Security Analysis & Portfolio Management
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer*Question
A Portfolio means :-Correct Answer
Combination of assets
Your Answer
Returns on investments
Select The Blank*Question
The margining system is future contract is based on ________ recommendations.Correct Answer
J R verma committee
Your Answer
J R verma committee
True/False*Question
Fundamental analysis focuses on predicting the future price of a security and Technical analysis on estimating the intrinsic value of a security.Correct Answer
False
Your Answer
True
Multiple Choice Single Answer*Question
If the price of a share at the beginning of the year was Rs.70/-, dividend received during the year was Rs.5/-per share and the price at the end is Rs.79/-. What is the rate of return?Correct Answer
0.2
Your Answer
0.2
Select The Blank*Question
________ 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 Two-Stage dividend discount
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 Multiple Answer*Question
Return can be in the form of :-Correct Answer
Dividends , Interests , Capital appreciation
Your Answer
Dividends , Interests
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
Weak form
Multiple Choice Multiple Answer*Question
Which are the most popular types of orders placed through an online trading account?Correct Answer
Limit orders , Market orders
Your Answer
Limit orders , Market orders
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 Single Answer*Question
What do you understand by the term Net asset value (NAV)?Correct Answer
Market value of securities divided by the total units
Your Answer
Market value of securities divided by the total units
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
Match The Following
Question
Correct Answer
Your Answer
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
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
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
Select The Blank*Question
All trades in the futures market are cash settled on a ________ basis.Correct Answer
T+1
Your Answer
T+1
True/False*Question
The ratios between profits and investments are called rate of return measures.Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer*Question
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
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
Your 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
Match The Following
Question
Correct Answer
Your Answer
Turnover ratios
Help measure the efficiency of utilisation of assets
Help measure the efficiency of utilisation of assets
Debt Equity ratio
Debt / Equity
Equity / Debt
Quick assets
Highly liquid assets
Highly liquid assets
Average collection period
Similar to debtors turnover
Similar to debtors turnover
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
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
Your Answer
Macro economic information that may impact future growth , Private information about the firm , Firm's specific information and public information
Multiple Choice Single Answer*Question
Stock Exchanges are the part of :-Correct Answer
Secondary market
Your Answer
Secondary market
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/-
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 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
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 returns of sector specific funds are solely dependant on the performance of the respective sectors / industries.Correct Answer
True
Your Answer
True
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
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
A security is said to be ________ if its current market price is over its intrinsic value.Correct Answer
Over priced
Your Answer
Over priced
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
Select The Blank*Question
The 8% taxable savings bonds are repayable after ________ years.Correct Answer
6
Your Answer
6
True/False*Question
If a rupee weakens against the dollars it has favourable impact for the exporters.Correct Answer
True
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
Select The Blank*Question
________ ratio is the ratio of net profit to the sales.Correct Answer
Net Profit Margin
Your Answer
Net Profit Margin
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
Your Answer
H-Two stage model for growth , H-Model unlike the classic two stage model
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
Prices of stocks usually move in trends.Correct Answer
True
Your Answer
True
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"
True/False*Question
A segment is more attractive when there are actual or potential substitutes for the product.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
True
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 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
Your 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
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
Multiple Choice Single Answer*Question
In a perfectly efficient market all securities are correctly priced means there are no :-Correct Answer
Under priced and over priced securities
Your Answer
High priced and low priced securities
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
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
A Portfolio means :-Correct Answer
Combination of assets
Your Answer
Returns on investments
Select The Blank*Question
The margining system is future contract is based on ________ recommendations.Correct Answer
J R verma committee
Your Answer
J R verma committee
True/False*Question
Fundamental analysis focuses on predicting the future price of a security and Technical analysis on estimating the intrinsic value of a security.Correct Answer
False
Your Answer
True
Multiple Choice Single Answer*Question
If the price of a share at the beginning of the year was Rs.70/-, dividend received during the year was Rs.5/-per share and the price at the end is Rs.79/-. What is the rate of return?Correct Answer
0.2
Your Answer
0.2
Select The Blank*Question
________ 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 Two-Stage dividend discount
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 Multiple Answer*Question
Return can be in the form of :-Correct Answer
Dividends , Interests , Capital appreciation
Your Answer
Dividends , Interests
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
Weak form
Multiple Choice Multiple Answer*Question
Which are the most popular types of orders placed through an online trading account?Correct Answer
Limit orders , Market orders
Your Answer
Limit orders , Market orders
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 Single Answer*Question
What do you understand by the term Net asset value (NAV)?Correct Answer
Market value of securities divided by the total units
Your Answer
Market value of securities divided by the total units
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
Match The Following
Question
Correct Answer
Your Answer
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
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
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
Select The Blank*Question
All trades in the futures market are cash settled on a ________ basis.Correct Answer
T+1
Your Answer
T+1
True/False*Question
The ratios between profits and investments are called rate of return measures.Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer*Question
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
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
Your 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
Match The Following
Question
Correct Answer
Your Answer
Turnover ratios
Help measure the efficiency of utilisation of assets
Help measure the efficiency of utilisation of assets
Debt Equity ratio
Debt / Equity
Equity / Debt
Quick assets
Highly liquid assets
Highly liquid assets
Average collection period
Similar to debtors turnover
Similar to debtors turnover
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
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
Your Answer
Macro economic information that may impact future growth , Private information about the firm , Firm's specific information and public information
Multiple Choice Single Answer*Question
Stock Exchanges are the part of :-Correct Answer
Secondary market
Your Answer
Secondary market
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/-
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 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
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 returns of sector specific funds are solely dependant on the performance of the respective sectors / industries.Correct Answer
True
Your Answer
True
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
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
A security is said to be ________ if its current market price is over its intrinsic value.Correct Answer
Over priced
Your Answer
Over priced
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
Select The Blank*Question
The 8% taxable savings bonds are repayable after ________ years.Correct Answer
6
Your Answer
6
True/False*Question
If a rupee weakens against the dollars it has favourable impact for the exporters.Correct Answer
True
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
Select The Blank*Question
________ ratio is the ratio of net profit to the sales.Correct Answer
Net Profit Margin
Your Answer
Net Profit Margin
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
Your Answer
H-Two stage model for growth , H-Model unlike the classic two stage model
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
Prices of stocks usually move in trends.Correct Answer
True
Your Answer
True
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"
True/False*Question
A segment is more attractive when there are actual or potential substitutes for the product.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
True
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 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
Your 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
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
Multiple Choice Single Answer*Question
In a perfectly efficient market all securities are correctly priced means there are no :-Correct Answer
Under priced and over priced securities
Your Answer
High priced and low priced securities
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
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/-
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False*Question
When we invest in only one asset we are not exposed to any specific or market risk.Correct Answer
False
Your Answer
False
True/False*Question
Bonds and Debentures represent long term debt instruments.Correct Answer
False
Your Answer
False
Select The Blank*Question
________ deal in futures to offset a pre-existing risk.Correct Answer
Hedger
Your Answer
Hedger
True/False*Question
A rise in interest rates will push the market prises of outstanding bonds where as a fall in interest rates will depress the market prices down.Correct Answer
False
Your Answer
False
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 Multiple Answer*Question
The Gordon growth model is best suited for firms :-Correct Answer
Growing at a rate equal to or lower that the growth in the economy , Which have well established dividend payout ratio policy , Whose earnings are steady and perpetual
Your Answer
Growing at a rate equal to or lower that the growth in the economy , Which have well established dividend payout ratio policy , Whose earnings are steady and perpetual
True/False*Question
Penetration of a trend line denotes a bearish phase.Correct Answer
False
Your Answer
False
Multiple Choice Single Answer*Question
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
Select The Blank*Question
The Dow theory states that there are simultaneously ________ movements in the stock market.Correct Answer
3
Your Answer
3
True/False*Question
The ratios between profits and investments are called rate of return measures.Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer*Question
Explain what are leverage ratios ?Correct Answer
Help in assessing the risk arising using the debt capital , Debt equity ratio and interest coverage ratio and DSCR are important leverage ratios , Debt is riskier source of finance as it entails fixed outgo of periodic payments
Your Answer
Help in assessing the risk arising using the debt capital , Debt equity ratio and interest coverage ratio and DSCR are important leverage ratios , Debt is riskier source of finance as it entails fixed outgo of periodic payments
True/False*Question
Policies of the government and the attitude of the government towards the industry have a considerable influence on the industry.Correct Answer
True
Your Answer
True
Multiple Choice Single Answer*Question
What is Bottom-Up approach also known as?Correct Answer
Company-industry-economy approach
Your Answer
Company and industry approach
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
Consolidation pattern
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
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
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
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
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
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
Equity reinvestment rate X return on equity
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
Where the seller accepts an obligation for which he receives a fee , A contract between two parties , Where buyer receives a privilege for which he pays a premium
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
The compounded annual return of Kisan Vikas patra is ________.Correct Answer
0.084
Your Answer
0.084
Select The Blank*Question
________ ratio indicates the margin available after meeting the manufacturing expenses.Correct Answer
Gross Profit margin
Your Answer
Gross Profit margin
True/False*Question
With the use of diversification you can reduce the risk.Correct Answer
True
Your Answer
True
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
Your 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
Following a decline, heavy volume with little price change is indicative of accumulation and is normally a bearish factor.Correct Answer
False
Your Answer
False
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
Match The Following
Question
Correct Answer
Your Answer
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
Present Value
Value at a certain future date today of a stream of cash flows that occurs over a period of time.
Future Value
Future Value
Series of equal payments or receipts occurring at regular intervals of time.
Present value of annuity
Present value of annuity
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 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
Your Answer
0.05
Multiple Choice Single Answer*Question
A security analysis is done :-Correct Answer
For decision making for investments
Your Answer
For decision making for investments
Select The Blank*Question
All trades in the futures market are cash settled on a ________ basis.Correct Answer
T+1
Your Answer
T+1
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
Select The Blank*Question
S&P NSE 50 index is known as ________.Correct Answer
NIFTY
Your Answer
NIFTY
Multiple Choice Multiple Answer*Question
What are the features of Kisan Vikas Patra?Correct Answer
Term is for 8 years seven months , Provision of premature withdrawal , Interest rate is 8.4% compounded annually
Your Answer
Term is for 8 years seven months , Provision of premature withdrawal , Interest rate is 8.4% compounded annually
True/False*Question
Fundamental analysis focuses on predicting the future price of a security and Technical analysis on estimating the intrinsic value of a security.Correct Answer
False
Your Answer
False
Multiple Choice 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
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/-
Select The Blank*Question
A ________ rally for stocks generally takes place because of an improved outlook for business conditions over what was anticipated.Correct Answer
Bear market
Your Answer
Bear market
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 Single Answer*Question
What is the goal of the Dow theory?Correct Answer
To determine changes in the primary or major movement in the market
Your Answer
To determine changes in the primary or major movement in the market
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
Multiple Choice Single Answer*Question
A pledge of real assets as insurance against the non-payment of default by the buyer representsCorrect Answer
Collateral
Your Answer
Collateral
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
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% , Benefits under section 80 L , Banks offer cheque facility for investors making it convenient to withdraw
Match The Following
Question
Correct Answer
Your Answer
Gross profit margin
Indicates the margin available after meeting the manufacturing expenses
Indicates the margin available after meeting the manufacturing expenses
ROE
Measure the profitability of equity funds
Measure the profitability of equity funds
Earnings power
Measure the profitability of operations without considering the influence of financial structure and tax rate
Measure the profitability of operations without considering the influence of financial structure and tax rate
Net profit margin
Ratio if net profit to sales
Ratio if net profit to sales
True/False*Question
When we invest in only one asset we are not exposed to any specific or market risk.Correct Answer
False
Your Answer
False
True/False*Question
Bonds and Debentures represent long term debt instruments.Correct Answer
False
Your Answer
False
Select The Blank*Question
________ deal in futures to offset a pre-existing risk.Correct Answer
Hedger
Your Answer
Hedger
True/False*Question
A rise in interest rates will push the market prises of outstanding bonds where as a fall in interest rates will depress the market prices down.Correct Answer
False
Your Answer
False
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 Multiple Answer*Question
The Gordon growth model is best suited for firms :-Correct Answer
Growing at a rate equal to or lower that the growth in the economy , Which have well established dividend payout ratio policy , Whose earnings are steady and perpetual
Your Answer
Growing at a rate equal to or lower that the growth in the economy , Which have well established dividend payout ratio policy , Whose earnings are steady and perpetual
True/False*Question
Penetration of a trend line denotes a bearish phase.Correct Answer
False
Your Answer
False
Multiple Choice Single Answer*Question
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
Select The Blank*Question
The Dow theory states that there are simultaneously ________ movements in the stock market.Correct Answer
3
Your Answer
3
True/False*Question
The ratios between profits and investments are called rate of return measures.Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer*Question
Explain what are leverage ratios ?Correct Answer
Help in assessing the risk arising using the debt capital , Debt equity ratio and interest coverage ratio and DSCR are important leverage ratios , Debt is riskier source of finance as it entails fixed outgo of periodic payments
Your Answer
Help in assessing the risk arising using the debt capital , Debt equity ratio and interest coverage ratio and DSCR are important leverage ratios , Debt is riskier source of finance as it entails fixed outgo of periodic payments
True/False*Question
Policies of the government and the attitude of the government towards the industry have a considerable influence on the industry.Correct Answer
True
Your Answer
True
Multiple Choice Single Answer*Question
What is Bottom-Up approach also known as?Correct Answer
Company-industry-economy approach
Your Answer
Company and industry approach
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
Consolidation pattern
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
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
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
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
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
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
Equity reinvestment rate X return on equity
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
Where the seller accepts an obligation for which he receives a fee , A contract between two parties , Where buyer receives a privilege for which he pays a premium
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
The compounded annual return of Kisan Vikas patra is ________.Correct Answer
0.084
Your Answer
0.084
Select The Blank*Question
________ ratio indicates the margin available after meeting the manufacturing expenses.Correct Answer
Gross Profit margin
Your Answer
Gross Profit margin
True/False*Question
With the use of diversification you can reduce the risk.Correct Answer
True
Your Answer
True
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
Your 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
Following a decline, heavy volume with little price change is indicative of accumulation and is normally a bearish factor.Correct Answer
False
Your Answer
False
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
Match The Following
Question
Correct Answer
Your Answer
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
Present Value
Value at a certain future date today of a stream of cash flows that occurs over a period of time.
Future Value
Future Value
Series of equal payments or receipts occurring at regular intervals of time.
Present value of annuity
Present value of annuity
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 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
Your Answer
0.05
Multiple Choice Single Answer*Question
A security analysis is done :-Correct Answer
For decision making for investments
Your Answer
For decision making for investments
Select The Blank*Question
All trades in the futures market are cash settled on a ________ basis.Correct Answer
T+1
Your Answer
T+1
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
Select The Blank*Question
S&P NSE 50 index is known as ________.Correct Answer
NIFTY
Your Answer
NIFTY
Multiple Choice Multiple Answer*Question
What are the features of Kisan Vikas Patra?Correct Answer
Term is for 8 years seven months , Provision of premature withdrawal , Interest rate is 8.4% compounded annually
Your Answer
Term is for 8 years seven months , Provision of premature withdrawal , Interest rate is 8.4% compounded annually
True/False*Question
Fundamental analysis focuses on predicting the future price of a security and Technical analysis on estimating the intrinsic value of a security.Correct Answer
False
Your Answer
False
Multiple Choice 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
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/-
Select The Blank*Question
A ________ rally for stocks generally takes place because of an improved outlook for business conditions over what was anticipated.Correct Answer
Bear market
Your Answer
Bear market
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 Single Answer*Question
What is the goal of the Dow theory?Correct Answer
To determine changes in the primary or major movement in the market
Your Answer
To determine changes in the primary or major movement in the market
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
Multiple Choice Single Answer*Question
A pledge of real assets as insurance against the non-payment of default by the buyer representsCorrect Answer
Collateral
Your Answer
Collateral
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
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% , Benefits under section 80 L , Banks offer cheque facility for investors making it convenient to withdraw
Match The Following
Question
Correct Answer
Your Answer
Gross profit margin
Indicates the margin available after meeting the manufacturing expenses
Indicates the margin available after meeting the manufacturing expenses
ROE
Measure the profitability of equity funds
Measure the profitability of equity funds
Earnings power
Measure the profitability of operations without considering the influence of financial structure and tax rate
Measure the profitability of operations without considering the influence of financial structure and tax rate
Net profit margin
Ratio if net profit to sales
Ratio if net profit to sales
Monday, February 4, 2008
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question
________involves a simultaneous sale and repurchase agreement.
Correct Answer
Repos
Your Answer
Repos
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
Capital gain/loss arising out of the sale of the bond , Redemption of the bond of the issuer at a contracted value , Interest payments at coupon rates
Select The Blank
Question
________ 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
Market value to replacement cost ratio
True/False
Question
Bearish actions come from a series of declining peaks and troughs.
Correct Answer
True
Your Answer
True
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
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
What are the important macro economic indicators?
Correct Answer
GNP growth rate , Price Conditions , Monsoons
Your Answer
GNP growth rate , Price Conditions , Monsoons
True/False
Question
When we invest in only one asset we are not exposed to any specific or market risk.
Correct Answer
False
Your Answer
False
Multiple Choice Single Answer
Question
In estimating the growth of a firm, analyst's forecasts have an advantage over historical data-based models because :-
Correct Answer
They incorporate more recent information about the firm and inputs future prospects
Your Answer
They incorporate more recent information about the firm and inputs future prospects
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
True/False
Question
A segment is unattractive if the buyers possess strong or growing bargaining powers.
Correct Answer
True
Your Answer
True
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
Speculators
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 , Market value is determined by supply & demand , Investors are emotional than being rational
Multiple Choice Multiple Answer
Question
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 industrial Average , Dow Jones Transportation Average
Multiple Choice Multiple Answer
Question
What are the features of Kisan Vikas Patra?
Correct Answer
Term is for 8 years seven months , Provision of premature withdrawal , Interest rate is 8.4% compounded annually
Your Answer
Term is for 8 years seven months , Provision of premature withdrawal , Interest rate is 8.4% compounded annually
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
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
True/False
Question
The price earning ratio can be estimated for the firms with negative earnings per share.
Correct Answer
False
Your Answer
False
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 Multiple Answer
Question
Formula for calculation of portfolio variance requires :-
Correct Answer
Expected return on portfolio , Expected return on assets , Weight of asset in the portfolio
Your Answer
Expected return on portfolio , Expected return on assets , Weight of asset in the portfolio
Select The Blank
Question
A security is said to be ________ if its current market price is over its intrinsic value.
Correct Answer
Over priced
Your Answer
Over priced
Multiple Choice Single Answer
Question
What are sector specific funds?
Correct Answer
Scheme which invest in certain sectors
Your Answer
Scheme which invest in certain sectors
Multiple Choice Single Answer
Question
In India we have index futures contracts based on :-
Correct Answer
S&P CNX Nifty and the BSE sensex
Your Answer
S&P CNX Nifty and the BSE sensex
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
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
Investments could be made in retail government securities through :-
Correct Answer
Primary dealers
Your Answer
Primary dealers
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
Select The Blank
Question
When a debenture is sold to the general public a ________ is appointed.
Correct Answer
Trustee
Your Answer
Trustee
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
0.21
True/False
Question
PPF is a good retirement planning and tax saving vehicle.
Correct Answer
True
Your Answer
True
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
Multiple Choice Single Answer
Question
Financial assets can be classified as :-
Correct Answer
Marketable and non-marketable
Your Answer
Marketable and non-marketable
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 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
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
True/False
Question
Policies of the government and the attitude of the government towards the industry have a considerable influence on the industry.
Correct Answer
True
Your Answer
True
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 Multiple Answer
Question
Characteristics of Preference shares are :-
Correct Answer
Carry a fixed rate of dividend , Dividend payable out of profit , Redemption in 7 to 12 years
Your Answer
Carry a fixed rate of dividend , Dividend payable out of profit , Redemption in 7 to 12 years
Select The Blank
Question
The compounded annual return of Kisan Vikas patra is ________.
Correct Answer
0.084
Your Answer
0.084
True/False
Question
Sensex is the index of Calcutta Stock Exchange.
Correct Answer
False
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 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
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
________ of companies may open at higher or lower price than the issue price.
Correct Answer
IPO's
Your Answer
IPO's
Match The Following
Question
Correct Answer
Your Answer
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
Present Value
Value at a certain future date today of a stream of cash flows that occurs over a period of time.
Future Value
Future Value
Series of equal payments or receipts occurring at regular intervals of time.
Present value of annuity
Present value of annuity
Match The Following
Question
Correct Answer
Your Answer
Development of Dow's principles
William Peter Hamilton
William Peter Hamilton
Breadth Indicator
Advance/decline line
Advance/decline line
Momentum indicator
MACD
MACD
Trend lines
Useful tool in technical analysis
Useful tool in technical analysis
True/False
Question
Post office monthly schemes have a 10 year tenor.
Correct Answer
False
Your Answer
False
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
Stable firms
Select The Blank
Question
________involves a simultaneous sale and repurchase agreement.
Correct Answer
Repos
Your Answer
Repos
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
Capital gain/loss arising out of the sale of the bond , Redemption of the bond of the issuer at a contracted value , Interest payments at coupon rates
Select The Blank
Question
________ 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
Market value to replacement cost ratio
True/False
Question
Bearish actions come from a series of declining peaks and troughs.
Correct Answer
True
Your Answer
True
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
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
What are the important macro economic indicators?
Correct Answer
GNP growth rate , Price Conditions , Monsoons
Your Answer
GNP growth rate , Price Conditions , Monsoons
True/False
Question
When we invest in only one asset we are not exposed to any specific or market risk.
Correct Answer
False
Your Answer
False
Multiple Choice Single Answer
Question
In estimating the growth of a firm, analyst's forecasts have an advantage over historical data-based models because :-
Correct Answer
They incorporate more recent information about the firm and inputs future prospects
Your Answer
They incorporate more recent information about the firm and inputs future prospects
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
True/False
Question
A segment is unattractive if the buyers possess strong or growing bargaining powers.
Correct Answer
True
Your Answer
True
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
Speculators
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 , Market value is determined by supply & demand , Investors are emotional than being rational
Multiple Choice Multiple Answer
Question
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 industrial Average , Dow Jones Transportation Average
Multiple Choice Multiple Answer
Question
What are the features of Kisan Vikas Patra?
Correct Answer
Term is for 8 years seven months , Provision of premature withdrawal , Interest rate is 8.4% compounded annually
Your Answer
Term is for 8 years seven months , Provision of premature withdrawal , Interest rate is 8.4% compounded annually
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
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
True/False
Question
The price earning ratio can be estimated for the firms with negative earnings per share.
Correct Answer
False
Your Answer
False
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 Multiple Answer
Question
Formula for calculation of portfolio variance requires :-
Correct Answer
Expected return on portfolio , Expected return on assets , Weight of asset in the portfolio
Your Answer
Expected return on portfolio , Expected return on assets , Weight of asset in the portfolio
Select The Blank
Question
A security is said to be ________ if its current market price is over its intrinsic value.
Correct Answer
Over priced
Your Answer
Over priced
Multiple Choice Single Answer
Question
What are sector specific funds?
Correct Answer
Scheme which invest in certain sectors
Your Answer
Scheme which invest in certain sectors
Multiple Choice Single Answer
Question
In India we have index futures contracts based on :-
Correct Answer
S&P CNX Nifty and the BSE sensex
Your Answer
S&P CNX Nifty and the BSE sensex
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
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
Investments could be made in retail government securities through :-
Correct Answer
Primary dealers
Your Answer
Primary dealers
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
Select The Blank
Question
When a debenture is sold to the general public a ________ is appointed.
Correct Answer
Trustee
Your Answer
Trustee
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
0.21
True/False
Question
PPF is a good retirement planning and tax saving vehicle.
Correct Answer
True
Your Answer
True
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
Multiple Choice Single Answer
Question
Financial assets can be classified as :-
Correct Answer
Marketable and non-marketable
Your Answer
Marketable and non-marketable
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 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
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
True/False
Question
Policies of the government and the attitude of the government towards the industry have a considerable influence on the industry.
Correct Answer
True
Your Answer
True
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 Multiple Answer
Question
Characteristics of Preference shares are :-
Correct Answer
Carry a fixed rate of dividend , Dividend payable out of profit , Redemption in 7 to 12 years
Your Answer
Carry a fixed rate of dividend , Dividend payable out of profit , Redemption in 7 to 12 years
Select The Blank
Question
The compounded annual return of Kisan Vikas patra is ________.
Correct Answer
0.084
Your Answer
0.084
True/False
Question
Sensex is the index of Calcutta Stock Exchange.
Correct Answer
False
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 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
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
________ of companies may open at higher or lower price than the issue price.
Correct Answer
IPO's
Your Answer
IPO's
Match The Following
Question
Correct Answer
Your Answer
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
Present Value
Value at a certain future date today of a stream of cash flows that occurs over a period of time.
Future Value
Future Value
Series of equal payments or receipts occurring at regular intervals of time.
Present value of annuity
Present value of annuity
Match The Following
Question
Correct Answer
Your Answer
Development of Dow's principles
William Peter Hamilton
William Peter Hamilton
Breadth Indicator
Advance/decline line
Advance/decline line
Momentum indicator
MACD
MACD
Trend lines
Useful tool in technical analysis
Useful tool in technical analysis
True/False
Question
Post office monthly schemes have a 10 year tenor.
Correct Answer
False
Your Answer
False
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
Stable firms
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