LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The Blank

Question Measures of ________ tells us what we can expect a typical or middle data point of a distribution to be.

Correct Answer Central tendency

Your Answer Variance

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

Multiple Choice Multiple Answer

Question What were the objectives for 2002-03 the chairman of Bharat forge had emphasised on in the annual report for 2001 - 02

Correct Answer Maintain aggressive exports thrust , Increase shares of value added products , Continue reducing costs

Your Answer Maintain aggressive exports thrust , Increase shares of value added products , Continue reducing costs

Multiple Choice Single Answer

Question What do you understand by term pioneering stage in the industry life cycle analysis?

Correct Answer Slow sales growth product recently introduced

Your Answer Highest sales

Multiple Choice Single Answer

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

Correct Answer BSE & NSE

Your Answer NSE

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

Select The Blank

Question The compounded annual return of Kisan Vikas patra is ________.

Correct Answer 0.084

Your Answer 0.084

Select The Blank

Question ________ measures the profitability of operations without considering the influence of financial structure and tax rate.

Correct Answer Earnings power

Your Answer Net profit margin

Select The Blank

Question The 6.________% tax saving bonds of government of India have a tenure of 5 years.

Correct Answer 5

Your Answer 5

Select The Blank

Question The govt allowed public sector banks and institutions in mutual funds in ________.

Correct Answer Early 90's

Your Answer Early 90's

Multiple Choice Multiple Answer

Question Which ratios are commonly used?

Correct Answer Interest coverage ratios , Debt service coverage ratios , Debt equity ratio

Your Answer Debt equity ratio , Interest coverage ratios , Debt service coverage ratios

Multiple Choice Single Answer

Question Mr.Saurabh invests Rs. 5,000/- today. The rate of interest is 4% compounded annually. What will be the value of his investment after 5 years?

Correct Answer Rs. 6083/-

Your Answer Rs. 6083/-

Select The Blank

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

Correct Answer Transition

Your Answer Horizontal

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 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

True/False

Question Investment decisions can be viewed as an integrated process to which security analysis makes its unique contribution.

Correct Answer True

Your Answer True

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 Fundamental distortions

True/False

Question Five paisa.com is an example of on line trading portal.

Correct Answer True

Your Answer True

Multiple Choice Single Answer

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

Correct Answer 2/3rd

Your Answer 75%

Match The Following

Question Correct Answer Your Answer

Price pattern Resistance level Secondary reaction

Primary trend Last between 1-2 years Last between 1-2 years

Intermediate trend Last between 3 weeks to as long as 6 months Last between 3 weeks to as long as 6 months

Short term trend Last 1 to 3-4 weeks Last 1 to 3-4 weeks

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

True/False

Question With the use of diversification you can reduce the risk.

Correct Answer True

Your Answer True

True/False

Question Post office monthly schemes have a 10 year tenor.

Correct Answer False

Your Answer False

Multiple Choice Single Answer

Question Till 1990's secular Indian economy's inflation rate has been of what percentage?

Correct Answer 0.07

Your Answer 0.07

Multiple Choice Single Answer

Question Mr.Rohan invests Rs.25,000/- today. The rate of interest is 6% compounded annually. What will be the value of his investment after 3 years?

Correct Answer Rs. 29775/-

Your Answer Rs. 29775/-

Multiple Choice Multiple Answer

Question The firm issuing bonds operating sinking fund and repurchases bonds either :-

Correct Answer Calling in a certain number of bonds by lot , Buying bonds in the open market , Buying bonds issued to banks and financial institutions

Your Answer Calling in a certain number of bonds by lot , Buying bonds in the open market

True/False

Question A mutual fund is required to dispatch the dividend warrants to the unit holders within thirty days of the declaration of dividend.

Correct Answer True

Your Answer True

True/False

Question Fixed assets turnover ratio measures the efficiency of utilisation of total assets, fixed as well as current.

Correct Answer True

Your Answer True

Select The Blank

Question A pattern which does not result in reversal of a trend but reaffirmation of the underlying trend is called ________.

Correct Answer Consolidation pattern

Your Answer Distribution pattern

True/False

Question The risk associated to get the required rate of return on the stock is measure by market beta.

Correct Answer True

Your Answer False

Select The Blank

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

Correct Answer Current ratio

Your Answer Current ratio

Multiple Choice Multiple Answer

Question What are the SEBI regulations with respect to mutual funds?

Correct Answer 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 Answer 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

True/False

Question Default is normally evaluated and indicated by the rating assigned to the debt instruments by independent credit ratings agencies.

Correct Answer True

Your Answer True

True/False

Question In case of fixed income securities like debentures, you get the return in the form of dividend.

Correct Answer False

Your Answer False

Multiple Choice Single Answer

Question What are the assumptions of the Dow theory?

Correct Answer Majority of stocks follow the underlying trend of the market most of the time

Your Answer Majority of stocks follow the underlying trend of the market most of the time

Multiple Choice Multiple Answer

Question The Peer group of Bharat Forge consists of which all companies?

Correct Answer Am forge industries , Kalyani Forge , EL Forge

Your Answer Am forge industries , Kalyani Forge , EL Forge

Multiple Choice Single Answer

Question We can compare the price earning ratio of a market to its historical average to make judgements about, whether market is :-

Correct Answer Under valued or over valued

Your Answer Under valued or over valued

Multiple Choice Single Answer

Question What is the rate of interest on the tax free bonds issue by the government?

Correct Answer 6.5%

Your Answer 6.5%

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 , Displays the correlation between the high and low prices

Multiple Choice Multiple Answer

Question What are the features of public provident scheme?

Correct Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is available from 7th year

Your Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is available from 7th year

Multiple Choice Single Answer

Question Investments could be made in retail government securities through :-

Correct Answer Primary dealers

Your Answer Primary dealers

Multiple Choice Multiple Answer

Question What were the Chairman's comments during the speech in the Annual report of the FY 2002-03?

Correct Answer Best year in the history of the company , 146% growth in exports , Highest pre and post tax profits

Your Answer Best year in the history of the company , 146% growth in exports , Highest pre and post tax profits

Multiple Choice Multiple Answer

Question An options contract allows the investor :-

Correct Answer To earn a profit while restricting the downside risk , To use the options for speculation , Either to honour or walk away from the contract

Your Answer To earn a profit while restricting the downside risk , To use the options for speculation , Either to honour or walk away from the contract

Multiple Choice Single Answer

Question Mr.Satish invests Rs.10,000/- today. The rate of interest is 8% compounded annually. What will be the value of his investment after 5 years?

Correct Answer Rs.14.693/-

Your Answer Rs.14.693/-

Multiple Choice Multiple Answer

Question What were the achievements of Bharat Forge during the year 2003?

Correct Answer Secured second largest customer in China , Appointed a Company Secretary to act as compliance officer , New contracts won in passenger car components

Your Answer Secured second largest customer in China , Appointed a Company Secretary to act as compliance officer , New contracts won in passenger car components

Match The Following

Question Correct Answer Your Answer

Weak form model is also termed as Random walk model Efficient market hypothesis

Investors are rational Efficient market hypothesis Random walk model

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

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

True/False

Question Quick assets consist of current assets less inventories.

Correct Answer True

Your Answer True

Top of Form

 

 Select The Blank

  Question  

________ measures the profitability of operations without considering the influence of financial structure and tax rate.

  Correct Answer  

Earnings power

  Your Answer  

Earnings power

 

 True/False

  Question  

While calculating geometric mean calculation of root is not important.

  Correct Answer  

False

  Your Answer  

False

 

 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  

Analyzing the Fiscal issues

 

 True/False

  Question  

The Asset management company of the mutual fund must have 50% independent directors.

  Correct Answer  

True

  Your Answer  

True

 

 True/False

  Question  

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

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Single Answer

  Question  

Investment is a risk free investment when :-

  Correct Answer  

Actual return is = expected return

  Your Answer  

Actual return is = expected return

 

 Select The Blank

  Question  

The govt allowed public sector banks and institutions in mutual funds in ________.

  Correct Answer  

Early 90's

  Your Answer  

Early 90's

 

 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

 

 Multiple Choice Single Answer

  Question  

The price of the index futures contract is defined as :-

  Correct Answer  

Future price = Spot price + Carry cost

  Your Answer  

Future price = Spot price + Carry cost

 

 Multiple Choice Multiple Answer

  Question  

An options contract allows the investor :-

  Correct Answer  

To earn a profit while restricting the downside risk , To use the options for speculation , Either to honour or walk away from the contract

  Your Answer  

To earn a profit while restricting the downside risk , To use the options for speculation , Either to honour or walk away from the contract

 

 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

 

 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

 

 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

 

 True/False

  Question  

Debt is less riskier source of finance than equity.

  Correct Answer  

False

  Your Answer  

True

 

 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

 

 Multiple Choice Single Answer

  Question  

What does flow-of fund analysis help in understanding?

  Correct Answer  

Availability of money for the stock market

  Your Answer  

Financial strength of various companies

 

 True/False

  Question  

The normal relationship is for the volume to expand on rallies and contract on declines.

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Multiple Answer

  Question  

Growth of the firm can be estimated through :-

  Correct Answer  

Firm's past earnings/historical growth rate , Estimates made by equity research analyst who follow the firm , Estimates from a firm's fundamentals

  Your Answer  

Firm's past earnings/historical growth rate , Estimates from a firm's fundamentals , Forecasting future revenues and earnings

 

 Multiple Choice Multiple Answer

  Question  

The security analysis process will achieve :-

  Correct Answer  

True picture of a company , Normal earning power , Projection of future profitability

  Your Answer  

True picture of a company , Normal earning power , Projection of future profitability

 

 Multiple Choice Single Answer

  Question  

The general dividend model is based on the principle of :-

  Correct Answer  

Present value of the expected future cash flow

  Your Answer  

Present value of the expected future cash flow

 

 Multiple Choice Single Answer

  Question  

The index futures symbols of BSE are represented as :-

  Correct Answer  

BSX JAN 2005 (January contract)

  Your Answer  

BSX JAN 2005 (January contract)

 

 

Multiple Choice Multiple Answer

  Question  

What are the features of bank deposits?

  Correct Answer  

Interest is presently around 6% , Benefits under section 80 L , Banks offer cheque facility for investors making it convenient to withdraw

  Your Answer  

Interest is presently around 6% , Banks offer cheque facility for investors making it convenient to withdraw

 

 True/False

  Question  

Risk on a portfolio of assets is always same as the risk on individual asset.

  Correct Answer  

False

  Your Answer  

False

 

 Select The Blank

  Question  

UTI was set up in the year ________.

  Correct Answer  

1963

  Your Answer  

1963

 

 Multiple Choice Multiple Answer

  Question  

Major steps involved in construction of a index are :-

  Correct Answer  

Selecting a set of scrips to be used , Fixing starting date , Calculating market capitalisation

  Your Answer  

Selecting a set of scrips to be used , Fixing starting date , Calculating market capitalisation

 

 Select The Blank

  Question  

A line is defined as a price movement two or three weeks or longer, during which period the price variation of both averages moves within a price range of approximately________%.

  Correct Answer  

5

  Your Answer  

5

 

 Multiple Choice Multiple Answer

  Question  

The return to the bond investor can be measured in terms of :-

  Correct Answer  

Realised yield , Current yield , Yield to maturity

  Your Answer  

Current yield , Yield to maturity

 

 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

 

 Select The Blank

  Question  

Debentures rated "BB" refers ________ of timely payment of interest and principal.

  Correct Answer  

Inadequate safety

  Your Answer  

Inadequate safety

 

 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

 

 Multiple Choice Single Answer

  Question  

When the firm is not raising equity by issuing new shares, the growth rate in net profits is given by :-

  Correct Answer  

Retention ratio X return on equity

  Your Answer  

Price earning ratio X return on equity

 

 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  

Bullish market

 

 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

 

 Multiple Choice Multiple Answer

  Question  

What are the SEBI regulations with respect to mutual funds?

  Correct Answer  

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 Answer  

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 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

 

 Multiple Choice Single Answer

  Question  

We can compare the price earning ratio of a market to its historical average to make judgements about, whether market is :-

  Correct Answer  

Under valued or over valued

  Your Answer  

Under valued or over valued

 

 Multiple Choice Single Answer

  Question  

The growth rate is used to forecast future revenues and earnings and are inputs in valuing :-

  Correct Answer  

Stable firms

  Your Answer  

High growth firms

 

 Multiple Choice Single Answer

  Question  

A security analysis is done :-

  Correct Answer  

For decision making for investments

  Your Answer  

For decision making for investments

 

 Multiple Choice Multiple Answer

  Question  

Which ratios are commonly used?

  Correct Answer  

Debt equity ratio , Interest coverage ratios , Debt service coverage ratios

  Your Answer  

Debt equity ratio , Interest coverage ratios , Debt service coverage ratios

 

 Select The Blank

  Question  

An option is a contract which gives the buyer ________ to buy or sell shares of the underlying security at a specific price on or before a specific date.

  Correct Answer  

Right but not obligation

  Your Answer  

Right but not obligation

 

 Match The Following

Question

Correct Answer

Your Answer

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

 

 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

 

 Select The Blank

  Question  

S&P NSE 50 index is known as ________.

  Correct Answer  

NIFTY

  Your Answer  

NIFTY

 

 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

 

 Multiple Choice Multiple Answer

  Question  

What are the features of line charts?

  Correct Answer  

It connects closing prices from one period to the next , It is ideal for securities with no high or low price data

  Your Answer  

It connects closing prices from one period to the next , It is ideal for securities with no high or low price data

 

 True/False

  Question  

Investors in high tax bracket would benefit by investing in equity schemes.

  Correct Answer  

False

  Your Answer  

False

 

 Match The Following

Question

Correct Answer

Your Answer

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

	LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Bottom of Form

Top of Form

 

 Multiple Choice Multiple Answer

  Question  

Gilt Edged Securities are :-

  Correct Answer  

Central Govt , State Govt. , Quasi-Govt

  Your Answer  

Central Govt

 

 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

 

 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

 

 Select The Blank

  Question  

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

  Correct Answer  

6

  Your Answer  

6

 

 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 , Standard deviation , Weight of asset in the portfolio

 

 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

 

 Select The Blank

  Question  

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

  Correct Answer  

Volatility

  Your Answer  

Difference

 

 True/False

  Question  

With the introduction of on-line trading by NSE and BSE, the role of regional stock exchanges have diminished.

  Correct Answer  

True

  Your Answer  

True

 

 True/False

  Question  

The price earning ratio can be estimated for the firms with negative earnings per share.

  Correct Answer  

False

  Your Answer  

True

 

 Multiple Choice Multiple Answer

  Question  

What were the achievements of Bharat Forge during the year 2003?

  Correct Answer  

Secured second largest customer in China , Appointed a Company Secretary to act as compliance officer , New contracts won in passenger car components

  Your Answer  

Secured second largest customer in China , Appointed a Company Secretary to act as compliance officer , New contracts won in passenger car components

 

 Select The Blank

  Question  

________ absorbs the excess demand or supply generated by hedgers and assume the risk of price fluctuations.

  Correct Answer  

Speculators

  Your Answer  

Jobbers

 

 Multiple Choice Multiple Answer

  Question  

Who are the constituents of a mutual fund?

  Correct Answer  

Sponsor & trustees , Asset management company , Custodian

  Your Answer  

Sponsor & trustees , Asset management company , Custodian

 

 True/False

  Question  

A share certificate indicates that the investor owns a certain number of shares.

  Correct Answer  

True

  Your Answer  

True

 

 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

 

 Multiple Choice Single Answer

  Question  

How can transition phases be projected?

  Correct Answer  

Transition phases are signalled by clearly definable price patterns

  Your Answer  

Transition phases are signalled by clearly definable price patterns

 

 True/False

  Question  

Balance of payments surplus augments foreign reserves of the country and have a favourable impact on he exchange rate.

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Multiple Answer

  Question  

What are the features of post office monthly income scheme?

  Correct Answer  

Rate of return is 8 % , Interest payable monthly , Investor earns bonus of 10% on completion of term

  Your Answer  

Rate of return is 8 % , Interest payable monthly , Investor earns bonus of 10% on completion of term

 

 Match The Following

Question

Correct Answer

Your Answer

NSE

Nifty

Nifty

SEBI

Redressal of investor complaints

Redressal of investor complaints

NAV

Net asset value

Net asset value

AMFI

Association of mutual funds of India

Association of mutual funds of India

 

 Multiple Choice Multiple Answer

  Question  

What were the Chairman's comments during the speech in the Annual report of the FY 2002-03?

  Correct Answer  

Best year in the history of the company , 146% growth in exports , Highest pre and post tax profits

  Your Answer  

Best year in the history of the company , 146% growth in exports , Highest pre and post tax profits

 

 Select The Blank

  Question  

Under the options contract ________ gives the holder the right, but not the obligation to buy or sell the underlying instrument only on the expiry date.

  Correct Answer  

European option

  Your Answer  

European option

 

 Multiple Choice Single Answer

  Question  

When was the Dow theory first published?

  Correct Answer  

Between 1900 and 1902

  Your Answer  

Between 1900 and 1902

 

 Multiple Choice Multiple Answer

  Question  

What are the features of point and figure charts?

  Correct Answer  

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 Answer  

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

 

 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

 

 Multiple Choice Single Answer

  Question  

Credit rating companies assign ratings for which of these investments?

  Correct Answer  

Company deposits

  Your Answer  

Company deposits

 

 Select The Blank

  Question  

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

  Correct Answer  

Trustee

  Your Answer  

Trustee

 

 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 Multiple Answer

  Question  

What are the different types of profitability ratios?

  Correct Answer  

Gross profit margin ratio , Earnings power , Return on equity

  Your Answer  

Gross profit margin ratio , Earnings power , Return on equity

 

 Select The Blank

  Question  

Dow Jones transportation average was previously known as ________.

  Correct Answer  

Rail average

  Your Answer  

Rail average

 

 Multiple Choice Single Answer

  Question  

An agreement to buy or sell a specified quantity of an asset at a certain future date or a certain price is know as :-

  Correct Answer  

Forward contract

  Your Answer  

Forward contract

 

 Multiple Choice Single Answer

  Question  

When was the first mutual fund set up?

  Correct Answer  

1963

  Your Answer  

1963

 

 Multiple Choice Single Answer

  Question  

Which market is affected with the improving and higher growth rate in economy?

  Correct Answer  

Stock market

  Your Answer  

Stock market

 

 Multiple Choice Single Answer

  Question  

What is the art of technical analysis?

  Correct Answer  

To identify trend changes at an early stage and maintain investment posture till the trend has reversed

  Your Answer  

To identify trend changes at an early stage and maintain investment posture till the trend has reversed

 

 Multiple Choice Single Answer

  Question  

In any Economy, bridge is created between savers and who need the funds by this system :-

  Correct Answer  

Financial

  Your Answer  

Financial

 

 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

 

 True/False

  Question  

Quick assets consist of current assets less inventories.

  Correct Answer  

True

  Your Answer  

True

 

 True/False

  Question  

Bonds and Debentures represent long term debt instruments.

  Correct Answer  

False

  Your Answer  

True

 

 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 discount model

 

 True/False

  Question  

American option gives the holder the right, but not the obligation to buy or sell the underlying instrument on or before the expiry date and the option can be exercised early.

  Correct Answer  

True

  Your Answer  

True

 

 True/False

  Question  

If rupee weakens against the dollar, it has favourable impact for the importers.

  Correct Answer  

False

  Your Answer  

False

 

 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 , Interest rate is 8.4% compounded annually , Tax benefits under 80 L available

 

 Select The Blank

  Question  

________ is the ratio of the market price per share to the earnings per share.

  Correct Answer  

Price earning ratio

  Your Answer  

Price earning ratio

 

 Multiple Choice Multiple Answer

  Question  

What are the warning indicators to be considered before analysing the financial statements of a firm ?

  Correct Answer  

Growth in profits outstripping the revenue growth by a large extent , Non operating expenses occur frequently , Accounting rules changed frequently

  Your Answer  

Growth in profits outstripping the revenue growth by a large extent , Non operating expenses occur frequently , Accounting rules changed frequently

 

 Select The Blank

  Question  

________ is the value today of a stream of cash flows that occurs in future.

  Correct Answer  

Present value

  Your Answer  

Present value

 

 Select The Blank

  Question  

Under futures market ________ process provides for collection of losses that have already occurred.

  Correct Answer  

The daily settlement

  Your Answer  

The daily settlement

 

 Multiple Choice Single Answer

  Question  

A security represent evidence of :-

  Correct Answer  

A property right

  Your Answer  

A property right

 

 Match The Following

Question

Correct Answer

Your Answer

The yield to maturity is same 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 actual yield earned by an investor on a bond

Realised yield

Yield to maturity

Present value interest factor of annuities and present value interest factor

Yield to maturity

Interest rate risk

 

 True/False

  Question  

A price rise accompanied by expanding volume denotes a potential trend reversal.

  Correct Answer  

False

  Your Answer  

False

	LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Bottom of Form

Top of Form

 

 Select The Blank

  Question  

Measures of ________ tells us what we can expect a typical or middle data point of a distribution to be.

  Correct Answer  

Central tendency

  Your Answer  

Central tendency

 

 Select The Blank

  Question  

________ ratio indicates the margin available after meeting the manufacturing expenses.

  Correct Answer  

Gross Profit margin

  Your Answer  

Gross Profit margin

 

 Multiple Choice Multiple Answer

  Question  

Which were the initiatives which the chairman said would focus on in 2003-04 in the speech in annual report for the year 2003-03?

  Correct Answer  

Research and development , Capital investment and focus on balance sheet , Overseas acquisitions

  Your Answer  

Research and development , Capital investment and focus on balance sheet , Overseas acquisitions

 

 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

 

 Select The Blank

  Question  

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

  Correct Answer  

Transition

  Your Answer  

Transition

 

 Select The Blank

  Question  

The 6.________% tax saving bonds of government of India have a tenure of 5 years.

  Correct Answer  

5

  Your Answer  

5

 

 Match The Following

Question

Correct Answer

Your Answer

Expiration period for options

Nine months

Nine months

The world's first largest options exchange

Chicago Board of options exchange

New York board of Options exchange

The most popular pricing options model published in the year 1973

Black Scholes

Black Scholes

When the writer gives the buyer of the option the right to sell the underlying asset on or before the expiry date

Put option

Put option

 

 Multiple Choice Multiple Answer

  Question  

An option is :-

  Correct Answer  

A contract between two 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 Answer  

A contract between two parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee

 

 True/False

  Question  

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

  Correct Answer  

False

  Your Answer  

False

 

 Multiple Choice Multiple Answer

  Question  

Return can be in the form of :-

  Correct Answer  

Dividends , Interests , Capital appreciation

  Your Answer  

Dividends , Interests , Capital appreciation

 

 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)

 

 Select The Blank

  Question  

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

  Correct Answer  

Options

  Your Answer  

Options

 

 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

 

 True/False

  Question  

A segment is unattractive if the buyers possess strong or growing bargaining powers.

  Correct Answer  

True

  Your Answer  

True

 

 Match The Following

Question

Correct Answer

Your Answer

Average collection period

Similar to debtors turnover

How fast the inventory is being converted

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

 

 Multiple Choice Multiple Answer

  Question  

In a typical stock market cycle which are the types of trends?

  Correct Answer  

Trends upward , Trend downward , Sideway trend

  Your Answer  

Trends upward , Trend downward , Sideway trend

 

 Multiple Choice Single Answer

  Question  

What is a resistance level?

  Correct Answer  

A point where there is opposition to further price rise

  Your Answer  

A point where there is opposition to further price rise

 

 Select The Blank

  Question  

Debentures rated as "A" are judged to offer ________ of timely payment of interest and principal.

  Correct Answer  

Adequate safety

  Your Answer  

High safety

 

 True/False

  Question  

A mutual fund is required to dispatch the dividend warrants to the unit holders within thirty days of the declaration of dividend.

  Correct Answer  

True

  Your Answer  

True

 

 Select The Blank

  Question  

________ measures the efficiency of credit management.

  Correct Answer  

Average collection period

  Your Answer  

Interest coverage ratio

 

 Multiple Choice Single Answer

  Question  

How would you rate a portfolio with 90% investment in stocks?

  Correct Answer  

Highly aggressive

  Your Answer  

Highly aggressive

 

 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  

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

 

 Multiple Choice Single Answer

  Question  

Agriculture account for how much portion of the economy?

  Correct Answer  

Quarter

  Your Answer  

Quarter

 

 Multiple Choice Single Answer

  Question  

How did Dow use the behaviour of stock markets?

  Correct Answer  

As a barometer of business conditions rather than a basis for forecasting stock prices

  Your Answer  

To predict trend patterns in stock prices

 

 Select The Blank

  Question  

________ take long or short positions only with the intention of making profits by getting out of the market when conditions favor them.

  Correct Answer  

Speculators

  Your Answer  

Hedgers

 

 True/False

  Question  

In case of fixed income securities like debentures, you get the return in the form of dividend.

  Correct Answer  

False

  Your Answer  

True

 

 Multiple Choice Single Answer

  Question  

What are primary trends?

  Correct Answer  

Reflection of investor's attitudes towards unfolding fundamentals in the business cycle

  Your Answer  

Long term trends

 

 Multiple Choice Single Answer

  Question  

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 5 years?

  Correct Answer  

Rs. 73466/-

  Your Answer  

Rs. 73466/-

 

 True/False

  Question  

Default is normally evaluated and indicated by the rating assigned to the debt instruments by independent credit ratings agencies.

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Single Answer

  Question  

Mr.Satish invests Rs.10,000/- today. The rate of interest is 8% compounded annually. What will be the value of his investment after 5 years?

  Correct Answer  

Rs.14.693/-

  Your Answer  

Rs.14.693/-

 

 Select The Blank

  Question  

The Dow theory was published in a series of editorials in the ________.

  Correct Answer  

Wall street journal

  Your Answer  

Wall street journal

 

 True/False

  Question  

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.

  Correct Answer  

True

  Your Answer  

False

 

 Multiple Choice Single Answer

  Question  

The greater the deviation of the actual returns from the actual return :-

  Correct Answer  

Greater the variance

  Your Answer  

Greater the variance

 

 Multiple Choice Multiple Answer

  Question  

Features of PSU Bonds are :-

  Correct Answer  

No TDS , Transferable by endorsement , No stamp duty on transfer

  Your Answer  

No TDS , Transferable by endorsement , No stamp duty on transfer

 

 Multiple Choice Multiple Answer

  Question  

What are the features of public provident scheme?

  Correct Answer  

15 year instrument , Rate of interest is 8% , Partial withdrawal is available from 7th year

  Your Answer  

15 year instrument , Rate of interest is 8% , Partial withdrawal is available from 7th year

 

 Multiple Choice Multiple Answer

  Question  

Which are the different types of accounts offered to investors by the stock brokers?

  Correct Answer  

Cash trading , Margin trading

  Your Answer  

General trading , Cash trading , Margin trading

 

 Multiple Choice Single Answer

  Question  

In a forward contract there is :-

  Correct Answer  

No Exchange of cash

  Your Answer  

No Exchange of cash

 

 Multiple Choice Single Answer

  Question  

Under EMH it is assumed that if markets are efficient, securities are priced to provide a :-

  Correct Answer  

Normal returns for their given level of risk

  Your Answer  

Equal returns for their given level of risk

 

 True/False

  Question  

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

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Multiple Answer

  Question  

If option is given to you to receive Rs.1,000/- today or after one year, you will choose to receive it today because :-

  Correct Answer  

You can use the amount to generate returns over the next one year , The purchasing power of Rs.1,000/- today is more than what it will be one year from now , There is an element of uncertainty associated with the future receipt

  Your Answer  

You can use the amount to generate returns over the next one year , The purchasing power of Rs.1,000/- today is more than what it will be one year from now , There is an element of uncertainty associated with the future receipt

 

 Multiple Choice Single Answer

  Question  

The growth period in the industry life cycle is defined as :-

  Correct Answer  

Period of rapid market acceptance and substantial profit improvement

  Your Answer  

Period of rapid market acceptance and substantial profit improvement

 

 Multiple Choice Single Answer

  Question  

What is the objective of Portfolio management?

  Correct Answer  

To Minimize risk and maximize return

  Your Answer  

To Minimize risk and maximize return

 

 True/False

  Question  

A rally that develops on contracting volumes is suspect and warns of a potential trend reversal in price

  Correct Answer  

True

  Your Answer  

True

 

 True/False

  Question  

Post office monthly schemes have a 10 year tenor.

  Correct Answer  

False

  Your Answer  

False

 

 Multiple Choice Single Answer

  Question  

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 :-

  Correct Answer  

Estimating growth from a firm's fundamentals

  Your Answer  

Earnings multiplier approach

 

 Multiple Choice Single Answer

  Question  

Mr.Saurabh invests Rs. 5,000/- today. The rate of interest is 4% compounded annually. What will be the value of his investment after 5 years?

  Correct Answer  

Rs. 6083/-

  Your Answer  

Rs. 6083/-

	LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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