select The Blank

  Question  

When a debenture is sold to the general public a ________ is appointed.

  Correct Answer  

Trustee

  Your Answer  

Trustee

 

 True/False

  Question  

The basic inputs of the general model are expected dividends and required rate of return on stock.

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Multiple Answer

  Question  

Gilt Edged Securities are :-

  Correct Answer  

Central Govt , State Govt. , Quasi-Govt

  Your Answer  

Central Govt , State Govt. , Quasi-Govt

 

 Multiple Choice Single Answer

  Question  

Dividend discount model is considered as the simplest model for :-

  Correct Answer  

Valuing Equity

  Your Answer  

Valuing Equity

 

 True/False

  Question  

The arithmetic mean is a set of observations is calculated by finding the sum values and dividing by the number of observations.

  Correct Answer  

True

  Your Answer  

True

 

 Select The Blank

  Question  

Mutual fund is to be registered with ________ before raising funds from public.

  Correct Answer  

SEBI

  Your Answer  

SEBI

 

 Multiple Choice Multiple Answer

  Question  

Formula for calculation of portfolio variance requires :-

  Correct Answer  

Expected return on portfolio , Expected return on assets , Weight of asset in the portfolio

  Your Answer  

Expected return on portfolio , Expected return on assets , Weight of asset in the portfolio

 

 Multiple Choice Single Answer

  Question  

What is the minimum investment amount in G-secs?

  Correct Answer  

1000

  Your Answer  

1000

 

 Multiple Choice Multiple Answer

  Question  

Which are the different styles of displaying charts?

  Correct Answer  

Bar and line charts , Candle stick charts , Point and figure charts

  Your Answer  

Bar and line charts , Candle stick charts , Point and figure charts

 

 Multiple Choice Multiple Answer

  Question  

Characteristics of Preference shares are :-

  Correct Answer  

Carry a fixed rate of dividend , Dividend payable out of profit , Redemption in 7 to 12 years

  Your Answer  

Carry a fixed rate of dividend , Dividend payable out of profit , Redemption in 7 to 12 years

 

 Select The Blank

  Question  

The ________ phase is characterized by resistance area and support level.

  Correct Answer  

Transition

  Your Answer  

Transition

 

 Select The Blank

  Question  

In a heads and shoulders formation the deeper the pattern, the greater is the ________ significance once it is completed

  Correct Answer  

Bearish

  Your Answer  

Bearish

 

 Multiple Choice Multiple Answer

  Question  

Explain what are leverage ratios ?

  Correct Answer  

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

  Your Answer  

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

 

 True/False

  Question  

Passive investment managers believe that markets are inefficient and Active managers believe that markets are efficient.

  Correct Answer  

False

  Your Answer  

False

 

 Select The Blank

  Question  

S&P NSE 50 index is known as ________.

  Correct Answer  

NIFTY

  Your Answer  

NIFTY

 

 Multiple Choice Single Answer

  Question  

Which of the following is a money market fund?

  Correct Answer  

Commercial paper

  Your Answer  

Commercial paper

 

 Multiple Choice Single Answer

  Question  

Capital expenditure -depreciation +change in working capital -(new debt issued - debt repaid) =

  Correct Answer  

Equity reinvested in business

  Your Answer  

Equity reinvested in business

	LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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