Top of Form

 

 Select The Blank

  Question  

The value of the stock in the ________ model is sensitive to the estimates of the growth rate.

  Correct Answer  

The Gordons dividend growth

 

 Select The Blank

  Question  

The possibility of reduction of risk through the construction of a portfolio depends on the value of ________ between the two assets.

  Correct Answer  

Correlation coefficient

 

 Multiple Choice Single Answer

  Question  

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 :-

  Correct Answer  

The General model

 

 Select The Blank

  Question  

Debentures rated ________ are judged to offer sufficient safety of timely payment of interest and repayment of principal.

  Correct Answer  

"BBB"

 

 Multiple Choice Single Answer

  Question  

Stock Exchanges are the part of :-

  Correct Answer  

Secondary market

  Your Answer  

Money Market

 

 Multiple Choice Multiple Answer

  Question  

Active investment managers :-

  Correct Answer  

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 Choice Multiple Answer

  Question  

Equity analysts provides estimates of earnings and earnings growth for future, using historical data and :-

  Correct Answer  

Macro economic information that may impact future growth , Private information about the firm , Firm's specific information and public information

 

 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

 

 True/False

  Question  

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

  Correct Answer  

True

 

 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

 

 Multiple Choice Multiple Answer

  Question  

What are the features of trend lines

  Correct Answer  

A simple and useful tool in technical analysis , Prices move in trends , The trend lines represent points of support and resistance

 

 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

 

 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  

, Displays the correlation between the high and low prices

 

 True/False

  Question  

A firm uses a combination of equity and debt for financing its assets.

  Correct 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

 

 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

 

 Multiple Choice Single Answer

  Question  

The index futures symbols of BSE are represented as :-

  Correct Answer  

BSX JAN 2005 (January contract)

 

 Multiple Choice Multiple Answer

  Question  

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 :-

  Correct Answer  

H- Model for valuing growth , H-Two stage model for growth , H-Model unlike the classic two stage model

 

 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

 

 True/False

  Question  

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

  Correct Answer  

False

 

 Select The Blank

  Question  

________ bonds are generally called for prepayment after interest rates have fallen, investors will not be able to find comparable investment avenues.

  Correct Answer  

Call risk

 

 Select The Blank

  Question  

________ deal in futures to offset a pre-existing risk.

  Correct Answer  

Hedger

 

 Multiple Choice Single Answer

  Question  

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

  Correct Answer  

Market influence

 

 Match The Following

Question

Correct Answer

Your Answer

Price pattern

Resistance level

Head and shoulders formation

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

 

 Select The Blank

  Question  

________are good benchmark to compare the ratios for a firm.

  Correct Answer  

Industry averages

 

 Select The Blank

  Question  

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

  Correct Answer  

Transition

 

 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

 

 Multiple Choice Single Answer

  Question  

In India we have index futures contracts based on :-

  Correct Answer  

S&P CNX Nifty and the BSE sensex

 

 True/False

  Question  

When we invest in only one asset we are not exposed to any specific or market risk.

  Correct Answer  

False

 

 Multiple Choice Single Answer

  Question  

In India, the futures on individual securities have been introduced from :-

  Correct Answer  

2001

 

 Select The Blank

  Question  

________ measures the efficiency of credit management.

  Correct Answer  

Average collection period

 

 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

 

 Multiple Choice Multiple Answer

  Question  

What are the ways of measuring relative strength?

  Correct Answer  

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 Answer  

Calculating the Return on investment

 

 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

 

 True/False

  Question  

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

  Correct Answer  

True

 

 Multiple Choice Single Answer

  Question  

A security analysis is done :-

  Correct Answer  

For decision making for investments

 

 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

 

 Select The Blank

  Question  

Dow Jones transportation average was previously known as ________.

  Correct Answer  

Rail average

  Your Answer  

Freight average

 

 Multiple Choice Multiple Answer

  Question  

The Two-Stage dividend discount model is best suited for the firms that are :-

  Correct Answer  

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

 

 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

 

 Multiple Choice Single Answer

  Question  

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 :-

  Correct Answer  

0.05

 

 Multiple Choice Multiple Answer

  Question  

The features of bond are :-

  Correct Answer  

Collateral , Call provision , Sinking fund and protective covenants

 

 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

 

 Match The Following

Question

Correct Answer

Your Answer

MCX

Commodity Exchange

Commodity Exchange

Sensex

BSE Index

BSE Index

Nifty

NSE Index

NSE Index

Lifex

ET Index

Gold Index

 

 Multiple Choice Single Answer

  Question  

A pledge of real assets as insurance against the non-payment of default by the buyer represents

  Correct Answer  

Collateral

 

 True/False

  Question  

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

  Correct Answer  

True

 

 Multiple Choice Single Answer

  Question  

Who developed Dow's Principles and organised them into a theory as it is known today?

  Correct Answer  

William Peter Hamilton

  Your Answer  

Charles.H.Dow

	LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Bottom of Form

kk LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The Blank

Question ________ is affected by the leverage decisions of the firm.

Correct Answer Return on equity

Your Answer Return on equity

Select The Blank

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

Correct Answer Inadequate safety

Your Answer Inadequate safety

Select The Blank

Question S&P NSE 50 index is known as ________.

Correct Answer NIFTY

Your Answer NIFTY

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 True

Match The Following

Question Correct Answer Your Answer

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

Under options 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 Options contract

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

The amount which the buyer of the option has to pay to the option writer to induce him to accept the risk associated with the contract. Option price Option price

True/False

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

Correct Answer True

Your Answer True

Multiple Choice Single Answer

Question Debt instruments that have a maturity period of more than one year are called as :-

Correct Answer Bonds

Your Answer Bonds

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

Multiple Choice Multiple Answer

Question What are the features of Retail government securities (G-secs) ?

Correct Answer Safest investment option available , Demat account is required for investment , Choice of tenure varies from less than 1 year to 30 years

Your Answer Safest investment option available , Demat account is required for investment , Choice of tenure varies from less than 1 year to 30 years

True/False

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

Correct Answer True

Your Answer True

Select The Blank

Question ________seeks to safeguard against potential losses on the outstanding position in futures market.

Correct Answer Initial margin

Your Answer Initial margin

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

Multiple Choice Multiple Answer

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

Correct Answer Current yield , Yield to maturity , Realised yield

Your Answer Current yield , Yield to maturity , Realised yield

True/False

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

Correct Answer True

Your Answer True

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

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)

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

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

Multiple Choice Single Answer

Question 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?

Correct Answer 0.15

Your Answer 0.15

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

Match The Following

Question Correct Answer Your Answer

Ratio used as a measure of relative value PEG ratio PEG 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

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

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 Single Answer

Question Credit rating companies assign ratings for which of these investments?

Correct Answer Company deposits

Your Answer Company deposits

True/False

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

Correct Answer False

Your Answer False

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

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 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

Select The Blank

Question ________ is the value at a certain future date today of a stream of cash flows that occurs over a period of time.

Correct Answer Future value

Your Answer Future value

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

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Dow Jones transportation average was previously known as Rail average Logistics average Road average Freight average.

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