Security Analysis & Portfolio Management 3


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 True/False

  Question  

Following a decline, heavy volume with little price change is indicative of accumulation and is normally a bearish factor.

  Correct Answer  

False

  Your Answer  

False

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 Select The Blank

  Question  

________are good benchmark to compare the ratios for a firm.

  Correct Answer  

Industry averages

  Your Answer  

Industry averages

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 Multiple Choice Single Answer

  Question  

A market that is trading at a Price earning ratio that is much higher than its historical norms is considered to be :-

  Correct Answer  

Over valued

  Your Answer  

Over valued

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 Multiple Choice Single Answer

  Question  

What are short term trends?

  Correct Answer  

Trends which interrupt the course of the intermediate cycle

  Your Answer  

Trends which interrupt the course of the intermediate cycle

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 Select The Blank

  Question  

UTI was set up in the year ________.

  Correct Answer  

1963

  Your Answer  

1963

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 True/False

  Question  

European style options are more expensive than American style because they offer greater flexibility to the buyer.

  Correct Answer  

False

  Your Answer  

False

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 Multiple Choice Single Answer

  Question  

More than half the variation in stock price could be attributed to which factor?

  Correct Answer  

Market influence

  Your Answer  

Market influence

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 Select The Blank

  Question  

A ________ rally for stocks generally takes place because of an improved outlook for business conditions over what was anticipated.

  Correct Answer  

Bear market

  Your Answer  

Bear market

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 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 , Interest rate is 8.4% compounded annually

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 Multiple Choice Single Answer

  Question  

What is Gross National Product ?

  Correct Answer  

Gross income generated from within the country

  Your Answer  

Gross income generated from within the country

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 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

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 Multiple Choice Single Answer

  Question  

What levels if increased will have unfavourable impact on the stock market?

  Correct Answer  

Higher levels of taxation

  Your Answer  

Low levels of interest rates

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 Multiple Choice Multiple Answer

  Question  

The Two-Stage dividend discount model is based on the assumption of :-

  Correct Answer  

An initial phase where the growth is not a stable growth rate , A subsequent steady state of growth rate being stable and lasts n years , A stable growth phase lasts forever

  Your Answer  

An initial phase where the growth is not a stable growth rate , A subsequent steady state of growth rate being stable and lasts n years , A stable growth phase lasts forever

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 Select The Blank

  Question  

________ refers to the possibility that there may not be a readily available market for the particular bond.

  Correct Answer  

Liquidity risk

  Your Answer  

Liquidity risk

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 Select The Blank

  Question  

The Derivative market is divided into Future market and ________ market.

  Correct Answer  

Options

  Your Answer  

Present

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 Multiple Choice Multiple Answer

  Question  

The features of bond are :-

  Correct Answer  

Collateral , Call provision , Sinking fund and protective covenants

  Your Answer  

Collateral , Call provision , Sinking fund and protective covenants

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 Multiple Choice Single Answer

  Question  

In India futures on individual securities have been introduced by :-

  Correct Answer  

BSE & NSE

  Your Answer  

BSE & NSE

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 Multiple Choice Single Answer

  Question  

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 present value of dividends through infinity are the underlying assumptions of :-

  Correct Answer  

The General model

  Your Answer  

The Dividend Capitalisation model

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 True/False

  Question  

Sensex is the index of Calcutta Stock Exchange.

  Correct Answer  

False

  Your Answer  

False

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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

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 Multiple Choice Single Answer

  Question  

What is GDP at factor cost ?

  Correct Answer  

Excludes net income received from abroad

  Your Answer  

Excludes net income received from abroad

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 True/False

  Question  

Quick assets consist of current assets less inventories.

  Correct Answer  

True

  Your Answer  

True

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 Multiple Choice Multiple Answer

  Question  

The Gordon growth model is best suited for firms :-

  Correct Answer  

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 Answer  

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

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 Select The Blank

  Question  

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

  Correct Answer  

SEBI

  Your Answer  

SEBI

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 Multiple Choice Single Answer

  Question  

What does lower level of unemployment indicates?

  Correct Answer  

Positive economic conditions

  Your Answer  

Positive economic conditions

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 Multiple Choice Single Answer

  Question  

The GDP growth rate in the economy in real terms has fluctuated between :-

  Correct Answer  

4% and 5%

  Your Answer  

4% and 5%

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 Select The Blank

  Question  

An investor with a higher tolerance of risk should tilt his portfolio in favour of ________.

  Correct Answer  

Stocks

  Your Answer  

Stocks

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 Multiple Choice Single Answer

  Question  

Avenues can be broadly classified into the which type of assets?

  Correct Answer  

Financial and Real

  Your Answer  

Financial and Real

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 Multiple Choice Multiple Answer

  Question  

Mutual fund schemes could be broadly classified as :-

  Correct Answer  

Open ended scheme , Close ended scheme

  Your Answer  

Open ended scheme , Close ended scheme

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 Match The Following

Question

Correct Answer

Your Answer

Development of Dow's principles

William Peter Hamilton

William Peter Hamilton

Breadth Indicator

Advance/decline line

Advance/decline line

Momentum indicator

MACD

MACD

Trend lines

Useful tool in technical analysis

Useful tool in technical analysis

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 Multiple Choice Single Answer

  Question  

The bond issuing firm enjoys the flexibility of being able to call the bonds if :-

  Correct Answer  

Interest rates are falling

  Your Answer  

Interest rates are falling

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 Multiple Choice Single Answer

  Question  

The issuing firm enjoys the flexibility to call the bonds if the interest rates fall significantly and it can issue :-

  Correct Answer  

New bonds at a lower rates

  Your Answer  

New bonds at a lower rates

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 True/False

  Question  

If a rupee weakens against the dollars it has favourable impact for the exporters.

  Correct Answer  

True

  Your Answer  

True

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 Multiple Choice Single Answer

  Question  

What is the percentage of variation the market and industry influence account for?

  Correct Answer  

2/3rd

  Your Answer  

2/3rd

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 Multiple Choice Multiple Answer

  Question  

Which of the following are important momentum indicators used widely?

  Correct Answer  

Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD)

  Your Answer  

Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD)

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 Match The Following

Question

Correct Answer

Your Answer

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

Average collection period

Similar to debtors turnover

Similar to debtors turnover

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 Multiple Choice Multiple Answer

  Question  

What are the features of candle stick charts?

  Correct Answer  

Indicates in black if the closing price is lower than the opening price , Indicates in white if the closing price is higher than the opening price

  Your Answer  

Indicates in black if the closing price is lower than the opening price , Indicates in white if the closing price is higher than the opening price

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 True/False

  Question  

Policies of the government and the attitude of the government towards the industry have a considerable influence on the industry.

  Correct Answer  

True

  Your Answer  

True

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 Multiple Choice Single Answer

  Question  

What do you understand by money supply?

  Correct Answer  

Total money in existence at any given time

  Your Answer  

Total money in existence at any given time

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 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

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 Multiple Choice Single Answer

  Question  

What is net national product also known as?

  Correct Answer  

National income

  Your Answer  

National income

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 Select The Blank

  Question  

Risk can be referred as the ________ in the return with respect to the expected return.

  Correct Answer  

Volatility

  Your Answer  

Volatility

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 True/False

  Question  

Currently in India index options are both European and American in nature.

  Correct Answer  

False

  Your Answer  

False

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 Multiple Choice Single Answer

  Question  

What is balance of payments?

  Correct Answer  

Credit and debit transactions of a country

  Your Answer  

Credit and debit transactions of a country

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 Select The Blank

  Question  

Under ________ EMH investors cannot earn abnormal/superior profits on securities on a consistent basis.

  Correct Answer  

Semi-strong form

  Your Answer  

Semi-strong form

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 True/False

  Question  

The returns of sector specific funds are solely dependant on the performance of the respective sectors / industries.

  Correct Answer  

True

  Your Answer  

True

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 Multiple Choice Multiple Answer

  Question  

The security market is the market for :-

  Correct Answer  

Equity , Debt , Derivatives

  Your Answer  

Equity , Debt , Derivatives

 

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