Top of Form

 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

 

 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

 

 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

 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

 

 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

 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

 

 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

 

 Multiple Choice Multiple Answer

  Question  

The features of bond are :-

  Correct Answer  

Collateral , Call provision , Sinking fund and protective covenants

 

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer

Question

What are the features of company fixed deposits?

Correct Answer

Interest rate offered is higher than banks , No benefits under 80 L , No TDS for interest income upto Rs. 5000

Your Answer

Interest rate offered is higher than banks , No benefits under 80 L , No TDS for interest income upto Rs. 5000

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

Multiple Choice Multiple Answer

Question

What are the features of post office monthly income scheme?

Correct Answer

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

Your Answer

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

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 , Buying bonds issued to banks and financial institutions

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 Multiple Answer

Question

The computation of return on a bond involves considering :-

Correct Answer

The entire sequence of cash flows , The timing of cash flows , Calculating the internal rate of return

Your Answer

The entire sequence of cash flows , The timing of cash flows , Calculating the internal rate of return

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

Multiple Choice Multiple Answer

Question

Explain what are leverage ratios ?

Correct Answer

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 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

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

Multiple Choice Multiple Answer

Question

The investor in bonds receives income from :-

Correct Answer

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 Answer

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 Choice Multiple Answer

Question  1

Return can be in the form of :-

Correct Answer

Dividends , Interests , Capital appreciation

Your Answer

Dividends , Interests , Capital appreciation

Multiple Choice Multiple Answer

Question  5

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

Multiple Choice Multiple Answer

Question  35

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

Multiple Choice Multiple Answer

Question  41

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 Multiple Answer

Question  46

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 Multiple Answer

Question  47

Which are the most popular types of orders placed through an online trading account?

Correct Answer

Limit orders , Market orders

Your Answer

Market orders , Hedging orders , Arbitrage orders

Multiple Choice Multiple Answer

Question  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 :-

Correct Answer

Acquisitions , Building distribution channels , Expanding marketing capabilities and investing in new facilities

Your Answer

Acquisitions , Expanding marketing capabilities and investing in new facilities , Mergers

Multiple Choice Multiple Answer

Question  5

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 Multiple Answer

Question  14

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

Multiple Choice Multiple Answer

Question  15

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  20

Who are the constituents of a mutual fund?

Correct Answer

Sponsor & trustees , Asset management company , Custodian

Your Answer

Sponsor & trustees , Asset management company , Custodian

Multiple Choice Multiple Answer

Question  26

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

Multiple Choice Multiple Answer

Question  38

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 Multiple Answer

Question  41

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

Correct Answer

Current yield , Yield to maturity , Realised yield

Your Answer

Yield to maturity , Realised yield

Multiple Choice Multiple Answer

Question  5

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 Multiple Answer

Question  7

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

Securities can be bought from the RBI , Safest investment option available , Demat account is required for investment

Multiple Choice Multiple Answer

Question  10

To measure the movement of stocks in the market which indices were constructed by Dow?

Correct Answer

Dow Jones industrial Average , Dow Jones Transportation Average

Your Answer

Dow Jones Transportation Average

Multiple Choice Multiple Answer

Question  16

The security market is the market for :-

Correct Answer

Equity , Debt , Derivatives

Your Answer

Equity , Debt , Bank deposits

Multiple Choice Multiple Answer

Question  18

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 , Flat trend

Multiple Choice Multiple Answer

Question  22

Mutual fund schemes could be broadly classified as :-

Correct Answer

Open ended scheme , Close ended scheme

Your Answer

Open ended scheme , Close ended scheme , Growth schemes

Multiple Choice Multiple Answer

Question  24

What was the final analysis on the performance of Bharat forge for the year FY 02?

Correct Answer

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 Answer

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 Choice Multiple Answer

Question  26

Gilt Edged Securities are :-

Correct Answer

State Govt. , Quasi-Govt , Central Govt

Your Answer

Central Govt , State Govt. , Quasi-Govt

Multiple Choice Multiple Answer

Question  33

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

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 Choice Multiple Answer

Question  44

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

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 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

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

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

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

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 , Fixing ending date

Multiple Choice Multiple Answer

Question

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

Correct Answer

Change method of rate of depreciation , Change method of stock valuation , Inflating sales for current year by advancing sales for the following year

Your Answer

Change method of rate of depreciation , Change method of stock valuation , Inflating sales for current year by advancing sales for the following year

Multiple Choice Multiple Answer

Question

The underlying assumptions of Technical analysis are that :-

Correct Answer

Prices move in predictable patterns , Market value is determined by supply & demand , Investors are emotional than being rational

Your Answer

Prices move in predictable patterns , Investors are emotional than being rational

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

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

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

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 made by equity research analyst who follow the firm , Estimates from a firm's fundamentals

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 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 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

Realised yield

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

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

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
Multiple Choice Single Answer
Question			Stock Exchanges are the part of :-
Correct Answer			Secondary market
Your Answer			Money Market
Multiple Choice Single Answer
Question		The index futures symbols of BSE are represented as :-
Correct Answer		BSX JAN 2005 (January contract)
Multiple Choice Single Answer
Question		More than half the variation in stock price could be attributed to which factor?
Correct Answer		Market influence
Multiple Choice Single Answer
Question		In India we have index futures contracts based on :-
Correct Answer		S&P CNX Nifty and the BSE sensex
Multiple Choice Single Answer
Question		In India, the futures on individual securities have been introduced from :-
Correct Answer		2001
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 Single Answer
Question		A security analysis is done :-
Correct Answer		For decision making for investments
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 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
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
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
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	When a firm can grow net profits by issuing equity, the expected growth rate in net profits is determined by :-
Correct Answer	Equity reinvestment rate X return on equity
Your Answer	Price earning ratio X return on equity
Multiple Choice Single Answer
Question	What is a load fund?
Correct Answer	Fund charging a fee for entry and exit
Your Answer	Fund charging a fee for entry and exit
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
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	Mr. Sharma is expecting to receive Rs. 50,000/- at the end of 5 years. He wanted to know what is the present value of this amount, if the rate of interest is 6% p.a?
Correct Answer	Rs. 37363/-
Your Answer	Rs. 37363/-
Multiple Choice Single Answer
Question	Which of these is a short-maturity debt issue?
Correct Answer	Money market funds and gilts
Your Answer	Money market funds and gilts
Multiple Choice Single Answer
Question	What is Support level?
Correct Answer	A point where the prices become relatively attractive for buyers
Your Answer	Market resistance to a price fall
Multiple Choice Single Answer
Question	During the 1980's rate of savings in India has hovered around what percentage?
Correct Answer	0.21
Your Answer	0.22
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
Multiple Choice Single Answer
Question	The average historical growth rate can be calculated as :-
Correct Answer	Arithmetic average or a geometric average
Your Answer	Geometric average
Multiple Choice Single Answer
Question  4	What are short term trends?
Correct Answer	Trends which interrupt the course of the intermediate cycle
Your Answer	They are counter-cyclical trends within the confines of a primary trend
Multiple Choice Single Answer
Question  8	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
Multiple Choice Single Answer
Question  9	The historical growth rate and the past earnings of a firm are used in valuing :-
Correct Answer	Stable firms, but not appropriate for high growth firms
Your Answer	Consistent stable firms, but not appropriate for high growth firms
Multiple Choice Single Answer
Question  10	Efficient market hypothesis is based on the assumption that market comprises of :-
Correct Answer	Rational Investors
Your Answer	Heterogeneous investors
Multiple Choice Single Answer
Question  11	Co variance of asset with market portfolio 85 and variance of market portfolio is 100 then beta is :-
Correct Answer	0.0085
Your Answer	0.0085
Multiple Choice Single Answer
Question  13	Mr. Tiwari is expecting to receive Rs.25,000/- at the end of 10 years. He wanted to know what is the present value of this amount, if the rate of interest is 10% p.a:-
Correct Answer	Rs. 9639/-
Your Answer	Rs. 9639/-
Multiple Choice Single Answer
Question  18	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
Multiple Choice Single Answer
Question  23	A security represent evidence of :-
Correct Answer	A property right
Your Answer	Safety
Multiple Choice Single Answer
Question  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 5 years?
Correct Answer	Rs. 6083/-
Your Answer	Rs. 6083/-
Multiple Choice Single Answer
Question  27	In India futures on individual securities have been introduced by :-
Correct Answer	BSE & NSE
Your Answer	BSE & NSE
Multiple Choice Single Answer
Question  43	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
Multiple Choice Single Answer
Question  2	When was the first mutual fund set up?
Correct Answer	1963
Your Answer	1963
Multiple Choice Single Answer
Question  7	How can transition phases be projected?
Correct Answer	Transition phases are signalled by clearly definable price patterns
Your Answer	By working out the resistance and support levels
Multiple Choice Single Answer
Question  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?
Correct Answer	0.4
Your Answer	0.2
Multiple Choice Single Answer
Question  27	Investing in this avenue enable you participate in the equity market indirectly :-
Correct Answer	Mutual Funds
Your Answer	Mutual Funds
Multiple Choice Single Answer
Question  29	In any Economy, bridge is created between savers and who need the funds by this system :-
Correct Answer	Financial
Your Answer	Economic
Multiple Choice Single Answer
Question  30	Agriculture account for how much portion of the economy?
Correct Answer	Quarter
Your Answer	Three fourths
Multiple Choice Single Answer
Question  37	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
Multiple Choice Single Answer
Question  40	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	As a barometer of business conditions rather than a basis for forecasting stock prices
Multiple Choice Single Answer
Question  42	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  3	What is the limitation of Flow-of funds analysis method?
Correct Answer	Cannot give indication of the inclination of market participants to purchase stock
Your Answer	Cannot give indication of the inclination of market participants to purchase stock
Multiple Choice Single Answer
Question  6	Sentiment indicators are based on what assumption
Correct Answer	Different groups of investors are consistent in their actions at major market turning points
Your Answer	Different groups of investors are consistent in their actions at major market turning points
Multiple Choice Single Answer
Question  12	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	Futures contract
Multiple Choice Single Answer
Question  25	What are intermediate trends?
Correct Answer	They are counter-cyclical trends within the confines of a primary trend
Your Answer	They are counter-cyclical trends within the confines of a primary trend
Multiple Choice Single Answer
Question  29	What are index funds?
Correct Answer	Investment in securities in the same weightage which replicates a particular index
Your Answer	Investment in securities in the same weightage which replicates a particular index
Multiple Choice Single Answer
Question  38	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 Single Answer
Question  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 3 years?
Correct Answer	Rs. 29775/-
Your Answer	Rs. 29775/-
Multiple Choice Single Answer
Question  41	How many measures of money supply are used commonly?
Correct Answer	2
Your Answer	2
Multiple Choice Single Answer
Question  43	Under which simple model the value of the stock is the present value of expected dividends on it :-
Correct Answer	The Dividend discount model
Your Answer	The Dividend growth model
Multiple Choice Single Answer
Question  46	Avenues can be broadly classified into the which type of assets?
Correct Answer	Financial and Real
Your Answer	Tangible and Intangible
Multiple Choice Single Answer
Question	The average investor in the market is driven more by emotions than by rational analysis is a rule of :-
Correct Answer	Technical analysis
Your Answer	Fundamental Analysis
Multiple Choice Single Answer
Question	What is the objective of an income fund?
Correct Answer	To provide regular and steady income
Your Answer	To provide guaranteed returns to investors
Multiple Choice Single Answer
Question	What does lower level of unemployment indicates?
Correct Answer	Positive economic conditions
Your Answer	Economic slowdown
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%
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 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 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
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
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 Single Answer
Question	What is GDP at factor cost ?
Correct Answer	Excludes net income received from abroad
Your Answer	Includes indirect taxes
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
Multiple Choice Single Answer
Question	Free Float index considers this to calculate market capitalisation :-
Correct Answer	Actual no. of shares available
Your Answer	Actual no. of shares available
Multiple Choice Single Answer
Question	The Top-down approach is also known as :-
Correct Answer	Economy-industry-company approach
Your Answer	Economy-industry-company approach
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
Multiple Choice Single Answer
Question	What are index funds?
Correct Answer	Investment in securities in the same weightage which replicates a particular index
Your Answer	Investment in securities in the same weightage which replicates a particular index
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	A study of macro economical changes
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	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
Multiple Choice Single Answer
Question	What is the aim of growth funds?
Correct Answer	To provide capital appreciation over medium to long term
Your Answer	To provide capital appreciation over medium to long term

Multiple Choice Single Answer
Question		This is not a stock exchange :-
Correct Answer		MCX
Your Answer		MCX
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		Normal returns for their given level of risk
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/-
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 Single Answer
Question		Financial assets can be classified as :-
Correct Answer		Marketable and non-marketable
Your Answer		Marketable and non-marketable
Multiple Choice Single Answer
Question	Mr. Suresh is expecting to receive Rs.1,50,000/- at the end of 3 years. He wanted to know what is the present value of this amount, if the rate of interest is 9% p.a ?
Correct Answer	Rs.1,15,827/-
Your Answer	Rs.1,15,827/-
Multiple Choice Single Answer
Question	What is Flow-of-funds analysis?
Correct Answer	Consists of an analysis of the financial positions of various investor groups
Your Answer	Consists of an analysis of the financial positions of various investor groups
Multiple Choice Single Answer
Question	Mr. Suhas is expecting to receive Rs.1,00,000/- at the end of 7 years. He wanted to know what is the present value of this amount, if the rate of interest is 7% p.a ?
Correct Answer	Rs. 62,275/-
Your Answer	Rs. 62,275/-
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	Slow sales growth product recently introduced
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	Credit rating companies assign ratings for which of these investments?
Correct Answer	Company deposits
Your Answer	Company deposits
Multiple Choice Single Answer
Question	If index future is taken under futures contract, the underlying asset would be :-
Correct Answer	Stock index
Your Answer	Stock index
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 company
Multiple Choice Single Answer
Question	Profits are non existent in pioneering stage because of :-
Correct Answer	Heavy expenses on product introduction
Your Answer	Heavy expenses on product introduction
Multiple Choice Single Answer
Question	What is the indicator of buoyant economy?
Correct Answer	Increased level of housing construction activity
Your Answer	Increased level of housing construction activity
Multiple Choice Single Answer
Question	What does a transitional phase indicate?
Correct Answer	It marks the turning point between a rising and falling market
Your Answer	It marks the turning point between a rising and falling market
Multiple Choice Single Answer
Question	Dividend discount model is considered as the simplest model for :-
Correct Answer	Valuing Equity
Your Answer	Valuing Equity

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 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 What is the objective of Portfolio management?

Correct Answer To Minimize risk and maximize return

Your Answer To Minimize risk and maximize return

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 Single Answer

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

Correct Answer 2/3rd

Your Answer 75%

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 Single Answer

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

Correct Answer Primary dealers

Your Answer Primary dealers

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	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	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	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
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 Single Answer
Question	When was the first mutual fund set up?
Correct Answer	1963
Your Answer	1963
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	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
Multiple Choice Single Answer
Question	How would you rate a portfolio with 90% investment in stocks?
Correct Answer	Highly aggressive
Your Answer	Highly aggressive
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	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
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

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
Your Answer	Time
Select The Blank
Question	Dow Jones transportation average was previously known as ________.
Correct Answer	Rail average
Your Answer	Rail average
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	Under futures market ________ process provides for collection of losses that have already occurred.
Correct Answer	The daily settlement
Your Answer	The daily settlement
Select The Blank
Question	The regulations of SEBI with respect to mutual funds were fully revised in the year ________.
Correct Answer	1996
Your Answer	1996
Select The Blank
Question	The Dow theory states that there are simultaneously ________ movements in the stock market.
Correct Answer	3
Your Answer	3
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
Select The Blank
Question	________ ratio indicates the margin available after meeting the manufacturing expenses.
Correct Answer	Gross Profit margin
Your Answer	Gross Profit margin
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	Bearish trends
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	Adequate safety
Select The Blank
Question	Debentures rated ________ are judged to offer sufficient safety of timely payment of interest and repayment of principal.
Correct Answer	"BBB"
Your Answer	"BBB"

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		________ is due to the fact that a borrower may not pay interest and/or principal on time.
Correct Answer		Default risk
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
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
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
Select The Blank
Question		________ measures the efficiency of credit management.
Correct Answer		Average collection period

 Select The Blank

  Question  

UTI was set up in the year ________.

  Correct Answer  

1963

  Your Answer  

1963

Select The Blank
Question  16	________ is affected by the leverage decisions of the firm.
Correct Answer	Return on equity
Your Answer	Return on equity
Select The Blank
Question  20	________ refers to the possibility that there may not be a readily available market for the particular bond.
Correct Answer	Liquidity risk
Your Answer	Interest rate risk
Select The Blank
Question  21	The govt allowed public sector banks and institutions in mutual funds in ________.
Correct Answer	Early 90's
Your Answer	Early 90's
Select The Blank
Question  36	The 8% taxable savings bonds are repayable after ________ years.
Correct Answer	6
Your Answer	5
Select The Blank
Question  39	Security analysis serves the investment decision maker by identifying ________securities.
Correct Answer	Under priced
Your Answer	Blue chip
Select The Blank
Question  42	________ absorbs the excess demand or supply generated by hedgers and assume the risk of price fluctuations.
Correct Answer	Speculators
Your Answer	Brokers
Select The Blank
Question  44	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
Select The Blank
Question  1	UTI was set up in the year ________.
Correct Answer	1963
Your Answer	1963
Select The Blank
Question  6	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  12	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
Select The Blank
Question  13	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  28	________ identified five forces that determine the intrinsic long run profit attractiveness of a market or market segment.
Correct Answer	Michael Porter
Your Answer	Michael Porter
Select The Blank
Question  36	________is a hybrid form of security which has characteristics of both equity and debentures
Correct Answer	Preference shares
Your Answer	Preference shares
Select The Blank
Question  39	Debentures rated "BB" refers ________ of timely payment of interest and principal.
Correct Answer	Inadequate safety
Your Answer	Inadequate safety
Select The Blank
Question  43	The Derivative market is divided into Future market and ________ market.
Correct Answer	Options
Your Answer	Options
Select The Blank
Question  46	The Dow theory was published in a series of editorials in the ________.
Correct Answer	Wall street journal
Your Answer	Wall street journal
Select The Blank
Question  1	________ deal in futures to offset a pre-existing risk.
Correct Answer	Hedger
Your Answer	Speculator
Select The Blank
Question  8	Under ________ EMH investors cannot earn abnormal/superior profits on securities on a consistent basis.
Correct Answer	Semi-strong form
Your Answer	Semi-strong form
Select The Blank
Question  11	________ 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
Select The Blank
Question  14	________ model is based on the principle that an initial phase where the growth rate is not stable and subsequent steady growth rate and remains for the long-term.
Correct Answer	The Two-Stage dividend discount
Your Answer	The Gordons dividend growth
Select The Blank
Question  17	________ ratio is estimated by dividing the market value of a firm's assets by the replacement cost of these assets.
Correct Answer	Market value to replacement cost ratio
Your Answer	PEG ratio
Select The Blank
Question  19	________involves a simultaneous sale and repurchase agreement.
Correct Answer	Repos
Your Answer	Repos
Select The Blank
Question  28	Current liabilities include all liabilities due in the next ________ and provisions.
Correct Answer	12 months
Your Answer	12 months
Select The Blank
Question  30	S&P NSE 50 index is known as ________.
Correct Answer	NIFTY
Your Answer	NIFTY
Select The Blank
Question  31	________seeks to safeguard against potential losses on the outstanding position in futures market.
Correct Answer	Initial margin
Your Answer	Daily settlement
Select The Blank
Question  35	________ ratio is the ratio of net profit to the sales.
Correct Answer	Net Profit Margin
Your Answer	Net Profit Margin
Select The Blank
Question	Mutual fund is to be registered with ________ before raising funds from public.
Correct Answer	SEBI
Your Answer	SEBI
Select The Blank
Question	An investor with a higher tolerance of risk should tilt his portfolio in favour of ________.
Correct Answer	Stocks
Your Answer	Bank deposits
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	Sideways
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	________ measures the efficiency of credit management.
Correct Answer	Average collection period
Your Answer	Average collection period
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
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
Select The Blank
Question	________ measures the profitability of equity funds invested in the firms.
Correct Answer	Return on equity
Your Answer	Return on equity
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
Select The Blank
Question	All trades in the futures market are cash settled on a ________ basis.
Correct Answer	T+1
Your Answer	T+1
Select The Blank
Question	________ ratio is the ratio of net profit to the sales.
Correct Answer	Net Profit Margin
Your Answer	Net Profit Margin
Select The Blank
Question	When a debenture is sold to the general public a ________ is appointed.
Correct Answer	Trustee
Your Answer	Brokers
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
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
Select The Blank
Question	Mutual fund is to be registered with ________ before raising funds from public.
Correct Answer	SEBI
Your Answer	SEBI
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
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
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
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	________ is the ratio of the market price per share to the earnings per share.
Correct Answer	Price earning ratio
Your Answer	Price earning ratio
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	Speculators

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
True/False
Question		A firm uses a combination of equity and debt for financing its assets.
Correct Answer		True
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
True/False
Question		Investors in high tax bracket would benefit by investing in equity schemes.
Correct Answer		False
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
True/False
Question		When we invest in only one asset we are not exposed to any specific or market risk.
Correct Answer		False
True/False
Question		Five paisa.com is an example of on line trading portal.
Correct Answer		True
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
True/False
Question		Bearish actions come from a series of declining peaks and troughs.
Correct Answer		True
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	With the use of diversification you can reduce the risk.
Correct Answer	True
Your Answer	True
True/False
Question	A segment is unattractive if the buyers possess strong or growing bargaining powers.
Correct Answer	True
Your Answer	True
True/False
Question	Risk on a portfolio of assets is always same as the risk on individual asset.
Correct Answer	False
Your Answer	False
True/False
Question	Debt is less riskier source of finance than equity.
Correct Answer	False
Your Answer	True
True/False
Question	Post office monthly schemes have a 10 year tenor.
Correct Answer	False
Your Answer	False
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	Penetration of a trend line denotes a bearish phase.
Correct Answer	False
Your Answer	True
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
True/False
Question  2	Currently in India index options are both European and American in nature.
Correct Answer	False
Your Answer	False
True/False
Question  3	The cost structure remaining the same, better price realisation results in lower gross profit ratio.
Correct Answer	False
Your Answer	True
True/False
Question  6	A segment is more attractive when there are actual or potential substitutes for the product.
Correct Answer	False
Your Answer	True
True/False
Question  15	Bond ratings by credit rating agencies provide superior and low cost information to the investor serving as a basis for a proper risk-return trade off by investors.
Correct Answer	True
Your Answer	True
True/False
Question  29	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
True/False
Question  30	Investment in gilt edged securities carry a higher element of risk.
Correct Answer	False
Your Answer	True
True/False
Question  37	Following a decline, heavy volume with little price change is indicative of accumulation and is normally a bearish factor.
Correct Answer	False
Your Answer	True
True/False
Question  45	Speculators buy or sell futures contract in an attempt to earn a profit.
Correct Answer	True
Your Answer	True
True/False
Question  11	Investment decisions can be viewed as an integrated process to which security analysis makes its unique contribution.
Correct Answer	True
Your Answer	True
True/False
Question  17	Given the accounting standards across firm, price to book value ratios can be compared across similar firms for signs of under valuation.
Correct Answer	True
Your Answer	True
True/False
Question  18	Quick assets consist of current assets less inventories.
Correct Answer	True
Your Answer	True
True/False
Question  22	If a rupee weakens against the dollars it has favourable impact for the exporters.
Correct Answer	True
Your Answer	True
True/False
Question  23	A price rise accompanied by expanding volume denotes a potential trend reversal.
Correct Answer	False
Your Answer	True
True/False
Question  35	There may be convertible clause which gives the debenture holder the option to convert the debentures into equity shares.
Correct Answer	True
Your Answer	True
True/False
Question  47	PPF is a good retirement planning and tax saving vehicle.
Correct Answer	True
Your Answer	True
True/False
Question  2	Bonds and Debentures represent long term debt instruments.
Correct Answer	False
Your Answer	True
True/False
Question  9	While calculating geometric mean calculation of root is not important.
Correct Answer	False
Your Answer	False
True/False
Question  13	Certificate of Deposits offers high rate of interest than Treasury Bills.
Correct Answer	True
Your Answer	True
True/False
Question  21	Sensex is the index of Calcutta Stock Exchange.
Correct Answer	False
Your Answer	False
True/False
Question  27	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	True
True/False
Question  32	If rupee weakens against the dollar, it has favourable impact for the importers.
Correct Answer	False
Your Answer	False
True/False
Question  36	The risk associated to get the required rate of return on the stock is measure by market beta.
Correct Answer	True
Your Answer	True
True/False
Question  40	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  42	European style options are more expensive than American style because they offer greater flexibility to the buyer.
Correct Answer	False
Your Answer	True
True/False
Question	When you are making an investment you are expecting certain future benefits from your investment.
Correct Answer	True
Your Answer	True
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
True/False
Question	The labour conditions do not play an important role in the industry analysis.
Correct Answer	False
Your Answer	False

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		True
True/False
Question	Because of statutory compulsion, generally Govt. securities are held by banks, financial institutions, insurance companies etc.
Correct Answer	True
Your Answer	True

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	In case of fixed income securities like debentures, you get the return in the form of dividend.
Correct Answer	False
Your Answer	False
True/False
Question	Investment in gilt edged securities carry a higher element of risk.
Correct Answer	False
Your Answer	False
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	Prices of stocks usually move in trends.
Correct Answer	True
Your Answer	True
True/False
Question	The sideways trend is essentially a transitional one which separates the two major market movements.
Correct Answer	True
Your Answer	False
True/False
Question	With the use of diversification you can reduce the risk.
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

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

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

True/False
Question	The price earning ratio can be estimated for the firms with negative earnings per share.
Correct Answer	False
Your Answer	True
True/False
Question	A share certificate indicates that the investor owns a certain number of shares.
Correct Answer	True
Your Answer	True
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
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
True/False
Question	Bonds and Debentures represent long term debt instruments.
Correct Answer	False
Your Answer	True
True/False
Question	A price rise accompanied by expanding volume denotes a potential trend reversal.
Correct Answer	False
Your Answer	False
Select The Blank
Question	The ________ phase is characterized by resistance area and support level.
Correct Answer	Transition
Your Answer	Transition
True/False
Question	Currently in India index options are both European and American in nature.
Correct Answer	False
Your Answer	False
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 rally that develops on contracting volumes is suspect and warns of a potential trend reversal in price
Correct Answer	True
Your Answer	True

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

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

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

Question

Correct Answer

Your Answer

Development of Dow's principles

William Peter Hamilton

Charles H.dow

Breadth Indicator

Advance/decline line

Moving average

Momentum indicator

MACD

MACD

Trend lines

Useful tool in technical analysis

Useful tool in technical analysis

Question 26

Correct Answer

Your Answer

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

Futures contract

A contract where both the parties are equally responsible

Futures contract

Options 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

Transaction cost model

NSE&BSE are regulated by

Securities Exchange Board of India

Securities Exchange Board of India

Question 24

Correct Answer

Your Answer

Equity shares

High risk

High risk

Government Securities

No risk

Low risk

Bank Deposits

Low risk

No risk

Mutual Funds

Average risk

Average risk

Question 33

Correct Answer

Your Answer

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

Question 20

Correct Answer

Your Answer

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 required 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 two extraordinary growth phase lasting n years and stable growth phase that lasts forever

Based on two extraordinary growth phase lasting n years and stable growth phase that lasts forever

Question 34

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Future value of a series of cash flows occurring at the end of each 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

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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

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Technical collaboration of Bharat Forge with SIFCO industries USA

1981

1981

Bharat Forge was incorporated at Mumbai

1961

1961

Shares of 100 each subdivided of Bharat forge

1971

1971

930000 bonus shares issued by Bharat Forge

1976

1976

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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

Realised yield

Present value interest factor of annuities and present value interest factor

Yield to maturity

Yield to maturity

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1. Treasury Bills		1.  Foreign Institutional Investors
2. Commercial Papers	3	2.  Government of India
3. Certificate of Deposits		3.  Corporates
4. Bonds	5	4.  Banks and Financial Institutions
		5.  Central/State Govts/PSU's
		6.  Post Office

1. ROE	3	1.  Measure the profitability of operations without considering the influence of financial structure and tax rate
2. Earnings power	1	2.  Ratio if net profit to sales
3. Net profit margin	2	3.  Measure the profitability of equity funds
4. Gross profit margin	6	4.  Valuation ratio
		5.  Measures the profitability of debt funds
		6.  Indicates the margin available after meeting the manufacturing expenses

1. SEBI	5	1.  Nifty
2. NAV	2	2.  Net asset value
3. AMFI	6	3.  Net average value
4. NSE		4.  Association of merchant financers of India
		5.  Redressal of investor complaints
		6.  Association of mutual funds of India

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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

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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

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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

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