Security Analysis And Portfolio Management

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/-

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 represents
Correct 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

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

Multiple Choice Multiple Answer
Question An options contract allows the investor :-
Correct Answer To earn a profit while restricting the downside risk , To use
the
options for speculation , Either to honour or walk away from the
contract
Your Answer Either to honour or walk away from the contract , To earn a
profit
while restricting the downside risk , To use the options for
speculation
Multiple Choice Single Answer
Question Free Float index considers this to calculate market capitalisation
:-
Correct Answer Actual no. of shares available
Your Answer Actual no. of shares available
True/False
Question A rise in interest rates will push the market prises of outstanding
bonds where as a fall in interest rates will depress the market
prices down.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question Who operates the sinking fund under the sinking fund provision
of a firm?
Correct Answer The bond trustee or the issuer
Your Answer The bond trustee or the issuer
Multiple Choice Single Answer
Question In India, the futures on individual securities have been
introduced from :-
Correct Answer 2001
Your Answer 2001
Select The Blank
Question ________ measures the profitability of equity funds invested in
the firms.
Correct Answer Return on equity
Your Answer Return on equity
True/False
Question Given the accounting standards across firm, price to book value
ratios can be compared across similar firms for signs of under
valuation.
Correct Answer True
Your Answer True
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 10
Select The Blank
Question ________ measures the efficiency of credit management.
Correct Answer Average collection period
Your Answer Interest coverage ratio
Multiple Choice Multiple Answer
Question Major steps involved in construction of a index are :-
Correct Answer Selecting a set of scrips to be used , Fixing starting date ,
Calculating market capitalisation
Your Answer Selecting a set of scrips to be used , Fixing starting date ,
Fixing
ending date
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 Bearish actions come from a series of declining peaks and
troughs.
Correct Answer True
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
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 The Top-down approach is also known as :-
Correct Answer Economy-industry-company approach
Your Answer Economy-industry-company approach
Multiple Choice Single Answer
Question What is a technical approach to investment?
Correct Answer A reflection of the idea that prices move in trends which are
determined by various factors
Your Answer A reflection of the idea that prices move in trends which are
determined by various factors
Multiple Choice Single Answer
Question More than half the variation in stock price could be attributed to
which factor?
Correct Answer Market influence
Your Answer Market influence
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 ,
Standard deviation
Multiple Choice Multiple Answer
Question How can the financial statements can be manipulated while
giving the estimates for growth?
Correct Answer Change method of rate of depreciation , Change method of
stock
valuation , Inflating sales for current year by advancing sales for
the following year
Your Answer Change method of rate of depreciation , Change method of stock
valuation , Inflating sales for current year by advancing sales for
the following year
Multiple Choice Single Answer
Question What are index funds?
Correct Answer Investment in securities in the same weightage which
replicates
a particular index
Your Answer Investment in securities in the same weightage which replicates
a particular index
Select The Blank
Question All trades in the futures market are cash settled on a ________
basis.
Correct Answer T+1
Your Answer T+1
Select The Blank
Question ________ measures the profitability of operations without
considering the influence of financial structure and tax rate.
Correct Answer Earnings power
Your Answer ROE
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
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 , Growth schemes
True/False
Question If a rupee weakens against the dollars it has favourable impact
for the exporters.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question 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
Select The Blank
Question ________ identified five forces that determine the intrinsic long
run profit attractiveness of a market or market segment.
Correct Answer Michael Porter
Your Answer Harold Koontz
Match The Following
Question Correct Answer Your Answer
H-Model For Valuing
Growth
Initial growth rate is not
constant but linearly falls
over time to reach the
stable growth rate
Initial growth rate is not
constant but linearly falls
over time to reach the
stable growth rate
The general model Expected dividends and
required rate of return
Expected dividends and
required rate of return
The Gordons Growth
model
Expected dividends in the
next period, cost of equity
and expected growth rate
in dividends
Expected dividends in the
next period, cost of equity
and expected growth rate
in dividends
The Two-Stage Dividend
Discount Model
Based on two
extraordinary growth
phase lasting n years and
stable growth phase that
lasts forever
Based on two
extraordinary growth phase
lasting n years and stable
growth phase that lasts
forever
True/False
Question Because of statutory compulsion, generally Govt. securities are
held by banks, financial institutions, insurance companies etc.
Correct Answer True
Your Answer True
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 , Expecting a
established dividend payout ratio
Match The Following
Question Correct Answer Your Answer
Weak form model is also
termed as
Random walk model Random walk model
Investors are rational Efficient market
hypothesis
Efficient market hypothesis
Securities current prices
fully reflect all historical
information
Weak form EMH Fama
Framework on efficient
capital markets, a review
of theory and empirical
work
Fama Strong form
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 , Tax benefits under 80 L available
Multiple Choice Multiple Answer
Question The underlying assumptions of Technical analysis are that :-
Correct Answer Prices move in predictable patterns , Market value is
determined
by supply & demand , Investors are emotional than being
rational
Your Answer Prices move in predictable patterns , Investors are emotional
than being rational
True/False
Question Sensex is the index of Calcutta Stock Exchange.
Correct Answer False
Your Answer False
Select The Blank
Question ________ refers to the possibility that there may not be a readily
available market for the particular bond.
Correct Answer Liquidity risk
Your Answer Liquidity risk
Multiple Choice Single Answer
Question What could be a better approach to flow-of -funds analysis?
Correct Answer An examination of liquidity trends in the banking system
Your Answer A study of macro economical changes
True/False
Question There may be convertible clause which gives the debenture
holder the option to convert the debentures into equity shares.
Correct Answer True
Your Answer True
Select The Blank
Question ________are good benchmark to compare the ratios for a firm.
Correct Answer Industry averages
Your Answer Trend analysis
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 Futures contract
Select The Blank
Question ________ ratio is the ratio of net profit to the sales.
Correct Answer Net Profit Margin
Your Answer Net Profit Margin
Select The Blank
Question When a debenture is sold to the general public a ________ is
appointed.
Correct Answer Trustee
Your Answer Brokers
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 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
True/False
Question PPF is a good retirement planning and tax saving vehicle.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What are short term trends?
Correct Answer Trends which interrupt the course of the intermediate cycle
Your Answer Trends which interrupt the course of the intermediate cycle
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 is the aim of growth funds?
Correct Answer To provide capital appreciation over medium to long term
Your Answer To provide capital appreciation over medium to long term

Multiple Choice Multiple Answer
Question What are the different types of profitability ratios?
Correct Answer Return on equity , Gross profit margin ratio , Earnings power
Your Answer Return on equity , Gross profit margin ratio , Earnings power
Select The Blank
Question Mutual fund is to be registered with ________ before raising
funds from public.
Correct Answer SEBI
Your Answer SEBI
Multiple Choice Multiple Answer
Question The security market is the market for :-
Correct Answer Equity , Debt , Derivatives
Your Answer Equity , Debt , Bank deposits
Multiple Choice Multiple Answer
Question The Gordon growth model is best suited for firms :-
Correct Answer Growing at a rate equal to or lower that the growth in the
economy , Which have well established dividend payout ratio
policy , Whose earnings are steady and perpetual
Your Answer Growing at a rate equal to or lower that the growth in the
economy , Which have well established dividend payout ratio
policy
Multiple Choice Single Answer
Question A security analysis is done :-
Correct Answer For decision making for investments
Your Answer As per instruction of the company
Multiple Choice Single Answer
Question The average investor in the market is driven more by emotions
than by rational analysis is a rule of :-
Correct Answer Technical analysis
Your Answer Fundamental Analysis
Multiple Choice Single Answer
Question 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 is the objective of an income fund?
Correct Answer To provide regular and steady income
Your Answer To provide guaranteed returns to investors
Multiple Choice 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
Multiple Choice Multiple Answer
Question Which were the initiatives which the chairman said would focus
on in 2003-04 in the speech in annual report for the year 2003-
03?
Correct Answer Research and development , Capital investment and focus on
balance sheet , Overseas acquisitions
Your Answer Focus on mergers , Research and development , Capital
investment and focus on balance sheet
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 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
Multiple Choice Single Answer
Question What does lower level of unemployment indicates?
Correct Answer Positive economic conditions
Your Answer Economic slowdown
Multiple Choice Single Answer
Question The GDP growth rate in the economy in real terms has
fluctuated between :-
Correct Answer 4% and 5%
Your Answer 4% and 5%
Multiple Choice Single Answer
Question Mr.Rohan invests Rs.25,000/- today. The rate of interest is 6%
compounded annually. What will be the value of his investment
after 3 years?
Correct Answer Rs. 29775/-
Your Answer Rs. 29775/-
Multiple Choice Single Answer
Question 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/-
True/False
Question When you are making an investment you are expecting certain
future benefits from your investment.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What is the limitation of Flow-of funds analysis method?
Correct Answer Cannot give indication of the inclination of market
participants to
purchase stock
Your Answer Does not give specific information
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 Which are the different types of accounts offered to investors by
the stock brokers?
Correct Answer Cash trading , Margin trading
Your Answer General trading , Cash trading , Credit trading
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 American option
Select The Blank
Question An investor with a higher tolerance of risk should tilt his
portfolio
in favour of ________.
Correct Answer Stocks
Your Answer Bank deposits
Select The Blank
Question The ________ phase carries a lot of significance because it
marks the turning point between a rising and a falling market.
Correct Answer Transitional
Your Answer Sideways
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 ,
HModel
unlike the classic two stage model
Your Answer H- Model for valuing growth , H-Two stage model for growth ,
HModel
unlike the classic two stage model
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 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
True/False
Question While calculating geometric mean calculation of root is not
important.
Correct Answer False
Your Answer False
True/False
Question The labour conditions do not play an important role in the
industry analysis.
Correct Answer False
Your Answer False
Select The Blank
Question ________ measures the efficiency of credit management.
Correct Answer Average collection period
Your Answer Average collection period
Select The Blank
Question ________ measures the profitability of operations without
considering the influence of financial structure and tax rate.
Correct Answer Earnings power
Your Answer Earnings power
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
True/False
Question Certificate of Deposits offers high rate of interest than Treasury
Bills.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What do you understand by money supply?
Correct Answer Total money in existence at any given time
Your Answer Total money in existence at any given time
Multiple Choice Single Answer
Question What is Gross National Product ?
Correct Answer Gross income generated from within the country
Your Answer Gross income generated from within the country
Multiple Choice Multiple Answer
Question What are the features of trend lines
Correct Answer A simple and useful tool in technical analysis , Prices move
in
trends , The trend lines represent points of support and
resistance
Your Answer A simple and useful tool in technical analysis , Prices move in
trends , The trend lines represent points of support and
resistance
True/False
Question A price rise accompanied by expanding volume denotes a
potential trend reversal.
Correct Answer False
Your Answer True
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 , Balance fund
Multiple Choice Multiple Answer
Question Features of PSU Bonds are :-
Correct Answer No TDS , Transferable by endorsement , No stamp duty on
transfer
Your Answer No TDS , Transferable by endorsement , No stamp duty on
transfer
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 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
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 True
Multiple Choice Single Answer
Question The greater the deviation of the actual returns from the actual
return :-
Correct Answer Greater the variance
Your Answer Greater the variance
True/False
Question A segment is unattractive if the buyers possess strong or
growing bargaining powers.
Correct Answer True
Your Answer False
Select The Blank
Question ________ refers to the possibility that there may not be a readily
available market for the particular bond.
Correct Answer Liquidity risk
Your Answer Liquidity risk
Multiple Choice Single Answer
Question What is GDP at factor cost ?
Correct Answer Excludes net income received from abroad
Your Answer Includes indirect taxes
Multiple Choice Single Answer
Question More than half the variation in stock price could be attributed to
which factor?
Correct Answer Market influence
Your Answer Market influence

Multiple Choice Single Answer
Question The approach followed to assess the growth rate by looking at
how much a firm reinvests for future growth and the quality of its
re-investments is :-
Correct Answer Estimating growth from a firm's fundamentals
Your Answer Estimating growth from a firm's fundamentals
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 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 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 Which are the different types of accounts offered to investors by
the stock brokers?
Correct Answer Cash trading , Margin trading
Your Answer Cash trading , Margin trading
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 Return can be in the form of :-
Correct Answer Dividends , Interests , Capital appreciation
Your Answer Dividends , Interests , Capital appreciation
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/-
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 Debt / Equity
Quick assets Highly liquid assets Highly liquid assets
Average collection period Similar to debtors turnover Similar to debtors turnover
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
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
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
Multiple Choice Single Answer
Question What is the highest denomination offered by Kisan Vikas patra
instruments?
Correct Answer 50000
Your Answer 50000
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 What is Flow-of-funds analysis?
Correct Answer Consists of an analysis of the financial positions of various
investor groups
Your Answer Consists of an analysis of the financial positions of various
investor groups
Multiple Choice Single Answer
Question What is an open ended fund or scheme?
Correct Answer Which is available for subscription and repurchase on a
continuous basis
Your Answer Which is available for subscription and repurchase on a
continuous basis
Select The Blank
Question The SEBI act was passed in the year ________.
Correct Answer 1992
Your Answer 1992
Select The Blank
Question The Derivative market is divided into Future market and
________ market.
Correct Answer Options
Your Answer Options
Select The Blank
Question ________seeks to safeguard against potential losses on the
outstanding position in futures market.
Correct Answer Initial margin
Your Answer Initial margin
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 Debentures rated as "A" are judged to offer ________ of timely
payment of interest and principal.
Correct Answer Adequate safety
Your Answer Adequate safety
Select The Blank
Question Measures of ________ tells us what we can expect a typical or
middle data point of a distribution to be.
Correct Answer Central tendency
Your Answer Central tendency
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
True/False
Question A mutual fund is required to dispatch the dividend warrants to
the unit holders within thirty days of the declaration of dividend.
Correct Answer True
Your Answer True
Select The Blank
Question The possibility of reduction of risk through the construction of a
portfolio depends on the value of ________ between the two
assets.
Correct Answer Correlation coefficient
Your Answer Correlation coefficient
Select The Blank
Question Security analysis serves the investment decision maker by
identifying ________securities.
Correct Answer Under priced
Your Answer Under priced
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 What developments had taken place during the year 2000 in
case of Bharat Forge Ltd.?
Correct Answer Demerger of investment division and windmills , Nominee
director of UTI resigned and ceased to be the director -
nomination withdrawn by UTI
Your Answer Demerger of investment division and windmills , Nominee
director of UTI resigned and ceased to be the director -
nomination withdrawn by UTI
Multiple Choice Multiple Answer
Question A firm's growth is determined by how much is re-invested into
new assets and the quality of these investments, and these
includes :-
Correct Answer Acquisitions , Building distribution channels , Expanding
marketing capabilities and investing in new facilities
Your Answer Acquisitions , Building distribution channels , Expanding
marketing capabilities and investing in new facilities
True/False
Question A firm uses a combination of equity and debt for financing its
assets.
Correct Answer True
Your Answer True
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 Multiple Answer
Question In a typical stock market cycle which are the types of trends?
Correct Answer Trends upward , Trend downward , Sideway trend
Your Answer Trends upward , Trend downward , Sideway trend
Multiple Choice Single Answer
Question Avenues can be broadly classified into the which type of assets?
Correct Answer Financial and Real
Your Answer Financial and Real
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
stable growth phase lasts forever
True/False
Question A price rise accompanied by expanding volume denotes a
potential trend reversal.
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 An examination of liquidity trends in the banking system
Multiple Choice Single Answer
Question The historical growth rate and the past earnings of a firm are
used in valuing :-
Correct Answer Stable firms, but not appropriate for high growth firms
Your Answer Stable firms, but not appropriate for high growth firms
Multiple Choice Single Answer
Question What is the minimum investment amount in G-secs?
Correct Answer 1000
Your Answer 1000
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
Multiple Choice Single Answer
Question Mr. Sharma is expecting to receive Rs. 50,000/- at the end of 5
years. He wanted to know what is the present value of this
amount, if the rate of interest is 6% p.a?
Correct Answer Rs. 37363/-
Your Answer Rs. 37363/-
Select The Blank
Question The Dow theory states that there are simultaneously ________
movements in the stock market.
Correct Answer 3
Your Answer 3
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 Mr. Tiwari is expecting to receive Rs.25,000/- at the end of 10
years. He wanted to know what is the present value of this
amount, if the rate of interest is 10% p.a:-
Correct Answer Rs. 9639/-
Your Answer Rs. 9639/-
Multiple Choice Single Answer
Question A derivative is a product whose value is derived from :-
Correct Answer Value of an underlying asset
Your Answer Value of an underlying asset
Multiple Choice Multiple Answer
Question What are the important macro economic indicators?
Correct Answer GNP growth rate , Price Conditions , Monsoons
Your Answer GNP growth rate , Price Conditions , Monsoons
Multiple Choice Single Answer
Question What are sector specific funds?
Correct Answer Scheme which invest in certain sectors
Your Answer Scheme which invest in certain sectors
Select The Blank
Question The value of the stock in the ________ model is sensitive to the
estimates of the growth rate.
Correct Answer The Gordons dividend growth
Your Answer The Gordons dividend growth

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

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 completed
Correct Answer Bearish
Your Answer Bearish
True/False
Question Debt is less riskier source of finance than equity.
Correct Answer False
Your Answer True
True/False
Question The arithmetic mean is a set of observations is calculated by
finding the sum values and dividing by the number of
observations.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What does flow-of fund analysis help in understanding?
Correct Answer Availability of money for the stock market
Your Answer Financial strength of various companies
True/False
Question The normal relationship is for the volume to expand on rallies
and contract on declines.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Growth of the firm can be estimated through :-
Correct Answer Firm's past earnings/historical growth rate , Estimates made
by equity research analyst who follow the firm , Estimates
from a firm's fundamentals
Your Answer Firm's past earnings/historical growth rate , Estimates from a
firm's fundamentals , Forecasting future revenues and
earnings
Multiple Choice Multiple Answer
Question The security analysis process will achieve :-
Correct Answer True picture of a company , Normal earning power ,
Projection of future profitability
Your Answer True picture of a company , Normal earning power ,
Projection of future profitability
Multiple Choice Single Answer
Question The general dividend model is based on the principle of :-
Correct Answer Present value of the expected future cash flow
Your Answer Present value of the expected future cash flow
Multiple Choice Single Answer
Question The index futures symbols of BSE are represented as :-
Correct Answer BSX JAN 2005 (January contract)
Your Answer BSX JAN 2005 (January contract)
Multiple Choice Multiple Answer
Question What are the features of bank deposits?
Correct Answer Interest is presently around 6% , Benefits under section 80 L
, Banks offer cheque facility for investors making it
convenient to withdraw
Your Answer Interest is presently around 6% , Banks offer cheque facility
for investors making it convenient to withdraw
True/False
Question Risk on a portfolio of assets is always same as the risk on
individual asset.
Correct Answer False
Your Answer False
Select The Blank
Question UTI was set up in the year ________.
Correct Answer 1963
Your Answer 1963
Multiple Choice Multiple Answer
Question Major steps involved in construction of a index are :-
Correct Answer Selecting a set of scrips to be used , Fixing starting date ,
Calculating market capitalisation
Your Answer Selecting a set of scrips to be used , Fixing starting date ,
Calculating market capitalisation
Select The Blank
Question A line is defined as a price movement two or three weeks or
longer, during which period the price variation of both
averages moves within a price range of
approximately________%.
Correct Answer 5
Your Answer 5
Multiple Choice Multiple Answer
Question The return to the bond investor can be measured in terms of
:-
Correct Answer Realised yield , Current yield , Yield to maturity
Your Answer Current yield , Yield to maturity
Multiple Choice Multiple Answer
Question What are the features of candle stick charts?
Correct Answer Indicates in black if the closing price is lower than the
opening price , Indicates in white if the closing price is higher
than the opening price
Your Answer Indicates in black if the closing price is lower than the
opening price , Indicates in white if the closing price is higher
than the opening price
Select The Blank
Question Debentures rated "BB" refers ________ of timely payment of
interest and principal.
Correct Answer Inadequate safety
Your Answer Inadequate safety
Multiple Choice Single Answer
Question The objective of fundamental analysis for a security in a
market is to identify either it is :-
Correct Answer Under priced and over priced
Your Answer Under priced and over priced
Multiple Choice Single Answer
Question When the firm is not raising equity by issuing new shares,
the growth rate in net profits is given by :-
Correct Answer Retention ratio X return on equity
Your Answer Price earning ratio X return on equity
Select The Blank
Question A ________ rally for stocks generally takes place because of
an improved outlook for business conditions over what was
anticipated.
Correct Answer Bear market
Your Answer Bullish market
Multiple Choice Multiple Answer
Question Characteristics of Preference shares are :-
Correct Answer Carry a fixed rate of dividend , Dividend payable out of profit
, Redemption in 7 to 12 years
Your Answer Carry a fixed rate of dividend , Dividend payable out of profit
, Redemption in 7 to 12 years
Multiple Choice Multiple Answer
Question What are the SEBI regulations with respect to mutual funds?
Correct Answer Mutual funds to be registered with SEBI before the launching
any scheme , 2/3rds of the directors of the trustee company
must be independent , An AMC approved by SEBI manages
the fund
Your Answer Mutual funds to be registered with SEBI before the launching
any scheme , 2/3rds of the directors of the trustee company
must be independent , An AMC approved by SEBI manages
the fund
Multiple Choice Single Answer
Question The bond issuing firm enjoys the flexibility of being able to
call the bonds if :-
Correct Answer Interest rates are falling
Your Answer Interest rates are falling
Multiple Choice Single Answer
Question We can compare the price earning ratio of a market to its
historical average to make judgements about, whether
market is :-
Correct Answer Under valued or over valued
Your Answer Under valued or over valued
Multiple Choice Single Answer
Question The growth rate is used to forecast future revenues and
earnings and are inputs in valuing :-
Correct Answer Stable firms
Your Answer High growth firms
Multiple Choice Single Answer
Question A security analysis is done :-
Correct Answer For decision making for investments
Your Answer For decision making for investments
Multiple Choice Multiple Answer
Question Which ratios are commonly used?
Correct Answer Debt equity ratio , Interest coverage ratios , Debt service
coverage ratios
Your Answer Debt equity ratio , Interest coverage ratios , Debt service
coverage ratios
Select The Blank
Question An option is a contract which gives the buyer ________ to
buy or sell shares of the underlying security at a specific
price on or before a specific date.
Correct Answer Right but not obligation
Your Answer Right but not obligation
Match The Following
Question Correct Answer Your Answer
Growth of income 40-60 % debt, 40-60 %
equities
40-60 % debt, 40-60 %
equities
Current income Short term debt portfolio Fixed - income portfolio
Stability of principal Fixed - income portfolio Short term debt portfolio
Appreciation 75-100 % in equities 75-100 % in equities
Select The Blank
Question An investor with a higher tolerance of risk should tilt his
portfolio in favour of ________.
Correct Answer Stocks
Your Answer Stocks
Select The Blank
Question S&P NSE 50 index is known as ________.
Correct Answer NIFTY
Your Answer NIFTY
Multiple Choice Multiple Answer
Question Mutual fund schemes could be broadly classified as :-
Correct Answer Open ended scheme , Close ended scheme
Your Answer Open ended scheme , Close ended scheme
Multiple Choice Multiple Answer
Question What are the features of line charts?
Correct Answer It connects closing prices from one period to the next , It is
ideal for securities with no high or low price data
Your Answer It connects closing prices from one period to the next , It is
ideal for securities with no high or low price data
True/False
Question Investors in high tax bracket would benefit by investing in
equity schemes.
Correct Answer False
Your Answer False
Match The Following
Question Correct Answer Your Answer
Ratio used as a measure
of relative value
PEG ratio Price to book value ratio
The market value of the
firms assets divided by
the replacement cost of
these assets
Market value to
replacement cost ratio
Market value to
replacement cost ratio
Key determiner of
revenue multiples
Profit margin Profit margin
The market value of the
equity in a firm reflects
the markets expectations
of the firms earnings
power and cash flows.
Price to book value ratio Price earning ratio

Select The Blank
Question Measures of ________ tells us what we can expect a typical or middle data
point of a distribution to be.
Correct Answer Central tendency
Your Answer Variance
Multiple Choice Single Answer
Question Capital expenditure -depreciation +change in working capital -(new debt
issued - debt repaid) =
Correct Answer Equity reinvested in business
Your Answer Equity reinvested in business
Multiple Choice Multiple Answer
Question What were the objectives for 2002-03 the chairman of Bharat forge had
emphasised on in the annual report for 2001 - 02
Correct Answer Maintain aggressive exports thrust , Increase shares of value added
products , Continue reducing costs
Your Answer Maintain aggressive exports thrust , Increase shares of value added
products , Continue reducing costs
Multiple Choice Single Answer
Question What do you understand by term pioneering stage in the industry life cycle
analysis?
Correct Answer Slow sales growth product recently introduced
Your Answer Highest sales
Multiple Choice Single Answer
Question In India futures on individual securities have been introduced by :-
Correct Answer BSE & NSE
Your Answer NSE
Multiple Choice Multiple Answer
Question The features of bond are :-
Correct Answer Collateral , Call provision , Sinking fund and protective covenants
Your Answer Collateral , Call provision , Sinking fund and protective covenants
Select The Blank
Question The compounded annual return of Kisan Vikas patra is ________.
Correct Answer 0.084
Your Answer 0.084
Select The Blank
Question ________ measures the profitability of operations without considering the
influence of financial structure and tax rate.
Correct Answer Earnings power
Your Answer Net profit margin
Select The Blank
Question The 6.________% tax saving bonds of government of India have a tenure of
5 years.
Correct Answer 5
Your Answer 5
Select The Blank
Question The govt allowed public sector banks and institutions in mutual funds in
________.
Correct Answer Early 90's
Your Answer Early 90's
Multiple Choice Multiple Answer
Question Which ratios are commonly used?
Correct Answer Interest coverage ratios , Debt service coverage ratios , Debt equity
ratio
Your Answer Debt equity ratio , Interest coverage ratios , Debt service coverage ratios
Multiple Choice Single Answer
Question Mr.Saurabh invests Rs. 5,000/- today. The rate of interest is 4% compounded
annually. What will be the value of his investment after 5 years?
Correct Answer Rs. 6083/-
Your Answer Rs. 6083/-
Select The Blank
Question The ________ phase is characterized by resistance area and support level.
Correct Answer Transition
Your Answer Horizontal
Select The Blank
Question ________ is due to the fact that a borrower may not pay interest and/or
principal on time.
Correct Answer Default risk
Your Answer Default risk
Multiple Choice Single Answer
Question What do you understand by the term redemption price?
Correct Answer Price or NAV at which a scheme purchases its units
Your Answer Price or NAV at which a scheme purchases its units
True/False
Question Investment decisions can be viewed as an integrated process to which
security analysis makes its unique contribution.
Correct Answer True
Your Answer True
Select The Blank
Question Secondary reactions occurs because of ________ which arise in the market as
a result of over optimism and over pessimism.
Correct Answer Technical distortions
Your Answer Fundamental distortions
True/False
Question Five paisa.com is an example of on line trading portal.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What is the percentage of variation the market and industry influence account
for?
Correct Answer 2/3rd
Your Answer 75%
Match The Following
Question Correct Answer Your Answer
Price pattern Resistance level Secondary reaction
Primary trend Last between 1-2 years Last between 1-2 years
Intermediate trend Last between 3 weeks to as long as 6 months Last between 3 weeks to
as long as 6 months
Short term trend Last 1 to 3-4 weeks Last 1 to 3-4 weeks
Multiple Choice Multiple Answer
Question What are the features of short-term trends?
Correct Answer They last from 1 to 3 or 4 weeks , They interrupt the course of the
intermediate cycle , They are usually influenced by random news events
Your Answer They last from 1 to 3 or 4 weeks , They interrupt the course of the
intermediate cycle , They are usually influenced by random news events
True/False
Question With the use of diversification you can reduce the risk.
Correct Answer True
Your Answer True
True/False
Question Post office monthly schemes have a 10 year tenor.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Till 1990's secular Indian economy's inflation rate has been of what
percentage?
Correct Answer 0.07
Your Answer 0.07
Multiple Choice Single Answer
Question Mr.Rohan invests Rs.25,000/- today. The rate of interest is 6% compounded
annually. What will be the value of his investment after 3 years?
Correct Answer Rs. 29775/-
Your Answer Rs. 29775/-
Multiple Choice Multiple Answer
Question The firm issuing bonds operating sinking fund and repurchases bonds either
:-
Correct Answer Calling in a certain number of bonds by lot , Buying bonds in the open
market , Buying bonds issued to banks and financial institutions
Your Answer Calling in a certain number of bonds by lot , Buying bonds in the open
market
True/False
Question A mutual fund is required to dispatch the dividend warrants to the unit
holders within thirty days of the declaration of dividend.
Correct Answer True
Your Answer True
True/False
Question Fixed assets turnover ratio measures the efficiency of utilisation of total
assets, fixed as well as current.
Correct Answer True
Your Answer True
Select The Blank
Question A pattern which does not result in reversal of a trend but reaffirmation of the
underlying trend is called ________.
Correct Answer Consolidation pattern
Your Answer Distribution pattern
True/False
Question The risk associated to get the required rate of return on the stock is measure
by market beta.
Correct Answer True
Your Answer False
Select The Blank
Question Acid test ratio is more stringent measure of liquidity compared to the
________.
Correct Answer Current ratio
Your Answer Current ratio
Multiple Choice Multiple Answer
Question What are the SEBI regulations with respect to mutual funds?
Correct Answer Mutual funds to be registered with SEBI before the launching any
scheme , 2/3rds of the directors of the trustee company must be independent , An AMC
approved by SEBI manages the fund
Your Answer Mutual funds to be registered with SEBI before the launching any
scheme , 2/3rds of the directors of the trustee company must be independent , An AMC
approved by SEBI manages the fund
True/False
Question Default is normally evaluated and indicated by the rating assigned to the debt
instruments by independent credit ratings agencies.
Correct Answer True
Your Answer True
True/False
Question In case of fixed income securities like debentures, you get the return in the
form of dividend.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question What are the assumptions of the Dow theory?
Correct Answer Majority of stocks follow the underlying trend of the market most of
the time
Your Answer Majority of stocks follow the underlying trend of the market most of the
time
Multiple Choice Multiple Answer
Question The Peer group of Bharat Forge consists of which all companies?
Correct Answer Am forge industries , Kalyani Forge , EL Forge
Your Answer Am forge industries , Kalyani Forge , EL Forge
Multiple Choice Single Answer
Question We can compare the price earning ratio of a market to its historical average
to make judgements about, whether market is :-
Correct Answer Under valued or over valued
Your Answer Under valued or over valued
Multiple Choice Single Answer
Question What is the rate of interest on the tax free bonds issue by the government?
Correct Answer 6.5%
Your Answer 6.5%
Multiple Choice Multiple Answer
Question What are the features of candle stick charts?
Correct Answer Indicates in black if the closing price is lower than the opening price ,
Indicates in white if the closing price is higher than the opening price
Your Answer Indicates in black if the closing price is lower than the opening price ,
Indicates in white if the closing price is higher than the opening price , Displays the
correlation between the high and low prices
Multiple Choice Multiple Answer
Question What are the features of public provident scheme?
Correct Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is
available from 7th year
Your Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is
available from 7th year
Multiple Choice Single Answer
Question Investments could be made in retail government securities through :-
Correct Answer Primary dealers
Your Answer Primary dealers
Multiple Choice Multiple Answer
Question What were the Chairman's comments during the speech in the Annual report
of the FY 2002-03?
Correct Answer Best year in the history of the company , 146% growth in exports ,
Highest pre and post tax profits
Your Answer Best year in the history of the company , 146% growth in exports ,
Highest pre and post tax profits
Multiple Choice Multiple Answer
Question An options contract allows the investor :-
Correct Answer To earn a profit while restricting the downside risk , To use the
options for speculation , Either to honour or walk away from the contract
Your Answer To earn a profit while restricting the downside risk , To use the options
for speculation , Either to honour or walk away from the contract
Multiple Choice Single Answer
Question Mr.Satish invests Rs.10,000/- today. The rate of interest is 8% compounded
annually. What will be the value of his investment after 5 years?
Correct Answer Rs.14.693/-
Your Answer Rs.14.693/-
Multiple Choice Multiple Answer
Question What were the achievements of Bharat Forge during the year 2003?
Correct Answer Secured second largest customer in China , Appointed a Company
Secretary to act as compliance officer , New contracts won in passenger car components
Your Answer Secured second largest customer in China , Appointed a Company
Secretary to act as compliance officer , New contracts won in passenger car components
Match The Following
Question Correct Answer Your Answer
Weak form model is also termed as Random walk model Efficient market hypothesis
Investors are rational Efficient market hypothesis Random walk model
Securities current prices fully reflect all historical information Weak form EMH Weak
form EMH
Framework on efficient capital markets, a review of theory and empirical work Fama
Strong form
True/False
Question Quick assets consist of current assets less inventories.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question 4 A firm's growth is determined by how
much is re-invested into new assets and
the quality of these investments, and
these includes :-
Correct Answer Acquisitions , Building distribution
channels , Expanding marketing
capabilities and investing in new facilities
Your Answer Acquisitions , Expanding marketing
capabilities and investing in new facilities ,
Mergers
Multiple Choice Multiple Answer
Question 5 Which of the following are important
momentum indicators used widely?
Correct Answer Rate of change (ROC) , Relative strength
indicator (RSI) , Moving average
convergence divergence(MACD)
Your Answer Rate of change (ROC) , Relative strength
indicator (RSI) , Moving average
convergence divergence(MACD)
Multiple Choice Multiple Answer
Question 14 Which ratios are commonly used?
Correct Answer Debt equity ratio , Interest coverage ratios ,
Debt service coverage ratios
Your Answer Debt equity ratio , Interest coverage ratios ,
Debt service coverage ratios
Multiple Choice Multiple Answer
Question 15 What were the Chairman's comments during
the speech in the Annual report of the FY
2002-03?
Correct Answer Best year in the history of the company ,
146% growth in exports , Highest pre and
post tax profits
Your Answer Best year in the history of the company ,
146% growth in exports , Highest pre and
post tax profits
Multiple Choice Multiple Answer
Question 20 Who are the constituents of a
mutual fund?
Correct Answer Sponsor & trustees , Asset
management company ,
Custodian
Your Answer Sponsor & trustees , Asset
management company ,
Custodian
Multiple Choice Multiple Answer
Question 26 What are the features of Kisan Vikas Patra?
Correct Answer Term is for 8 years seven months , Provision
of premature withdrawal , Interest rate is 8.4%
compounded annually
Your Answer Term is for 8 years seven months , Provision
of premature withdrawal , Interest rate is 8.4%
compounded annually
Multiple Choice Multiple Answer
Question 38 The security analysis process will achieve :-
Correct Answer True picture of a company , Normal earning
power , Projection of future profitability
Your Answer True picture of a company , Normal earning
power , Projection of future profitability
Multiple Choice Multiple Answer
Question 41 The return to the bond investor can be
measured in terms of :-
Correct Answer Current yield , Yield to maturity , Realised
yield
Your Answer Yield to maturity , Realised yield
Multiple Choice Multiple Answer
Question 5 Which are the different types of accounts offered to
investors by the stock brokers?
Correct Answer Cash trading , Margin trading
Your Answer General trading , Cash trading , Margin trading
Multiple Choice Multiple Answer
Question 7 What are the features of Retail government securities
(G-secs) ?
Correct Answer Safest investment option available , Demat account is
required for investment , Choice of tenure varies from
less than 1 year to 30 years
Your Answer Securities can be bought from the RBI , Safest
investment option available , Demat account is required
for investment
Multiple Choice Multiple Answer
Question 10 To measure the movement of stocks in the market
which indices were constructed by Dow?
Correct Answer Dow Jones industrial Average , Dow Jones
Transportation Average
Your Answer Dow Jones Transportation Average
Multiple Choice Multiple Answer
Question 16 The security market is the market for :-
Correct Answer Equity , Debt , Derivatives
Your Answer Equity , Debt , Bank deposits
Multiple Choice Multiple Answer
Question 18 In a typical stock market cycle which are the types of
trends?
Correct Answer Trends upward , Trend downward , Sideway trend
Your Answer Trends upward , Trend downward , Flat trend
Multiple Choice Multiple Answer
Question 22 Mutual fund schemes could be broadly classified as :-
Correct Answer Open ended scheme , Close ended scheme
Your Answer Open ended scheme , Close ended scheme , Growth
schemes
Multiple Choice Multiple Answer
Question 24 What was the final analysis on the performance of
Bharat forge for the year FY 02?
Correct Answer Aim to become US$1 billion Company by Fy 08 from
US$100 million , Stock currently trades at 15 times its
FY 05 consensus EPS forecasts , Stock will trade at an
inexpensive PEG of 0.6x.
Your Answer Aim to become US$1 billion Company by Fy 08 from
US$100 million , Stock currently trades at 15 times its
FY 05 consensus EPS forecasts , Stock will trade at an
inexpensive PEG of 0.6x.
Multiple Choice Multiple Answer
Question 26 Gilt Edged Securities are :-
Correct Answer State Govt. , Quasi-Govt , Central Govt
Your Answer Central Govt , State Govt. , Quasi-Govt
Multiple Choice Multiple Answer
Question 33 What are the ways of measuring relative strength?
Correct Answer Calculate the rates of return and classify securities that
have earned superior historical returns , Calculating
certain ratios will help in analyzing whether a security
has relative strength
Your Answer Calculate the rates of return and classify securities that
have earned superior historical returns , Calculating
certain ratios will help in analyzing whether a security
has relative strength , Calculating the Return on
investment
Multiple Choice Multiple Answer
Question 44 What are the different types of profitability ratios?
Correct Answer Gross profit margin ratio , Earnings power , Return on
equity
Your Answer Gross profit margin ratio , Earnings power , Return on
equity
Multiple Choice Multiple Answer
Question The Gordon growth model is best suited for firms :-
Correct Answer Growing at a rate equal to or lower that the growth in the economy ,
Which have well established dividend payout ratio policy , Whose
earnings are steady and perpetual
Your Answer Growing at a rate equal to or lower that the growth in the economy ,
Which have well established dividend payout ratio policy
Multiple Choice Multiple Answer
Question The Two-Stage dividend discount model is based on the assumption
of :-
Correct Answer An initial phase where the growth is not a stable growth rate , A
subsequent steady state of growth rate being stable and lasts n years
, A stable growth phase lasts forever
Your Answer An initial phase where the growth is not a stable growth rate , A
subsequent steady state of growth rate being stable and lasts n years
, A stable growth phase lasts forever
Multiple Choice Multiple Answer
Question Features of PSU Bonds are :-
Correct Answer No TDS , Transferable by endorsement , No stamp duty on transfer
Your Answer No TDS , Transferable by endorsement , No stamp duty on transfer
Multiple Choice Multiple Answer
Question An options contract allows the investor :-
Correct Answer To earn a profit while restricting the downside risk , To use the
options for speculation , Either to honour or walk away from the
contract
Your Answer Either to honour or walk away from the contract , To earn a profit
while restricting the downside risk , To use the options for
speculation
Multiple Choice Multiple Answer
Question Major steps involved in construction of a index are :-
Correct Answer Selecting a set of scrips to be used , Fixing starting date ,
Calculating market capitalisation
Your Answer Selecting a set of scrips to be used , Fixing starting date , Fixing
ending date
Multiple Choice Multiple Answer
Question How can the financial statements can be manipulated while
giving the estimates for growth?
Correct Answer Change method of rate of depreciation , Change method of stock
valuation , Inflating sales for current year by advancing sales for
the following year
Your Answer Change method of rate of depreciation , Change method of stock
valuation , Inflating sales for current year by advancing sales for
the following year
Multiple Choice Multiple Answer
Question The underlying assumptions of Technical analysis are that :-
Correct Answer Prices move in predictable patterns , Market value is determined
by supply & demand , Investors are emotional than being rational
Your Answer Prices move in predictable patterns , Investors are emotional
than being rational
Multiple Choice Multiple Answer
Question Which are the different styles of displaying charts?
Correct Answer Bar and line charts , Candle stick charts , Point and figure charts
Your Answer Candle stick charts , Point and figure charts , Bar and line charts
Multiple Choice Multiple Answer
Question What are the features of public provident scheme?
Correct Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is
available from 7th year
Your Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is
available from 7th year
Multiple Choice Multiple Answer
Question Growth of the firm can be estimated through :-
Correct Answer Firm's past earnings/historical growth rate , Estimates made by
equity research analyst who follow the firm , Estimates from a
firm's fundamentals
Your Answer Firm's past earnings/historical growth rate , Estimates made by
equity research analyst who follow the firm , Estimates from a
firm's fundamentals
Multiple Choice Multiple Answer
Question Characteristics of Preference shares are :-
Correct Answer Carry a fixed rate of dividend , Dividend payable out of profit ,
Redemption in 7 to 12 years
Your Answer Carry a fixed rate of dividend , Dividend payable out of profit ,
Redemption in 7 to 12 years
Multiple Choice Multiple Answer
Question What are the SEBI regulations with respect to mutual funds?
Correct Answer Mutual funds to be registered with SEBI before the launching any
scheme , 2/3rds of the directors of the trustee company must be
independent , An AMC approved by SEBI manages the fund
Your Answer Mutual funds to be registered with SEBI before the launching any
scheme , 2/3rds of the directors of the trustee company must be
independent , An AMC approved by SEBI manages the fund
Multiple Choice Multiple Answer
Question The security analysis process will achieve :-
Correct Answer True picture of a company , Normal earning power , Projection of
future profitability
Your Answer True picture of a company , Normal earning power , Projection of
future profitability
Multiple Choice Multiple Answer
Question The return to the bond investor can be measured in terms of :-
Correct Answer Current yield , Yield to maturity , Realised yield
Your Answer Realised yield
Multiple Choice Multiple Answer
Question What are the features of bank deposits?
Correct Answer Interest is presently around 6% , Benefits under section 80 L ,
Banks offer cheque facility for investors making it convenient to
withdraw
Your Answer Interest is presently around 6% , Banks offer cheque facility for
investors making it convenient to withdraw
Multiple Choice Multiple Answer
Question What are the important macro economic indicators?
Correct Answer GNP growth rate , Price Conditions , Monsoons
Your Answer GNP growth rate , Price Conditions , Monsoons
Multiple Choice Single Answer
Question When an investor invests in stock, expects to get the dividends and
an expected price for the period the stock is held is the rule of :-
Correct Answer The General model
Multiple Choice Single Answer
Question Stock Exchanges are the part of :-
Correct Answer Secondary market
Your Answer Money Market
Multiple Choice Single Answer
Question The index futures symbols of BSE are represented as :-
Correct Answer BSX JAN 2005 (January contract)
Multiple Choice Single Answer
Question More than half the variation in stock price could be attributed
to which factor?
Correct Answer Market influence
Multiple Choice Single Answer
Question In India we have index futures contracts based on :-
Correct Answer S&P CNX Nifty and the BSE sensex
Multiple Choice Single Answer
Question In India, the futures on individual securities have been
introduced from :-
Correct Answer 2001
Multiple Choice Single Answer
Question What do you understand by the term redemption price?
Correct Answer Price or NAV at which a scheme purchases its units
Multiple Choice Single Answer
Question A security analysis is done :-
Correct Answer For decision making for investments
Multiple Choice Single Answer
Question As per the exhibit 18-1 for individual stock futures on NSE,
the price steps in respect of all futures contract admitted to
the dealings of the exchange shall be :-
Correct Answer 0.05
Multiple Choice Single Answer
Question What is a technical approach to investment?
Correct Answer A reflection of the idea that prices move in trends which are
determined by various factors
Multiple Choice Single Answer
Question A pledge of real assets as insurance against the non-payment
of default by the buyer represents
Correct Answer Collateral
Multiple Choice Single Answer
Question Who developed Dow's Principles and organised them into a
theory as it is known today?
Correct Answer William Peter Hamilton
Your Answer Charles.H.Dow
Multiple Choice Single Answer
Question We can compare the price earning ratio of a market to its
historical average to make judgements about, whether market is
:-
Correct Answer Under valued or over valued
Your Answer Under valued or over valued
Multiple Choice Single Answer
Question When a firm can grow net profits by issuing equity, the expected
growth rate in net profits is determined by :-
Correct Answer Equity reinvestment rate X return on equity
Your Answer Price earning ratio X return on equity
Multiple Choice Single Answer
Question What is a load fund?
Correct Answer Fund charging a fee for entry and exit
Your Answer Fund charging a fee for entry and exit
Multiple Choice Single Answer
Question Investment is a risk free investment when :-
Correct Answer Actual return is = expected return
Your Answer Actual return is = expected return
Multiple Choice Single Answer
Question Debt instruments that have a maturity period of more than one
year are called as :-
Correct Answer Bonds
Your Answer Bonds
Multiple Choice Single Answer
Question Mr. Sharma is expecting to receive Rs. 50,000/- at the end of 5
years. He wanted to know what is the present value of this
amount, if the rate of interest is 6% p.a?
Correct Answer Rs. 37363/-
Your Answer Rs. 37363/-
Multiple Choice Single Answer
Question Which of these is a short-maturity debt issue?
Correct Answer Money market funds and gilts
Your Answer Money market funds and gilts
Multiple Choice Single Answer
Question What is Support level?
Correct Answer A point where the prices become relatively attractive for buyers
Your Answer Market resistance to a price fall
Multiple Choice Single Answer
Question During the 1980's rate of savings in India has hovered around
what percentage?
Correct Answer 0.21
Your Answer 0.22
Multiple Choice Single Answer
Question A market that is trading at a Price earning ratio that is much
higher than its historical norms is considered to be :-
Correct Answer Over valued
Your Answer Over valued
Multiple Choice Single Answer
Question The average historical growth rate can be calculated as :-
Correct Answer Arithmetic average or a geometric average
Your Answer Geometric average

Multiple Choice Multiple Answer
Question Active investment managers :-
Correct Answer Do not believe that markets are efficient , Puts efforts to search
mispriced securities in the market , Are relatively active traders
in securities to acquire abnormal returns
Multiple Choice Multiple Answer
Question Equity analysts provides estimates of earnings and earnings
growth for future, using historical data and :-
Correct Answer Macro economic information that may impact future growth ,
Private information about the firm , Firm's specific information
and public information
Multiple Choice Multiple Answer
Question What are the features of short-term trends?
Correct Answer They last from 1 to 3 or 4 weeks , They interrupt the course of
the intermediate cycle , They are usually influenced by random
news events
Multiple Choice Multiple Answer
Question What are the features of trend lines
Correct Answer A simple and useful tool in technical analysis , Prices move in
trends , The trend lines represent points of support and
resistance
Multiple Choice Multiple Answer
Question What are the features of candle stick charts?
Correct Answer Indicates in black if the closing price is lower than the opening
price , Indicates in white if the closing price is higher than the
opening price
Your Answer , Displays the correlation between the high and low prices
Multiple Choice Multiple Answer
Question The growth rate in the initial phase is not constant but declines
linearly over time to reach the stable growth rate in steady state
is a phenomena of :-
Correct Answer H- Model for valuing growth , H-Two stage model for growth ,
H-Model unlike the classic two stage model
Multiple Choice Multiple Answer
Question What are the features of line charts?
Correct Answer It connects closing prices from one period to the next , It is
ideal for securities with no high or low price data
Multiple Choice Multiple Answer
Question What are the ways of measuring relative strength?
Correct Answer Calculate the rates of return and classify securities that have
earned superior historical returns , Calculating certain ratios
will help in analyzing whether a security has relative strength
Your Answer Calculating the Return on investment
Multiple Choice Multiple Answer
Question The Peer group of Bharat Forge consists of which all
companies?
Correct Answer Am forge industries , Kalyani Forge , EL Forge
Multiple Choice Multiple Answer
Question Which were the initiatives which the chairman said would
focus on in 2003-04 in the speech in annual report for the year
2003-03?
Correct Answer Research and development , Capital investment and focus on
balance sheet , Overseas acquisitions
Multiple Choice Multiple Answer
Question The Two-Stage dividend discount model is best suited for the
firms that are :-
Correct Answer In high growth rate phase , Expecting to maintain the growth
rate phase steadily for a specific time period , Sources of high
growth are expected to disappear after specific period of time
Multiple Choice Multiple Answer
Question The features of bond are :-
Correct Answer Collateral , Call provision , Sinking fund and protective
covenants
Multiple Choice Multiple Answer
Question What are the features of
company fixed deposits?
Correct Answer Interest rate offered is
higher than banks , No
benefits under 80 L , No
TDS for interest income
upto Rs. 5000
Your Answer Interest rate offered is
higher than banks , No
benefits under 80 L , No
TDS for interest income
upto Rs. 5000
Multiple Choice Multiple Answer
Question What are the features of point
and figure charts?
Correct Answer Charts are constructed using a
combination of X's and O's
known as boxes. , X's show that
the prices are moving up , O's
show that the prices are moving
down
Your Answer Charts are constructed using a
combination of X's and O's
known as boxes. , X's show that
the prices are moving up , O's
show that the prices are moving
down
Multiple Choice Multiple Answer
Question What are the features of post
office monthly income scheme?
Correct Answer Investor earns bonus of 10% on
completion of term , Rate of
return is 8 % , Interest payable
monthly
Your Answer Rate of return is 8 % , Interest
payable monthly , Investor earns
bonus of 10% on completion of
term
Multiple Choice Multiple Answer
Question The firm issuing bonds
operating sinking fund and
repurchases bonds either :-
Correct Answer Calling in a certain number
of bonds by lot , Buying
bonds in the open market ,
Buying bonds issued to
banks and financial
institutions
Your Answer Calling in a certain number
of bonds by lot , Buying
bonds in the open market ,
Buying bonds issued to
banks and financial
institutions
Multiple Choice Multiple Answer
Question If option is given to you to
receive Rs.1,000/- today or after
one year, you will choose to
receive it today because :-
Correct Answer You can use the amount to
generate returns over the next
one year , The purchasing
power of Rs.1,000/- today is
more than what it will be one
year from now , There is an
element of uncertainty
associated with the future
receipt
Your Answer You can use the amount to
generate returns over the next
one year , The purchasing
power of Rs.1,000/- today is
more than what it will be one
year from now , There is an
element of uncertainty
associated with the future
receipt
Multiple Choice Multiple Answer
Question The computation of return on a
bond involves considering :-
Correct Answer The entire sequence of cash flows
, The timing of cash flows ,
Calculating the internal rate of
return
Your Answer The entire sequence of cash flows
, The timing of cash flows ,
Calculating the internal rate of
return
Multiple Choice Multiple Answer
Question What are the features of line
charts?
Correct Answer It connects closing prices from one
period to the next , It is ideal for
securities with no high or low price
data
Your Answer It connects closing prices from one
period to the next , It is ideal for
securities with no high or low price
data
Multiple Choice Multiple Answer
Question Explain what are leverage ratios ?
Correct Answer Debt equity ratio and interest
coverage ratio and DSCR are
important leverage ratios , Debt is
riskier source of finance as it
entails fixed outgo of periodic
payments , Help in assessing the
risk arising using the debt capital
Your Answer Help in assessing the risk arising
using the debt capital , Debt equity
ratio and interest coverage ratio
and DSCR are important leverage
ratios , Debt is riskier source of
finance as it entails fixed outgo of
periodic payments
Multiple Choice Multiple Answer
Question What developments had taken
place during the year 2000 in case
of Bharat Forge Ltd.?
Correct Answer Demerger of investment division
and windmills , Nominee director of
UTI resigned and ceased to be the
director - nomination withdrawn by
UTI
Your Answer Demerger of investment division
and windmills , Nominee director of
UTI resigned and ceased to be the
director - nomination withdrawn by
UTI
Multiple Choice Multiple Answer
Question The investor in bonds receives income
from :-
Correct Answer Interest payments at coupon rates ,
Capital gain/loss arising out of the sale of
the bond , Redemption of the bond of the
issuer at a contracted value
Your Answer Interest payments at coupon rates ,
Capital gain/loss arising out of the sale of
the bond , Redemption of the bond of the
issuer at a contracted value
Multiple Choice Multiple Answer
Question 1 Return can be in the form of :-
Correct Answer Dividends , Interests , Capital appreciation
Your Answer Dividends , Interests , Capital appreciation
Multiple Choice Multiple Answer
Question 5 What were the achievements of Bharat Forge
during the year 2003?
Correct Answer Secured second largest customer in China ,
Appointed a Company Secretary to act as
compliance officer , New contracts won in
passenger car components
Your Answer Secured second largest customer in China ,
Appointed a Company Secretary to act as
compliance officer , New contracts won in
passenger car components
Multiple Choice Multiple Answer
Question 35 An option is :-
Correct Answer A contract between two parties , Where buyer
receives a privilege for which he pays a premium
, Where the seller accepts an obligation for which
he receives a fee
Your Answer A contract between two parties , Where buyer
receives a privilege for which he pays a premium
, Where the seller accepts an obligation for which
he receives a fee
Multiple Choice Multiple Answer
Question 41 Formula for calculation of portfolio variance
requires :-
Correct Answer Expected return on portfolio , Expected return on
assets , Weight of asset in the portfolio
Your Answer Expected return on portfolio , Expected return on
assets , Weight of asset in the portfolio
Multiple Choice Multiple Answer
Question 46 What were the objectives for 2002-03 the
chairman of Bharat forge had emphasised on in
the annual report for 2001 - 02
Correct Answer Maintain aggressive exports thrust , Increase
shares of value added products , Continue
reducing costs
Your Answer Maintain aggressive exports thrust , Increase
shares of value added products , Continue
reducing costs
Multiple Choice Multiple Answer
Question 47 Which are the most popular types of orders
placed through an online trading account?
Correct Answer Limit orders , Market orders
Your Answer Market orders , Hedging orders , Arbitrage orders

Select The Blank
Question Measures of ________ tells us what we can expect a typical
or middle data point of a distribution to be.
Correct Answer Central tendency
Your Answer Central tendency
Select The Blank
Question ________ ratio indicates the margin available after meeting
the manufacturing expenses.
Correct Answer Gross Profit margin
Your Answer Gross Profit margin
Multiple Choice Multiple Answer
Question Which were the initiatives which the chairman said would
focus on in 2003-04 in the speech in annual report for the
year 2003-03?
Correct Answer Research and development , Capital investment and focus
on balance sheet , Overseas acquisitions
Your Answer Research and development , Capital investment and focus
on balance sheet , Overseas acquisitions
Multiple Choice Multiple Answer
Question What developments had taken place during the year 2000 in
case of Bharat Forge Ltd.?
Correct Answer Demerger of investment division and windmills , Nominee
director of UTI resigned and ceased to be the director -
nomination withdrawn by UTI
Your Answer Demerger of investment division and windmills , Nominee
director of UTI resigned and ceased to be the director -
nomination withdrawn by UTI
Select The Blank
Question The ________ phase is characterized by resistance area
and support level.
Correct Answer Transition
Your Answer Transition
Select The Blank
Question The 6.________% tax saving bonds of government of India
have a tenure of 5 years.
Correct Answer 5
Your Answer 5
Match The Following
Question Correct Answer Your Answer
Expiration period for
options
Nine months Nine months
The world's first largest
options exchange
Chicago Board of options
exchange
New York board of
Options exchange
The most popular pricing
options model published
in the year 1973
Black Scholes Black Scholes
When the writer gives
the buyer of the option
the right to sell the
underlying asset on or
before the expiry date
Put option Put option
Multiple Choice Multiple Answer
Question An option is :-
Correct Answer A contract between two parties , Where buyer receives a
privilege for which he pays a premium ,Where the seller
accepts an obligation for which he receives a fee
Your Answer A contract between two parties , Where buyer receives a
privilege for which he pays a premium , Where the seller
accepts an obligation for which he receives a fee
True/False
Question Currently in India index options are both European and
American in nature.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question Return can be in the form of :-
Correct Answer Dividends , Interests , Capital appreciation
Your Answer Dividends , Interests , Capital appreciation
Multiple Choice Multiple Answer
Question Which of the following are important momentum indicators
used widely?
Correct Answer Rate of change (ROC) , Relative strength indicator (RSI) ,
Moving average convergence divergence(MACD)
Your Answer Rate of change (ROC) , Relative strength indicator (RSI) ,
Moving average convergence divergence(MACD)
Select The Blank
Question The Derivative market is divided into Future market and
________ market.
Correct Answer Options
Your Answer Options
True/False
Question European style options are more expensive than American
style because they offer greater flexibility to the buyer.
Correct Answer False
Your Answer False
True/False
Question A segment is unattractive if the buyers possess strong or
growing bargaining powers.
Correct Answer True
Your Answer True
Match The Following
Question Correct Answer Your Answer
Average collection period Similar to debtors
turnover
How fast the inventory is
being converted
Turnover ratios Help measure the
efficiency of utilisation of
assets
Help measure the
efficiency of utilisation of
assets
Debt Equity ratio Debt / Equity Debt / Equity
Quick assets Highly liquid assets Highly liquid assets
Multiple Choice Multiple Answer
Question In a typical stock market cycle which are the types of trends?
Correct Answer Trends upward , Trend downward , Sideway trend
Your Answer Trends upward , Trend downward , Sideway trend
Multiple Choice Single Answer
Question What is a resistance level?
Correct Answer A point where there is opposition to further price rise
Your Answer A point where there is opposition to further price rise
Select The Blank
Question Debentures rated as "A" are judged to offer ________ of
timely payment of interest and principal.
Correct Answer Adequate safety
Your Answer High safety
True/False
Question A mutual fund is required to dispatch the dividend warrants
to the unit holders within thirty days of the declaration of
dividend.
Correct Answer True
Your Answer True
Select The Blank
Question ________ measures the efficiency of credit management.
Correct Answer Average collection period
Your Answer Interest coverage ratio
Multiple Choice Single Answer
Question How would you rate a portfolio with 90% investment in
stocks?
Correct Answer Highly aggressive
Your Answer Highly aggressive
Select The Blank
Question ________ is due to the fact that a borrower may not pay
interest and/or principal on time.
Correct Answer Default risk
Your Answer Default risk
Multiple Choice Multiple Answer
Question The Gordon growth model is best suited for firms :-
Correct Answer Growing at a rate equal to or lower that the growth in the
economy , Which have well established dividend payout ratio
policy , Whose earnings are steady and perpetual
Your Answer Growing at a rate equal to or lower that the growth in the
economy , Which have well established dividend payout ratio
policy
Multiple Choice Single Answer
Question Agriculture account for how much portion of the economy?
Correct Answer Quarter
Your Answer Quarter
Multiple Choice Single Answer
Question How did Dow use the behaviour of stock markets?
Correct Answer As a barometer of business conditions rather than a basis for
forecasting stock prices
Your Answer To predict trend patterns in stock prices
Select The Blank
Question ________ take long or short positions only with the intention
of making profits by getting out of the market when
conditions favor them.
Correct Answer Speculators
Your Answer Hedgers
True/False
Question In case of fixed income securities like debentures, you get
the return in the form of dividend.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question What are primary trends?
Correct Answer Reflection of investor's attitudes towards unfolding
fundamentals in the business cycle
Your Answer Long term trends
Multiple Choice Single Answer
Question Mr. Shekhar invests Rs.50,000/- in a scheme of LIC, the rate
of interest is 8% compounded annually. What will be the
value of his investment after 5 years?
Correct Answer Rs. 73466/-
Your Answer Rs. 73466/-
True/False
Question Default is normally evaluated and indicated by the rating
assigned to the debt instruments by independent credit
ratings agencies.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Mr.Satish invests Rs.10,000/- today. The rate of interest is
8% compounded annually. What will be the value of his
investment after 5 years?
Correct Answer Rs.14.693/-
Your Answer Rs.14.693/-
Select The Blank
Question The Dow theory was published in a series of editorials in the
________.
Correct Answer Wall street journal
Your Answer Wall street journal
True/False
Question The price earning ratio is an increasing function of the payout
ratio and the growth rate and a decreasing function of the
riskiness of the firm.
Correct Answer True
Your Answer False
Multiple Choice Single Answer
Question The greater the deviation of the actual returns from the
actual return :-
Correct Answer Greater the variance
Your Answer Greater the variance
Multiple Choice Multiple Answer
Question Features of PSU Bonds are :-
Correct Answer No TDS , Transferable by endorsement , No stamp duty on
transfer
Your Answer No TDS , Transferable by endorsement , No stamp duty on
transfer
Multiple Choice Multiple Answer
Question What are the features of public provident scheme?
Correct Answer 15 year instrument , Rate of interest is 8% , Partial
withdrawal is available from 7th year
Your Answer 15 year instrument , Rate of interest is 8% , Partial
withdrawal is available from 7th year
Multiple Choice Multiple Answer
Question Which are the different types of accounts offered to investors
by the stock brokers?
Correct Answer Cash trading , Margin trading
Your Answer General trading , Cash trading , Margin trading
Multiple Choice Single Answer
Question In a forward contract there is :-
Correct Answer No Exchange of cash
Your Answer No Exchange of cash
Multiple Choice Single Answer
Question Under EMH it is assumed that if markets are efficient,
securities are priced to provide a :-
Correct Answer Normal returns for their given level of risk
Your Answer Equal returns for their given level of risk
True/False
Question If a rupee weakens against the dollars it has favourable
impact for the exporters.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question If option is given to you to receive Rs.1,000/- today or after
one year, you will choose to receive it today because :-
Correct Answer You can use the amount to generate returns over the next
one year , The purchasing power of Rs.1,000/- today is more
than what it will be one year from now , There is an element
of uncertainty associated with the future receipt
Your Answer You can use the amount to generate returns over the next
one year , The purchasing power of Rs.1,000/- today is more
than what it will be one year from now , There is an element
of uncertainty associated with the future receipt
Multiple Choice Single Answer
Question The growth period in the industry life cycle is defined as :-
Correct Answer Period of rapid market acceptance and substantial profit
improvement
Your Answer Period of rapid market acceptance and substantial profit
improvement
Multiple Choice Single Answer
Question What is the objective of Portfolio management?
Correct Answer To Minimize risk and maximize return
Your Answer To Minimize risk and maximize return
True/False
Question A rally that develops on contracting volumes is suspect and
warns of a potential trend reversal in price
Correct Answer True
Your Answer True
True/False
Question Post office monthly schemes have a 10 year tenor.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question The approach followed to assess the growth rate by looking
at how much a firm reinvests for future growth and the quality
of its re-investments is :-
Correct Answer Estimating growth from a firm's fundamentals
Your Answer Earnings multiplier approach
Multiple Choice Single Answer
Question Mr.Saurabh invests Rs. 5,000/- today. The rate of interest is
4% compounded annually. What will be the value of his
investment after 5 years?
Correct Answer Rs. 6083/-
Your Answer Rs. 6083/-

Select The Blank
Question ________is a hybrid form of security which has characteristics of
both equity and debentures
Correct Answer Preference shares
Your Answer Preference shares
Multiple Choice Single Answer
Question When was the Dow theory first published?
Correct Answer Between 1900 and 1902
Your Answer Between 1900 and 1902
Multiple Choice Single Answer
Question 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
True/False
Question There may be convertible clause which gives the debenture holder
the option to convert the debentures into equity shares.
Correct Answer True
Your Answer True
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
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 , Expecting a established
dividend payout ratio
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
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
Multiple Choice Multiple Answer
Question A firm's growth is determined by how much is re-invested into new
assets and the quality of these investments, and these includes :-
Correct Answer Acquisitions , Building distribution channels , Expanding marketing
capabilities and investing in new facilities
Your Answer Acquisitions , Building distribution channels , Expanding marketing
capabilities and investing in new facilities
Select The Blank
Question S&P NSE 50 index is known as ________.
Correct Answer NIFTY
Your Answer NIFTY
Select The Blank
Question The margining system is future contract is based on ________
recommendations.
Correct Answer J R verma committee
Your Answer Fama committee
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 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 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
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
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 The approach followed to assess the growth rate by looking at how
much a firm reinvests for future growth and the quality of its reinvestments
is :-
Correct Answer Estimating growth from a firm's fundamentals
Your Answer Estimating growth from a firm's fundamentals
True/False
Question Certificate of Deposits offers high rate of interest than Treasury Bills.
Correct Answer True
Your Answer True
Select The Blank
Question Under ________ EMH investors cannot earn abnormal/superior
profits on securities on a consistent basis.
Correct Answer Semi-strong form
Your Answer Semi-strong form
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
Multiple Choice Multiple Answer
Question Which of the following are important momentum indicators used
widely?
Correct Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving
average convergence divergence(MACD)
Your Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving
average convergence divergence(MACD)
Match The Following
Question Correct Answer Your Answer
Price pattern Resistance level Head and shoulders
formation
Primary trend Last between 1-2 years Resistance level
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 Single Answer
Question As per the framework presented by Fama, EMH can be divided as :-
Correct Answer The weak form, semi-strong form & strong form
Your Answer The weak form & the strong form
Select The Blank
Question ________ measures the profitability of operations without considering
the influence of financial structure and tax rate.
Correct Answer Earnings power
Your Answer Earnings power
Multiple Choice Single Answer
Question The Top-down approach is also known as :-
Correct Answer Economy-industry-company approach
Your Answer Economy-industry-company approach
True/False
Question The Asset management company of the mutual fund must have 50%
independent directors.
Correct Answer True
Your Answer True
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 Single Answer
Question A derivative is a product whose value is derived from :-
Correct Answer Value of an underlying asset
Your Answer Book value of an asset
Match The Following
Question Correct Answer Your Answer
H-Model For Valuing
Growth
Initial growth rate is not
constant but linearly falls
over time to reach the
stable growth rate
Expected dividends and
required rate of returns as
per the market price per
share to the earningsper
share
The general model Expected dividends and
required rate of return
Initial growth rate is not
constant but linearly falls
over time to reach the stable
growth rate
The Gordons Growth model Expected dividends in the
next period, cost of equity
and expected growth rate in
dividends
Based on two extraordinary
growth phase lasting n years
and stable growth phase that
lasts forever
The Two-Stage Dividend
Discount Model
Based on two extraordinary
growth phase lasting n
years and stable growth
phase that lasts forever
Expected dividends in the
next period, cost of equity
and expected growth rate in
dividends
Multiple Choice Single Answer
Question A pledge of real assets as insurance against the non-payment of
default by the buyer represents
Correct Answer Collateral
Your Answer Collateral
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 If rupee weakens against the dollar, it has favourable impact for the
importers.
Correct Answer False
Your Answer False
Select The Blank
Question The Dow theory was published in a series of editorials in the
________.
Correct Answer Wall street journal
Your Answer Wall street journal
True/False
Question A higher value of current ratio indicates a better short term solvency
of the firm.
Correct Answer True
Your Answer True
True/False
Question Given the accounting standards across firm, price to book value
ratios can be compared across similar firms for signs of under
valuation.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Debt instruments that have a maturity period of one year or less are
called as:-
Correct Answer Money market instruments
Your Answer Bonds
Multiple Choice Multiple Answer
Question Growth of the firm can be estimated through :-
Correct Answer Firm's past earnings/historical growth rate , Estimates made by equity
research analyst who follow the firm , Estimates from a firm's
fundamentals
Your Answer Firm's past earnings/historical growth rate , Estimates made by equity
research analyst who follow the firm , Estimates from a firm's
fundamentals
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 What do you understand by money supply?
Correct Answer Total money in existence at any given time
Your Answer Total money in existence at any given time
Multiple Choice 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
Select The Blank
Question UTI was set up in the year ________.
Correct Answer 1963
Your Answer 1963
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 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 constant
Multiple Choice Single Answer
Question What are short term trends?
Correct Answer Trends which interrupt the course of the intermediate cycle
Your Answer Trends which interrupt the course of the intermediate cycle
Multiple Choice Multiple Answer
Question An option is :-
Correct Answer A contract between two parties , Where buyer receives a privilege for
which he pays a premium , Where the seller accepts an obligation for
which he receives a fee
Your Answer A contract between two parties , Where buyer receives a privilege for
which he pays a premium , Where the seller accepts an obligation for
which he receives a fee
True/False
Question Post office monthly schemes have a 10 year tenor.
Correct Answer False
Your Answer False
True/False
Question A segment is more attractive when there are actual or potential
substitutes for the product.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question What are primary trends?
Correct Answer Reflection of investor's attitudes towards unfolding fundamentals in
the business cycle
Your Answer Reflection of investor's attitudes towards unfolding fundamentals in
the business cycle
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 , Acid test ratio
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 computation of return on a bond involves considering :-
Correct Answer The entire sequence of cash flows , The timing of cash flows ,
Calculating the internal rate of return
Your Answer The entire sequence of cash flows , The timing of cash flows ,
Calculating the internal rate of return
Multiple Choice Multiple Answer
Question 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
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 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
True/False
Question Quick assets consist of current assets less inventories.
Correct Answer True
Your Answer True
Select The Blank
Question ________ identified five forces that determine the intrinsic long run
profit attractiveness of a market or market segment.
Correct Answer Michael Porter
Your Answer Michael Porter
Select The Blank
Question Debentures rated "BB" refers ________ of timely payment of interest
and principal.
Correct Answer Inadequate safety
Your Answer Inadequate safety
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 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
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 Sensex is the index of Calcutta Stock Exchange.
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 , Provision of premature withdrawal
, Interest rate is 8.4% compounded annually
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
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 ________ measures the profitability of equity funds invested in the
firms.
Correct Answer Return on equity
Your Answer Return on equity
Multiple Choice Multiple Answer
Question In a typical stock market cycle which are the types of trends?
Correct Answer Trends upward , Trend downward , Sideway trend
Your Answer Trends upward , Trend downward , Sideway trend
Multiple Choice Multiple Answer
Question The firm issuing bonds operating sinking fund and repurchases
bonds either :-
Correct Answer Calling in a certain number of bonds by lot , Buying bonds in the open
market , Buying bonds issued to banks and financial institutions
Your Answer Calling in a certain number of bonds by lot , Buying bonds in the open
market , Buying bonds issued to banks and financial institutions
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
True/False
Question Default is normally evaluated and indicated by the rating assigned to
the debt instruments by independent credit ratings agencies.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What is the limitation of Flow-of funds analysis method?
Correct Answer Cannot give indication of the inclination of market participants to
purchase stock
Your Answer Cannot give indication of the inclination of market participants to
purchase stock
Multiple Choice Single Answer
Question A security represent evidence of :-
Correct Answer A property right
Your Answer A property right
Multiple Choice Multiple Answer
Question Return can be in the form of :-
Correct Answer Dividends , Interests , Capital appreciation
Your Answer Dividends , Interests , Capital appreciation
Multiple Choice Single Answer
Question Which year marked increase in growth rate?
Correct Answer 2003 -04
Your Answer 2003 -04
True/False
Question A rise in interest rates will push the market prises of outstanding
bonds where as a fall in interest rates will depress the market prices
down.
Correct Answer False
Your Answer True
True/False
Question Because of statutory compulsion, generally Govt. securities are held
by banks, financial institutions, insurance companies etc.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The greater the deviation of the actual returns from the actual return
:-
Correct Answer Greater the variance
Your Answer Greater the variance
True/False
Question With the use of diversification you can reduce the risk.
Correct Answer True
Your Answer True
Match The Following
Question Correct Answer Your Answer
Equity shares High risk High risk
Government Securities No risk No risk
Bank Deposits Low risk Low risk
Mutual Funds Average risk Average risk
Select The Blank
Question ________ bonds are generally called for prepayment after interest
rates have fallen, investors will not be able to find comparable
investment avenues.
Correct Answer Call risk
Your Answer Call risk
Multiple Choice Single Answer
Question In India futures on individual securities have been introduced by :-
Correct Answer BSE & NSE
Your Answer BSE
Match The Following
Question Correct Answer Your Answer
Growth of income 40-60 % debt, 40-60 %
equities
75-100 % in equities
Current income Short term debt portfolio Short term debt portfolio
Stability of principal Fixed - income portfolio Fixed - income portfolio
Appreciation 75-100 % in equities 100 % in mutual funds
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 % , Investor earns bonus of 10% on completion of
term
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
Multiple Choice Multiple Answer
Question What developments had taken place during the year 2000 in case of
Bharat Forge Ltd.?
Correct Answer Demerger of investment division and windmills , Nominee director of
UTI resigned and ceased to be the director - nomination withdrawn
by UTI
Your Answer Demerger of investment division and windmills
True/False
Question Passive investment managers believe that markets are inefficient and
Active managers believe that markets are efficient.
Correct Answer False
Your Answer True
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 Debentures rated ________ are judged to offer sufficient safety of
timely payment of interest and repayment of principal.
Correct Answer "BBB"
Your Answer "AAA"
Select The Blank
Question Debentures rated as "A" are judged to offer ________ of timely
payment of interest and principal.
Correct Answer Adequate safety
Your Answer High safety
Multiple Choice Single Answer
Question When an investor invests in stock, expects to get the dividends and
an expected price for the period the stock is held is the rule of :-
Correct Answer The General model
Your Answer The General model
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 ,
Whose earnings are steady and perpetual , Value of stock is risky
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
Multiple Choice Single Answer
Question What does lower level of unemployment indicates?
Correct Answer Positive economic conditions
Your Answer Positive economic conditions
Select The Blank
Question Current liabilities include all liabilities due in the next ________ and
provisions.
Correct Answer 12 months
Your Answer 12 months
Multiple Choice Multiple Answer
Question The security market is the market for :-
Correct Answer Equity , Debt , Derivatives
Your Answer Equity , Debt , Derivatives

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