LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer*Question -Gilt Edged Securities are :-Correct Answer -Central Govt , State Govt. , Quasi-Govt
Your Answer Central Govt
Multiple Choice Single Answer*Question -What is GDP at factor cost ?Correct Answer -Excludes net income received from abroad
Your Answer Excludes net income received from abroad
Multiple Choice Multiple Answer*Question -What are the features of short-term trends?Correct Answer -They last from 1 to 3 or 4 weeks , They interrupt the course
of the intermediate cycle , They are usually influenced by
random news events
Your Answer They last from 1 to 3 or 4 weeks , They interrupt the course
of the intermediate cycle , They are usually influenced by
random news events
Select The Blank*Question -The 8% taxable savings bonds are repayable after ________
years.Correct Answer -6
Your Answer 6
Multiple Choice Multiple Answer*Question -Formula for calculation of portfolio variance requires :-Correct Answer -Expected return on portfolio , Expected return on assets ,
Weight of asset in the portfolio
Your Answer Expected return on portfolio , Standard deviation , Weight of
asset in the portfolio
Multiple Choice Multiple Answer*Question -The Two-Stage dividend discount model is based on the
assumption of :-Correct Answer -An initial phase where the growth is not a stable growth rate ,
A subsequent steady state of growth rate being stable and
lasts n years , A stable growth phase lasts forever
Your Answer An initial phase where the growth is not a stable growth rate ,
A subsequent steady state of growth rate being stable and
lasts n years , A stable growth phase lasts forever
Select The Blank*Question -Risk can be referred as the ________ in the return with
respect to the expected return.Correct Answer -Volatility
Your Answer Difference
True/False*Question -With the introduction of on-line trading by NSE and BSE, the
role of regional stock exchanges have diminished.Correct Answer -True
Your Answer True
True/False*Question -The price earning ratio can be estimated for the firms with
negative earnings per share.Correct Answer -False
Your Answer True
Multiple Choice Multiple Answer*Question -What were the achievements of Bharat Forge during the year
2003?Correct Answer -Secured second largest customer in China , Appointed a
Company Secretary to act as compliance officer , New
contracts won in passenger car components
Your Answer Secured second largest customer in China , Appointed a
Company Secretary to act as compliance officer , New
contracts won in passenger car components
Select The Blank*Question -________ absorbs the excess demand or supply generated
by hedgers and assume the risk of price fluctuations.Correct Answer -Speculators
Your Answer Jobbers
Multiple Choice Multiple Answer*Question -Who are the constituents of a mutual fund?Correct Answer -Sponsor & trustees , Asset management company ,
Custodian
Your Answer Sponsor & trustees , Asset management company ,
Custodian
True/False*Question -A share certificate indicates that the investor owns a certain
number of shares.Correct Answer -True
Your Answer True
Multiple Choice Single Answer*Question -What is the percentage of variation the market and industry
influence account for?Correct Answer -2/3rd
Your Answer 2/3rd
Multiple Choice Single Answer*Question -How can transition phases be projected?Correct Answer -Transition phases are signalled by clearly definable price
patterns
Your Answer Transition phases are signalled by clearly definable price
patterns
True/False*Question -Balance of payments surplus augments foreign reserves of
the country and have a favourable impact on he exchange
rate.Correct Answer -True
Your Answer True
Multiple Choice Multiple Answer*Question -What are the features of post office monthly income
scheme?Correct Answer -Rate of return is 8 % , Interest payable monthly , Investor
earns bonus of 10% on completion of term
Your Answer Rate of return is 8 % , Interest payable monthly , Investor
earns bonus of 10% on completion of term
Match The Following*Question -Correct Answer -Your Answer
NSE Nifty Nifty
SEBI Redressal of investor
complaints
Redressal of investor
complaints
NAV Net asset value Net asset value
AMFI Association of mutual
funds of India
Association of mutual
funds of India
Multiple Choice Multiple Answer*Question -What were the Chairman's comments during the speech in
the Annual report of the FY 2002-03?Correct Answer -Best year in the history of the company , 146% growth in
exports , Highest pre and post tax profits
Your Answer Best year in the history of the company , 146% growth in
exports , Highest pre and post tax profits
Select The Blank*Question -Under the options contract ________ gives the holder the
right, but not the obligation to buy or sell the underlying
instrument only on the expiry date.Correct Answer -European option
Your Answer European option
Multiple Choice Single Answer*Question -When was the Dow theory first published?Correct Answer -Between 1900 and 1902
Your Answer Between 1900 and 1902
Multiple Choice Multiple Answer*Question -What are the features of point and figure charts?Correct Answer -Charts are constructed using a combination of X's and O's
known as boxes. , X's show that the prices are moving up ,
O's show that the prices are moving down
Your Answer Charts are constructed using a combination of X's and O's
known as boxes. , X's show that the prices are moving up ,
O's show that the prices are moving down
Select The Blank*Question -The ________ phase carries a lot of significance because it
marks the turning point between a rising and a falling market.Correct Answer -Transitional
Your Answer Transitional
Multiple Choice Single Answer*Question -Credit rating companies assign ratings for which of these
investments?Correct Answer -Company deposits
Your Answer Company deposits
Select The Blank*Question -When a debenture is sold to the general public a ________
is appointed.Correct Answer -Trustee
Your Answer Trustee
Select The Blank*Question -A security is said to be ________ if its current market price is
over its intrinsic value.Correct Answer -Over priced
Your Answer Over priced
Multiple Choice Multiple Answer*Question -What are the different types of profitability ratios?Correct Answer -Gross profit margin ratio , Earnings power , Return on equity
Your Answer Gross profit margin ratio , Earnings power , Return on equity
Select The Blank*Question -Dow Jones transportation average was previously known as
________.Correct Answer -Rail average
Your Answer Rail average
Multiple Choice Single Answer*Question -An agreement to buy or sell a specified quantity of an asset
at a certain future date or a certain price is know as :-Correct Answer -Forward contract
Your Answer Forward contract
Multiple Choice Single Answer*Question -When was the first mutual fund set up?Correct Answer -1963
Your Answer 1963
Multiple Choice Single Answer*Question -Which market is affected with the improving and higher
growth rate in economy?Correct Answer -Stock market
Your Answer Stock market
Multiple Choice Single Answer*Question -What is the art of technical analysis?Correct Answer -To identify trend changes at an early stage and maintain
investment posture till the trend has reversed
Your Answer To identify trend changes at an early stage and maintain
investment posture till the trend has reversed
Multiple Choice Single Answer*Question -In any Economy, bridge is created between savers and who
need the funds by this system :-Correct Answer -Financial
Your Answer Financial
True/False*Question -The basic inputs of the general model are expected
dividends and required rate of return on stock.Correct Answer -True
Your Answer True
True/False*Question -Quick assets consist of current assets less inventories.Correct Answer -True
Your Answer True
True/False*Question -Bonds and Debentures represent long term debt
instruments.Correct Answer -False
Your Answer True
Multiple Choice Single Answer*Question -The expected price of the stock at the end of the holding
period is determined by future dividends and the value of the
stock is the present value of dividends through infinity are the
underlying assumptions of :-Correct Answer -The General model
Your Answer The Dividend discount model
True/False*Question -American option gives the holder the right, but not the
obligation to buy or sell the underlying instrument on or
before the expiry date and the option can be exercised early.Correct Answer -True
Your Answer True
True/False*Question -If rupee weakens against the dollar, it has favourable impact
for the importers.Correct Answer -False
Your Answer False
Multiple Choice Multiple Answer*Question -What are the features of Kisan Vikas Patra?Correct Answer -Term is for 8 years seven months , Provision of premature
withdrawal , Interest rate is 8.4% compounded annually
Your Answer Term is for 8 years seven months , Interest rate is 8.4%
compounded annually , Tax benefits under 80 L available
Select The Blank*Question -________ is the ratio of the market price per share to the
earnings per share.Correct Answer -Price earning ratio
Your Answer Price earning ratio
Multiple Choice Multiple Answer*Question -What are the warning indicators to be considered before
analysing the financial statements of a firm ?Correct Answer -Growth in profits outstripping the revenue growth by a large
extent , Non operating expenses occur frequently ,
Accounting rules changed frequently
Your Answer Growth in profits outstripping the revenue growth by a large
extent , Non operating expenses occur frequently ,
Accounting rules changed frequently
Select The Blank*Question -________ is the value today of a stream of cash flows that
occurs in future.Correct Answer -Present value
Your Answer Present value
Select The Blank*Question -Under futures market ________ process provides for
collection of losses that have already occurred.Correct Answer -The daily settlement
Your Answer The daily settlement
Multiple Choice Single Answer*Question -A security represent evidence of :-Correct Answer -A property right
Your Answer A property right
Match The Following*Question -Correct Answer -Your Answer
The yield to maturity is
same as the
Geometric mean return
or the internal rate of
return
Geometric mean return or
the internal rate of return
Periodic interest
payments and principal
repayment at the time of
maturity
Debt instrument/Bonds Debt instrument/Bonds
The actual yield earned
by an investor on a bond
Realised yield Yield to maturity
Present value interest
factor of annuities and
present value interest
factor
Yield to maturity Interest rate risk
True/False*Question -A price rise accompanied by expanding volume denotes a
potential trend reversal.Correct Answer -False
Your Answer False
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank*Question -________ measures the profitability of operations without
considering the influence of financial structure and tax rate.Correct Answer -Earnings power
Your Answer Earnings power
True/False*Question -While calculating geometric mean calculation of root is not
important.Correct Answer -False
Your Answer False
Multiple Choice Single Answer*Question -What could be a better approach to flow-of -funds analysis?Correct Answer -An examination of liquidity trends in the banking system
Your Answer Analyzing the Fiscal issues
True/False*Question -The Asset management company of the mutual fund must
have 50% independent directors.Correct Answer -True
Your Answer True
True/False*Question -A higher value of current ratio indicates a better short term
solvency of the firm.Correct Answer -True
Your Answer True
Multiple Choice Single Answer*Question -Investment is a risk free investment when :-Correct Answer -Actual return is = expected return
Your Answer Actual return is = expected return
Select The Blank*Question -The govt allowed public sector banks and institutions in
mutual funds in ________.Correct Answer -Early 90's
Your Answer Early 90's
True/False*Question -The returns of sector specific funds are solely dependant on
the performance of the respective sectors / industries.Correct Answer -True
Your Answer True
Multiple Choice Single Answer*Question -The price of the index futures contract is defined as :-Correct Answer -Future price = Spot price + Carry cost
Your Answer Future price = Spot price + Carry cost
Multiple Choice Multiple Answer*Question -An options contract allows the investor :-Correct Answer -To earn a profit while restricting the downside risk , To use
the options for speculation , Either to honour or walk away
from the contract
Your Answer To earn a profit while restricting the downside risk , To use
the options for speculation , Either to honour or walk away
from the contract
True/False*Question -The basic assumption of Technical analysis is that, price
discounts everything and it is the outcome of all forces
affecting a stock.Correct Answer -True
Your Answer True
Select The Blank*Question -Secondary reactions occurs because of ________ which
arise in themarket as a result of over optimism and over
pessimism.Correct Answer -Technical distortions
Your Answer Technical distortions
Select The Blank*Question -In a heads and shoulders formation the deeper the pattern,
the greater is the ________ significance once it is completedCorrect Answer -Bearish
Your Answer Bearish
True/False*Question -Debt is less riskier source of finance than equity.Correct Answer -False
Your Answer True
True/False*Question -The arithmetic mean is a set of observations is calculated by
finding the sum values and dividing by the number of
observations.Correct Answer -True
Your Answer True
Multiple Choice Single Answer*Question -What does flow-of fund analysis help in understanding?Correct Answer -Availability of money for the stock market
Your Answer Financial strength of various companies
True/False*Question -The normal relationship is for the volume to expand on rallies
and contract on declines.Correct Answer -True
Your Answer True
Multiple Choice Multiple Answer*Question -Growth of the firm can be estimated through :-Correct Answer -Firm's past earnings/historical growth rate , Estimates made
by equity research analyst who follow the firm , Estimates
from a firm's fundamentals
Your Answer Firm's past earnings/historical growth rate , Estimates from a
firm's fundamentals , Forecasting future revenues and
earnings
Multiple Choice Multiple Answer*Question -The security analysis process will achieve :-Correct Answer -True picture of a company , Normal earning power ,
Projection of future profitability
Your Answer True picture of a company , Normal earning power ,
Projection of future profitability
Multiple Choice Single Answer*Question -The general dividend model is based on the principle of :-Correct Answer -Present value of the expected future cash flow
Your Answer Present value of the expected future cash flow
Multiple Choice Single Answer*Question -The index futures symbols of BSE are represented as :-Correct Answer -BSX JAN 2005 (January contract)
Your Answer BSX JAN 2005 (January contract)
Multiple Choice Multiple Answer*Question -What are the features of bank deposits?Correct Answer -Interest is presently around 6% , Benefits under section 80 L
, Banks offer cheque facility for investors making it
convenient to withdraw
Your Answer Interest is presently around 6% , Banks offer cheque facility
for investors making it convenient to withdraw
True/False*Question -Risk on a portfolio of assets is always same as the risk on
individual asset.Correct Answer -False
Your Answer False
Select The Blank*Question -UTI was set up in the year ________.Correct Answer -1963
Your Answer 1963
Multiple Choice Multiple Answer*Question -Major steps involved in construction of a index are :-Correct Answer -Selecting a set of scrips to be used , Fixing starting date ,
Calculating market capitalisation
Your Answer Selecting a set of scrips to be used , Fixing starting date ,
Calculating market capitalisation
Select The Blank*Question -A line is defined as a price movement two or three weeks or
longer, during which period the price variation of both
averages moves within a price range of
approximately________%.Correct Answer -5
Your Answer 5
Multiple Choice Multiple Answer*Question -The return to the bond investor can be measured in terms of
:-Correct Answer -Realised yield , Current yield , Yield to maturity
Your Answer Current yield , Yield to maturity
Multiple Choice Multiple Answer*Question -What are the features of candle stick charts?Correct Answer -Indicates in black if the closing price is lower than the
opening price , Indicates in white if the closing price is higher
than the opening price
Your Answer Indicates in black if the closing price is lower than the
opening price , Indicates in white if the closing price is higher
than the opening price
Select The Blank*Question -Debentures rated "BB" refers ________ of timely payment of
interest and principal.Correct Answer -Inadequate safety
Your Answer Inadequate safety
Multiple Choice Single Answer*Question -The objective of fundamental analysis for a security in a
market is to identify either it is :-Correct Answer -Under priced and over priced
Your Answer Under priced and over priced
Multiple Choice Single Answer*Question -When the firm is not raising equity by issuing new shares,
the growth rate in net profits is given by :-Correct Answer -Retention ratio X return on equity
Your Answer Price earning ratio X return on equity
Select The Blank*Question -A ________ rally for stocks generally takes place because of
an improved outlook for business conditions over what was
anticipated.Correct Answer -Bear market
Your Answer Bullish market
Multiple Choice Multiple Answer*Question -Characteristics of Preference shares are :-Correct Answer -Carry a fixed rate of dividend , Dividend payable out of profit
, Redemption in 7 to 12 years
Your Answer Carry a fixed rate of dividend , Dividend payable out of profit
, Redemption in 7 to 12 years
Multiple Choice Multiple Answer*Question -What are the SEBI regulations with respect to mutual funds?Correct Answer -Mutual funds to be registered with SEBI before the launching
any scheme , 2/3rds of the directors of the trustee company
must be independent , An AMC approved by SEBI manages
the fund
Your Answer Mutual funds to be registered with SEBI before the launching
any scheme , 2/3rds of the directors of the trustee company
must be independent , An AMC approved by SEBI manages
the fund
Multiple Choice Single Answer*Question -The bond issuing firm enjoys the flexibility of being able to
call the bonds if :-Correct Answer -Interest rates are falling
Your Answer Interest rates are falling
Multiple Choice Single Answer*Question -We can compare the price earning ratio of a market to its
historical average to make judgements about, whether
market is :-Correct Answer -Under valued or over valued
Your Answer Under valued or over valued
Multiple Choice Single Answer*Question -The growth rate is used to forecast future revenues and
earnings and are inputs in valuing :-Correct Answer -Stable firms
Your Answer High growth firms
Multiple Choice Single Answer*Question -A security analysis is done :-Correct Answer -For decision making for investments
Your Answer For decision making for investments
Multiple Choice Multiple Answer*Question -Which ratios are commonly used?Correct Answer -Debt equity ratio , Interest coverage ratios , Debt service
coverage ratios
Your Answer Debt equity ratio , Interest coverage ratios , Debt service
coverage ratios
Select The Blank*Question -An option is a contract which gives the buyer ________ to
buy or sell shares of the underlying security at a specific
price on or before a specific date.Correct Answer -Right but not obligation
Your Answer Right but not obligation
Match The Following*Question -Correct Answer -Your Answer
Growth of income 40-60 % debt, 40-60 %
equities
40-60 % debt, 40-60 %
equities
Current income Short term debt portfolio Fixed - income portfolio
Stability of principal Fixed - income portfolio Short term debt portfolio
Appreciation 75-100 % in equities 75-100 % in equities
Select The Blank*Question -An investor with a higher tolerance of risk should tilt his
portfolio in favour of ________.Correct Answer -Stocks
Your Answer Stocks
Select The Blank*Question -S&P NSE 50 index is known as ________.Correct Answer -NIFTY
Your Answer NIFTY
Multiple Choice Multiple Answer*Question -Mutual fund schemes could be broadly classified as :-Correct Answer -Open ended scheme , Close ended scheme
Your Answer Open ended scheme , Close ended scheme
Multiple Choice Multiple Answer*Question -What are the features of line charts?Correct Answer -It connects closing prices from one period to the next , It is
ideal for securities with no high or low price data
Your Answer It connects closing prices from one period to the next , It is
ideal for securities with no high or low price data
True/False*Question -Investors in high tax bracket would benefit by investing in
equity schemes.Correct Answer -False
Your Answer False
Match The Following*Question -Correct Answer -Your Answer
Ratio used as a measure
of relative value
PEG ratio Price to book value ratio
The market value of the
firms assets divided by
the replacement cost of
these assets
Market value to
replacement cost ratio
Market value to
replacement cost ratio
Key determiner of
revenue multiples
Profit margin Profit margin
The market value of the
equity in a firm reflects
the markets expectations
of the firms earnings
power and cash flows.
Price to book value ratio Price earning ratio
Select The Blank*Question -________ measures the profitability of operations without
considering the influence of financial structure and tax rate.Correct Answer -Earnings power
Your Answer Earnings power
True/False*Question -While calculating geometric mean calculation of root is not
important.Correct Answer -False
Your Answer False
Multiple Choice Single Answer*Question -What could be a better approach to flow-of -funds analysis?Correct Answer -An examination of liquidity trends in the banking system
Your Answer Analyzing the Fiscal issues
True/False*Question -The Asset management company of the mutual fund must
have 50% independent directors.Correct Answer -True
Your Answer True
True/False*Question -A higher value of current ratio indicates a better short term
solvency of the firm.Correct Answer -True
Your Answer True
Multiple Choice Single Answer*Question -Investment is a risk free investment when :-Correct Answer -Actual return is = expected return
Your Answer Actual return is = expected return
Select The Blank*Question -The govt allowed public sector banks and institutions in
mutual funds in ________.Correct Answer -Early 90's
Your Answer Early 90's
True/False*Question -The returns of sector specific funds are solely dependant on
the performance of the respective sectors / industries.Correct Answer -True
Your Answer True
Multiple Choice Single Answer*Question -The price of the index futures contract is defined as :-Correct Answer -Future price = Spot price + Carry cost
Your Answer Future price = Spot price + Carry cost
Multiple Choice Multiple Answer*Question -An options contract allows the investor :-Correct Answer -To earn a profit while restricting the downside risk , To use
the options for speculation , Either to honour or walk away
from the contract
Your Answer To earn a profit while restricting the downside risk , To use
the options for speculation , Either to honour or walk away
from the contract
True/False*Question -The basic assumption of Technical analysis is that, price
discounts everything and it is the outcome of all forces
affecting a stock.Correct Answer -True
Your Answer True
Select The Blank*Question -Secondary reactions occurs because of ________ which
arise in themarket as a result of over optimism and over
pessimism.Correct Answer -Technical distortions
Your Answer Technical distortions
Select The Blank*Question -In a heads and shoulders formation the deeper the pattern,
the greater is the ________ significance once it is completedCorrect Answer -Bearish
Your Answer Bearish
True/False*Question -Debt is less riskier source of finance than equity.Correct Answer -False
Your Answer True
True/False*Question -The arithmetic mean is a set of observations is calculated by
finding the sum values and dividing by the number of
observations.Correct Answer -True
Your Answer True
Multiple Choice Single Answer*Question -What does flow-of fund analysis help in understanding?Correct Answer -Availability of money for the stock market
Your Answer Financial strength of various companies
True/False*Question -The normal relationship is for the volume to expand on rallies
and contract on declines.Correct Answer -True
Your Answer True
Multiple Choice Multiple Answer*Question -Growth of the firm can be estimated through :-Correct Answer -Firm's past earnings/historical growth rate , Estimates made
by equity research analyst who follow the firm , Estimates
from a firm's fundamentals
Your Answer Firm's past earnings/historical growth rate , Estimates from a
firm's fundamentals , Forecasting future revenues and
earnings
Multiple Choice Multiple Answer*Question -The security analysis process will achieve :-Correct Answer -True picture of a company , Normal earning power ,
Projection of future profitability
Your Answer True picture of a company , Normal earning power ,
Projection of future profitability
Multiple Choice Single Answer*Question -The general dividend model is based on the principle of :-Correct Answer -Present value of the expected future cash flow
Your Answer Present value of the expected future cash flow
Multiple Choice Single Answer*Question -The index futures symbols of BSE are represented as :-Correct Answer -BSX JAN 2005 (January contract)
Your Answer BSX JAN 2005 (January contract)
Multiple Choice Multiple Answer*Question -What are the features of bank deposits?Correct Answer -Interest is presently around 6% , Benefits under section 80 L
, Banks offer cheque facility for investors making it
convenient to withdraw
Your Answer Interest is presently around 6% , Banks offer cheque facility
for investors making it convenient to withdraw
True/False*Question -Risk on a portfolio of assets is always same as the risk on
individual asset.Correct Answer -False
Your Answer False
Select The Blank*Question -UTI was set up in the year ________.Correct Answer -1963
Your Answer 1963
Multiple Choice Multiple Answer*Question -Major steps involved in construction of a index are :-Correct Answer -Selecting a set of scrips to be used , Fixing starting date ,
Calculating market capitalisation
Your Answer Selecting a set of scrips to be used , Fixing starting date ,
Calculating market capitalisation
Select The Blank*Question -A line is defined as a price movement two or three weeks or
longer, during which period the price variation of both
averages moves within a price range of
approximately________%.Correct Answer -5
Your Answer 5
Multiple Choice Multiple Answer*Question -The return to the bond investor can be measured in terms of
:-Correct Answer -Realised yield , Current yield , Yield to maturity
Your Answer Current yield , Yield to maturity
Multiple Choice Multiple Answer*Question -What are the features of candle stick charts?Correct Answer -Indicates in black if the closing price is lower than the
opening price , Indicates in white if the closing price is higher
than the opening price
Your Answer Indicates in black if the closing price is lower than the
opening price , Indicates in white if the closing price is higher
than the opening price
Select The Blank*Question -Debentures rated "BB" refers ________ of timely payment of
interest and principal.Correct Answer -Inadequate safety
Your Answer Inadequate safety
Multiple Choice Single Answer*Question -The objective of fundamental analysis for a security in a
market is to identify either it is :-Correct Answer -Under priced and over priced
Your Answer Under priced and over priced
Multiple Choice Single Answer*Question -When the firm is not raising equity by issuing new shares,
the growth rate in net profits is given by :-Correct Answer -Retention ratio X return on equity
Your Answer Price earning ratio X return on equity
Select The Blank*Question -A ________ rally for stocks generally takes place because of
an improved outlook for business conditions over what was
anticipated.Correct Answer -Bear market
Your Answer Bullish market
Multiple Choice Multiple Answer*Question -Characteristics of Preference shares are :-Correct Answer -Carry a fixed rate of dividend , Dividend payable out of profit
, Redemption in 7 to 12 years
Your Answer Carry a fixed rate of dividend , Dividend payable out of profit
, Redemption in 7 to 12 years
Multiple Choice Multiple Answer*Question -What are the SEBI regulations with respect to mutual funds?Correct Answer -Mutual funds to be registered with SEBI before the launching
any scheme , 2/3rds of the directors of the trustee company
must be independent , An AMC approved by SEBI manages
the fund
Your Answer Mutual funds to be registered with SEBI before the launching
any scheme , 2/3rds of the directors of the trustee company
must be independent , An AMC approved by SEBI manages
the fund
Multiple Choice Single Answer*Question -The bond issuing firm enjoys the flexibility of being able to
call the bonds if :-Correct Answer -Interest rates are falling
Your Answer Interest rates are falling
Multiple Choice Single Answer*Question -We can compare the price earning ratio of a market to its
historical average to make judgements about, whether
market is :-Correct Answer -Under valued or over valued
Your Answer Under valued or over valued
Multiple Choice Single Answer*Question -The growth rate is used to forecast future revenues and
earnings and are inputs in valuing :-Correct Answer -Stable firms
Your Answer High growth firms
Multiple Choice Single Answer*Question -A security analysis is done :-Correct Answer -For decision making for investments
Your Answer For decision making for investments
Multiple Choice Multiple Answer*Question -Which ratios are commonly used?Correct Answer -Debt equity ratio , Interest coverage ratios , Debt service
coverage ratios
Your Answer Debt equity ratio , Interest coverage ratios , Debt service
coverage ratios
Select The Blank*Question -An option is a contract which gives the buyer ________ to
buy or sell shares of the underlying security at a specific
price on or before a specific date.Correct Answer -Right but not obligation
Your Answer Right but not obligation
Match The Following*Question -Correct Answer -Your Answer
Growth of income 40-60 % debt, 40-60 %
equities
40-60 % debt, 40-60 %
equities
Current income Short term debt portfolio Fixed - income portfolio
Stability of principal Fixed - income portfolio Short term debt portfolio
Appreciation 75-100 % in equities 75-100 % in equities
Select The Blank*Question -An investor with a higher tolerance of risk should tilt his
portfolio in favour of ________.Correct Answer -Stocks
Your Answer Stocks
Select The Blank*Question -S&P NSE 50 index is known as ________.Correct Answer -NIFTY
Your Answer NIFTY
Multiple Choice Multiple Answer*Question -Mutual fund schemes could be broadly classified as :-Correct Answer -Open ended scheme , Close ended scheme
Your Answer Open ended scheme , Close ended scheme
Multiple Choice Multiple Answer*Question -What are the features of line charts?Correct Answer -It connects closing prices from one period to the next , It is
ideal for securities with no high or low price data
Your Answer It connects closing prices from one period to the next , It is
ideal for securities with no high or low price data
True/False*Question -Investors in high tax bracket would benefit by investing in
equity schemes.Correct Answer -False
Your Answer False
Match The Following*Question -Correct Answer -Your Answer
Ratio used as a measure
of relative value
PEG ratio Price to book value ratio
The market value of the
firms assets divided by
the replacement cost of
these assets
Market value to
replacement cost ratio
Market value to
replacement cost ratio
Key determiner of
revenue multiples
Profit margin Profit margin
The market value of the
equity in a firm reflects
the markets expectations
of the firms earnings
power and cash flows.
Price to book value ratio Price earning ratio
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank*Question -Measures of ________ tells us what we can expect a typical or middle data
point of a distribution to be.Correct Answer -Central tendency
Your Answer Variance
Multiple Choice Single Answer*Question -Capital expenditure -depreciation +change in working capital -(new debt
issued - debt repaid) =Correct Answer -Equity reinvested in business
Your Answer Equity reinvested in business
Multiple Choice Multiple Answer*Question -What were the objectives for 2002-03 the chairman of Bharat forge had
emphasised on in the annual report for 2001 - 02Correct Answer -Maintain aggressive exports thrust , Increase shares of value added
products , Continue reducing costs
Your Answer Maintain aggressive exports thrust , Increase shares of value added
products , Continue reducing costs
Multiple Choice Single Answer*Question -What do you understand by term pioneering stage in the industry life cycle
analysis?Correct Answer -Slow sales growth product recently introduced
Your Answer Highest sales
Multiple Choice Single Answer*Question -In India futures on individual securities have been introduced by :-Correct Answer -BSE & NSE
Your Answer NSE
Multiple Choice Multiple Answer*Question -The features of bond are :-Correct Answer -Collateral , Call provision , Sinking fund and protective covenants
Your Answer Collateral , Call provision , Sinking fund and protective covenants
Select The Blank*Question -The compounded annual return of Kisan Vikas patra is ________.Correct Answer -0.084
Your Answer 0.084
Select The Blank*Question -________ measures the profitability of operations without considering the
influence of financial structure and tax rate.Correct Answer -Earnings power
Your Answer Net profit margin
Select The Blank*Question -The 6.________% tax saving bonds of government of India have a tenure of
5 years.Correct Answer -5
Your Answer 5
Select The Blank*Question -The govt allowed public sector banks and institutions in mutual funds in
________.Correct Answer -Early 90's
Your Answer Early 90's
Multiple Choice Multiple Answer*Question -Which ratios are commonly used?Correct Answer -Interest coverage ratios , Debt service coverage ratios , Debt equity
ratio
Your Answer Debt equity ratio , Interest coverage ratios , Debt service coverage ratios
Multiple Choice Single Answer*Question -Mr.Saurabh invests Rs. 5,000/- today. The rate of interest is 4% compounded
annually. What will be the value of his investment after 5 years?Correct Answer -Rs. 6083/-
Your Answer Rs. 6083/-
Select The Blank*Question -The ________ phase is characterized by resistance area and support level.Correct Answer -Transition
Your Answer Horizontal
Select The Blank*Question -________ is due to the fact that a borrower may not pay interest and/or
principal on time.Correct Answer -Default risk
Your Answer Default risk
Multiple Choice Single Answer*Question -What do you understand by the term redemption price?Correct Answer -Price or NAV at which a scheme purchases its units
Your Answer Price or NAV at which a scheme purchases its units
True/False*Question -Investment decisions can be viewed as an integrated process to which
security analysis makes its unique contribution.Correct Answer -True
Your Answer True
Select The Blank*Question -Secondary reactions occurs because of ________ which arise in the market as
a result of over optimism and over pessimism.Correct Answer -Technical distortions
Your Answer Fundamental distortions
True/False*Question -Five paisa.com is an example of on line trading portal.Correct Answer -True
Your Answer True
Multiple Choice Single Answer*Question -What is the percentage of variation the market and industry influence account
for?Correct Answer -2/3rd
Your Answer 75%
Match The Following*Question -Correct Answer -Your Answer
Price pattern Resistance level Secondary reaction
Primary trend Last between 1-2 years Last between 1-2 years
Intermediate trend Last between 3 weeks to as long as 6 months Last between 3 weeks to
as long as 6 months
Short term trend Last 1 to 3-4 weeks Last 1 to 3-4 weeks
Multiple Choice Multiple Answer*Question -What are the features of short-term trends?Correct Answer -They last from 1 to 3 or 4 weeks , They interrupt the course of the
intermediate cycle , They are usually influenced by random news events
Your Answer They last from 1 to 3 or 4 weeks , They interrupt the course of the
intermediate cycle , They are usually influenced by random news events
True/False*Question -With the use of diversification you can reduce the risk.Correct Answer -True
Your Answer True
True/False*Question -Post office monthly schemes have a 10 year tenor.Correct Answer -False
Your Answer False
Multiple Choice Single Answer*Question -Till 1990's secular Indian economy's inflation rate has been of what
percentage?Correct Answer -0.07
Your Answer 0.07
Multiple Choice Single Answer*Question -Mr.Rohan invests Rs.25,000/- today. The rate of interest is 6% compounded
annually. What will be the value of his investment after 3 years?Correct Answer -Rs. 29775/-
Your Answer Rs. 29775/-
Multiple Choice Multiple Answer*Question -The firm issuing bonds operating sinking fund and repurchases bonds either
:-Correct Answer -Calling in a certain number of bonds by lot , Buying bonds in the open
market , Buying bonds issued to banks and financial institutions
Your Answer Calling in a certain number of bonds by lot , Buying bonds in the open
market
True/False*Question -A mutual fund is required to dispatch the dividend warrants to the unit
holders within thirty days of the declaration of dividend.Correct Answer -True
Your Answer True
True/False*Question -Fixed assets turnover ratio measures the efficiency of utilisation of total
assets, fixed as well as current.Correct Answer -True
Your Answer True
Select The Blank*Question -A pattern which does not result in reversal of a trend but reaffirmation of the
underlying trend is called ________.Correct Answer -Consolidation pattern
Your Answer Distribution pattern
True/False*Question -The risk associated to get the required rate of return on the stock is measure
by market beta.Correct Answer -True
Your Answer False
Select The Blank*Question -Acid test ratio is more stringent measure of liquidity compared to the
________.Correct Answer -Current ratio
Your Answer Current ratio
Multiple Choice Multiple Answer*Question -What are the SEBI regulations with respect to mutual funds?Correct Answer -Mutual funds to be registered with SEBI before the launching any
scheme , 2/3rds of the directors of the trustee company must be independent , An AMC
approved by SEBI manages the fund
Your Answer Mutual funds to be registered with SEBI before the launching any
scheme , 2/3rds of the directors of the trustee company must be independent , An AMC
approved by SEBI manages the fund
True/False*Question -Default is normally evaluated and indicated by the rating assigned to the debt
instruments by independent credit ratings agencies.Correct Answer -True
Your Answer True
True/False*Question -In case of fixed income securities like debentures, you get the return in the
form of dividend.Correct Answer -False
Your Answer False
Multiple Choice Single Answer*Question -What are the assumptions of the Dow theory?Correct Answer -Majority of stocks follow the underlying trend of the market most of
the time
Your Answer Majority of stocks follow the underlying trend of the market most of the
time
Multiple Choice Multiple Answer*Question -The Peer group of Bharat Forge consists of which all companies?Correct Answer -Am forge industries , Kalyani Forge , EL Forge
Your Answer Am forge industries , Kalyani Forge , EL Forge
Multiple Choice Single Answer*Question -We can compare the price earning ratio of a market to its historical average
to make judgements about, whether market is :-Correct Answer -Under valued or over valued
Your Answer Under valued or over valued
Multiple Choice Single Answer*Question -What is the rate of interest on the tax free bonds issue by the government?Correct Answer -6.5%
Your Answer 6.5%
Multiple Choice Multiple Answer*Question -What are the features of candle stick charts?Correct Answer -Indicates in black if the closing price is lower than the opening price ,
Indicates in white if the closing price is higher than the opening price
Your Answer Indicates in black if the closing price is lower than the opening price ,
Indicates in white if the closing price is higher than the opening price , Displays the
correlation between the high and low prices
Multiple Choice Multiple Answer*Question -What are the features of public provident scheme?Correct Answer -15 year instrument , Rate of interest is 8% , Partial withdrawal is
available from 7th year
Your Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is
available from 7th year
Multiple Choice Single Answer*Question -Investments could be made in retail government securities through :-Correct Answer -Primary dealers
Your Answer Primary dealers
Multiple Choice Multiple Answer*Question -What were the Chairman's comments during the speech in the Annual report
of the FY 2002-03?Correct Answer -Best year in the history of the company , 146% growth in exports ,
Highest pre and post tax profits
Your Answer Best year in the history of the company , 146% growth in exports ,
Highest pre and post tax profits
Multiple Choice Multiple Answer*Question -An options contract allows the investor :-Correct Answer -To earn a profit while restricting the downside risk , To use the
options for speculation , Either to honour or walk away from the contract
Your Answer To earn a profit while restricting the downside risk , To use the options
for speculation , Either to honour or walk away from the contract
Multiple Choice Single Answer*Question -Mr.Satish invests Rs.10,000/- today. The rate of interest is 8% compounded
annually. What will be the value of his investment after 5 years?Correct Answer -Rs.14.693/-
Your Answer Rs.14.693/-
Multiple Choice Multiple Answer*Question -What were the achievements of Bharat Forge during the year 2003?Correct Answer -Secured second largest customer in China , Appointed a Company
Secretary to act as compliance officer , New contracts won in passenger car components
Your Answer Secured second largest customer in China , Appointed a Company
Secretary to act as compliance officer , New contracts won in passenger car components
Match The Following*Question -Correct Answer -Your Answer
Weak form model is also termed as Random walk model Efficient market hypothesis
Investors are rational Efficient market hypothesis Random walk model
Securities current prices fully reflect all historical information Weak form EMH Weak
form EMH
Framework on efficient capital markets, a review of theory and empirical work Fama
Strong form
True/False*Question -Quick assets consist of current assets less inventories.Correct Answer -True
Your Answer True
Select The Blank*Question -Measures of ________ tells us what we can expect a typical or middle data
point of a distribution to be.Correct Answer -Central tendency
Your Answer Variance
Multiple Choice Single Answer*Question -Capital expenditure -depreciation +change in working capital -(new debt
issued - debt repaid) =Correct Answer -Equity reinvested in business
Your Answer Equity reinvested in business
Multiple Choice Multiple Answer*Question -What were the objectives for 2002-03 the chairman of Bharat forge had
emphasised on in the annual report for 2001 - 02Correct Answer -Maintain aggressive exports thrust , Increase shares of value added
products , Continue reducing costs
Your Answer Maintain aggressive exports thrust , Increase shares of value added
products , Continue reducing costs
Multiple Choice Single Answer*Question -What do you understand by term pioneering stage in the industry life cycle
analysis?Correct Answer -Slow sales growth product recently introduced
Your Answer Highest sales
Multiple Choice Single Answer*Question -In India futures on individual securities have been introduced by :-Correct Answer -BSE & NSE
Your Answer NSE
Multiple Choice Multiple Answer*Question -The features of bond are :-Correct Answer -Collateral , Call provision , Sinking fund and protective covenants
Your Answer Collateral , Call provision , Sinking fund and protective covenants
Select The Blank*Question -The compounded annual return of Kisan Vikas patra is ________.Correct Answer -0.084
Your Answer 0.084
Select The Blank*Question -________ measures the profitability of operations without considering the
influence of financial structure and tax rate.Correct Answer -Earnings power
Your Answer Net profit margin
Select The Blank*Question -The 6.________% tax saving bonds of government of India have a tenure of
5 years.Correct Answer -5
Your Answer 5
Select The Blank*Question -The govt allowed public sector banks and institutions in mutual funds in
________.Correct Answer -Early 90's
Your Answer Early 90's
Multiple Choice Multiple Answer*Question -Which ratios are commonly used?Correct Answer -Interest coverage ratios , Debt service coverage ratios , Debt equity
ratio
Your Answer Debt equity ratio , Interest coverage ratios , Debt service coverage ratios
Multiple Choice Single Answer*Question -Mr.Saurabh invests Rs. 5,000/- today. The rate of interest is 4% compounded
annually. What will be the value of his investment after 5 years?Correct Answer -Rs. 6083/-
Your Answer Rs. 6083/-
Select The Blank*Question -The ________ phase is characterized by resistance area and support level.Correct Answer -Transition
Your Answer Horizontal
Select The Blank*Question -________ is due to the fact that a borrower may not pay interest and/or
principal on time.Correct Answer -Default risk
Your Answer Default risk
Multiple Choice Single Answer*Question -What do you understand by the term redemption price?Correct Answer -Price or NAV at which a scheme purchases its units
Your Answer Price or NAV at which a scheme purchases its units
True/False*Question -Investment decisions can be viewed as an integrated process to which
security analysis makes its unique contribution.Correct Answer -True
Your Answer True
Select The Blank*Question -Secondary reactions occurs because of ________ which arise in the market as
a result of over optimism and over pessimism.Correct Answer -Technical distortions
Your Answer Fundamental distortions
True/False*Question -Five paisa.com is an example of on line trading portal.Correct Answer -True
Your Answer True
Multiple Choice Single Answer*Question -What is the percentage of variation the market and industry influence account
for?Correct Answer -2/3rd
Your Answer 75%
Match The Following*Question -Correct Answer -Your Answer
Price pattern Resistance level Secondary reaction
Primary trend Last between 1-2 years Last between 1-2 years
Intermediate trend Last between 3 weeks to as long as 6 months Last between 3 weeks to
as long as 6 months
Short term trend Last 1 to 3-4 weeks Last 1 to 3-4 weeks
Multiple Choice Multiple Answer*Question -What are the features of short-term trends?Correct Answer -They last from 1 to 3 or 4 weeks , They interrupt the course of the
intermediate cycle , They are usually influenced by random news events
Your Answer They last from 1 to 3 or 4 weeks , They interrupt the course of the
intermediate cycle , They are usually influenced by random news events
True/False*Question -With the use of diversification you can reduce the risk.Correct Answer -True
Your Answer True
True/False*Question -Post office monthly schemes have a 10 year tenor.Correct Answer -False
Your Answer False
Multiple Choice Single Answer*Question -Till 1990's secular Indian economy's inflation rate has been of what
percentage?Correct Answer -0.07
Your Answer 0.07
Multiple Choice Single Answer*Question -Mr.Rohan invests Rs.25,000/- today. The rate of interest is 6% compounded
annually. What will be the value of his investment after 3 years?Correct Answer -Rs. 29775/-
Your Answer Rs. 29775/-
Multiple Choice Multiple Answer*Question -The firm issuing bonds operating sinking fund and repurchases bonds either
:-Correct Answer -Calling in a certain number of bonds by lot , Buying bonds in the open
market , Buying bonds issued to banks and financial institutions
Your Answer Calling in a certain number of bonds by lot , Buying bonds in the open
market
True/False*Question -A mutual fund is required to dispatch the dividend warrants to the unit
holders within thirty days of the declaration of dividend.Correct Answer -True
Your Answer True
True/False*Question -Fixed assets turnover ratio measures the efficiency of utilisation of total
assets, fixed as well as current.Correct Answer -True
Your Answer True
Select The Blank*Question -A pattern which does not result in reversal of a trend but reaffirmation of the
underlying trend is called ________.Correct Answer -Consolidation pattern
Your Answer Distribution pattern
True/False*Question -The risk associated to get the required rate of return on the stock is measure
by market beta.Correct Answer -True
Your Answer False
Select The Blank*Question -Acid test ratio is more stringent measure of liquidity compared to the
________.Correct Answer -Current ratio
Your Answer Current ratio
Multiple Choice Multiple Answer*Question -What are the SEBI regulations with respect to mutual funds?Correct Answer -Mutual funds to be registered with SEBI before the launching any
scheme , 2/3rds of the directors of the trustee company must be independent , An AMC
approved by SEBI manages the fund
Your Answer Mutual funds to be registered with SEBI before the launching any
scheme , 2/3rds of the directors of the trustee company must be independent , An AMC
approved by SEBI manages the fund
True/False*Question -Default is normally evaluated and indicated by the rating assigned to the debt
instruments by independent credit ratings agencies.Correct Answer -True
Your Answer True
True/False*Question -In case of fixed income securities like debentures, you get the return in the
form of dividend.Correct Answer -False
Your Answer False
Multiple Choice Single Answer*Question -What are the assumptions of the Dow theory?Correct Answer -Majority of stocks follow the underlying trend of the market most of
the time
Your Answer Majority of stocks follow the underlying trend of the market most of the
time
Multiple Choice Multiple Answer*Question -The Peer group of Bharat Forge consists of which all companies?Correct Answer -Am forge industries , Kalyani Forge , EL Forge
Your Answer Am forge industries , Kalyani Forge , EL Forge
Multiple Choice Single Answer*Question -We can compare the price earning ratio of a market to its historical average
to make judgements about, whether market is :-Correct Answer -Under valued or over valued
Your Answer Under valued or over valued
Multiple Choice Single Answer*Question -What is the rate of interest on the tax free bonds issue by the government?Correct Answer -6.5%
Your Answer 6.5%
Multiple Choice Multiple Answer*Question -What are the features of candle stick charts?Correct Answer -Indicates in black if the closing price is lower than the opening price ,
Indicates in white if the closing price is higher than the opening price
Your Answer Indicates in black if the closing price is lower than the opening price ,
Indicates in white if the closing price is higher than the opening price , Displays the
correlation between the high and low prices
Multiple Choice Multiple Answer*Question -What are the features of public provident scheme?Correct Answer -15 year instrument , Rate of interest is 8% , Partial withdrawal is
available from 7th year
Your Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is
available from 7th year
Multiple Choice Single Answer*Question -Investments could be made in retail government securities through :-Correct Answer -Primary dealers
Your Answer Primary dealers
Multiple Choice Multiple Answer*Question -What were the Chairman's comments during the speech in the Annual report
of the FY 2002-03?Correct Answer -Best year in the history of the company , 146% growth in exports ,
Highest pre and post tax profits
Your Answer Best year in the history of the company , 146% growth in exports ,
Highest pre and post tax profits
Multiple Choice Multiple Answer*Question -An options contract allows the investor :-Correct Answer -To earn a profit while restricting the downside risk , To use the
options for speculation , Either to honour or walk away from the contract
Your Answer To earn a profit while restricting the downside risk , To use the options
for speculation , Either to honour or walk away from the contract
Multiple Choice Single Answer*Question -Mr.Satish invests Rs.10,000/- today. The rate of interest is 8% compounded
annually. What will be the value of his investment after 5 years?Correct Answer -Rs.14.693/-
Your Answer Rs.14.693/-
Multiple Choice Multiple Answer*Question -What were the achievements of Bharat Forge during the year 2003?Correct Answer -Secured second largest customer in China , Appointed a Company
Secretary to act as compliance officer , New contracts won in passenger car components
Your Answer Secured second largest customer in China , Appointed a Company
Secretary to act as compliance officer , New contracts won in passenger car components
Match The Following*Question -Correct Answer -Your Answer
Weak form model is also termed as Random walk model Efficient market hypothesis
Investors are rational Efficient market hypothesis Random walk model
Securities current prices fully reflect all historical information Weak form EMH Weak
form EMH
Framework on efficient capital markets, a review of theory and empirical work Fama
Strong form
True/False*Question -Quick assets consist of current assets less inventories.Correct Answer -True
Your Answer True
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