LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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 the portfolio

Expected return on portfolio , Expected return on assets , Weight of asset in

Multiple Choice Multiple Answer Question 46 What were the objectives for 2002-03 the chairman of Bharat forge had emphasised on in the annual report for 2001 - 02 Correct Answer Maintain aggressive exports thrust , Increase shares of value added products , Continue reducing costs Your Answer Maintain aggressive exports thrust , Increase shares of value added products , Continue reducing costs Multiple Choice Multiple Answer Question 47 Which are the most popular types of orders placed through an online trading account? Correct Answer Limit orders , Market orders Your Answer Market orders , Hedging orders , Arbitrage orders Multiple Choice Multiple Answer Question 4 A firm's growth is determined by how much is re-invested into new assets and the quality of these investments, and these includes :Correct Answer Acquisitions , Building distribution channels , Expanding marketing capabilities and investing in new facilities Your Answer Acquisitions , Expanding marketing capabilities and investing in new facilities , Mergers Multiple Choice Multiple Answer Question 5 Which of the following are important momentum indicators used widely? Correct Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD) Your Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD) Multiple Choice Multiple Answer Question 14 Which ratios are commonly used? Correct Answer Debt equity ratio , Interest coverage ratios , Debt service coverage ratios Your Answer Debt equity ratio , Interest coverage ratios , Debt service coverage ratios Multiple Choice Multiple Answer Question 15 What were the Chairman's comments during the speech in the Annual report of the FY 2002-03? Correct Answer Best year in the history of the company , 146% growth in exports , Highest pre and post tax profits Your Answer Best year in the history of the company , 146% growth in exports , Highest pre and post tax profits Multiple Choice Multiple Answer Question 20 Who are the constituents of a mutual fund? Correct Answer Sponsor & trustees , Asset management company , Custodian Your Answer Sponsor & trustees , Asset management company , Custodian Multiple Choice Multiple Answer Question 26 What are the features of Kisan Vikas Patra? Correct Answer Term is for 8 years seven months , Provision of premature withdrawal , Interest rate is 8.4% compounded annually Your Answer Term is for 8 years seven months , Provision of premature withdrawal , Interest rate is 8.4% compounded annually

Multiple Choice Multiple Answer Question 38 The security analysis process will achieve :Correct Answer True picture of a company , Normal earning power , Projection of future profitability Your Answer True picture of a company , Normal earning power , Projection of future profitability Multiple Choice Multiple Answer Question 41 The return to the bond investor can be measured in terms of :Correct Answer Current yield , Yield to maturity , Realised yield Your Answer Yield to maturity , Realised yield Multiple Choice Multiple Answer Question 5 Which are the different types of accounts offered to investors by the stock brokers? Correct Answer Cash trading , Margin trading Your Answer General trading , Cash trading , Margin trading Multiple Choice Multiple Answer Question 7 What are the features of Retail government securities (G-secs) ? Correct Answer Safest investment option available , Demat account is required for investment , Choice of tenure varies from less than 1 year to 30 years Your Answer Securities can be bought from the RBI , Safest investment option available , Demat account is required for investment

Multiple Choice Multiple Answer Question 10 To measure the movement of stocks in the market which indices were constructed by Dow? Correct Answer Dow Jones industrial Average , Dow Jones Transportation Average Your Answer Dow Jones Transportation Average

Multiple Choice Multiple Answer Question 16 The security market is the market for :Correct Answer Equity , Debt , Derivatives Your Answer Equity , Debt , Bank deposits Multiple Choice Multiple Answer Question 18 In a typical stock market cycle which are the types of trends? Correct Answer Trends upward , Trend downward , Sideway trend Your Answer Trends upward , Trend downward , Flat trend Multiple Choice Multiple Answer Question 22 Mutual fund schemes could be broadly classified as :Correct Answer Open ended scheme , Close ended scheme Your Answer Open ended scheme , Close ended scheme , Growth schemes Multiple Choice Multiple Answer Question 24 What was the final analysis on the performance of Bharat forge for the year FY 02? Correct Answer Aim to become US$1 billion Company by Fy 08 from US$100 million , Stock currently trades at 15 times its FY 05 consensus EPS forecasts , Stock will trade at an inexpensive PEG of 0.6x. Your Answer Aim to become US$1 billion Company by Fy 08 from US$100 million , Stock currently trades at 15 times its FY 05 consensus EPS forecasts , Stock will trade at an inexpensive PEG of 0.6x.

Multiple Choice Multiple Answer Question 26 Gilt Edged Securities are :Correct Answer State Govt. , Quasi-Govt , Central Govt Your Answer Central Govt , State Govt. , Quasi-Govt Multiple Choice Multiple Answer Question 33 What are the ways of measuring relative strength? Correct Answer Calculate the rates of return and classify securities that have earned superior historical returns , Calculating certain ratios will help in analyzing whether a security has relative strength Your Answer Calculate the rates of return and classify securities that have earned superior historical returns , Calculating certain ratios will help in analyzing whether a security has relative strength , Calculating the Return on investment Multiple Choice Multiple Answer Question 44 What are the different types of profitability ratios? Correct Answer Gross profit margin ratio , Earnings power , Return on equity Your Answer Gross profit margin ratio , Earnings power , Return on equity Multiple Choice Multiple Answer Question The Gordon growth model is best suited for firms :Correct Answer Growing at a rate equal to or lower that the growth in the economy , Which have well established dividend payout ratio policy , Whose earnings are steady and perpetual Your Answer Growing at a rate equal to or lower that the growth in the economy , Which have well established dividend payout ratio policy Multiple Choice Multiple Answer Question The Two-Stage dividend discount model is based on the assumption of :Correct Answer An initial phase where the growth is not a stable growth rate , A subsequent steady state of growth rate being stable and lasts n years , A stable growth phase lasts forever Your Answer An initial phase where the growth is not a stable growth rate , A subsequent steady state of growth rate being stable and lasts n years , A stable growth phase lasts forever Multiple Choice Multiple Answer Question Features of PSU Bonds are :Correct Answer No TDS , Transferable by endorsement , No stamp duty on transfer Your Answer No TDS , Transferable by endorsement , No stamp duty on transfer Multiple Choice Multiple Answer Question An options contract allows the investor :Correct Answer To earn a profit while restricting the downside risk , To use the options for speculation , Either to honour or walk away from the contract Your Answer Either to honour or walk away from the contract , To earn a profit while restricting the downside risk , To use the options for speculation Multiple Choice Multiple Answer Question Major steps involved in construction of a index are :Correct Answer Selecting a set of scrips to be used , Fixing starting date , Calculating market capitalisation Your Answer Selecting a set of scrips to be used , Fixing starting date , Fixing ending date Multiple Choice Multiple Answer

Question How can the financial statements can be manipulated while giving the estimates for growth? Correct Answer Change method of rate of depreciation , Change method of stock valuation , Inflating sales for current year by advancing sales for the following year Your Answer Change method of rate of depreciation , Change method of stock valuation , Inflating sales for current year by advancing sales for the following year Multiple Choice Multiple Answer Question The underlying assumptions of Technical analysis are that :Correct Answer Prices move in predictable patterns , Market value is determined by supply & demand , Investors are emotional than being rational Your Answer Prices move in predictable patterns , Investors are emotional than being rational Multiple Choice Multiple Answer Question Which are the different styles of displaying charts? Correct Answer Bar and line charts , Candle stick charts , Point and figure charts Your Answer Candle stick charts , Point and figure charts , Bar and line charts Multiple Choice Multiple Answer Question What are the features of public provident scheme? Correct Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is available from 7th year Your Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is available from 7th year Multiple Choice Multiple Answer Question Growth of the firm can be estimated through :Correct Answer Firm's past earnings/historical growth rate , Estimates made by equity research analyst who follow the firm , Estimates from a firm's fundamentals Your Answer Firm's past earnings/historical growth rate , Estimates made by equity research analyst who follow the firm , Estimates from a firm's fundamentals Multiple Choice Multiple Answer Question Characteristics of Preference shares are :Correct Answer Carry a fixed rate of dividend , Dividend payable out of profit , Redemption in 7 to 12 years Your Answer Carry a fixed rate of dividend , Dividend payable out of profit , Redemption in 7 to 12 years Multiple Choice Multiple Answer Question What are the SEBI regulations with respect to mutual funds? Correct Answer Mutual funds to be registered with SEBI before the launching any scheme , 2/3rds of the directors of the trustee company must be independent , An AMC approved by SEBI manages the fund Your Answer Mutual funds to be registered with SEBI before the launching any scheme , 2/3rds of the directors of the trustee company must be independent , An AMC approved by SEBI manages the fund Multiple Choice Multiple Answer Question The security analysis process will achieve :Correct Answer True picture of a company , Normal earning power , Projection of future profitability Your Answer True picture of a company , Normal earning power , Projection of future profitability

Multiple Choice Multiple Answer Question The return to the bond investor can be measured in terms of :Correct Answer Current yield , Yield to maturity , Realised yield Your Answer Realised yield Multiple Choice Multiple Answer Question What are the features of bank deposits? Correct Answer Interest is presently around 6% , Benefits under section 80 L , Banks offer cheque facility for investors making it convenient to withdraw Your Answer Interest is presently around 6% , Banks offer cheque facility for investors making it convenient to withdraw Multiple Choice Multiple Answer Question What are the important macro economic indicators? Correct Answer GNP growth rate , Price Conditions , Monsoons Your Answer GNP growth rate , Price Conditions , Monsoons

Multiple Choice Single Answer Question When an investor invests in stock, expects to get the dividends and an expected price for the period the stock is held is the rule of :Correct Answer The General model Multiple Choice Single Answer Question Stock Exchanges are the part of :Correct Answer Secondary market Your Answer Money Market Multiple Choice Single Answer Question The index futures symbols of BSE are represented as :Correct Answer BSX JAN 2005 (January contract) Multiple Choice Single Answer Question More than half the variation in stock price could be attributed to which factor? Correct Answer Market influence Multiple Choice Single Answer Question In India we have index futures contracts based on :Correct Answer S&P CNX Nifty and the BSE sensex Multiple Choice Single Answer Question In India, the futures on individual securities have been introduced from :Correct Answer 2001 Multiple Choice Single Answer Question What do you understand by the term redemption price? Correct Answer Price or NAV at which a scheme purchases its units Multiple Choice Single Answer Question A security analysis is done :-

Correct Answer

For decision making for investments

Multiple Choice Single Answer Question As per the exhibit 18-1 for individual stock futures on NSE, the price steps in respect of all futures contract admitted to the dealings of the exchange shall be :Correct Answer 0.05 Multiple Choice Single Answer Question What is a technical approach to investment? Correct Answer A reflection of the idea that prices move in trends which are determined by various factors Multiple Choice Single Answer Question A pledge of real assets as insurance against the non-payment of default by the buyer represents Correct Answer Collateral Multiple Choice Single Answer Question Who developed Dow's Principles and organised them into a theory as it is known today? Correct Answer William Peter Hamilton Your Answer Charles.H.Dow Multiple Choice Single Answer Question We can compare the price earning ratio of a market to its historical average to make judgements about, whether market is :Correct Answer Under valued or over valued Your Answer Under valued or over valued Multiple Choice Single Answer Question When a firm can grow net profits by issuing equity, the expected growth rate in net profits is determined by :Correct Answer Equity reinvestment rate X return on equity Your Answer Price earning ratio X return on equity Multiple Choice Single Answer Question What is a load fund? Correct Answer Fund charging a fee for entry and exit Your Answer Fund charging a fee for entry and exit Multiple Choice Single Answer Question Investment is a risk free investment when :Correct Answer Actual return is = expected return Your Answer Actual return is = expected return Multiple Choice Single Answer Question Debt instruments that have a maturity period of more than one year are called as :Correct Answer Bonds Your Answer Bonds Multiple Choice Single Answer Question Mr. Sharma is expecting to receive Rs. 50,000/- at the end of 5 years. He wanted to know what is the present value of this amount, if the rate of interest is 6% p.a? Correct Answer Rs. 37363/-

Your Answer

Rs. 37363/-

Multiple Choice Single Answer Question Which of these is a short-maturity debt issue? Correct Answer Money market funds and gilts Your Answer Money market funds and gilts Multiple Choice Single Answer Question What is Support level? Correct Answer A point where the prices become relatively attractive for buyers Your Answer Market resistance to a price fall Multiple Choice Single Answer Question During the 1980's rate of savings in India has hovered around what percentage? Correct Answer 0.21 Your Answer 0.22 Multiple Choice Single Answer Question A market that is trading at a Price earning ratio that is much higher than its historical norms is considered to be :Correct Answer Over valued Your Answer Over valued Multiple Choice Single Answer Question The average historical growth rate can be calculated as :Correct Answer Arithmetic average or a geometric average Your Answer Geometric average Multiple Choice Single Answer Question 4 What are short term trends? Correct Answer Trends which interrupt the course of the intermediate cycle Your Answer They are counter-cyclical trends within the confines of a primary trend Multiple Choice Single Answer Question 8 When the firm is not raising equity by issuing new shares, the growth rate in net profits is given by :Correct Answer Retention ratio X return on equity Your Answer Price earning ratio X return on equity Multiple Choice Single Answer Question 9 The historical growth rate and the past earnings of a firm are used in valuing :Correct Answer Stable firms, but not appropriate for high growth firms Your Answer Consistent stable firms, but not appropriate for high growth firms Multiple Choice Single Answer Question 10 Efficient market hypothesis is based on the assumption that market comprises of :Correct Answer Rational Investors Your Answer Heterogeneous investors Multiple Choice Single Answer Question 11 Co variance of asset with market portfolio 85 and variance of market portfolio is 100 then beta is :Correct Answer 0.0085

Your Answer

0.0085

Multiple Choice Single Answer Question 13 Mr. Tiwari is expecting to receive Rs.25,000/- at the end of 10 years. He wanted to know what is the present value of this amount, if the rate of interest is 10% p.a:Correct Answer Rs. 9639/Your Answer Rs. 9639/Multiple Choice Single Answer Question 18 What does flow-of fund analysis help in understanding? Correct Answer Availability of money for the stock market Your Answer Financial strength of various companies Multiple Choice Single Answer Question 23 A security represent evidence of :Correct Answer A property right Your Answer Safety Multiple Choice Single Answer Question 24 Mr.Saurabh invests Rs. 5,000/- today. The rate of interest is 4% compounded annually. What will be the value of his investment after 5 years? Correct Answer Rs. 6083/Your Answer Rs. 6083/Multiple Choice Single Answer Question 27 In India futures on individual securities have been introduced by :Correct Answer BSE & NSE Your Answer BSE & NSE Multiple Choice Single Answer Question 43 The issuing firm enjoys the flexibility to call the bonds if the interest rates fall significantly and it can issue :Correct Answer New bonds at a lower rates Your Answer New bonds at a lower rates Multiple Choice Single Answer Question 2 When was the first mutual fund set up? Correct Answer 1963 Your Answer 1963 Multiple Choice Single Answer Question 7 How can transition phases be projected? Correct Answer Transition phases are signalled by clearly definable price patterns Your Answer By working out the resistance and support levels Multiple Choice Single Answer Question 8 If the price of a share at the beginning of the year was Rs.50/-, dividend received during the year was Rs.10/-per share and the price at the end is Rs.60/-. What is the rate of return? Correct Answer 0.4 Your Answer 0.2 Multiple Choice Single Answer

Question 27 indirectly :Correct Answer Your Answer

Investing in this avenue enable you participate in the equity market Mutual Funds Mutual Funds

Multiple Choice Single Answer Question 29 In any Economy, bridge is created between savers and who need the funds by this system :Correct Answer Financial Your Answer Economic Multiple Choice Single Answer Question 30 Agriculture account for how much portion of the economy? Correct Answer Quarter Your Answer Three fourths Multiple Choice Single Answer Question 37 Who operates the sinking fund under the sinking fund provision of a firm? Correct Answer The bond trustee or the issuer Your Answer The bond trustee or the issuer Multiple Choice Single Answer Question 40 How did Dow use the behaviour of stock markets? Correct Answer As a barometer of business conditions rather than a basis for forecasting stock prices Your Answer As a barometer of business conditions rather than a basis for forecasting stock prices Multiple Choice Single Answer Question 42 The growth period in the industry life cycle is defined as :Correct Answer Period of rapid market acceptance and substantial profit improvement Your Answer Period of rapid market acceptance and substantial profit improvement Multiple Choice Single Answer Question 3 What is the limitation of Flow-of funds analysis method? Correct Answer Cannot give indication of the inclination of market participants to purchase stock Your Answer Cannot give indication of the inclination of market participants to purchase stock Multiple Choice Single Answer Question 6 Sentiment indicators are based on what assumption Correct Answer Different groups of investors are consistent in their actions at major market turning points Your Answer Different groups of investors are consistent in their actions at major market turning points Multiple Choice Single Answer Question 12 An agreement to buy or sell a specified quantity of an asset at a certain future date or a certain price is know as :Correct Answer Forward contract Your Answer Futures contract Multiple Choice Single Answer Question 25 What are intermediate trends? Correct Answer They are counter-cyclical trends within the confines of a primary trend Your Answer They are counter-cyclical trends within the confines of a primary trend

Multiple Choice Single Answer Question 29 What are index funds? Correct Answer Investment in securities in the same weightage which replicates a particular index Your Answer Investment in securities in the same weightage which replicates a particular index Multiple Choice Single Answer Question 38 What are the assumptions of the Dow theory? Correct Answer Majority of stocks follow the underlying trend of the market most of the time Your Answer Majority of stocks follow the underlying trend of the market most of the time Multiple Choice Single Answer Question 39 Mr.Rohan invests Rs.25,000/- today. The rate of interest is 6% compounded annually. What will be the value of his investment after 3 years? Correct Answer Rs. 29775/Your Answer Rs. 29775/Multiple Choice Single Answer Question 41 How many measures of money supply are used commonly? Correct Answer 2 Your Answer 2 Multiple Choice Single Answer Question 43 Under which simple model the value of the stock is the present value of expected dividends on it :Correct Answer The Dividend discount model Your Answer The Dividend growth model Multiple Choice Single Answer Question 46 Avenues can be broadly classified into the which type of assets? Correct Answer Financial and Real Your Answer Tangible and Intangible Multiple Choice Single Answer Question The average investor in the market is driven more by emotions than by rational analysis is a rule of :Correct Answer Technical analysis Your Answer Fundamental Analysis Multiple Choice Single Answer Question What is the objective of an income fund? Correct Answer To provide regular and steady income Your Answer To provide guaranteed returns to investors Multiple Choice Single Answer Question What does lower level of unemployment indicates? Correct Answer Positive economic conditions Your Answer Economic slowdown Multiple Choice Single Answer

Question The GDP growth rate in the economy in real terms has fluctuated between :Correct Answer 4% and 5% Your Answer 4% and 5% Multiple Choice Single Answer Question Mr.Satish invests Rs.10,000/- today. The rate of interest is 8% compounded annually. What will be the value of his investment after 5 years? Correct Answer Rs.14.693/Your Answer Rs.14.693/Multiple Choice Single Answer Question Which market is affected with the improving and higher growth rate in economy? Correct Answer Stock market Your Answer Stock market Multiple Choice Single Answer Question What do you understand by money supply? Correct Answer Total money in existence at any given time Your Answer Total money in existence at any given time Multiple Choice Single Answer Question What is Gross National Product ? Correct Answer Gross income generated from within the country Your Answer Gross income generated from within the country Multiple Choice Single Answer Question The greater the deviation of the actual returns from the actual return :Correct Answer Greater the variance Your Answer Greater the variance Multiple Choice Single Answer Question What is GDP at factor cost ? Correct Answer Excludes net income received from abroad Your Answer Includes indirect taxes Multiple Choice Single Answer Question More than half the variation in stock price could be attributed to which factor? Correct Answer Market influence Your Answer Market influence Multiple Choice Single Answer Question Free Float index considers this to calculate market capitalisation :Correct Answer Actual no. of shares available Your Answer Actual no. of shares available Multiple Choice Single Answer Question The Top-down approach is also known as :Correct Answer Economy-industry-company approach Your Answer Economy-industry-company approach Multiple Choice Single Answer Question What is a technical approach to investment? Correct Answer A reflection of the idea that prices move in trends which are determined by various factors

Your Answer various factors

A reflection of the idea that prices move in trends which are determined by

Multiple Choice Single Answer Question What are index funds? Correct Answer Investment in securities in the same weightage which replicates a particular index Your Answer Investment in securities in the same weightage which replicates a particular index Multiple Choice Single Answer Question What could be a better approach to flow-of -funds analysis? Correct Answer An examination of liquidity trends in the banking system Your Answer A study of macro economical changes Multiple Choice Single Answer Question The general dividend model is based on the principle of :Correct Answer Present value of the expected future cash flow Your Answer Present value of the expected future cash flow

Multiple Choice Single Answer Question What are short term trends? Correct Answer Trends which interrupt the course of the intermediate cycle Your Answer Trends which interrupt the course of the intermediate cycle Multiple Choice Single Answer Question What is the aim of growth funds? Correct Answer To provide capital appreciation over medium to long term Your Answer To provide capital appreciation over medium to long term Multiple Choice Single Answer Question This is not a stock exchange :Correct Answer MCX Your Answer MCX Multiple Choice Single Answer Question Under EMH it is assumed that if markets are efficient, securities are priced to provide a :Correct Answer Normal returns for their given level of risk Your Answer Normal returns for their given level of risk Multiple Choice Single Answer Question Mr. Shekhar invests Rs.50,000/- in a scheme of LIC, the rate of interest is 8% compounded annually. What will be the value of his investment after 5 years? Correct Answer Rs. 73466/Your Answer Rs. 73466/Multiple Choice Single Answer Question The price of the index futures contract is defined as :Correct Answer Future price = Spot price + Carry cost Your Answer Future price = Spot price + Carry cost Multiple Choice Single Answer Question Financial assets can be classified as :Correct Answer Marketable and non-marketable

Your Answer

Marketable and non-marketable

Multiple Choice Single Answer Question Mr. Suresh is expecting to receive Rs.1,50,000/- at the end of 3 years. He wanted to know what is the present value of this amount, if the rate of interest is 9% p.a ? Correct Answer Rs.1,15,827/Your Answer Rs.1,15,827/Multiple Choice Single Answer Question What is Flow-of-funds analysis? Correct Answer Consists of an analysis of the financial positions of various investor groups Your Answer Consists of an analysis of the financial positions of various investor groups Multiple Choice Single Answer Question Mr. Suhas is expecting to receive Rs.1,00,000/- at the end of 7 years. He wanted to know what is the present value of this amount, if the rate of interest is 7% p.a ? Correct Answer Rs. 62,275/Your Answer Rs. 62,275/Multiple Choice Single Answer Question What do you understand by term pioneering stage in the industry life cycle analysis? Correct Answer Slow sales growth product recently introduced Your Answer Slow sales growth product recently introduced Multiple Choice Single Answer Question Till 1990's secular Indian economy's inflation rate has been of what percentage? Correct Answer 0.07 Your Answer 0.07 Multiple Choice Single Answer Question Credit rating companies assign ratings for which of these investments? Correct Answer Company deposits Your Answer Company deposits Multiple Choice Single Answer Question If index future is taken under futures contract, the underlying asset would be :Correct Answer Stock index Your Answer Stock index Multiple Choice Single Answer Question What is balance of payments? Correct Answer Credit and debit transactions of a country Your Answer Credit and debit transactions of a company Multiple Choice Single Answer Question Profits are non existent in pioneering stage because of :Correct Answer Heavy expenses on product introduction Your Answer Heavy expenses on product introduction Multiple Choice Single Answer Question What is the indicator of buoyant economy?

Correct Answer Increased level of housing construction activity Your Answer Increased level of housing construction activity Multiple Choice Single Answer Question What does a transitional phase indicate? Correct Answer It marks the turning point between a rising and falling market Your Answer It marks the turning point between a rising and falling market Multiple Choice Single Answer Question Dividend discount model is considered as the simplest model for :Correct Answer Valuing Equity Your Answer Valuing Equity

Multiple Choice Single Answer Question The present value of all the future cash payments to be paid on the security to the investor is termed as :Correct Answer Intrinsic value of a security Your Answer Intrinsic value of a security Multiple Choice Single Answer Question If the price of a share at the beginning of the year was Rs.100/-, no dividend received during the year and the price at the end is Rs.115/-. What is the rate of return? Correct Answer 0.15 Your Answer 0.15 Multiple Choice Single Answer Question What is the objective of Portfolio management? Correct Answer To Minimize risk and maximize return Your Answer To Minimize risk and maximize return Multiple Choice Single Answer Question Capital expenditure -depreciation +change in working capital -(new debt issued - debt repaid) = Correct Answer Equity reinvested in business Your Answer Equity reinvested in business Multiple Choice Single Answer Question What is the percentage of variation the market and industry influence account for? Correct Answer 2/3rd Your Answer 75%

Multiple Choice Single Answer Question What is the rate of interest on the tax free bonds issue by the government? Correct Answer 6.5% Your Answer 6.5% Multiple Choice Single Answer Question Investments could be made in retail government securities through :Correct Answer Primary dealers Your Answer Primary dealers Question valuing :The growth rate is used to forecast future revenues and earnings and are inputs in

Correct Answer Your Answer

Stable firms High growth firms

Multiple Choice Single Answer Question The objective of fundamental analysis for a security in a market is to identify either it is :Correct Answer Under priced and over priced Your Answer Under priced and over priced Multiple Choice Single Answer Question We can compare the price earning ratio of a market to its historical average to make judgements about, whether market is :Correct Answer Under valued or over valued Your Answer Under valued or over valued Multiple Choice Single Answer Question The growth rate is used to forecast future revenues and earnings and are inputs in valuing :Correct Answer Stable firms Your Answer High growth firms Multiple Choice Single Answer Question How can transition phases be projected? Correct Answer Transition phases are signalled by clearly definable price patterns Your Answer Transition phases are signalled by clearly definable price patterns Multiple Choice Single Answer Question When was the Dow theory first published? Correct Answer Between 1900 and 1902 Your Answer Between 1900 and 1902 Multiple Choice Single Answer Question When was the first mutual fund set up? Correct Answer 1963 Your Answer 1963 Multiple Choice Single Answer Question What is the art of technical analysis? Correct Answer To identify trend changes at an early stage and maintain investment posture till the trend has reversed Your Answer To identify trend changes at an early stage and maintain investment posture till the trend has reversed Multiple Choice Single Answer Question The expected price of the stock at the end of the holding period is determined by future dividends and the value of the stock is the present value of dividends through infinity are the underlying assumptions of :Correct Answer The General model Your Answer The Dividend discount model Multiple Choice Single Answer Question How would you rate a portfolio with 90% investment in stocks? Correct Answer Highly aggressive

Your Answer Highly aggressive Multiple Choice Single Answer Question What are primary trends? Correct Answer Reflection of investor's attitudes towards unfolding fundamentals in the business cycle Your Answer Long term trends Multiple Choice Single Answer Question In a forward contract there is :Correct Answer No Exchange of cash Your Answer No Exchange of cash Multiple Choice Single Answer Question Under EMH it is assumed that if markets are efficient, securities are priced to provide a :Correct Answer Normal returns for their given level of risk Your Answer Equal returns for their given level of risk Multiple Choice Single Answer Question The approach followed to assess the growth rate by looking at how much a firm reinvests for future growth and the quality of its re-investments is :Correct Answer Estimating growth from a firm's fundamentals Your Answer Earnings multiplier approach

Select The Blank Question The possibility of reduction of risk through the construction of a portfolio depends on the value of ________ between the two assets. Correct Answer Correlation coefficient Your Answer Time Select The Blank Question Dow Jones transportation average was previously known as ________. Correct Answer Rail average Your Answer Rail average Select The Blank Question The compounded annual return of Kisan Vikas patra is ________. Correct Answer 0.084 Your Answer 0.084 Select The Blank Question Under futures market ________ process provides for collection of losses that have already occurred. Correct Answer The daily settlement Your Answer The daily settlement Select The Blank Question The regulations of SEBI with respect to mutual funds were fully revised in the year ________. Correct Answer 1996 Your Answer 1996 Select The Blank Question The Dow theory states that there are simultaneously ________ movements in the stock market. Correct Answer 3

Your Answer

Select The Blank Question Under the options contract ________ gives the holder the right, but not the obligation to buy or sell the underlying instrument only on the expiry date. Correct Answer European option Your Answer European option Select The Blank Question ________ ratio indicates the margin available after meeting the manufacturing expenses. Correct Answer Gross Profit margin Your Answer Gross Profit margin Select The Blank Question Secondary reactions occurs because of ________ which arise in the market as a result of over optimism and over pessimism. Correct Answer Technical distortions Your Answer Bearish trends Select The Blank Question Debentures rated as "A" are judged to offer ________ of timely payment of interest and principal. Correct Answer Adequate safety Your Answer Adequate safety Select The Blank Question Debentures rated ________ are judged to offer sufficient safety of timely payment of interest and repayment of principal. Correct Answer "BBB" Your Answer "BBB"

Select The Blank Question The value of the stock in the ________ model is sensitive to the estimates of the growth rate. Correct Answer The Gordons dividend growth Select The Blank Question ________ is due to the fact that a borrower may not pay interest and/or principal on time. Correct Answer Default risk

Select The Blank Question A pattern which does not result in reversal of a trend but reaffirmation of the underlying trend is called ________. Correct Answer Consolidation pattern Select The Blank Question ________ bonds are generally called for prepayment after interest rates have fallen, investors will not be able to find comparable investment avenues.

Correct Answer

Call risk

Select The Blank Question ________ deal in futures to offset a pre-existing risk. Correct Answer Hedger Select The Blank Question ________are good benchmark to compare the ratios for a firm. Correct Answer Industry averages Select The Blank Question The ________ phase is characterized by resistance area and support level. Correct Answer Transition Select The Blank Question ________ measures the efficiency of credit management. Correct Answer Average collection period

Select The Blank Question 16 Correct Answer Your Answer

________ is affected by the leverage decisions of the firm. Return on equity Return on equity

Select The Blank Question 20 ________ refers to the possibility that there may not be a readily available market for the particular bond. Correct Answer Liquidity risk Your Answer Interest rate risk Select The Blank Question 21 ________. Correct Answer Your Answer Select The Blank Question 36 Correct Answer Your Answer

The govt allowed public sector banks and institutions in mutual funds in Early 90's Early 90's

The 8% taxable savings bonds are repayable after ________ years. 6 5

Select The Blank Question 39 Security analysis serves the investment decision maker by identifying ________securities. Correct Answer Under priced Your Answer Blue chip Select The Blank

Question 42 assume the risk of Correct Answer Your Answer

________ absorbs the excess demand or supply generated by hedgers and price fluctuations. Speculators Brokers

Select The Blank Question 44 A ________ rally for stocks generally takes place because of an improved outlook for business conditions over what was anticipated. Correct Answer Bear market Your Answer Bullish market Select The Blank Question 1 UTI was set up in the year ________. Correct Answer 1963 Your Answer 1963 Select The Blank Question 6 An ________ is a series of equal payments or receipts occurring at regular intervals of time. Correct Answer Annuity Your Answer Annuity Select The Blank Question 12 An option is a contract which gives the buyer ________ to buy or sell shares of the underlying security at a specific price on or before a specific date. Correct Answer Right but not obligation Your Answer Right but not obligation Select The Blank Question 13 of a distribution to Correct Answer Your Answer Select The Blank Question 28 attractiveness of a Correct Answer Your Answer Select The Blank Question 36 debentures Correct Answer Your Answer Select The Blank Question 39 principal. Correct Answer Your Answer Select The Blank

Measures of ________ tells us what we can expect a typical or middle data point be. Central tendency Central tendency

________ identified five forces that determine the intrinsic long run profit market or market segment. Michael Porter Michael Porter

________is a hybrid form of security which has characteristics of both equity and Preference shares Preference shares

Debentures rated "BB" refers ________ of timely payment of interest and Inadequate safety Inadequate safety

Question 43 Correct Answer Your Answer Select The Blank Question 46 Correct Answer Your Answer

The Derivative market is divided into Future market and ________ market. Options Options

The Dow theory was published in a series of editorials in the ________. Wall street journal Wall street journal

Select The Blank Question 1 ________ deal in futures to offset a pre-existing risk. Correct Answer Hedger Your Answer Speculator Select The Blank Question 8 Under ________ EMH investors cannot earn abnormal/superior profits on securities on a consistent basis. Correct Answer Semi-strong form Your Answer Semi-strong form Select The Blank Question 11 ________ take long or short positions only with the intention of making profits by getting out of the market when conditions favor them. Correct Answer Speculators Your Answer Hedgers Select The Blank Question 14 ________ model is based on the principle that an initial phase where the growth rate is not stable and subsequent steady growth rate and remains for the long-term. Correct Answer The Two-Stage dividend discount Your Answer The Gordons dividend growth Select The Blank Question 17 ________ ratio is estimated by dividing the market value of a firm's assets by the replacement cost of these assets. Correct Answer Market value to replacement cost ratio Your Answer PEG ratio Select The Blank Question 19 Correct Answer Your Answer Select The Blank Question 28 Correct Answer Your Answer Select The Blank Question 30 Correct Answer Your Answer

________involves a simultaneous sale and repurchase agreement. Repos Repos

Current liabilities include all liabilities due in the next ________ and provisions. 12 months 12 months

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

Select The Blank Question 31 ________seeks to safeguard against potential losses on the outstanding position in futures market. Correct Answer Initial margin Your Answer Daily settlement Select The Blank Question 35 Correct Answer Your Answer

________ ratio is the ratio of net profit to the sales. Net Profit Margin Net Profit Margin

Select The Blank Question Mutual fund is to be registered with ________ before raising funds from public. Correct Answer SEBI Your Answer SEBI Select The Blank Question An investor with a higher tolerance of risk should tilt his portfolio in favour of ________. Correct Answer Stocks Your Answer Bank deposits Select The Blank Question The ________ phase carries a lot of significance because it marks the turning point between a rising and a falling market. Correct Answer Transitional Your Answer Sideways Select The Blank Question Acid test ratio is more stringent measure of liquidity compared to the ________. Correct Answer Current ratio Your Answer Current ratio Select The Blank Question ________ measures the efficiency of credit management. Correct Answer Average collection period Your Answer Average collection period Select The Blank Question ________ measures the profitability of operations without considering the influence of financial structure and tax rate. Correct Answer Earnings power Your Answer Earnings power Select The Blank Question A line is defined as a price movement two or three weeks or longer, during which period the price variation of both averages moves within a price range of approximately________%. Correct Answer 5 Your Answer 5 Select The Blank Question ________ measures the profitability of equity funds invested in the firms. Correct Answer Return on equity

Your Answer

Return on equity

Select The Blank Question Risk can be referred as the ________ in the return with respect to the expected return. Correct Answer Volatility Your Answer Difference Select The Blank Question All trades in the futures market are cash settled on a ________ basis. Correct Answer T+1 Your Answer T+1 Select The Blank Question ________ ratio is the ratio of net profit to the sales. Correct Answer Net Profit Margin Your Answer Net Profit Margin Select The Blank Question When a debenture is sold to the general public a ________ is appointed. Correct Answer Trustee Your Answer Brokers Select The Blank Question A security is said to be ________ if its current market price is over its intrinsic value. Correct Answer Over priced Your Answer Over priced Select The Blank Question ________ is the value at a certain future date today of a stream of cash flows that occurs over a period of time. Correct Answer Future value Your Answer Future value Select The Blank Question Mutual fund is to be registered with ________ before raising funds from public. Correct Answer SEBI Your Answer SEBI Select The Blank Question In a heads and shoulders formation the deeper the pattern, the greater is the ________ significance once it is completed Correct Answer Bearish Your Answer Bearish Select The Blank Question The govt allowed public sector banks and institutions in mutual funds in ________. Correct Answer Early 90's Your Answer Early 90's Select The Blank

Question Under ________ EMH investors cannot earn abnormal/superior profits on securities on a consistent basis. Correct Answer Semi-strong form Your Answer Semi-strong form Select The Blank Question The 6.________% tax saving bonds of government of India have a tenure of 5 years. Correct Answer 5 Your Answer 5 Select The Blank Question ________ is the ratio of the market price per share to the earnings per share. Correct Answer Price earning ratio Your Answer Price earning ratio Select The Blank Question ________ absorbs the excess demand or supply generated by hedgers and assume the risk of price fluctuations. Correct Answer Speculators Your Answer Speculators Select The Blank Question UTI was set up in the year ________. Correct Answer 1963 Your Answer 1963 True/False Question The normal relationship is for the volume to expand on rallies and contract on declines. Correct Answer True True/False Question In case of assured returns, A scheme cannot promise returns unless such returns are fully guaranteed by sponsor or AMC. Correct Answer True True/False Question A firm uses a combination of equity and debt for financing its assets. Correct Answer True True/False Question Policies of the government and the attitude of the government towards the industry have a considerable influence on the industry. Correct Answer True True/False Question Investors in high tax bracket would benefit by investing in equity schemes. Correct Answer False True/False Question The price earning ratio is an increasing function of the payout ratio and the growth rate and a decreasing function of the riskiness of the firm. Correct Answer True True/False Question When we invest in only one asset we are not exposed to any specific or market risk. Correct Answer False True/False

Question Five paisa.com is an example of on line trading portal. Correct Answer True True/False Question A mutual fund is required to dispatch the dividend warrants to the unit holders within thirty days of the declaration of dividend. Correct Answer True True/False Question Bearish actions come from a series of declining peaks and troughs. Correct Answer True True/False Question Default is normally evaluated and indicated by the rating assigned to the debt instruments by independent credit ratings agencies. Correct Answer True Your Answer True True/False Question With the use of diversification you can reduce the risk. Correct Answer True Your Answer True True/False Question A segment is unattractive if the buyers possess strong or growing bargaining powers. Correct Answer True Your Answer True True/False Question Risk on a portfolio of assets is always same as the risk on individual asset. Correct Answer False Your Answer False True/False Question Debt is less riskier source of finance than equity. Correct Answer False Your Answer True True/False Question Post office monthly schemes have a 10 year tenor. Correct Answer False Your Answer False True/False Question With the introduction of on-line trading by NSE and BSE, the role of regional stock exchanges have diminished. Correct Answer True Your Answer True True/False Question Penetration of a trend line denotes a bearish phase. Correct Answer False Your Answer True True/False Question Passive investment managers believe that markets are inefficient and Active managers believe that markets are efficient. Correct Answer False

Your Answer

False

True/False Question 2 Currently in India index options are both European and American in nature. Correct Answer False Your Answer False True/False Question 3 The cost structure remaining the same, better price realisation results in lower gross profit ratio. Correct Answer False Your Answer True True/False Question 6 A segment is more attractive when there are actual or potential substitutes for the product. Correct Answer False Your Answer True True/False Question 15 Bond ratings by credit rating agencies provide superior and low cost information to the investor serving as a basis for a proper risk-return trade off by investors. Correct Answer True Your Answer True True/False Question 29 The arithmetic mean is a set of observations is calculated by finding the sum values and dividing by the number of observations. Correct Answer True Your Answer True True/False Question 30 Correct Answer Your Answer True/False Question 37 accumulation and Correct Answer Your Answer

Investment in gilt edged securities carry a higher element of risk. False True

Following a decline, heavy volume with little price change is indicative of is normally a bearish factor. False True

True/False Question 45 Speculators buy or sell futures contract in an attempt to earn a profit. Correct Answer True Your Answer True True/False Question 11 Investment decisions can be viewed as an integrated process to which security analysis makes its unique contribution. Correct Answer True Your Answer True True/False Question 17 Given the accounting standards across firm, price to book value ratios can be compared across similar firms for signs of under valuation. Correct Answer True Your Answer True

True/False Question 18 Correct Answer Your Answer True/False Question 22 exporters. Correct Answer Your Answer True/False Question 23 reversal. Correct Answer Your Answer

Quick assets consist of current assets less inventories. True True

If a rupee weakens against the dollars it has favourable impact for the True True

A price rise accompanied by expanding volume denotes a potential trend False True

True/False Question 35 There may be convertible clause which gives the debenture holder the option to convert the debentures into equity shares. Correct Answer True Your Answer True True/False Question 47 PPF is a good retirement planning and tax saving vehicle. Correct Answer True Your Answer True True/False Question 2 Bonds and Debentures represent long term debt instruments. Correct Answer False Your Answer True True/False Question 9 While calculating geometric mean calculation of root is not important. Correct Answer False Your Answer False True/False Question 13 Correct Answer Your Answer True/False Question 21 Correct Answer Your Answer True/False Question 27 Technical analysis Correct Answer Your Answer

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

Sensex is the index of Calcutta Stock Exchange. False False

Fundamental analysis focuses on predicting the future price of a security and on estimating the intrinsic value of a security. False True

True/False Question 32 Correct Answer Your Answer True/False Question 36 by market beta. Correct Answer Your Answer

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

The risk associated to get the required rate of return on the stock is measure True True

True/False Question 40 The basic inputs of the general model are expected dividends and required rate of return on stock. Correct Answer True Your Answer True True/False Question 42 European style options are more expensive than American style because they offer greater flexibility to the buyer. Correct Answer False Your Answer True

True/False Question When you are making an investment you are expecting certain future benefits from your investment. Correct Answer True Your Answer True True/False Question The returns of sector specific funds are solely dependant on the performance of the respective sectors / industries. Correct Answer True Your Answer True True/False Question The labour conditions do not play an important role in the industry analysis. Correct Answer False Your Answer False True/False Question A rise in interest rates will push the market prises of outstanding bonds where as a fall in interest rates will depress the market prices down. Correct Answer False Your Answer True True/False Question Because of statutory compulsion, generally Govt. securities are held by banks, financial institutions, insurance companies etc. Correct Answer True Your Answer True

True/False Question The Asset management company of the mutual fund must have 50% independent directors. Correct Answer True Your Answer True True/False Question In case of fixed income securities like debentures, you get the return in the form of dividend. Correct Answer False Your Answer False True/False Question Investment in gilt edged securities carry a higher element of risk. Correct Answer False Your Answer False True/False Question American option gives the holder the right, but not the obligation to buy or sell the underlying instrument on or before the expiry date and the option can be exercised early. Correct Answer True Your Answer True True/False Question Prices of stocks usually move in trends. Correct Answer True Your Answer True True/False Question The sideways trend is essentially a transitional one which separates the two major market movements. Correct Answer True Your Answer False True/False Question With the use of diversification you can reduce the risk. Correct Answer True Your Answer True

True/False Question A higher value of current ratio indicates a better short term solvency of the firm. Correct Answer True Your Answer True True/False Question The basic assumption of Technical analysis is that, price discounts everything and it is the outcome of all forces affecting a stock. Correct Answer True Your Answer True True/False Question Fixed assets turnover ratio measures the efficiency of utilisation of total assets, fixed as well as current.

Correct Answer True Your Answer True True/False Question The price earning ratio can be estimated for the firms with negative earnings per share. Correct Answer False Your Answer True True/False Question A share certificate indicates that the investor owns a certain number of shares. Correct Answer True Your Answer True True/False Question Balance of payments surplus augments foreign reserves of the country and have a favourable impact on he exchange rate. Correct Answer True Your Answer True Select The Blank Question The ________ phase carries a lot of significance because it marks the turning point between a rising and a falling market. Correct Answer Transitional Your Answer Transitional True/False Question Bonds and Debentures represent long term debt instruments. Correct Answer False Your Answer True

True/False Question A price rise accompanied by expanding volume denotes a potential trend reversal. Correct Answer False Your Answer False Select The Blank Question The ________ phase is characterized by resistance area and support level. Correct Answer Transition Your Answer Transition True/False Question Currently in India index options are both European and American in nature. Correct Answer False Your Answer False Select The Blank Question Debentures rated as "A" are judged to offer ________ of timely payment of interest and principal. Correct Answer Adequate safety Your Answer High safety True/False

Question A rally that develops on contracting volumes is suspect and warns of a potential trend reversal in price Correct Answer True Your Answer True

Match The Following Question Correct Answer Price patternResistance level Primary trend

Your Answer Head and shoulders formation Last between 1-2 years

Last between 1-2 years

Intermediate trend Last between 3 weeks to as long as 6 monthsLast between 3 weeks to as long as 6 months Short term trend Last 1 to 3-4 weeksLast 1 to 3-4 weeks

Match The Following Question Correct Answer MCX Commodity Exchange BSE Index

Your Answer Commodity Exchange

Sensex

BSE Index

Nifty NSE Index Lifex ET Index

NSE Index Gold Index

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

Match The Following Question Correct Answer

Your Answer William Peter Hamilton Moving average Charles H.dow

Development of Dow's principles Breadth Indicator

Advance/decline line MACD MACD

Momentum indicator

Trend lines Useful tool in technical analysis Useful tool in technical analysis Match The Following Question 26 Correct Answer Your Answer

Under options contract When you expect prices to fall, then, you take a long position by buying puts. When you expect prises to rise, then you take a short position by selling puts. Cost of Carry model Futures contract A contract where both the parties are equally responsible Futures contract Options contract

The amount which the buyer of the option has to pay to the option writer to induce him to accept the risk associated with the contract. Option price Transaction cost model NSE&BSE are regulated by of India Securities Exchange Board of India Securities Exchange Board

Match The Following Question 24 Correct Answer Equity shares High risk

Your Answer High risk Low risk

Government Securities Bank Deposits Mutual Funds

No risk

Low risk

No risk

Average risk Average risk

Match The Following Question 33 Correct Answer Risk free investment Risk

Your Answer Actual returns = expected returns

Actual returns = expected returns Volatility in the return Measure of dispersion

Volatility in the return

Variance Returns

Measure of dispersion

Future benefits from investments

Future benefits from investments

Match The Following Question 20 Correct Answer H-Model For Valuing Growth reach the stable growth rate reach the stable growth rate

Your Answer Initial growth rate is not constant but linearly falls over time to Initial growth rate is not constant but linearly falls over time to Expected dividends in the

The general model Expected dividends and required rate of return next period, cost of equity and expected growth rate in dividends

The Gordons Growth model Expected dividends in the next period, cost of equity and expected growth rate in dividends Assessment of the growth rate by looking at how much a firm reinvests for future growth and the quality of its reinvestment The Two-Stage Dividend Discount Model Based on two extraordinary growth phase lasting n years and stable growth phase that lasts forever Based on two extraordinary growth phase lasting n years and stable growth phase that lasts forever

Match The Following Question 34 Correct Answer

Your Answer

Future value of a series of cash flows occurring at the end of each period. annuity Future value of annuity Value today of a stream of cash flows that occurs in future.

Future value of Future 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 Present Value Series of equal payments or receipts occurring at regular intervals of time. annuity Present value of annuity Present value of

Match The Following Question Correct Answer

Your Answer Random walk model Random walk model

Weak form model is also termed as Investors are rational

Efficient market hypothesis

Efficient market hypothesis Weak form EMH Fama Fama Strong

Securities current prices fully reflect all historical information

Framework on efficient capital markets, a review of theory and empirical work form

Match The Following Question Correct Answer

Your Answer 1981 1981

Technical collaboration of Bharat Forge with SIFCO industries USA Bharat Forge was incorporated at Mumbai 1961 1961 1971 1971

Shares of 100 each subdivided of Bharat forge

930000 bonus shares issued by Bharat Forge 1976 1976

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 instrument/Bonds Debt instrument/Bonds The actual yield earned by an investor on a bond Realised yield Debt

Realised yield Yield to maturity

Present value interest factor of annuities and present value interest factor Yield to maturity

1. Treasury Bills

1. Foreign Institutional Investors 2. Commercial Papers 3 2. Government of India 3. Certificate of Deposits 3. Corporates 4. Bonds 5 4. Banks and Financial Institutions 5. Central/State Govts/PSU's 6. Post Office 1. ROE 3 1. Measure the profitability of operations without considering the influence of financial structure and tax rate 2. Earnings power 3. Net profit margin 4. Gross profit margin 1 2 6 2. Ratio if net profit to sales 3. Measure the profitability of equity funds 4. Valuation ratio

5. Measures the profitability of debt funds 6. Indicates the margin available after meeting the manufacturing expenses 1. SEBI 2. NAV 3. AMFI 5 2 6 1. Nifty 2. Net asset value 3. Net average value

4. NSE 4. Association of merchant financers of India 5. Redressal of investor complaints 6. Association of mutual funds of India 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 Fixed - income portfolio Short term debt portfolio

Stability of principal

Appreciation 75-100 % in equities Match The Following Question Correct Answer

75-100 % in equities

Your Answer PEG ratio Price to book value ratio Market

Ratio used as a measure of relative value

The market value of the firms assets divided by the replacement cost of these assets value to replacement cost ratio Market value to replacement cost ratio

Key determiner of revenue multiples

Profit marginProfit 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 Match The Following Question Correct Answer Expiration period for options

Your Answer Nine months Nine months Chicago Board of options exchange New York Black

The world's first largest options exchange board of Options exchange

The most popular pricing options model published in the year 1973 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

LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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 Your Answer

Return on equity 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 H-Model For Valuing Growth reach the stable growth rate reach the stable growth rate

Your Answer Initial growth rate is not constant but linearly falls over time to Initial growth rate is not constant but linearly falls over time to Expected dividends and

The general model Expected dividends and required rate of return 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 Random walk model Random walk model

Weak form model is also termed as Investors are rational

Efficient market hypothesis

Efficient market hypothesis Weak form EMH Fama Fama Strong

Securities current prices fully reflect all historical information

Framework on efficient capital markets, a review of theory and empirical work 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 LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question What does a transitional phase indicate? Correct Answer It marks the turning point between a rising and falling market Your Answer It marks the turning point between a rising and falling market

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 True Multiple Choice Single Answer Question The issuing firm enjoys the flexibility to call the bonds if the interest rates fall significantly and it can issue :Correct Answer New bonds at a lower rates Your Answer New bonds at a lower rates True/False Question The sideways trend is essentially a transitional one which separates the two major market movements. Correct Answer True Your Answer False 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 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 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 Select The Blank Question Security analysis serves the investment decision maker by identifying ________securities. Correct Answer Under priced Your Answer Under priced 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 Under ________ EMH investors cannot earn abnormal/superior profits on securities on a consistent basis. Correct Answer Semi-strong form Your Answer Semi-strong form

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 While calculating geometric mean calculation of root is not important. Correct Answer False Your Answer False Select The Blank Question Risk can be referred as the ________ in the return with respect to the expected return. Correct Answer Volatility Your Answer Volatility Multiple Choice 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 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 Which are the different styles of displaying charts? Correct Answer Bar and line charts , Candle stick charts , Point and figure charts Your Answer Bar and line charts , Candle stick charts , Point and figure charts 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 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 instrument/Bonds Debt instrument/Bonds The actual yield earned by an investor on a bond Realised yield Debt

Realised yield Yield to maturity

Present value interest factor of annuities and present value interest factor Yield to maturity

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 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 Dividend discount model is considered as the simplest model for :Correct Answer Valuing Equity Your Answer Valuing Equity 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 ________ 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 Mr. Suresh is expecting to receive Rs.1,50,000/- at the end of 3 years. He wanted to know what is the present value of this amount, if the rate of interest is 9% p.a ? Correct Answer Rs.1,15,827/Your Answer Rs.1,15,827/Multiple Choice 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 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 Single Answer Question A security represent evidence of :Correct Answer A property right Your Answer A property right 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 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 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 Random walk model Weak form EMH

Weak form model is also termed as Investors are rational

Efficient market hypothesis

Passive managers Weak form EMH Strong form Fama Fama

Securities current prices fully reflect all historical information

Framework on efficient capital markets, a review of theory and empirical work

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 Select The Blank Question ________involves a simultaneous sale and repurchase agreement. Correct Answer Repos Your Answer Repos 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 Banking 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 Your Answer

GNP growth rate , Price Conditions , Monsoons GNP growth rate , Price Conditions , Monsoons

Multiple Choice Single Answer Question If index future is taken under futures contract, the underlying asset would be :Correct Answer Stock index Your Answer Stock index 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 ________ 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 ________ absorbs the excess demand or supply generated by hedgers and assume the risk of price fluctuations. Correct Answer Speculators Your Answer Speculators Select The Blank Question When a debenture is sold to the general public a ________ is appointed. Correct Answer Trustee Your Answer Trustee 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 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 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 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 If rupee weakens against the dollar, it has favourable impact for the importers. Correct Answer False Your Answer False Select The Blank Question UTI was set up in the year ________. Correct Answer 1963 Your Answer 1963 LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question The value of the stock in the ________ model is sensitive to the estimates of the growth rate. Correct Answer The Gordons dividend growth Select The Blank Question The possibility of reduction of risk through the construction of a portfolio depends on the value of ________ between the two assets. Correct Answer Correlation coefficient Multiple Choice Single Answer Question When an investor invests in stock, expects to get the dividends and an expected price for the period the stock is held is the rule of :Correct Answer The General model Select The Blank Question Debentures rated ________ are judged to offer sufficient safety of timely payment of interest and repayment of principal. Correct Answer "BBB" Multiple Choice Single Answer Question Stock Exchanges are the part of :Correct Answer Secondary market Your Answer Money Market Multiple Choice Multiple Answer Question Active investment managers :Correct Answer Do not believe that markets are efficient , Puts efforts to search mispriced securities in the market , Are relatively active traders in securities to acquire abnormal returns Multiple Choice Multiple Answer Question Equity analysts provides estimates of earnings and earnings growth for future, using historical data and :Correct Answer Macro economic information that may impact future growth , Private information about the firm , Firm's specific information and public information Multiple Choice Multiple Answer Question What are the features of short-term trends? Correct Answer They last from 1 to 3 or 4 weeks , They interrupt the course of the intermediate cycle , They are usually influenced by random news events True/False

Question The normal relationship is for the volume to expand on rallies and contract on declines. Correct Answer True True/False Question In case of assured returns, A scheme cannot promise returns unless such returns are fully guaranteed by sponsor or AMC. Correct Answer True Multiple Choice Multiple Answer Question What are the features of trend lines Correct Answer A simple and useful tool in technical analysis , Prices move in trends , The trend lines represent points of support and resistance Select The Blank Question ________ is due to the fact that a borrower may not pay interest and/or principal on time. Correct Answer Default risk Multiple Choice Multiple Answer Question What are the features of candle stick charts? Correct Answer Indicates in black if the closing price is lower than the opening price , Indicates in white if the closing price is higher than the opening price Your Answer , Displays the correlation between the high and low prices True/False Question A firm uses a combination of equity and debt for financing its assets. Correct Answer True Select The Blank Question A pattern which does not result in reversal of a trend but reaffirmation of the underlying trend is called ________. Correct Answer Consolidation pattern True/False Question Policies of the government and the attitude of the government towards the industry have a considerable influence on the industry. Correct Answer True Multiple Choice Single Answer Question The index futures symbols of BSE are represented as :Correct Answer BSX JAN 2005 (January contract) Multiple Choice Multiple Answer Question The growth rate in the initial phase is not constant but declines linearly over time to reach the stable growth rate in steady state is a phenomena of :Correct Answer H- Model for valuing growth , H-Two stage model for growth , H-Model unlike the classic two stage model Multiple Choice Multiple Answer Question What are the features of line charts? Correct Answer It connects closing prices from one period to the next , It is ideal for securities with no high or low price data True/False Question Investors in high tax bracket would benefit by investing in equity schemes. Correct Answer False Select The Blank Question ________ bonds are generally called for prepayment after interest rates have fallen, investors will not be able to find comparable investment avenues. Correct Answer Call risk

Select The Blank Question ________ deal in futures to offset a pre-existing risk. Correct Answer Hedger Multiple Choice Single Answer Question More than half the variation in stock price could be attributed to which factor? Correct Answer Market influence Match The Following Question Correct Answer Price patternResistance level Primary trend Your Answer Head and shoulders formation Last between 1-2 years

Last between 1-2 years

Intermediate trend Last between 3 weeks to as long as 6 monthsLast between 3 weeks to as long as 6 months Short term trend Last 1 to 3-4 weeksLast 1 to 3-4 weeks

Select The Blank Question ________are good benchmark to compare the ratios for a firm. Correct Answer Industry averages Select The Blank Question The ________ phase is characterized by resistance area and support level. Correct Answer Transition True/False Question The price earning ratio is an increasing function of the payout ratio and the growth rate and a decreasing function of the riskiness of the firm. Correct Answer True Multiple Choice Single Answer Question In India we have index futures contracts based on :Correct Answer S&P CNX Nifty and the BSE sensex True/False Question When we invest in only one asset we are not exposed to any specific or market risk. Correct Answer False Multiple Choice Single Answer Question In India, the futures on individual securities have been introduced from :Correct Answer 2001 Select The Blank Question ________ measures the efficiency of credit management. Correct Answer Average collection period Multiple Choice Single Answer Question What do you understand by the term redemption price? Correct Answer Price or NAV at which a scheme purchases its units Multiple Choice Multiple Answer Question What are the ways of measuring relative strength? Correct Answer Calculate the rates of return and classify securities that have earned superior historical returns , Calculating certain ratios will help in analyzing whether a security has relative strength Your Answer Calculating the Return on investment

Multiple Choice Multiple Answer Question The Peer group of Bharat Forge consists of which all companies? Correct Answer Am forge industries , Kalyani Forge , EL Forge True/False Question Five paisa.com is an example of on line trading portal. Correct Answer True Multiple Choice Single Answer Question A security analysis is done :Correct Answer For decision making for investments Multiple Choice Multiple Answer Question Which were the initiatives which the chairman said would focus on in 2003-04 in the speech in annual report for the year 2003-03? Correct Answer Research and development , Capital investment and focus on balance sheet , Overseas acquisitions Select The Blank Question Dow Jones transportation average was previously known as ________. Correct Answer Rail average Your Answer Freight average Multiple Choice Multiple Answer Question The Two-Stage dividend discount model is best suited for the firms that are :Correct Answer In high growth rate phase , Expecting to maintain the growth rate phase steadily for a specific time period , Sources of high growth are expected to disappear after specific period of time True/False Question A mutual fund is required to dispatch the dividend warrants to the unit holders within thirty days of the declaration of dividend. Correct Answer True Multiple Choice Single Answer Question As per the exhibit 18-1 for individual stock futures on NSE, the price steps in respect of all futures contract admitted to the dealings of the exchange shall be :Correct Answer 0.05 Multiple Choice Multiple Answer Question The features of bond are :Correct Answer Collateral , Call provision , Sinking fund and protective covenants Multiple Choice Single Answer Question What is a technical approach to investment? Correct Answer A reflection of the idea that prices move in trends which are determined by various factors Match The Following Question Correct Answer MCX Commodity Exchange BSE Index Your Answer Commodity Exchange

Sensex

BSE Index

Nifty NSE Index Lifex ET Index

NSE Index Gold Index

Multiple Choice Single Answer

Question A pledge of real assets as insurance against the non-payment of default by the buyer represents Correct Answer Collateral True/False Question Bearish actions come from a series of declining peaks and troughs. Correct Answer True Multiple Choice Single Answer Question Who developed Dow's Principles and organised them into a theory as it is known today? Correct Answer William Peter Hamilton Your Answer Charles.H.Dow kk LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question ________ is affected by the leverage decisions of the firm. Correct Answer Return on equity Your Answer Return on equity Select The Blank Question Debentures rated "BB" refers ________ of timely payment of interest and principal. Correct Answer Inadequate safety Your Answer Inadequate safety Select The Blank Question S&P NSE 50 index is known as ________. Correct Answer NIFTY Your Answer NIFTY True/False Question The risk associated to get the required rate of return on the stock is measure by market beta. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer NSE&BSE are regulated by Securities Exchange Board of India Securities Exchange Board of India Under options contract When you expect prices to fall, then, you take a long position by buying puts. When you expect prises to rise, then you take a short position by selling puts. Cost of Carry model Options contract A contract where both the parties are equally responsible Futures contract Futures contract The amount which the buyer of the option has to pay to the option writer to induce him to accept the risk associated with the contract. Option price Option price True/False Question A segment is unattractive if the buyers possess strong or growing bargaining powers. Correct Answer True Your Answer True Multiple Choice Single Answer Question Debt instruments that have a maturity period of more than one year are called as :Correct Answer Bonds Your Answer Bonds

Multiple Choice Single Answer Question The present value of all the future cash payments to be paid on the security to the investor is termed as :Correct Answer Intrinsic value of a security Your Answer Intrinsic value of a security Multiple Choice Multiple Answer Question What are the features of Retail government securities (G-secs) ? Correct Answer Safest investment option available , Demat account is required for investment , Choice of tenure varies from less than 1 year to 30 years Your Answer Safest investment option available , Demat account is required for investment , Choice of tenure varies from less than 1 year to 30 years True/False Question A higher value of current ratio indicates a better short term solvency of the firm. Correct Answer True Your Answer True Select The Blank Question ________seeks to safeguard against potential losses on the outstanding position in futures market. Correct Answer Initial margin Your Answer Initial margin Select The Blank Question Risk can be referred as the ________ in the return with respect to the expected return. Correct Answer Volatility Your Answer Volatility Multiple Choice Multiple Answer Question The return to the bond investor can be measured in terms of :Correct Answer Current yield , Yield to maturity , Realised yield Your Answer Current yield , Yield to maturity , Realised yield True/False Question Certificate of Deposits offers high rate of interest than Treasury Bills. Correct Answer True Your Answer True True/False Question American option gives the holder the right, but not the obligation to buy or sell the underlying instrument on or before the expiry date and the option can be exercised early. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Which of the following are important momentum indicators used widely? Correct Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD) Your Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD) Multiple Choice Single Answer Question What is Gross National Product ? Correct Answer Gross income generated from within the country Your Answer Gross income generated from within the country Select The Blank Question An ________ is a series of equal payments or receipts occurring at regular intervals of time. Correct Answer Annuity

Your Answer Annuity Multiple Choice Single Answer Question If the price of a share at the beginning of the year was Rs.100/-, no dividend received during the year and the price at the end is Rs.115/-. What is the rate of return? Correct Answer 0.15 Your Answer 0.15 Multiple Choice Single Answer Question Which market is affected with the improving and higher growth rate in economy? Correct Answer Stock market Your Answer Stock market Match The Following Question Correct Answer Your Answer Ratio used as a measure of relative value PEG ratio PEG ratio The market value of the firms assets divided by the replacement cost of these assets Market value to replacement cost ratio Market value to replacement cost ratio Key determiner of revenue multiples Profit margin Profit margin The market value of the equity in a firm reflects the markets expectations of the firms earnings power and cash flows. Price to book value ratio Price earning ratio Multiple Choice Multiple Answer Question Features of PSU Bonds are :Correct Answer No TDS , Transferable by endorsement , No stamp duty on transfer Your Answer No TDS , Transferable by endorsement , No stamp duty on transfer True/False Question If a rupee weakens against the dollars it has favourable impact for the exporters. Correct Answer True Your Answer True Multiple Choice Single Answer Question Credit rating companies assign ratings for which of these investments? Correct Answer Company deposits Your Answer Company deposits True/False Question If rupee weakens against the dollar, it has favourable impact for the importers. Correct Answer False Your Answer False Multiple Choice Single Answer Question What is the objective of Portfolio management? Correct Answer To Minimize risk and maximize return Your Answer To Minimize risk and maximize return Select The Blank Question Acid test ratio is more stringent measure of liquidity compared to the ________. Correct Answer Current ratio Your Answer Current ratio Multiple Choice Multiple Answer Question An option is :Correct Answer A contract between two parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee

Your Answer A contract between two parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee Select The Blank Question ________ is the value at a certain future date today of a stream of cash flows that occurs over a period of time. Correct Answer Future value Your Answer Future value True/False Question The basic assumption of Technical analysis is that, price discounts everything and it is the outcome of all forces affecting a stock. Correct Answer True Your Answer True

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question The value of the stock in the ________ model is sensitive to the estimates of the growth rate. Correct Answer The Gordons dividend growth Select The Blank Question The possibility of reduction of risk through the construction of a portfolio depends on the value of ________ between the two assets. Correct Answer Correlation coefficient Multiple Choice Single Answer Question When an investor invests in stock, expects to get the dividends and an expected price for the period the stock is held is the rule of :Correct Answer The General model Select The Blank Question Debentures rated ________ are judged to offer sufficient safety of timely payment of interest and repayment of principal. Correct Answer "BBB" Multiple Choice Single Answer Question Stock Exchanges are the part of :Correct Answer Secondary market Your Answer Money Market Multiple Choice Multiple Answer Question Active investment managers :Correct Answer Do not believe that markets are efficient , Puts efforts to search mispriced securities in the market , Are relatively active traders in securities to acquire abnormal returns Multiple Choice Multiple Answer Question Equity analysts provides estimates of earnings and earnings growth for future, using historical data and :Correct Answer Macro economic information that may impact future growth , Private information about the firm , Firm's specific information and public information Multiple Choice Multiple Answer Question What are the features of short-term trends? Correct Answer They last from 1 to 3 or 4 weeks , They interrupt the course of the intermediate cycle , They are usually influenced by random news events

True/False Question The normal relationship is for the volume to expand on rallies and contract on declines. Correct Answer True True/False Question In case of assured returns, A scheme cannot promise returns unless such returns are fully guaranteed by sponsor or AMC. Correct Answer True Multiple Choice Multiple Answer Question What are the features of trend lines Correct Answer A simple and useful tool in technical analysis , Prices move in trends , The trend lines represent points of support and resistance Select The Blank Question ________ is due to the fact that a borrower may not pay interest and/or principal on time. Correct Answer Default risk Multiple Choice Multiple Answer Question What are the features of candle stick charts? Correct Answer Indicates in black if the closing price is lower than the opening price , Indicates in white if the closing price is higher than the opening price Your Answer , Displays the correlation between the high and low prices True/False Question A firm uses a combination of equity and debt for financing its assets. Correct Answer True Select The Blank Question A pattern which does not result in reversal of a trend but reaffirmation of the underlying trend is called ________. Correct Answer Consolidation pattern True/False Question Policies of the government and the attitude of the government towards the industry have a considerable influence on the industry. Correct Answer True Multiple Choice Single Answer Question The index futures symbols of BSE are represented as :Correct Answer BSX JAN 2005 (January contract) Multiple Choice Multiple Answer Question The growth rate in the initial phase is not constant but declines linearly over time to reach the stable growth rate in steady state is a phenomena of :Correct Answer H- Model for valuing growth , H-Two stage model for growth , H-Model unlike the classic two stage model Multiple Choice Multiple Answer Question What are the features of line charts? Correct Answer It connects closing prices from one period to the next , It is ideal for securities with no high or low price data True/False Question Investors in high tax bracket would benefit by investing in equity schemes. Correct Answer False Select The Blank Question ________ bonds are generally called for prepayment after interest rates have fallen, investors will not be able to find comparable investment avenues.

Correct Answer

Call risk

Select The Blank Question ________ deal in futures to offset a pre-existing risk. Correct Answer Hedger Multiple Choice Single Answer Question More than half the variation in stock price could be attributed to which factor? Correct Answer Market influence Match The Following Question Correct Answer Price patternResistance level Primary trend Your Answer Head and shoulders formation Last between 1-2 years

Last between 1-2 years

Intermediate trend Last between 3 weeks to as long as 6 monthsLast between 3 weeks to as long as 6 months Short term trend Last 1 to 3-4 weeksLast 1 to 3-4 weeks

Select The Blank Question ________are good benchmark to compare the ratios for a firm. Correct Answer Industry averages Select The Blank Question The ________ phase is characterized by resistance area and support level. Correct Answer Transition True/False Question The price earning ratio is an increasing function of the payout ratio and the growth rate and a decreasing function of the riskiness of the firm. Correct Answer True Multiple Choice Single Answer Question In India we have index futures contracts based on :Correct Answer S&P CNX Nifty and the BSE sensex True/False Question When we invest in only one asset we are not exposed to any specific or market risk. Correct Answer False Multiple Choice Single Answer Question In India, the futures on individual securities have been introduced from :Correct Answer 2001 Select The Blank Question ________ measures the efficiency of credit management. Correct Answer Average collection period Multiple Choice Single Answer Question What do you understand by the term redemption price? Correct Answer Price or NAV at which a scheme purchases its units Multiple Choice Multiple Answer Question What are the ways of measuring relative strength? Correct Answer Calculate the rates of return and classify securities that have earned superior historical returns , Calculating certain ratios will help in analyzing whether a security has relative strength Your Answer Calculating the Return on investment

Multiple Choice Multiple Answer Question The Peer group of Bharat Forge consists of which all companies? Correct Answer Am forge industries , Kalyani Forge , EL Forge True/False Question Five paisa.com is an example of on line trading portal. Correct Answer True Multiple Choice Single Answer Question A security analysis is done :Correct Answer For decision making for investments Multiple Choice Multiple Answer Question Which were the initiatives which the chairman said would focus on in 2003-04 in the speech in annual report for the year 2003-03? Correct Answer Research and development , Capital investment and focus on balance sheet , Overseas acquisitions Select The Blank Question Dow Jones transportation average was previously known as ________. Correct Answer Rail average Your Answer Freight average Multiple Choice Multiple Answer Question The Two-Stage dividend discount model is best suited for the firms that are :Correct Answer In high growth rate phase , Expecting to maintain the growth rate phase steadily for a specific time period , Sources of high growth are expected to disappear after specific period of time True/False Question A mutual fund is required to dispatch the dividend warrants to the unit holders within thirty days of the declaration of dividend. Correct Answer True Multiple Choice Single Answer Question As per the exhibit 18-1 for individual stock futures on NSE, the price steps in respect of all futures contract admitted to the dealings of the exchange shall be :Correct Answer 0.05 Multiple Choice Multiple Answer Question The features of bond are :Correct Answer Collateral , Call provision , Sinking fund and protective covenants Multiple Choice Single Answer Question What is a technical approach to investment? Correct Answer A reflection of the idea that prices move in trends which are determined by various factors Match The Following Question Correct Answer MCX Commodity Exchange BSE Index Your Answer Commodity Exchange

Sensex

BSE Index

Nifty NSE Index Lifex ET Index

NSE Index Gold Index

Multiple Choice Single Answer

Question A pledge of real assets as insurance against the non-payment of default by the buyer represents Correct Answer Collateral True/False Question Bearish actions come from a series of declining peaks and troughs. Correct Answer True Multiple Choice Single Answer Question Who developed Dow's Principles and organised them into a theory as it is known today? Correct Answer William Peter Hamilton Your Answer Charles.H.Dow kk LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question ________ is affected by the leverage decisions of the firm. Correct Answer Return on equity Your Answer Return on equity Select The Blank Question Debentures rated "BB" refers ________ of timely payment of interest and principal. Correct Answer Inadequate safety Your Answer Inadequate safety Select The Blank Question S&P NSE 50 index is known as ________. Correct Answer NIFTY Your Answer NIFTY True/False Question The risk associated to get the required rate of return on the stock is measure by market beta. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer NSE&BSE are regulated by Securities Exchange Board of India Securities Exchange Board of India Under options contract When you expect prices to fall, then, you take a long position by buying puts. When you expect prises to rise, then you take a short position by selling puts. Cost of Carry model Options contract A contract where both the parties are equally responsible Futures contract Futures contract The amount which the buyer of the option has to pay to the option writer to induce him to accept the risk associated with the contract. Option price Option price True/False Question A segment is unattractive if the buyers possess strong or growing bargaining powers. Correct Answer True Your Answer True Multiple Choice Single Answer Question Debt instruments that have a maturity period of more than one year are called as :Correct Answer Bonds Your Answer Bonds

Multiple Choice Single Answer Question The present value of all the future cash payments to be paid on the security to the investor is termed as :Correct Answer Intrinsic value of a security Your Answer Intrinsic value of a security Multiple Choice Multiple Answer Question What are the features of Retail government securities (G-secs) ? Correct Answer Safest investment option available , Demat account is required for investment , Choice of tenure varies from less than 1 year to 30 years Your Answer Safest investment option available , Demat account is required for investment , Choice of tenure varies from less than 1 year to 30 years True/False Question A higher value of current ratio indicates a better short term solvency of the firm. Correct Answer True Your Answer True Select The Blank Question ________seeks to safeguard against potential losses on the outstanding position in futures market. Correct Answer Initial margin Your Answer Initial margin Select The Blank Question Risk can be referred as the ________ in the return with respect to the expected return. Correct Answer Volatility Your Answer Volatility Multiple Choice Multiple Answer Question The return to the bond investor can be measured in terms of :Correct Answer Current yield , Yield to maturity , Realised yield Your Answer Current yield , Yield to maturity , Realised yield True/False Question Certificate of Deposits offers high rate of interest than Treasury Bills. Correct Answer True Your Answer True True/False Question American option gives the holder the right, but not the obligation to buy or sell the underlying instrument on or before the expiry date and the option can be exercised early. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Which of the following are important momentum indicators used widely? Correct Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD) Your Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD) Multiple Choice Single Answer Question What is Gross National Product ? Correct Answer Gross income generated from within the country Your Answer Gross income generated from within the country Select The Blank Question An ________ is a series of equal payments or receipts occurring at regular intervals of time. Correct Answer Annuity

Your Answer Annuity Multiple Choice Single Answer Question If the price of a share at the beginning of the year was Rs.100/-, no dividend received during the year and the price at the end is Rs.115/-. What is the rate of return? Correct Answer 0.15 Your Answer 0.15 Multiple Choice Single Answer Question Which market is affected with the improving and higher growth rate in economy? Correct Answer Stock market Your Answer Stock market Match The Following Question Correct Answer Your Answer Ratio used as a measure of relative value PEG ratio PEG ratio The market value of the firms assets divided by the replacement cost of these assets Market value to replacement cost ratio Market value to replacement cost ratio Key determiner of revenue multiples Profit margin Profit margin The market value of the equity in a firm reflects the markets expectations of the firms earnings power and cash flows. Price to book value ratio Price earning ratio Multiple Choice Multiple Answer Question Features of PSU Bonds are :Correct Answer No TDS , Transferable by endorsement , No stamp duty on transfer Your Answer No TDS , Transferable by endorsement , No stamp duty on transfer True/False Question If a rupee weakens against the dollars it has favourable impact for the exporters. Correct Answer True Your Answer True Multiple Choice Single Answer Question Credit rating companies assign ratings for which of these investments? Correct Answer Company deposits Your Answer Company deposits True/False Question If rupee weakens against the dollar, it has favourable impact for the importers. Correct Answer False Your Answer False Multiple Choice Single Answer Question What is the objective of Portfolio management? Correct Answer To Minimize risk and maximize return Your Answer To Minimize risk and maximize return Select The Blank Question Acid test ratio is more stringent measure of liquidity compared to the ________. Correct Answer Current ratio Your Answer Current ratio Multiple Choice Multiple Answer Question An option is :Correct Answer A contract between two parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee

Your Answer A contract between two parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee Select The Blank Question ________ is the value at a certain future date today of a stream of cash flows that occurs over a period of time. Correct Answer Future value Your Answer Future value True/False Question The basic assumption of Technical analysis is that, price discounts everything and it is the outcome of all forces affecting a stock. Correct Answer True Your Answer True

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question What does a transitional phase indicate? Correct Answer It marks the turning point between a rising and falling market Your Answer It marks the turning point between a rising and falling market 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 True Multiple Choice Single Answer Question The issuing firm enjoys the flexibility to call the bonds if the interest rates fall significantly and it can issue :Correct Answer New bonds at a lower rates Your Answer New bonds at a lower rates True/False Question The sideways trend is essentially a transitional one which separates the two major market movements. Correct Answer True Your Answer False 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 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 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 Select The Blank Question Security analysis serves the investment decision maker by identifying ________securities.

Correct Answer Your Answer

Under priced Under priced

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 Under ________ EMH investors cannot earn abnormal/superior profits on securities on a consistent basis. Correct Answer Semi-strong form Your Answer Semi-strong form 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 While calculating geometric mean calculation of root is not important. Correct Answer False Your Answer False Select The Blank Question Risk can be referred as the ________ in the return with respect to the expected return. Correct Answer Volatility Your Answer Volatility Multiple Choice 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 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 Which are the different styles of displaying charts? Correct Answer Bar and line charts , Candle stick charts , Point and figure charts Your Answer Bar and line charts , Candle stick charts , Point and figure charts 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 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 instrument/Bonds Debt instrument/Bonds Debt

The actual yield earned by an investor on a bond

Realised yield

Realised yield Yield to maturity

Present value interest factor of annuities and present value interest factor Yield to maturity 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 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 Dividend discount model is considered as the simplest model for :Correct Answer Valuing Equity Your Answer Valuing Equity 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 ________ 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 Mr. Suresh is expecting to receive Rs.1,50,000/- at the end of 3 years. He wanted to know what is the present value of this amount, if the rate of interest is 9% p.a ? Correct Answer Rs.1,15,827/Your Answer Rs.1,15,827/Multiple Choice 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 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 Single Answer Question A security represent evidence of :Correct Answer A property right Your Answer A property right Multiple Choice Multiple Answer Question Major steps involved in construction of a index are :-

Correct Answer capitalisation Your Answer capitalisation

Selecting a set of scrips to be used , Fixing starting date , Calculating market Selecting a set of scrips to be used , Fixing starting date , Calculating market

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 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 Random walk model Weak form EMH

Weak form model is also termed as Investors are rational

Efficient market hypothesis

Passive managers Weak form EMH Strong form Fama Fama

Securities current prices fully reflect all historical information

Framework on efficient capital markets, a review of theory and empirical work

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 Select The Blank Question ________involves a simultaneous sale and repurchase agreement. Correct Answer Repos Your Answer Repos 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 Banking 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 If index future is taken under futures contract, the underlying asset would be :Correct Answer Stock index Your Answer Stock index 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 ________ 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 ________ absorbs the excess demand or supply generated by hedgers and assume the risk of price fluctuations. Correct Answer Speculators Your Answer Speculators Select The Blank Question When a debenture is sold to the general public a ________ is appointed. Correct Answer Trustee Your Answer Trustee 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 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 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 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 If rupee weakens against the dollar, it has favourable impact for the importers. Correct Answer False Your Answer False Select The Blank Question UTI was set up in the year ________. Correct Answer 1963 Your Answer 1963

LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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 Your Answer

Consists of an analysis of the financial positions of various investor groups 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 LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question Risk on a portfolio of assets is always same as the risk on individual asset. Correct Answer False Your Answer False Multiple Choice Single Answer Question The price of the index futures contract is defined as :Correct Answer Future price = Spot price + Carry cost Your Answer Future price = Spot price + Carry cost Multiple Choice Single Answer Question 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 Match The Following Question Correct Answer

Your Answer Future value of Present Value

Future value of a series of cash flows occurring at the end of each period. annuity Future value of annuity Value today of a stream of cash flows that occurs in future.

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. annuity Present value of annuity Present value of

True/False Question Bond ratings by credit rating agencies provide superior and low cost information to the investor serving as a basis for a proper risk-return trade off by investors. Correct Answer True Your Answer True 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 Risk can be referred as the ________ in the return with respect to the expected return. Correct Answer Volatility Your Answer Volatility Multiple Choice Multiple Answer Question Which are the different styles of displaying charts? Correct Answer Bar and line charts , Candle stick charts , Point and figure charts Your Answer Bar and line charts , Candle stick charts , Point and figure charts 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 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 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.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 More than half the variation in stock price could be attributed to which factor? Correct Answer Market influence Your Answer Market influence Match The Following Question Correct Answer

Your Answer 1981 1981

Technical collaboration of Bharat Forge with SIFCO industries USA Bharat Forge was incorporated at Mumbai 1961 1961 1971 1971

Shares of 100 each subdivided of Bharat forge

930000 bonus shares issued by Bharat Forge 1976 1976

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 Multiple Choice Single Answer Question What does lower level of unemployment indicates? Correct Answer Positive economic conditions Your Answer Positive economic conditions Multiple Choice Single Answer Question What is the objective of Portfolio management? Correct Answer To Minimize risk and maximize return Your Answer To Minimize risk and maximize return Select The Blank Question 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 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 8% taxable savings bonds are repayable after ________ years. Correct Answer 6 Your Answer 6 Multiple Choice Multiple Answer Question The features of bond are :-

Correct Answer Your Answer

Collateral , Call provision , Sinking fund and protective covenants Collateral , Call provision , Sinking fund and protective covenants

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 Select The Blank Question Current liabilities include all liabilities due in the next ________ and provisions. Correct Answer 12 months Your Answer 3 months 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 Mutual fund schemes could be broadly classified as :Correct Answer Open ended scheme , Close ended scheme Your Answer Open ended scheme , Close ended scheme True/False Question Balance of payments surplus augments foreign reserves of the country and have a favourable impact on he exchange rate. Correct Answer True Your Answer True Select The Blank Question ________ 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 True/False Question The cost structure remaining the same, better price realisation results in lower gross profit ratio. Correct Answer False Your Answer False 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 Multiple Choice Multiple Answer Question What were the achievements of Bharat Forge during the year 2003?

Correct Answer act as compliance Your Answer act as compliance

Secured second largest customer in China , Appointed a Company Secretary to officer , New contracts won in passenger car components Secured second largest customer in China , Appointed a Company Secretary to officer , New contracts won in passenger car components

Multiple Choice Single Answer Question The financial contract between the issuer and the purchaser of the bonds is termed as :Correct Answer Bond indenture Your Answer Bond indenture True/False Question With the use of diversification you can reduce the risk. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question An option is :Correct Answer A contract between two parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee Your Answer A contract between two parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee Select The Blank Question Dow Jones transportation average was previously known as ________. Correct Answer Rail average Your Answer Rail average 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 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 What do you understand by money supply? Correct Answer Total money in existence at any given time Your Answer Total money in existence less borrowings 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 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 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 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 Equity shares is a high return high risk instrument. Correct Answer True Your Answer True True/False Question The returns of sector specific funds are solely dependant on the performance of the respective sectors / industries. Correct Answer True Your Answer True True/False Question Certificate of Deposits offers high rate of interest than Treasury Bills. Correct Answer True Your Answer True 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 Single Answer Question Mr. Suresh is expecting to receive Rs.1,50,000/- at the end of 3 years. He wanted to know what is the present value of this amount, if the rate of interest is 9% p.a ? Correct Answer Rs.1,15,827/Your Answer Rs.1,15,827/Multiple Choice 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 capitalisation

Selecting a set of scrips to be used , Fixing starting date , Calculating market

LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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 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 True/False Question Penetration of a trend line denotes a bearish phase. Correct Answer False Your Answer False 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 The performance of a scheme is reflected in its NAV which is disclosed on a daily basis in case of open ended schemes. Correct Answer True Your Answer True Match The Following Question Correct Answer

Your Answer

Under options contract When you expect prices to fall, then, you take a long position by buying puts. When you expect prises to rise, then you take a short position by selling puts. Cost of Carry model Options contract A contract where both the parties are equally responsible Futures contract Futures contract

The amount which the buyer of the option has to pay to the option writer to induce him to accept the risk associated with the contract. Option price Transaction cost model NSE&BSE are regulated by of India Securities Exchange Board of India Securities Exchange Board

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 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 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 True/False Question Investment in gilt edged securities carry a higher element of risk. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question What was the final analysis on the performance of Bharat forge for the year FY 02? Correct Answer Stock currently trades at 15 times its FY 05 consensus EPS forecasts , Stock will trade at an inexpensive PEG of 0.6x. , Aim to become US$1 billion Company by Fy 08 from US$100 million 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 True/False Question With the use of diversification you can reduce the risk. Correct Answer True Your Answer True 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 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 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 Select The Blank Question ________ is the value at a certain future date today of a stream of cash flows that occurs over a period of time.

Correct Answer Your Answer

Future value Future value

Select The Blank Question The Derivative market is divided into Future market and ________ market. Correct Answer Options Your Answer Options Match The Following Question Correct Answer NSE SEBI NAV Nifty Nifty Redressal of investor complaints Net asset value Net asset value Association of mutual funds of India Redressal of investor complaints

Your Answer

AMFI Association of mutual funds of India

Multiple Choice Single Answer Question What do you understand by term pioneering stage in the industry life cycle analysis? Correct Answer Slow sales growth product recently introduced Your Answer Slow sales growth product recently introduced Multiple Choice Single Answer Question 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 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 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 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 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 , Security has a intrinsic value at any given time Select The Blank Question ________ ratio is the ratio of net profit to the sales. Correct Answer Net Profit Margin Your Answer Net Profit Margin 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 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 Expanding marketing capabilities and investing in new facilities 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 Stock market movements 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 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 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 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 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 , Return on equity

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 Single Answer Question What is the objective of an income fund? Correct Answer To provide regular and steady income Your Answer To provide regular and steady income 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 Multiple Answer Question The commonly used charts to measure the movements in price under the technical analysis are :Correct Answer Line Charts , Bar Charts , Point and Figure Charts Your Answer Line Charts , Bar Charts 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 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 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 Because of statutory compulsion, generally Govt. securities are held by banks, financial institutions, insurance companies etc.

Correct Answer Your Answer

True True

Select The Blank Question The ________ phase is characterized by resistance area and support level. Correct Answer Transition Your Answer Horizontal 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 Single Answer Question What is the minimum investment amount in G-secs? Correct Answer 1000 Your Answer 1000 True/False Question Sensex is the index of Calcutta Stock Exchange. Correct Answer False Your Answer False Multiple Choice Single Answer Question Investments could be made in retail government securities through :Correct Answer Primary dealers Your Answer Primary dealers sapm - Akshat1 LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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 Select The Blank Question The 8% taxable savings bonds are repayable after ________ years. Correct Answer 6 Your Answer 6 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/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 Which year marked increase in growth rate? Correct Answer 2003 -04 Your Answer 2003 -04 Select The Blank Question Security analysis serves the investment decision maker by identifying ________securities. Correct Answer Under priced Your Answer Under priced 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 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 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 Multiple Choice Multiple Answer Question What are the important macro economic indicators? Correct Answer Price Conditions , Monsoons , GNP growth rate Your Answer GNP growth rate , Price Conditions , Monsoons 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 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 True/False Question Bonds and Debentures represent long term debt instruments. Correct Answer False Your Answer False 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 average investor in the market is driven more by emotions than by rational analysis is a rule of :Correct Answer Technical analysis Your Answer Technical analysis 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 Buying bonds issued to banks and financial institutions , Calling in a certain number of bonds by lot , Buying bonds in the open market True/False Question The Asset management company of the mutual fund must have 50% independent directors. Correct Answer True Your Answer True 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 True/False Question A price rise accompanied by expanding volume denotes a potential trend reversal. Correct Answer False Your Answer False 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 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 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 in gilt edged securities carry a higher element of risk. Correct Answer False Your Answer False 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 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 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 Debt instruments that have a maturity period of one year or less are called as:Correct Answer Money market instruments Your Answer Short term debt instruments Multiple Choice Single Answer Question When was the first mutual fund set up? Correct Answer 1963 Your Answer 1963 Select The Blank Question ________ measures the efficiency of credit management. Correct Answer Average collection period Your Answer Average collection period 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 ________ 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 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 The ________ phase is characterized by resistance area and support level. Correct Answer Transition Your Answer Transition True/False Question Sensex is the index of Calcutta Stock Exchange. Correct Answer False Your Answer False 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 Which market is affected with the improving and higher growth rate in economy? Correct Answer Stock market

Your Answer Stock market 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 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 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 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 Select The Blank Question ________ deal in futures to offset a pre-existing risk. Correct Answer Hedger Your Answer Hedger 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 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 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 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 Match The Following Question Correct Answer Your Answer Gross profit margin Indicates the margin available after meeting the manufacturing expenses Valuation ratio ROE Measure the profitability of equity funds Measures the profitability of debt funds

Earnings power Measure the profitability of operations without considering the influence of financial structure and tax rate Indicates the margin available after meeting the manufacturing expenses Net profit margin Ratio if net profit to sales Measure the profitability of operations without considering the influence of financial structure and tax rate Select The Blank Question The Derivative market is divided into Future market and ________ market. Correct Answer Options Your Answer Options LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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 Select The Blank Question The Derivative market is divided into Future market and ________ market. Correct Answer Options Your Answer Past and present 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 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 Multiple Choice Single Answer Question What is GDP at factor cost ? Correct Answer Excludes net income received from abroad Your Answer GDP at market cost Select The Blank Question ________seeks to safeguard against potential losses on the outstanding position in futures market. Correct Answer Initial margin Your Answer Next day settlement 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

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 next day settlement Select The Blank Question S&P NSE 50 index is known as ________. Correct Answer NIFTY Your Answer NIFTY Multiple Choice Single Answer Question What does a Balanced fund seek to achieve? Correct Answer Growth and regular income Your Answer Growth and regular income 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 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 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 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- Model for valuing growth , H-Two stage model for growth , H-Model unlike the classic two stage model 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 True/False

Question Bearish actions come from a series of declining peaks and troughs. Correct Answer True Your Answer True Multiple Choice Single Answer Question The issuing firm enjoys the flexibility to call the bonds if the interest rates fall significantly and it can issue :Correct Answer New bonds at a lower rates Your Answer New bonds at par 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 When we invest in only one asset we are not exposed to any specific or market risk. Correct Answer False Your Answer True Match The Following Question Correct Answer

Your Answer Random walk model Efficient market hypothesis

Weak form model is also termed as Investors are rational

Efficient market hypothesis

Passive managers Weak form EMH Random walk Fama Fama

Securities current prices fully reflect all historical information model

Framework on efficient capital markets, a review of theory and empirical work

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 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 ________ identified five forces that determine the intrinsic long run profit attractiveness of a market or market segment. Correct Answer Michael Porter Your Answer Philip Kotler 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 146% growth in exports , Highest pre and post tax profits , Best year in the history of the company Your Answer Best year in the history of the company , 146% growth in exports , Highest pre and post tax profits Select The Blank Question The regulations of SEBI with respect to mutual funds were fully revised in the year ________. Correct Answer 1996 Your Answer 1990 Multiple Choice Single Answer Question What are short term trends? Correct Answer Trends which interrupt the course of the intermediate cycle Your Answer They are counter-cyclical trends within the confines of a primary trend Select The Blank Question Dow Jones transportation average was previously known as ________. Correct Answer Rail average Your Answer Freight average 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 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 , Displays the correlation between the high and low prices True/False Question Five paisa.com is an example of on line trading portal. Correct Answer True Your Answer True Match The Following Question Correct Answer

Your Answer

Growth of income 40-60 % debt, 40-60 % equities 100 % in mutual funds Current income Short term debt portfolio Fixed - income portfolio Fixed - income portfolio 100% debt

Stability of principal

Appreciation 75-100 % in equities

75-100 % in equities

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 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 , Return on equity True/False Question The ratios between profits and investments are called rate of return measures. Correct Answer True Your Answer False Multiple Choice Single Answer Question Where are gilt funds invested? Correct Answer Government securities Your Answer Government securities 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 Interest is taxable under 80 L , Rate of interest is 8% , Partial withdrawal is available from 7th year Multiple Choice Single Answer Question What levels if increased will have unfavourable impact on the stock market? Correct Answer Higher levels of taxation Your Answer Higher levels of unemployment 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 Single Answer Question Till 1990's secular Indian economy's inflation rate has been of what percentage? Correct Answer 0.07 Your Answer 0.05 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 Price earning ratio 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

Increased price and decreased price

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 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 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 0.25 True/False Question A segment is more attractive when there are actual or potential substitutes for the product. Correct Answer True Your Answer False 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 gilt edged securities which is similar to a particular index 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 Interest is taxable under 80 L , They last from 1 to 3 or 4 weeks , They interrupt the course of the intermediate cycle LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question Measures of ________ tells us what we can expect a typical or middle data point of a distribution to be. Correct Answer Central tendency Your Answer Variance Multiple Choice Single Answer Question Capital expenditure -depreciation +change in working capital -(new debt issued - debt repaid) = Correct Answer Equity reinvested in business Your Answer Equity reinvested in business Multiple Choice Multiple Answer

Question What were the objectives for 2002-03 the chairman of Bharat forge had emphasised on in the annual report for 2001 - 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 LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question ________ measures the profitability of operations without considering the influence of financial structure and tax rate. Correct Answer Earnings power Your Answer Earnings power True/False Question While calculating geometric mean calculation of root is not important. Correct Answer False Your Answer False Multiple Choice Single Answer Question What could be a better approach to flow-of -funds analysis? Correct Answer An examination of liquidity trends in the banking system Your Answer Analyzing the Fiscal issues True/False Question The Asset management company of the mutual fund must have 50% independent directors. Correct Answer True Your Answer True True/False Question A higher value of current ratio indicates a better short term solvency of the firm. Correct Answer True Your Answer True

Multiple Choice Single Answer Question Investment is a risk free investment when :Correct Answer Actual return is = expected return Your Answer Actual return is = expected return Select The Blank Question The govt allowed public sector banks and institutions in mutual funds in ________. Correct Answer Early 90's Your Answer Early 90's True/False Question The returns of sector specific funds are solely dependant on the performance of the respective sectors / industries. Correct Answer True Your Answer True Multiple Choice Single Answer Question The price of the index futures contract is defined as :Correct Answer Future price = Spot price + Carry cost Your Answer Future price = Spot price + Carry cost Multiple Choice Multiple Answer Question An options contract allows the investor :Correct Answer To earn a profit while restricting the downside risk , To use the options for speculation , Either to honour or walk away from the contract Your Answer To earn a profit while restricting the downside risk , To use the options for speculation , Either to honour or walk away from the contract True/False Question The basic assumption of Technical analysis is that, price discounts everything and it is the outcome of all forces affecting a stock. Correct Answer True Your Answer True Select The Blank Question Secondary reactions occurs because of ________ which arise in the market 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 Fixed - income portfolio Short term debt portfolio

Stability of principal

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 PEG ratio Price to book value ratio Market

Ratio used as a measure of relative value

The market value of the firms assets divided by the replacement cost of these assets value to replacement cost ratio Market value to replacement cost ratio Key determiner of revenue multiples Profit marginProfit margin

The market value of the equity in a firm reflects the markets expectations of the firms earnings power and cash flows. Price to book value ratio Price earning ratio

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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 NSE SEBI Nifty Nifty Redressal of investor complaints Redressal of investor complaints

Your Answer

NAV

Net asset value

Net asset value Association of mutual funds of India

AMFI 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 Your Answer

A property right 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 instrument/Bonds Debt instrument/Bonds The actual yield earned by an investor on a bond Realised yield Debt

Yield to maturity Yield to maturity

Present value interest factor of annuities and present value interest factor Interest rate risk

True/False Question A price rise accompanied by expanding volume denotes a potential trend reversal. Correct Answer False Your Answer False

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question Measures 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 Expiration period for options

Your Answer Nine months Nine months Chicago Board of options exchange New York Black

The world's first largest options exchange board of Options exchange

The most popular pricing options model published in the year 1973 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 How fast the inventory is being

Average collection period Similar to debtors turnover 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/LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The Blank Question 1 ________ deal in futures to offset a pre-existing risk. Correct Answer Hedger Your Answer Speculator True/False Question 2 Bonds and Debentures represent long term debt instruments. Correct Answer False Your Answer True Multiple Choice Single Answer Question 3 What is the limitation of Flow-of funds analysis method? Correct Answer Cannot give indication of the inclination of market participants to purchase stock Your Answer Cannot give indication of the inclination of market participants to purchase stock Multiple Choice Multiple Answer Question 4 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- Model for valuing growth , H-Two stage model for growth , H-Model like the classic two stage model 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 Single Answer Question 6 Sentiment indicators are based on what assumption Correct Answer Different groups of investors are consistent in their actions at major market turning points Your Answer Different groups of investors are consistent in their actions at major market turning points Multiple Choice 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 Select The Blank Question 8 Under ________ EMH investors cannot earn abnormal/superior profits on securities on a consistent basis. Correct Answer Semi-strong form Your Answer Semi-strong form True/False Question 9 While calculating geometric mean calculation of root is not important. Correct Answer False Your Answer False

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 Select The Blank Question 11 ________ take long or short positions only with the intention of making profits by getting out of the market when conditions favor them. Correct Answer Speculators Your Answer Hedgers Multiple Choice Single Answer Question 12 An agreement to buy or sell a specified quantity of an asset at a certain future date or a certain price is know as :Correct Answer Forward contract Your Answer Futures contract True/False Question 13 Correct Answer Your Answer

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

Select The Blank Question 14 ________ model is based on the principle that an initial phase where the growth rate is not stable and subsequent steady growth rate and remains for the long-term. Correct Answer The Two-Stage dividend discount Your Answer The Gordons dividend growth True/False Question 15 Correct Answer Your Answer

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

Multiple Choice Multiple Answer Question 16 The security market is the market for :Correct Answer Equity , Debt , Derivatives Your Answer Equity , Debt , Bank deposits Select The Blank Question 17 ________ ratio is estimated by dividing the market value of a firm's assets by the replacement cost of these assets. Correct Answer Market value to replacement cost ratio Your Answer PEG ratio 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 Select The Blank

Question 19 Correct Answer Your Answer

________involves a simultaneous sale and repurchase agreement. Repos Repos

Match The Following Question 20 Correct Answer H-Model For Valuing Growth reach the stable growth rate reach the stable growth rate

Your Answer Initial growth rate is not constant but linearly falls over time to Initial growth rate is not constant but linearly falls over time to Expected dividends in the

The general model Expected dividends and required rate of return next period, cost of equity and expected growth rate in dividends

The Gordons Growth model Expected dividends in the next period, cost of equity and expected growth rate in dividends Assessment of the growth rate by looking at how much a firm reinvests for future growth and the quality of its reinvestment The Two-Stage Dividend Discount Model Based on two extraordinary growth phase lasting n years and stable growth phase that lasts forever Based on two extraordinary growth phase lasting n years and stable growth phase that lasts forever

True/False Question 21 Correct Answer Your Answer

Sensex is the index of Calcutta Stock Exchange. False False

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 Select The Blank Question 23 Under futures market ________ process provides for collection of losses that have already occurred. Correct Answer The daily settlement Your Answer The next day settlement 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 Single Answer Question 25 What are intermediate trends? Correct Answer They are counter-cyclical trends within the confines of a primary trend Your Answer They are counter-cyclical trends within the confines of a primary trend Multiple Choice Multiple Answer

Question 26 Correct Answer Your Answer True/False Question 27 Technical analysis Correct Answer Your Answer Select The Blank Question 28 Correct Answer Your Answer

Gilt Edged Securities are :State Govt. , Quasi-Govt , Central Govt Central Govt , State Govt. , Quasi-Govt

Fundamental analysis focuses on predicting the future price of a security and on estimating the intrinsic value of a security. False True

Current liabilities include all liabilities due in the next ________ and provisions. 12 months 12 months

Multiple Choice Single Answer Question 29 What are index funds? Correct Answer Investment in securities in the same weightage which replicates a particular index Your Answer Investment in securities in the same weightage which replicates a particular index Select The Blank Question 30 Correct Answer Your Answer

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

Select The Blank Question 31 ________seeks to safeguard against potential losses on the outstanding position in futures market. Correct Answer Initial margin Your Answer Daily settlement True/False Question 32 Correct Answer Your Answer

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

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 Match The Following Question 34 Correct Answer

Your Answer Future value of Future Value

Future value of a series of cash flows occurring at the end of each period. annuity Future value of annuity Value today of a stream of cash flows that occurs in future.

Present Value

Value at a certain future date today of a stream of cash flows that occurs over a period of time. Future Value Present Value Series of equal payments or receipts occurring at regular intervals of time. annuity Present value of annuity Present value of

Select The Blank Question 35 Correct Answer Your Answer True/False Question 36 by market beta. Correct Answer Your Answer

________ ratio is the ratio of net profit to the sales. Net Profit Margin Net Profit Margin

The risk associated to get the required rate of return on the stock is measure True True

Multiple Choice Single Answer Question 37 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 38 What are the assumptions of the Dow theory? Correct Answer Majority of stocks follow the underlying trend of the market most of the time Your Answer Majority of stocks follow the underlying trend of the market most of the time Multiple Choice Single Answer Question 39 Mr.Rohan invests Rs.25,000/- today. The rate of interest is 6% compounded annually. What will be the value of his investment after 3 years? Correct Answer Rs. 29775/Your Answer Rs. 29775/True/False Question 40 The basic inputs of the general model are expected dividends and required rate of return on stock. Correct Answer True Your Answer True Multiple Choice Single Answer Question 41 How many measures of money supply are used commonly? Correct Answer 2 Your Answer 2 True/False Question 42 European style options are more expensive than American style because they offer greater flexibility to the buyer. Correct Answer False Your Answer True Multiple Choice Single Answer

Question 43 Under which simple model the value of the stock is the present value of expected dividends on it :Correct Answer The Dividend discount model Your Answer The Dividend growth model Multiple Choice 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 45 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 Buying bonds in the open market , Buying bonds issued to banks and financial institutions , Calling in the bonds at premium Multiple Choice Single Answer Question 46 Avenues can be broadly classified into the which type of assets? Correct Answer Financial and Real Your Answer Tangible and Intangible Multiple Choice Single Answer Question 47 Stock Exchanges are the part of :Correct Answer Secondary market Your Answer Secondary market LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question 1 UTI was set up in the year ________. Correct Answer 1963 Your Answer 1963 Multiple Choice Single Answer Question 2 When was the first mutual fund set up? Correct Answer 1963 Your Answer 1963 True/False Question 3 A segment is unattractive if the buyers possess strong or growing bargaining powers. 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) Select The Blank Question 6 An ________ is a series of equal payments or receipts occurring at regular intervals of time. Correct Answer Annuity Your Answer Annuity Multiple Choice Single Answer Question 7 How can transition phases be projected? Correct Answer Transition phases are signalled by clearly definable price patterns Your Answer By working out the resistance and support levels Multiple Choice Single Answer Question 8 If the price of a share at the beginning of the year was Rs.50/-, dividend received during the year was Rs.10/-per share and the price at the end is Rs.60/-. What is the rate of return? Correct Answer 0.4 Your Answer 0.2 Multiple Choice Multiple Answer Question 9 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 10 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 True/False Question 11 analysis makes its Correct Answer Your Answer

Investment decisions can be viewed as an integrated process to which security unique contribution. True True

Select The Blank Question 12 An option is a contract which gives the buyer ________ to buy or sell shares of the underlying security at a specific price on or before a specific date. Correct Answer Right but not obligation Your Answer Right but not obligation Select The Blank

Question 13 of a distribution to Correct Answer Your Answer

Measures of ________ tells us what we can expect a typical or middle data point be. Central tendency Central tendency

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 Select The Blank Question 16 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 17 Given the accounting standards across firm, price to book value ratios can be compared across similar firms for signs of under valuation. Correct Answer True Your Answer True True/False Question 18 Correct Answer Your Answer

Quick assets consist of current assets less inventories. True True

Multiple Choice Single Answer Question 19 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 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 Single Answer Question 21 Investment is a risk free investment when :Correct Answer Actual return is = expected return Your Answer Actual return is = expected return True/False Question 22 exporters.

If a rupee weakens against the dollars it has favourable impact for the

Correct Answer Your Answer True/False Question 23 reversal. Correct Answer Your Answer

True True

A price rise accompanied by expanding volume denotes a potential trend False True

Match The Following Question 24 Correct Answer Equity shares High risk

Your Answer High risk Low risk

Government Securities Bank Deposits Mutual Funds

No risk

Low risk

No risk

Average risk Average risk

Multiple Choice Multiple Answer Question 25 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 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 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 Single Answer Question 27 Investing in this avenue enable you participate in the equity market indirectly :Correct Answer Mutual Funds Your Answer Mutual Funds Select The Blank Question 28 attractiveness of a Correct Answer Your Answer

________ identified five forces that determine the intrinsic long run profit market or market segment. Michael Porter Michael Porter

Multiple Choice Single Answer Question 29 In any Economy, bridge is created between savers and who need the funds by this system :Correct Answer Financial Your Answer Economic Multiple Choice Single Answer

Question 30 Correct Answer Your Answer True/False Question 31 Correct Answer Your Answer Select The Blank Question 32 expenses. Correct Answer Your Answer

Agriculture account for how much portion of the economy? Quarter Three fourths

Post office monthly schemes have a 10 year tenor. False False

________ ratio indicates the margin available after meeting the manufacturing Gross Profit margin Gross Profit margin

Match The Following Question 33 Correct Answer Risk free investment Risk

Your Answer Actual returns = expected returns

Actual returns = expected returns Volatility in the return Measure of dispersion

Volatility in the return

Variance Returns

Measure of dispersion

Future benefits from investments

Future benefits from investments

Multiple Choice Multiple Answer Question 34 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 True/False Question 35 There may be convertible clause which gives the debenture holder the option to convert the debentures into equity shares. Correct Answer True Your Answer True Select The Blank Question 36 debentures Correct Answer Your Answer

________is a hybrid form of security which has characteristics of both equity and Preference shares Preference shares

Multiple Choice Single Answer Question 37 Who operates the sinking fund under the sinking fund provision of a firm? Correct Answer The bond trustee or the issuer Your Answer The bond trustee or the issuer Multiple Choice Multiple Answer Question 38 The security analysis process will achieve :-

Correct Answer profitability Your Answer profitability Select The Blank Question 39 principal. Correct Answer Your Answer

True picture of a company , Normal earning power , Projection of future True picture of a company , Normal earning power , Projection of future

Debentures rated "BB" refers ________ of timely payment of interest and Inadequate safety Inadequate safety

Multiple Choice Single Answer Question 40 How did Dow use the behaviour of stock markets? Correct Answer As a barometer of business conditions rather than a basis for forecasting stock prices Your Answer As a barometer of business conditions rather than a basis for forecasting stock prices Multiple Choice 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 Single Answer Question 42 The growth period in the industry life cycle is defined as :Correct Answer Period of rapid market acceptance and substantial profit improvement Your Answer Period of rapid market acceptance and substantial profit improvement Select The Blank Question 43 Correct Answer Your Answer

The Derivative market is divided into Future market and ________ market. Options Options

Multiple Choice Multiple Answer Question 44 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 45 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 Select The Blank Question 46 Correct Answer Your Answer True/False Question 47

The Dow theory was published in a series of editorials in the ________. Wall street journal Wall street journal

PPF is a good retirement planning and tax saving vehicle.

Correct Answer Your Answer

True True

LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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 True/False Question 2 Currently in India index options are both European and American in nature. Correct Answer False Your Answer False True/False Question 3 The cost structure remaining the same, better price realisation results in lower gross profit ratio. Correct Answer False Your Answer True Multiple Choice Single Answer Question 4 What are short term trends? Correct Answer Trends which interrupt the course of the intermediate cycle Your Answer They are counter-cyclical trends within the confines of a primary trend Multiple Choice 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 True/False Question 6 A segment is more attractive when there are actual or potential substitutes for the product. Correct Answer False Your Answer True Select The Blank Question 7 The regulations of SEBI with respect to mutual funds were fully revised in the year ________. Correct Answer 1996 Your Answer 1996 Multiple Choice Single Answer Question 8 When the firm is not raising equity by issuing new shares, the growth rate in net profits is given by :Correct Answer Retention ratio X return on equity Your Answer Price earning ratio X return on equity Multiple Choice Single Answer Question 9 The historical growth rate and the past earnings of a firm are used in valuing :-

Correct Answer Your Answer

Stable firms, but not appropriate for high growth firms Consistent stable firms, but not appropriate for high growth firms

Multiple Choice Single Answer Question 10 Efficient market hypothesis is based on the assumption that market comprises of :Correct Answer Rational Investors Your Answer Heterogeneous investors Multiple Choice Single Answer Question 11 Co variance of asset with market portfolio 85 and variance of market portfolio is 100 then beta is :Correct Answer 0.0085 Your Answer 0.0085 Select The Blank Question 12 Correct Answer Your Answer

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

Multiple Choice Single Answer Question 13 Mr. Tiwari is expecting to receive Rs.25,000/- at the end of 10 years. He wanted to know what is the present value of this amount, if the rate of interest is 10% p.a:Correct Answer Rs. 9639/Your Answer Rs. 9639/Multiple Choice Multiple Answer Question 14 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 , Displays the correlation between the high and low prices , Displays a trend over the period of an year True/False Question 15 information to the Correct Answer Your Answer Select The Blank Question 16 Correct Answer Your Answer

Bond ratings by credit rating agencies provide superior and low cost investor serving as a basis for a proper risk-return trade off by investors. True True

________ is affected by the leverage decisions of the firm. Return on equity Return on equity

Match The Following Question 17 Correct Answer

Your Answer William Peter Hamilton Charles H.dow

Development of Dow's principles Breadth Indicator

Advance/decline line

Advance/decline line

Momentum indicator

MACD Moving average

Trend lines Useful tool in technical analysis Useful tool in technical analysis

Multiple Choice Single Answer Question 18 What does flow-of fund analysis help in understanding? Correct Answer Availability of money for the stock market Your Answer Financial strength of various companies Multiple Choice Multiple Answer Question 19 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 Select The Blank Question 20 ________ refers to the possibility that there may not be a readily available market for the particular bond. Correct Answer Liquidity risk Your Answer Interest rate risk Select The Blank Question 21 ________. Correct Answer Your Answer

The govt allowed public sector banks and institutions in mutual funds in Early 90's Early 90's

Multiple Choice Multiple Answer Question 22 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 Single Answer Question 23 A security represent evidence of :Correct Answer A property right Your Answer Safety Multiple Choice Single Answer Question 24 Mr.Saurabh invests Rs. 5,000/- today. The rate of interest is 4% compounded annually. What will be the value of his investment after 5 years? Correct Answer Rs. 6083/Your Answer Rs. 6083/Select The Blank Question 25 growth rate. Correct Answer Your Answer

The value of the stock in the ________ model is sensitive to the estimates of the The Gordons dividend growth The Gordons dividend growth

Match The Following Question 26 Correct Answer

Your Answer

Under options contract When you expect prices to fall, then, you take a long position by buying puts. When you expect prises to rise, then you take a short position by selling puts. Cost of Carry model Futures contract A contract where both the parties are equally responsible Futures contract Options contract

The amount which the buyer of the option has to pay to the option writer to induce him to accept the risk associated with the contract. Option price Transaction cost model NSE&BSE are regulated by of India Securities Exchange Board of India Securities Exchange Board

Multiple Choice Single Answer Question 27 In India futures on individual securities have been introduced by :Correct Answer BSE & NSE Your Answer BSE & NSE Multiple Choice Single Answer Question 28 During the 1980's rate of savings in India has hovered around what percentage? Correct Answer 0.21 Your Answer 0.24 True/False Question 29 The arithmetic mean is a set of observations is calculated by finding the sum values and dividing by the number of observations. Correct Answer True Your Answer True True/False Question 30 Correct Answer Your Answer True/False Question 31 Correct Answer Your Answer

Investment in gilt edged securities carry a higher element of risk. False True

Investment in gilt edged securities carry a higher element of risk. False True

Multiple Choice Multiple Answer Question 32 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 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 equity Select The Blank Question 33 Correct Answer Your Answer

Dow Jones transportation average was previously known as ________. Rail average Logistics average

Multiple Choice Multiple Answer Question 34 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 TDS for interest income upto Rs. 5000 , Considered to be a safe investment 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 Select The Blank Question 36 Correct Answer Your Answer True/False Question 37 accumulation and Correct Answer Your Answer

The 8% taxable savings bonds are repayable after ________ years. 6 5

Following a decline, heavy volume with little price change is indicative of is normally a bearish factor. False True

True/False Question 38 In case of assured returns, A scheme cannot promise returns unless such returns are fully guaranteed by sponsor or AMC. Correct Answer True Your Answer False Select The Blank Question 39 Security analysis serves the investment decision maker by identifying ________securities. Correct Answer Under priced Your Answer Blue chip Multiple Choice Multiple Answer Question 40 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 net present value of cash flows 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 Select The Blank Question 42 ________ absorbs the excess demand or supply generated by hedgers and assume the risk of price fluctuations.

Correct Answer Your Answer

Speculators Brokers

Multiple Choice Single Answer Question 43 The issuing firm enjoys the flexibility to call the bonds if the interest rates fall significantly and it can issue :Correct Answer New bonds at a lower rates Your Answer New bonds at a lower rates Select The Blank Question 44 A ________ rally for stocks generally takes place because of an improved outlook for business conditions over what was anticipated. Correct Answer Bear market Your Answer Bullish market True/False Question 45 Correct Answer Your Answer

Speculators buy or sell futures contract in an attempt to earn a profit. True True

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 kk LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question ________ is affected by the leverage decisions of the firm. Correct Answer Return on equity Your Answer Return on equity Select The Blank Question Debentures rated "BB" refers ________ of timely payment of interest and principal. Correct Answer Inadequate safety Your Answer Inadequate safety Select The Blank Question S&P NSE 50 index is known as ________. Correct Answer NIFTY Your Answer NIFTY True/False Question The risk associated to get the required rate of return on the stock is measure by market beta. Correct Answer True Your Answer True

Match The Following Question Correct Answer Your Answer NSE&BSE are regulated by Securities Exchange Board of India Securities Exchange Board of India Under options contract When you expect prices to fall, then, you take a long position by buying puts. When you expect prises to rise, then you take a short position by selling puts. Cost of Carry model Options contract A contract where both the parties are equally responsible Futures contract Futures contract The amount which the buyer of the option has to pay to the option writer to induce him to accept the risk associated with the contract. Option price Option price True/False Question A segment is unattractive if the buyers possess strong or growing bargaining powers. Correct Answer True Your Answer True Multiple Choice Single Answer Question Debt instruments that have a maturity period of more than one year are called as :Correct Answer Bonds Your Answer Bonds Multiple Choice Single Answer Question The present value of all the future cash payments to be paid on the security to the investor is termed as :Correct Answer Intrinsic value of a security Your Answer Intrinsic value of a security Multiple Choice Multiple Answer Question What are the features of Retail government securities (G-secs) ? Correct Answer Safest investment option available , Demat account is required for investment , Choice of tenure varies from less than 1 year to 30 years Your Answer Safest investment option available , Demat account is required for investment , Choice of tenure varies from less than 1 year to 30 years True/False Question A higher value of current ratio indicates a better short term solvency of the firm. Correct Answer True Your Answer True Select The Blank Question ________seeks to safeguard against potential losses on the outstanding position in futures market. Correct Answer Initial margin Your Answer Initial margin Select The Blank Question Risk can be referred as the ________ in the return with respect to the expected return. Correct Answer Volatility Your Answer Volatility Multiple Choice Multiple Answer Question The return to the bond investor can be measured in terms of :Correct Answer Current yield , Yield to maturity , Realised yield Your Answer Current yield , Yield to maturity , Realised yield True/False Question Certificate of Deposits offers high rate of interest than Treasury Bills. Correct Answer True

Your Answer True True/False Question American option gives the holder the right, but not the obligation to buy or sell the underlying instrument on or before the expiry date and the option can be exercised early. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Which of the following are important momentum indicators used widely? Correct Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD) Your Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD) Multiple Choice Single Answer Question What is Gross National Product ? Correct Answer Gross income generated from within the country Your Answer Gross income generated from within the country Select The Blank Question An ________ is a series of equal payments or receipts occurring at regular intervals of time. Correct Answer Annuity Your Answer Annuity Multiple Choice Single Answer Question If the price of a share at the beginning of the year was Rs.100/-, no dividend received during the year and the price at the end is Rs.115/-. What is the rate of return? Correct Answer 0.15 Your Answer 0.15 Multiple Choice Single Answer Question Which market is affected with the improving and higher growth rate in economy? Correct Answer Stock market Your Answer Stock market Match The Following Question Correct Answer Your Answer Ratio used as a measure of relative value PEG ratio PEG ratio The market value of the firms assets divided by the replacement cost of these assets Market value to replacement cost ratio Market value to replacement cost ratio Key determiner of revenue multiples Profit margin Profit margin The market value of the equity in a firm reflects the markets expectations of the firms earnings power and cash flows. Price to book value ratio Price earning ratio Multiple Choice Multiple Answer Question Features of PSU Bonds are :Correct Answer No TDS , Transferable by endorsement , No stamp duty on transfer Your Answer No TDS , Transferable by endorsement , No stamp duty on transfer True/False Question If a rupee weakens against the dollars it has favourable impact for the exporters. Correct Answer True Your Answer True Multiple Choice Single Answer

Question Credit rating companies assign ratings for which of these investments? Correct Answer Company deposits Your Answer Company deposits True/False Question If rupee weakens against the dollar, it has favourable impact for the importers. Correct Answer False Your Answer False Multiple Choice Single Answer Question What is the objective of Portfolio management? Correct Answer To Minimize risk and maximize return Your Answer To Minimize risk and maximize return Select The Blank Question Acid test ratio is more stringent measure of liquidity compared to the ________. Correct Answer Current ratio Your Answer Current ratio Multiple Choice Multiple Answer Question An option is :Correct Answer A contract between two parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee Your Answer A contract between two parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee Select The Blank Question ________ is the value at a certain future date today of a stream of cash flows that occurs over a period of time. Correct Answer Future value Your Answer Future value True/False Question The basic assumption of Technical analysis is that, price discounts everything and it is the outcome of all forces affecting a stock. Correct Answer True Your Answer True Dow Jones transportation average was previously known as Rail average Logistics average Road average Freight average. LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question ________ is affected by the leverage decisions of the firm. Correct Answer Return on equity Your Answer Price earning ratio 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 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 Your Answer

Rs. 37363/Rs. 37363/-

Multiple Choice Single Answer Question Mr. Suresh is expecting to receive Rs.1,50,000/- at the end of 3 years. He wanted to know what is the present value of this amount, if the rate of interest is 9% p.a ? Correct Answer Rs.1,15,827/Your Answer Rs.1,15,827/Multiple Choice 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 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 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 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. 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/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 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 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 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 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 The risk associated to get the required rate of return on the stock is measure by market beta. Correct Answer True Your Answer True Match The Following Question Correct Answer

Your Answer

Growth of income 40-60 % debt, 40-60 % equities 40-60 % debt, 40-60 % equities Current income Short term debt portfolio Short term debt portfolio Fixed - income portfolio Fixed - income portfolio

Stability of principal

Appreciation 75-100 % in equities

75-100 % in equities

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 True/False Question The cost structure remaining the same, better price realisation results in lower gross profit ratio. Correct Answer False Your Answer False

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 balance of payments? Correct Answer Credit and debit transactions of a country Your Answer Credit and debit transactions of a country 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 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 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 Select The Blank Question ________ is the value at a certain future date today of a stream of cash flows that occurs over a period of time. Correct Answer Future value Your Answer Future value Multiple Choice Single Answer Question How many measures of money supply are used commonly? Correct Answer 2 Your Answer 2 True/False Question PPF is a good retirement planning and tax saving vehicle. Correct Answer True Your Answer True 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

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 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 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 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 is the indicator of buoyant economy? Correct Answer Increased level of housing construction activity Your Answer Increased level of housing construction activity 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 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 compounded annual return of Kisan Vikas patra is ________. Correct Answer 0.084 Your Answer 0.084 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 ________ is also known as random walk model. Correct Answer Weak form EMH Your Answer Weak form EMH

Multiple Choice Single Answer Question Futures contract on individual securities shall expire on the last Thursday of the expiry month and if the last Thursday is a trading holiday then the contract shall expire on the :Correct Answer Previous day Your Answer Previous day Match The Following Question Correct Answer

Your Answer 1981 1981

Technical collaboration of Bharat Forge with SIFCO industries USA Bharat Forge was incorporated at Mumbai 1961 1961 1971 1971

Shares of 100 each subdivided of Bharat forge

930000 bonus shares issued by Bharat Forge 1976 1976

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 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" 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 Multiple Answer Question The return to the bond investor can be measured in terms of :Correct Answer Current yield , Yield to maturity , Realised yield Your Answer Current yield , Yield to maturity , Realised yield 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 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 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 LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question Investment in gilt edged securities carry a higher element of risk. Correct Answer False Your Answer False Select The Blank Question The Derivative market is divided into Future market and ________ market. Correct Answer Options Your Answer Options Select The Blank Question ________ of companies may open at higher or lower price than the issue price. Correct Answer IPO's Your Answer Market price True/False Question Equity shares is a high return high risk instrument. Correct Answer True Your Answer True True/False Question When you are making an investment you are expecting certain future benefits from your investment. Correct Answer True Your Answer True 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 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 What is Gross National Product ? Correct Answer Gross income generated from within the country Your Answer Gross income generated from within the country

Multiple Choice Single Answer Question What does a Balanced fund seek to achieve? Correct Answer Growth and regular income Your Answer Growth and regular income Match The Following Question Correct Answer

Your Answer Random walk model Random walk model

Weak form model is also termed as Investors are rational

Efficient market hypothesis

Efficient market hypothesis Weak form EMH Weak form Fama Fama

Securities current prices fully reflect all historical information EMH

Framework on efficient capital markets, a review of theory and empirical work

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 Under EMH it is assumed that if markets are efficient, securities are priced to provide a :Correct Answer Normal returns for their given level of risk Your Answer Normal returns for their given level of risk Multiple Choice 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 Profits are non existent in pioneering stage because of :Correct Answer Heavy expenses on product introduction Your Answer Heavy expenses on product introduction 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 ________ 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 Match The Following Question Correct Answer

Your Answer

MCX

Commodity Exchange BSE Index

Commodity Exchange

Sensex

BSE Index

Nifty NSE Index Lifex ET Index

NSE Index ET Index

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 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 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 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 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 Which of the following are important momentum indicators used widely? Correct Answer Moving average convergence divergence(MACD) , Rate of change (ROC) , Relative strength indicator (RSI) Your Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD) 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 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 Select The Blank Question ________ deal in futures to offset a pre-existing risk. Correct Answer Hedger Your Answer Hedger 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 , Return on equity , Debt service coverage ratio 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 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 True True/False Question If rupee weakens against the dollar, it has favourable impact for the importers. Correct Answer False Your Answer False 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 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 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 True/False

Question Bonds and Debentures represent long term debt instruments. Correct Answer False Your Answer False 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 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 The performance of a scheme is reflected in its NAV which is disclosed on a daily basis in case of open ended schemes. Correct Answer True Your Answer True 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 Currently in India index options are both European and American in nature. Correct Answer False Your Answer False Multiple Choice Single Answer Question A security represent evidence of :Correct Answer A property right Your Answer A property right 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 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 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 UTI was set up in the year ________. Correct Answer 1963 Your Answer 1963 Select The Blank Question The regulations of SEBI with respect to mutual funds were fully revised in the year ________. Correct Answer 1996 Your Answer 1996 Select The Blank Question ________ 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 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 LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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 Select The Blank Question The possibility of reduction of risk through the construction of a portfolio depends on the value of ________ between the two assets. Correct Answer Correlation coefficient Your Answer Time 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 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 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 Investment is a risk free investment when :Correct Answer Actual return is = expected return Your Answer Actual return is = expected return True/False Question With the use of diversification you can reduce the risk. Correct Answer True Your Answer True True/False Question A segment is unattractive if the buyers possess strong or growing bargaining powers. Correct Answer True Your Answer True 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 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

True/False Question Risk on a portfolio of assets is always same as the risk on individual asset. Correct Answer False Your Answer False True/False Question Debt is less riskier source of finance than equity. Correct Answer False Your Answer True 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 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 Multiple Answer Question The features of bond are :Correct Answer Collateral , Call provision , Sinking fund and protective covenants Your Answer Collateral , Call provision , Fixed returns True/False Question Post office monthly schemes have a 10 year tenor. Correct Answer False Your Answer False True/False Question Five paisa.com is an example of on line trading portal. Correct Answer True Your Answer True Select The Blank Question Dow Jones transportation average was previously known as ________. Correct Answer Rail average Your Answer Rail average 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 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 Select The Blank Question The compounded annual return of Kisan Vikas patra is ________. Correct Answer 0.084 Your Answer 0.084 Select The Blank Question Under futures market ________ process provides for collection of losses that have already occurred. Correct Answer The daily settlement Your Answer The daily settlement Select The Blank Question The regulations of SEBI with respect to mutual funds were fully revised in the year ________. Correct Answer 1996 Your Answer 1996 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 True/False

Question Penetration of a trend line denotes a bearish phase. Correct Answer False Your Answer True 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 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 True/False Question Passive investment managers believe that markets are inefficient and Active managers believe that markets are efficient. Correct Answer False Your Answer False 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 Select The Blank Question The Dow theory states that there are simultaneously ________ movements in the stock market. Correct Answer 3 Your Answer 3 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

Select The Blank Question Under the options contract ________ gives the holder the right, but not the obligation to buy or sell the underlying instrument only on the expiry date. Correct Answer European option Your Answer European option Select The Blank

Question ________ ratio indicates the margin available after meeting the manufacturing expenses. Correct Answer Gross Profit margin Your Answer Gross Profit margin Select The Blank Question Secondary reactions occurs because of ________ which arise in the market as a result of over optimism and over pessimism. Correct Answer Technical distortions Your Answer Bearish trends Select The Blank Question Debentures rated as "A" are judged to offer ________ of timely payment of interest and principal. Correct Answer Adequate safety Your Answer Adequate safety Select The Blank Question Debentures rated ________ are judged to offer sufficient safety of timely payment of interest and repayment of principal. Correct Answer "BBB" Your Answer "BBB" 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 Match The Following Question Correct Answer

Your Answer William Peter Hamilton Moving average Charles H.dow

Development of Dow's principles Breadth Indicator

Advance/decline line MACD MACD

Momentum indicator

Trend lines Useful tool in technical analysis Useful tool in technical analysis

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question The value of the stock in the ________ model is sensitive to the estimates of the growth rate. Correct Answer The Gordons dividend growth

Select The Blank Question The possibility of reduction of risk through the construction of a portfolio depends on the value of ________ between the two assets. Correct Answer Correlation coefficient Multiple Choice Single Answer Question When an investor invests in stock, expects to get the dividends and an expected price for the period the stock is held is the rule of :Correct Answer The General model Select The Blank Question Debentures rated ________ are judged to offer sufficient safety of timely payment of interest and repayment of principal. Correct Answer "BBB" Multiple Choice Single Answer Question Stock Exchanges are the part of :Correct Answer Secondary market Your Answer Money Market Multiple Choice Multiple Answer Question Active investment managers :Correct Answer Do not believe that markets are efficient , Puts efforts to search mispriced securities in the market , Are relatively active traders in securities to acquire abnormal returns Multiple Choice Multiple Answer Question Equity analysts provides estimates of earnings and earnings growth for future, using historical data and :Correct Answer Macro economic information that may impact future growth , Private information about the firm , Firm's specific information and public information Multiple Choice Multiple Answer Question What are the features of short-term trends? Correct Answer They last from 1 to 3 or 4 weeks , They interrupt the course of the intermediate cycle , They are usually influenced by random news events True/False Question The normal relationship is for the volume to expand on rallies and contract on declines. Correct Answer True True/False Question In case of assured returns, A scheme cannot promise returns unless such returns are fully guaranteed by sponsor or AMC. Correct Answer True Multiple Choice Multiple Answer Question What are the features of trend lines Correct Answer A simple and useful tool in technical analysis , Prices move in trends , The trend lines represent points of support and resistance

Select The Blank Question ________ is due to the fact that a borrower may not pay interest and/or principal on time. Correct Answer Default risk Multiple Choice Multiple Answer Question What are the features of candle stick charts? Correct Answer Indicates in black if the closing price is lower than the opening price , Indicates in white if the closing price is higher than the opening price Your Answer , Displays the correlation between the high and low prices True/False Question A firm uses a combination of equity and debt for financing its assets. Correct Answer True Select The Blank Question A pattern which does not result in reversal of a trend but reaffirmation of the underlying trend is called ________. Correct Answer Consolidation pattern True/False Question Policies of the government and the attitude of the government towards the industry have a considerable influence on the industry. Correct Answer True Multiple Choice Single Answer Question The index futures symbols of BSE are represented as :Correct Answer BSX JAN 2005 (January contract) Multiple Choice Multiple Answer Question The growth rate in the initial phase is not constant but declines linearly over time to reach the stable growth rate in steady state is a phenomena of :Correct Answer H- Model for valuing growth , H-Two stage model for growth , H-Model unlike the classic two stage model Multiple Choice Multiple Answer Question What are the features of line charts? Correct Answer It connects closing prices from one period to the next , It is ideal for securities with no high or low price data True/False Question Investors in high tax bracket would benefit by investing in equity schemes. Correct Answer False Select The Blank Question ________ bonds are generally called for prepayment after interest rates have fallen, investors will not be able to find comparable investment avenues. Correct Answer Call risk Select The Blank Question ________ deal in futures to offset a pre-existing risk. Correct Answer Hedger

Multiple Choice Single Answer Question More than half the variation in stock price could be attributed to which factor? Correct Answer Market influence Match The Following Question Correct Answer Price patternResistance level Primary trend

Your Answer Head and shoulders formation Last between 1-2 years

Last between 1-2 years

Intermediate trend Last between 3 weeks to as long as 6 monthsLast between 3 weeks to as long as 6 months Short term trend Last 1 to 3-4 weeksLast 1 to 3-4 weeks

Select The Blank Question ________are good benchmark to compare the ratios for a firm. Correct Answer Industry averages Select The Blank Question The ________ phase is characterized by resistance area and support level. Correct Answer Transition True/False Question The price earning ratio is an increasing function of the payout ratio and the growth rate and a decreasing function of the riskiness of the firm. Correct Answer True Multiple Choice Single Answer Question In India we have index futures contracts based on :Correct Answer S&P CNX Nifty and the BSE sensex True/False Question When we invest in only one asset we are not exposed to any specific or market risk. Correct Answer False Multiple Choice Single Answer Question In India, the futures on individual securities have been introduced from :Correct Answer 2001 Select The Blank Question ________ measures the efficiency of credit management. Correct Answer Average collection period Multiple Choice Single Answer Question What do you understand by the term redemption price? Correct Answer Price or NAV at which a scheme purchases its units

Multiple Choice Multiple Answer Question What are the ways of measuring relative strength? Correct Answer Calculate the rates of return and classify securities that have earned superior historical returns , Calculating certain ratios will help in analyzing whether a security has relative strength Your Answer Calculating the Return on investment Multiple Choice Multiple Answer Question The Peer group of Bharat Forge consists of which all companies? Correct Answer Am forge industries , Kalyani Forge , EL Forge True/False Question Five paisa.com is an example of on line trading portal. Correct Answer True Multiple Choice Single Answer Question A security analysis is done :Correct Answer For decision making for investments Multiple Choice Multiple Answer Question Which were the initiatives which the chairman said would focus on in 2003-04 in the speech in annual report for the year 2003-03? Correct Answer Research and development , Capital investment and focus on balance sheet , Overseas acquisitions Select The Blank Question Dow Jones transportation average was previously known as ________. Correct Answer Rail average Your Answer Freight average Multiple Choice Multiple Answer Question The Two-Stage dividend discount model is best suited for the firms that are :Correct Answer In high growth rate phase , Expecting to maintain the growth rate phase steadily for a specific time period , Sources of high growth are expected to disappear after specific period of time True/False Question A mutual fund is required to dispatch the dividend warrants to the unit holders within thirty days of the declaration of dividend. Correct Answer True Multiple Choice Single Answer Question As per the exhibit 18-1 for individual stock futures on NSE, the price steps in respect of all futures contract admitted to the dealings of the exchange shall be :Correct Answer 0.05 Multiple Choice Multiple Answer Question The features of bond are :Correct Answer Collateral , Call provision , Sinking fund and protective covenants Multiple Choice Single Answer Question What is a technical approach to investment?

Correct Answer various factors

A reflection of the idea that prices move in trends which are determined by

Match The Following Question Correct Answer MCX Commodity Exchange BSE Index

Your Answer Commodity Exchange

Sensex

BSE Index

Nifty NSE Index Lifex ET Index

NSE Index Gold Index

Multiple Choice Single Answer Question A pledge of real assets as insurance against the non-payment of default by the buyer represents Correct Answer Collateral True/False Question Bearish actions come from a series of declining peaks and troughs. Correct Answer True Multiple Choice Single Answer Question Who developed Dow's Principles and organised them into a theory as it is known today? Correct Answer William Peter Hamilton Your Answer Charles.H.Dow kk LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question ________ is affected by the leverage decisions of the firm. Correct Answer Return on equity Your Answer Return on equity Select The Blank Question Debentures rated "BB" refers ________ of timely payment of interest and principal. Correct Answer Inadequate safety Your Answer Inadequate safety Select The Blank Question S&P NSE 50 index is known as ________. Correct Answer NIFTY Your Answer NIFTY True/False Question The risk associated to get the required rate of return on the stock is measure by market beta. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer NSE&BSE are regulated by Securities Exchange Board of India Securities Exchange Board of India

Under options contract When you expect prices to fall, then, you take a long position by buying puts. When you expect prises to rise, then you take a short position by selling puts. Cost of Carry model Options contract A contract where both the parties are equally responsible Futures contract Futures contract The amount which the buyer of the option has to pay to the option writer to induce him to accept the risk associated with the contract. Option price Option price True/False Question A segment is unattractive if the buyers possess strong or growing bargaining powers. Correct Answer True Your Answer True Multiple Choice Single Answer Question Debt instruments that have a maturity period of more than one year are called as :Correct Answer Bonds Your Answer Bonds Multiple Choice Single Answer Question The present value of all the future cash payments to be paid on the security to the investor is termed as :Correct Answer Intrinsic value of a security Your Answer Intrinsic value of a security Multiple Choice Multiple Answer Question What are the features of Retail government securities (G-secs) ? Correct Answer Safest investment option available , Demat account is required for investment , Choice of tenure varies from less than 1 year to 30 years Your Answer Safest investment option available , Demat account is required for investment , Choice of tenure varies from less than 1 year to 30 years True/False Question A higher value of current ratio indicates a better short term solvency of the firm. Correct Answer True Your Answer True Select The Blank Question ________seeks to safeguard against potential losses on the outstanding position in futures market. Correct Answer Initial margin Your Answer Initial margin Select The Blank Question Risk can be referred as the ________ in the return with respect to the expected return. Correct Answer Volatility Your Answer Volatility Multiple Choice Multiple Answer Question The return to the bond investor can be measured in terms of :Correct Answer Current yield , Yield to maturity , Realised yield Your Answer Current yield , Yield to maturity , Realised yield True/False Question Certificate of Deposits offers high rate of interest than Treasury Bills. Correct Answer True Your Answer True True/False

Question American option gives the holder the right, but not the obligation to buy or sell the underlying instrument on or before the expiry date and the option can be exercised early. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Which of the following are important momentum indicators used widely? Correct Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD) Your Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD) Multiple Choice Single Answer Question What is Gross National Product ? Correct Answer Gross income generated from within the country Your Answer Gross income generated from within the country Select The Blank Question An ________ is a series of equal payments or receipts occurring at regular intervals of time. Correct Answer Annuity Your Answer Annuity Multiple Choice Single Answer Question If the price of a share at the beginning of the year was Rs.100/-, no dividend received during the year and the price at the end is Rs.115/-. What is the rate of return? Correct Answer 0.15 Your Answer 0.15 Multiple Choice Single Answer Question Which market is affected with the improving and higher growth rate in economy? Correct Answer Stock market Your Answer Stock market Match The Following Question Correct Answer Your Answer Ratio used as a measure of relative value PEG ratio PEG ratio The market value of the firms assets divided by the replacement cost of these assets Market value to replacement cost ratio Market value to replacement cost ratio Key determiner of revenue multiples Profit margin Profit margin The market value of the equity in a firm reflects the markets expectations of the firms earnings power and cash flows. Price to book value ratio Price earning ratio Multiple Choice Multiple Answer Question Features of PSU Bonds are :Correct Answer No TDS , Transferable by endorsement , No stamp duty on transfer Your Answer No TDS , Transferable by endorsement , No stamp duty on transfer True/False Question If a rupee weakens against the dollars it has favourable impact for the exporters. Correct Answer True Your Answer True Multiple Choice Single Answer Question Credit rating companies assign ratings for which of these investments? Correct Answer Company deposits Your Answer Company deposits

True/False Question If rupee weakens against the dollar, it has favourable impact for the importers. Correct Answer False Your Answer False Multiple Choice Single Answer Question What is the objective of Portfolio management? Correct Answer To Minimize risk and maximize return Your Answer To Minimize risk and maximize return Select The Blank Question Acid test ratio is more stringent measure of liquidity compared to the ________. Correct Answer Current ratio Your Answer Current ratio Multiple Choice Multiple Answer Question An option is :Correct Answer A contract between two parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee Your Answer A contract between two parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee Select The Blank Question ________ is the value at a certain future date today of a stream of cash flows that occurs over a period of time. Correct Answer Future value Your Answer Future value True/False Question The basic assumption of Technical analysis is that, price discounts everything and it is the outcome of all forces affecting a stock. Correct Answer True Your Answer True

LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question In case of assured returns, A scheme cannot promise returns unless such returns are fully guaranteed by sponsor or AMC. Correct Answer True 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 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 True/False

Question Certificate of Deposits offers high rate of interest than Treasury Bills. 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 True/False Question While calculating geometric mean calculation of root is not important. Correct Answer False Your Answer False 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 A higher value of current ratio indicates a better short term solvency of the firm. Correct Answer True Your Answer True 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 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 Match The Following Question Correct Answer Equity shares High risk

Your Answer High risk No risk

Government Securities Bank Deposits Mutual Funds

No risk

Low risk

Low risk

Average risk Average risk

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 Technical distortions True/False Question Bearish actions come from a series of declining peaks and troughs. Correct Answer True Your Answer True 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 only for subscription on a continuous basis Match The Following Question Correct Answer Turnover ratios being converted Debt Equity ratio

Your Answer

Help measure the efficiency of utilisation of assets How fast the inventory is 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 Single Answer Question The present value of all the future cash payments to be paid on the security to the investor is termed as :Correct Answer Intrinsic value of a security Your Answer Intrinsic value of a security Select The Blank Question Dow Jones transportation average was previously known as ________. Correct Answer Rail average Your Answer Rail average 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 The commonly used charts to measure the movements in price under the technical analysis are :Correct Answer Line Charts , Bar Charts , Point and Figure Charts Your Answer Line Charts , Bar Charts , Point and Figure Charts 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

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 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 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 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 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 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 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 Select The Blank Question The 8% taxable savings bonds are repayable after ________ years. Correct Answer 6 Your Answer 6 Select The Blank Question Acid test ratio is more stringent measure of liquidity compared to the ________. Correct Answer Current ratio Your Answer Current ratio

Select The Blank Question An ________ is a series of equal payments or receipts occurring at regular intervals of time. Correct Answer Annuity Your Answer Annuity Select The Blank Question When a debenture is sold to the general public a ________ is appointed. Correct Answer Trustee Your Answer Trustee 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 Multiple Choice Multiple Answer Question Gilt Edged Securities are :Correct Answer Central Govt , State Govt. , Quasi-Govt Your Answer Central Govt , State Govt. , Quasi-Govt Multiple Choice Single Answer Question Dividend discount model is considered as the simplest model for :Correct Answer Valuing Equity Your Answer Valuing Equity 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 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 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 Single Answer Question What is the minimum investment amount in G-secs? Correct Answer 1000 Your Answer 1000 Multiple Choice Multiple Answer Question Which are the different styles of displaying charts?

Correct Answer Your Answer

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

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 ________ phase is characterized by resistance area and support level. Correct Answer Transition Your Answer Transition 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 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 Passive investment managers believe that markets are inefficient and Active managers believe that markets are efficient. Correct Answer False Your Answer False Select The Blank Question S&P NSE 50 index is known as ________. Correct Answer NIFTY Your Answer NIFTY Multiple Choice Single Answer Question Which of the following is a money market fund? Correct Answer Commercial paper Your Answer Commercial paper 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 SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

Total Sets 11 SET 1 Price pattern Primary trend Intermediate trend Short term trend Resistance level Last between 1-2 years Last between 3 weeks to as long as 6 months Last 1 to 3-4 weeks

Weak form model is also termed as Random walk model Investors are rational Efficient market hypothesis Securities current prices fully reflect all historical information Weak form EMH Framework on efficient capital markets, a review of theory and empirical work Development of Dow's principles William Peter Hamilton Breadth Indicator Advance/decline line Momentum indicator MACD Trend lines Useful tool in technical analysis

Fama

Under options contract When you expect prices to fall, then, you take a long position by buying puts. When you expect prises to rise, then you take a short position by selling puts. A contract where both the parties are equally responsible Futures contract The amount which the buyer of the option has to pay to the option writer to induce him to accept the risk associated with the contract. Option price NSE&BSE are regulated by Securities Exchange Board of India Equity shares High risk High risk Government Securities No risk Low risk Bank Deposits Low risk No risk Mutual Funds Average risk Average risk Risk free investment Actual returns = expected returns Risk Volatility in the return Variance Measure of dispersion Returns Future benefits from investments H-Model For Valuing Growth 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 The Gordons Growth model 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 Future value of a series of cash flows occurring at the end of each period. Future value of annuity Value today of a stream of cash flows that occurs in future. Present Value Value at a certain future date today of a stream of cash flows that occurs over a period of time. Future Value Series of equal payments or receipts occurring at regular intervals of time. Present value of annuity MCX Sensex Nifty Lifex Commodity Exchange BSE Index NSE Index ET Index

NSE&BSE are regulated by Securities Exchange Board of India Under options contract When you expect prices to fall, then, you take a long position by buying puts. When you expect prises to rise, then you take a short position by selling puts. A contract where both the parties are equally responsible Futures contract The amount which the buyer of the option has to pay to the option writer to induce him to accept the risk associated with the contract. Option price Ratio used as a measure of relative value PEG ratio The market value of the firms assets divided by the replacement cost of these assets Market value to replacement cost ratio key determiner of revenue multiples 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 Growth of income 40-60 % debt, 40-60 % equities Current income Short term debt portfolio Stability of principal Fixed - income portfolio appreciation 75-100 % in equities The yield to maturity is same as the Geometric mean return or the internal rate of return Debt Yield to

Periodic interest payments and principal repayment at the time of maturity instrument/Bonds The actual yield earned by an investor on a bond Realised yield Present value interest factor of annuities and present value interest factor maturity

Expiration period for options Nine months The world's first largest options exchange Chicago Board of options exchange The most popular pricing options model published in the year 1973 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 Weak form model is also termed as Random walk model Investors are rational Efficient market hypothesis Securities current prices fully reflect all historical information Weak form EMH Framework on efficient capital markets, a review of theory and empirical work

Fama

SET 1 Question Measures of ________ tells us what we can expect a typical or middle data point of a distribution to be. Correct Answer Central tendency Question Capital expenditure -depreciation +change in working capital -(new debt issued - debt repaid) = Correct Answer Equity reinvested in business 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 Question What do you understand by term pioneering stage in the industry life cycle analysis? Correct Answer Slow sales growth product recently introduced Question In India futures on individual securities have been introduced by :Correct Answer BSE & NSE

Question The features of bond are :Correct Answer Collateral , Call provision , Sinking fund and protective covenants Question The compounded annual return of Kisan Vikas patra is ________. Correct Answer 0.084 Question ________ measures the profitability of operations without considering the influence of financial structure and tax rate. Correct Answer Earnings power Question The 6.________% tax saving bonds of government of India have a tenure of 5 years. Correct Answer 5 Question The govt allowed public sector banks and institutions in mutual funds in ________. Correct Answer Early 90's Question Which ratios are commonly used? Correct Answer Interest coverage ratios , Debt service coverage ratios , Debt equity ratio 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/Question The ________ phase is characterized by resistance area and support level. Correct Answer Transition Question ________ is due to the fact that a borrower may not pay interest and/or principal on time. Correct Answer Default risk Question What do you understand by the term redemption price? Correct Answer Price or NAV at which a scheme purchases its units Question Investment decisions can be viewed as an integrated process to which security analysis makes its unique contribution. Correct Answer True Question Secondary reactions occurs because of ________ which arise in the market as a result of over optimism and over pessimism. Correct Answer Technical distortions Question Five paisa.com is an example of on line trading portal. Correct Answer True Question What is the percentage of variation the market and industry influence account for? Correct Answer 2/3rd 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 Question With the use of diversification you can reduce the risk. Correct Answer True Question Post office monthly schemes have a 10 year tenor. Correct Answer False Question Till 1990's secular Indian economy's inflation rate has been of what percentage? Correct Answer 0.07

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/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 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 Question Fixed assets turnover ratio measures the efficiency of utilisation of total assets, fixed as well as current. Correct Answer True Question A pattern which does not result in reversal of a trend but reaffirmation of the underlying trend is called ________. Correct Answer Consolidation pattern Question The risk associated to get the required rate of return on the stock is measure by market beta. Correct Answer True Question Acid test ratio is more stringent measure of liquidity compared to the ________. Correct Answer Current ratio 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 Question Default is normally evaluated and indicated by the rating assigned to the debt instruments by independent credit ratings agencies. Correct Answer True Question In case of fixed income securities like debentures, you get the return in the form of dividend. Correct Answer False 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 Question The Peer group of Bharat Forge consists of which all companies? Correct Answer Am forge industries , Kalyani Forge , EL Forge 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 Question What is the rate of interest on the tax free bonds issue by the government? Correct Answer 6.5% 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 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 Question Investments could be made in retail government securities through :-

Correct Answer Primary dealers 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 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 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/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 Question Quick assets consist of current assets less inventories. Correct Answer True SET 2 Question 1 Correct Answer :Dividends , Interests , Capital appreciation

Question 2 Currently in India index options are both European and American in nature. Correct Answer False Question 3 The cost structure remaining the same, better price realisation results in lower gross profit ratio. Correct Answer False Question 4 What are short term trends? Correct Answer Trends which interrupt the course of the intermediate cycle 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 Question 6 A segment is more attractive when there are actual or potential substitutes for the product. Correct Answer False Question 7 The regulations of SEBI with respect to mutual funds were fully revised in the year ________. Correct Answer 1996 Question 8 When the firm is not raising equity by issuing new shares, the growth rate in net profits is given by :Correct Answer Retention ratio X return on equity Question 9 The historical growth rate and the past earnings of a firm are used in valuing :Correct Answer Stable firms, but not appropriate for high growth firms Question 10 of :Correct Answer Efficient market hypothesis is based on the assumption that market comprises Rational Investors

Question 11 Co variance of asset with market portfolio 85 and variance of market portfolio is 100 then beta is :Correct Answer 0.0085 Question 12 Correct Answer The ________ phase is characterized by resistance area and support level. Transition

Question 13 Mr. Tiwari is expecting to receive Rs.25,000/- at the end of 10 years. He wanted to know what is the present value of this amount, if the rate of interest is 10% p.a:Correct Answer Rs. 9639/Question 14 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 Question 15 Bond ratings by credit rating agencies provide superior and low cost information to the investor serving as a basis for a proper risk-return trade off by investors. Correct Answer True Question 16 Correct Answer Question 18 Correct Answer ________ is affected by the leverage decisions of the firm. Return on equity What does flow-of fund analysis help in understanding? Availability of money for the stock market

Question 19 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 Question 20 ________ refers to the possibility that there may not be a readily available market for the particular bond. Correct Answer Liquidity risk Question 21 ________. Correct Answer The govt allowed public sector banks and institutions in mutual funds in Early 90's

Question 22 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 Question 23 Correct Answer A security represent evidence of :A property right

Question 24 Mr.Saurabh invests Rs. 5,000/- today. The rate of interest is 4% compounded annually. What will be the value of his investment after 5 years? Correct Answer Rs. 6083/Question 25 growth rate. Correct Answer Question 27 Correct Answer Question 28 percentage? Correct Answer The value of the stock in the ________ model is sensitive to the estimates of the The Gordons dividend growth In India futures on individual securities have been introduced by :BSE & NSE During the 1980's rate of savings in India has hovered around what 0.21

Question 29 The arithmetic mean is a set of observations is calculated by finding the sum values and dividing by the number of observations. Correct Answer True

Question 30 Correct Answer Question 31 Correct Answer

Investment in gilt edged securities carry a higher element of risk. False Investment in gilt edged securities carry a higher element of risk. False

Question 32 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 Question 33 Correct Answer Dow Jones transportation average was previously known as ________. Rail average

Question 34 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 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 Question 36 Correct Answer The 8% taxable savings bonds are repayable after ________ years. 6

Question 37 Following a decline, heavy volume with little price change is indicative of accumulation and is normally a bearish factor. Correct Answer False Question 38 In case of assured returns, A scheme cannot promise returns unless such returns are fully guaranteed by sponsor or AMC. Correct Answer True Question 39 Security analysis serves the investment decision maker by identifying ________securities. Correct Answer Under priced Question 40 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 Question 41 Correct Answer the portfolio Formula for calculation of portfolio variance requires :Expected return on portfolio , Expected return on assets , Weight of asset in

Question 42 ________ absorbs the excess demand or supply generated by hedgers and assume the risk of price fluctuations. Correct Answer Speculators Question 43 The issuing firm enjoys the flexibility to call the bonds if the interest rates fall significantly and it can issue :Correct Answer New bonds at a lower rates Question 44 A ________ rally for stocks generally takes place because of an improved outlook for business conditions over what was anticipated. Correct Answer Bear market Question 45 Correct Answer Speculators buy or sell futures contract in an attempt to earn a profit. True

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 Question 47 account? Correct Answer SET 3 Question 1 UTI was set up in the year ________. Correct Answer 1963 Question 2 When was the first mutual fund set up? Correct Answer 1963 Question 3 A segment is unattractive if the buyers possess strong or growing bargaining powers. Correct Answer True 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 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) Question 6 An ________ is a series of equal payments or receipts occurring at regular intervals of time. Correct Answer Annuity Question 7 How can transition phases be projected? Correct Answer Transition phases are signalled by clearly definable price patterns Question 8 If the price of a share at the beginning of the year was Rs.50/-, dividend received during the year was Rs.10/-per share and the price at the end is Rs.60/-. What is the rate of return? Correct Answer 0.4 Question 9 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 Question 10 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 Question 11 Investment decisions can be viewed as an integrated process to which security analysis makes its unique contribution. Correct Answer True Question 12 An option is a contract which gives the buyer ________ to buy or sell shares of the underlying security at a specific price on or before a specific date. Correct Answer Right but not obligation Which are the most popular types of orders placed through an online trading Limit orders , Market orders

Question 13 Measures of ________ tells us what we can expect a typical or middle data point of a distribution to be. Correct Answer Central tendency Question 14 Correct Answer Which ratios are commonly used? Debt equity ratio , Interest coverage ratios , Debt service coverage ratios

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 Question 16 Debentures rated ________ are judged to offer sufficient safety of timely payment of interest and repayment of principal. Correct Answer "BBB" Question 17 Given the accounting standards across firm, price to book value ratios can be compared across similar firms for signs of under valuation. Correct Answer True Question 18 Correct Answer Question 19 Correct Answer Question 20 Correct Answer Question 21 Correct Answer Question 22 exporters. Correct Answer Question 23 reversal. Correct Answer Quick assets consist of current assets less inventories. True In India we have index futures contracts based on :S&P CNX Nifty and the BSE sensex Who are the constituents of a mutual fund? Sponsor & trustees , Asset management company , Custodian Investment is a risk free investment when :Actual return is = expected return If a rupee weakens against the dollars it has favourable impact for the True A price rise accompanied by expanding volume denotes a potential trend False

Question 25 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 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 Question 27 indirectly :Correct Answer Investing in this avenue enable you participate in the equity market Mutual Funds

Question 28 ________ identified five forces that determine the intrinsic long run profit attractiveness of a market or market segment. Correct Answer Michael Porter Question 29 this system :Correct Answer Question 30 Correct Answer In any Economy, bridge is created between savers and who need the funds by Financial Agriculture account for how much portion of the economy? Quarter

Question 31 Correct Answer Question 32 expenses. Correct Answer

Post office monthly schemes have a 10 year tenor. False ________ ratio indicates the margin available after meeting the manufacturing Gross Profit margin

Question 34 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 Question 35 There may be convertible clause which gives the debenture holder the option to convert the debentures into equity shares. Correct Answer True Question 36 debentures Correct Answer Question 37 Correct Answer Question 38 Correct Answer profitability Question 39 principal. Correct Answer Question 40 Correct Answer prices Question 41 Correct Answer Question 42 Correct Answer Question 43 Correct Answer ________is a hybrid form of security which has characteristics of both equity and Preference shares Who operates the sinking fund under the sinking fund provision of a firm? The bond trustee or the issuer The security analysis process will achieve :True picture of a company , Normal earning power , Projection of future Debentures rated "BB" refers ________ of timely payment of interest and Inadequate safety How did Dow use the behaviour of stock markets? As a barometer of business conditions rather than a basis for forecasting stock The return to the bond investor can be measured in terms of :Current yield , Yield to maturity , Realised yield The growth period in the industry life cycle is defined as :Period of rapid market acceptance and substantial profit improvement The Derivative market is divided into Future market and ________ market. Options

Question 44 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 Question 45 Default is normally evaluated and indicated by the rating assigned to the debt instruments by independent credit ratings agencies. Correct Answer True Question 46 Correct Answer Question 47 Correct Answer The Dow theory was published in a series of editorials in the ________. Wall street journal PPF is a good retirement planning and tax saving vehicle. True

SET 4 Question 1 ________ deal in futures to offset a pre-existing risk. Correct Answer Hedger

Question 2 Bonds and Debentures represent long term debt instruments. Correct Answer False Question 3 What is the limitation of Flow-of funds analysis method? Correct Answer Cannot give indication of the inclination of market participants to purchase stock Question 4 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 Question 5 Which are the different types of accounts offered to investors by the stock brokers? Correct Answer Cash trading , Margin trading Question 6 Sentiment indicators are based on what assumption Correct Answer Different groups of investors are consistent in their actions at major market turning points 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 Question 8 Under ________ EMH investors cannot earn abnormal/superior profits on securities on a consistent basis. Correct Answer Semi-strong form Question 9 While calculating geometric mean calculation of root is not important. Correct Answer False 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 Question 11 ________ take long or short positions only with the intention of making profits by getting out of the market when conditions favor them. Correct Answer Speculators Question 12 An agreement to buy or sell a specified quantity of an asset at a certain future date or a certain price is know as :Correct Answer Forward contract Question 13 Correct Answer Certificate of Deposits offers high rate of interest than Treasury Bills. True

Question 14 ________ model is based on the principle that an initial phase where the growth rate is not stable and subsequent steady growth rate and remains for the long-term. Correct Answer The Two-Stage dividend discount Question 15 Correct Answer Question 16 Correct Answer Investors in high tax bracket would benefit by investing in equity schemes. False The security market is the market for :Equity , Debt , Derivatives

Question 17 ________ ratio is estimated by dividing the market value of a firm's assets by the replacement cost of these assets. Correct Answer Market value to replacement cost ratio Question 18 Correct Answer In a typical stock market cycle which are the types of trends? Trends upward , Trend downward , Sideway trend

Question 19 Correct Answer Question 21 Correct Answer Question 22 Correct Answer

________involves a simultaneous sale and repurchase agreement. Repos Sensex is the index of Calcutta Stock Exchange. False Mutual fund schemes could be broadly classified as :Open ended scheme , Close ended scheme

Question 23 Under futures market ________ process provides for collection of losses that have already occurred. Correct Answer The daily settlement 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. Question 25 Correct Answer Question 26 Correct Answer What are intermediate trends? They are counter-cyclical trends within the confines of a primary trend Gilt Edged Securities are :State Govt. , Quasi-Govt , Central Govt

Question 27 Fundamental analysis focuses on predicting the future price of a security and Technical analysis on estimating the intrinsic value of a security. Correct Answer False Question 28 Correct Answer Question 29 Correct Answer index Question 30 Correct Answer Current liabilities include all liabilities due in the next ________ and provisions. 12 months What are index funds? Investment in securities in the same weightage which replicates a particular S&P NSE 50 index is known as ________. NIFTY

Question 31 ________seeks to safeguard against potential losses on the outstanding position in futures market. Correct Answer Initial margin Question 32 Correct Answer If rupee weakens against the dollar, it has favourable impact for the importers. False

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 Question 35 Correct Answer Question 36 by market beta. Correct Answer Question 37 Correct Answer ________ ratio is the ratio of net profit to the sales. Net Profit Margin The risk associated to get the required rate of return on the stock is measure True The bond issuing firm enjoys the flexibility of being able to call the bonds if :Interest rates are falling

Question 38 Correct Answer

What are the assumptions of the Dow theory? Majority of stocks follow the underlying trend of the market most of the time

Question 39 Mr.Rohan invests Rs.25,000/- today. The rate of interest is 6% compounded annually. What will be the value of his investment after 3 years? Correct Answer Rs. 29775/Question 40 The basic inputs of the general model are expected dividends and required rate of return on stock. Correct Answer True Question 41 Correct Answer How many measures of money supply are used commonly? 2

Question 42 European style options are more expensive than American style because they offer greater flexibility to the buyer. Correct Answer False Question 43 Under which simple model the value of the stock is the present value of expected dividends on it :Correct Answer The Dividend discount model Question 44 Correct Answer What are the different types of profitability ratios? Gross profit margin ratio , Earnings power , Return on equity

Question 45 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 Question 46 Correct Answer Question 47 Correct Answer SET 5 Avenues can be broadly classified into the which type of assets? Financial and Real Stock Exchanges are the part of :Secondary market

Question The value of the stock in the ________ model is sensitive to the estimates of the growth rate. Correct Answer The Gordons dividend growth 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 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 Question Debentures rated ________ are judged to offer sufficient safety of timely payment of interest and repayment of principal. Correct Answer "BBB" Question Stock Exchanges are the part of :Correct Answer Secondary market 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

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 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 Question The normal relationship is for the volume to expand on rallies and contract on declines. Correct Answer True Question In case of assured returns, A scheme cannot promise returns unless such returns are fully guaranteed by sponsor or AMC. Correct Answer True 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 Question ________ is due to the fact that a borrower may not pay interest and/or principal on time. Correct Answer Default risk 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 Question A firm uses a combination of equity and debt for financing its assets. Correct Answer True Question A pattern which does not result in reversal of a trend but reaffirmation of the underlying trend is called ________. Correct Answer Consolidation pattern Question Policies of the government and the attitude of the government towards the industry have a considerable influence on the industry. Correct Answer True Question The index futures symbols of BSE are represented as :Correct Answer BSX JAN 2005 (January contract) 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 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 Question Investors in high tax bracket would benefit by investing in equity schemes. Correct Answer False 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 Question ________ deal in futures to offset a pre-existing risk. Correct Answer Hedger

Question More than half the variation in stock price could be attributed to which factor? Correct Answer Market influence Price patternResistance level Head and shoulders formation Primary trend Last between 1-2 years Last between 1-2 years Intermediate trend Last between 3 weeks to as long as 6 monthsLast between 3 weeks to as long as 6 months Short term trend Last 1 to 3-4 weeksLast 1 to 3-4 weeks Question ________are good benchmark to compare the ratios for a firm. Correct Answer Industry averages Question The ________ phase is characterized by resistance area and support level. Correct Answer Transition 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 Question In India we have index futures contracts based on :Correct Answer S&P CNX Nifty and the BSE sensex Question When we invest in only one asset we are not exposed to any specific or market risk. Correct Answer False Question In India, the futures on individual securities have been introduced from :Correct Answer 2001 Question ________ measures the efficiency of credit management. Correct Answer Average collection period Question What do you understand by the term redemption price? Correct Answer Price or NAV at which a scheme purchases its units 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 Question The Peer group of Bharat Forge consists of which all companies? Correct Answer Am forge industries , Kalyani Forge , EL Forge Question Five paisa.com is an example of on line trading portal. Correct Answer True Question A security analysis is done :Correct Answer For decision making for investments 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 Question Dow Jones transportation average was previously known as ________. Correct Answer Rail average 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

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 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 Question The features of bond are :Correct Answer Collateral , Call provision , Sinking fund and protective covenants 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 MCX Commodity Exchange Commodity Exchange Sensex BSE Index BSE Index Nifty NSE Index NSE Index Lifex ET Index Gold Index Question A pledge of real assets as insurance against the non-payment of default by the buyer represents Correct Answer Collateral Question Bearish actions come from a series of declining peaks and troughs. Correct Answer True 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 SET6 Question ________ is affected by the leverage decisions of the firm. Correct Answer Return on equity Question Debentures rated "BB" refers ________ of timely payment of interest and principal. Correct Answer Inadequate safety Question S&P NSE 50 index is known as ________. Correct Answer NIFTY Question The risk associated to get the required rate of return on the stock is measure by market beta. Correct Answer True NSE&BSE are regulated by Securities Exchange Board of India Securities Exchange Board of India Under options contract When you expect prices to fall, then, you take a long position by buying puts. When you expect prises to rise, then you take a short position by selling puts. Cost of Carry model Options contract A contract where both the parties are equally responsible Futures contract Futures contract The amount which the buyer of the option has to pay to the option writer to induce him to accept the risk associated with the contract. Option price Option price Question A segment is unattractive if the buyers possess strong or growing bargaining powers. Correct Answer True Question Debt instruments that have a maturity period of more than one year are called as :Correct Answer Bonds

Question The present value of all the future cash payments to be paid on the security to the investor is termed as :Correct Answer Intrinsic value of a security 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 Question A higher value of current ratio indicates a better short term solvency of the firm. Correct Answer True Question ________seeks to safeguard against potential losses on the outstanding position in futures market. Correct Answer Initial margin Question Risk can be referred as the ________ in the return with respect to the expected return. Correct Answer Volatility Question The return to the bond investor can be measured in terms of :Correct Answer Current yield , Yield to maturity , Realised yield Question Certificate of Deposits offers high rate of interest than Treasury Bills. Correct Answer True 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 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) Question What is Gross National Product ? Correct Answer Gross income generated from within the country Question An ________ is a series of equal payments or receipts occurring at regular intervals of time. Correct Answer Annuity 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 Question Which market is affected with the improving and higher growth rate in economy? Correct Answer Stock market Ratio used as a measure of relative value PEG ratio PEG ratio The market value of the firms assets divided by the replacement cost of these assets Market value to replacement cost ratio Market value to replacement cost ratio Key determiner of revenue multiples Profit margin Profit margin The market value of the equity in a firm reflects the markets expectations of the firms earnings power and cash flows. Price to book value ratio Price earning ratio Question Features of PSU Bonds are :Correct Answer No TDS , Transferable by endorsement , No stamp duty on transfer Question If a rupee weakens against the dollars it has favourable impact for the exporters. Correct Answer True Question Credit rating companies assign ratings for which of these investments?

Correct Answer Company deposits Question If rupee weakens against the dollar, it has favourable impact for the importers. Correct Answer False Question What is the objective of Portfolio management? Correct Answer To Minimize risk and maximize return Question Acid test ratio is more stringent measure of liquidity compared to the ________. Correct Answer Current ratio 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 Question ________ is the value at a certain future date today of a stream of cash flows that occurs over a period of time. Correct Answer Future value 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 Dow Jones transportation average was previously known as Rail average Logistics average Road average Freight average. SET 7 Question ________ measures the profitability of operations without considering the influence of financial structure and tax rate. Correct Answer Earnings power Question While calculating geometric mean calculation of root is not important. Correct Answer False Question What could be a better approach to flow-of -funds analysis? Correct Answer An examination of liquidity trends in the banking system Question The Asset management company of the mutual fund must have 50% independent directors. Correct Answer True Question A higher value of current ratio indicates a better short term solvency of the firm. Correct Answer True Question Investment is a risk free investment when :Correct Answer Actual return is = expected return Question The govt allowed public sector banks and institutions in mutual funds in ________. Correct Answer Early 90's Question The returns of sector specific funds are solely dependant on the performance of the respective sectors / industries. Correct Answer True Question The price of the index futures contract is defined as :Correct Answer Future price = Spot price + Carry cost 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

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 Question Secondary reactions occurs because of ________ which arise in the market as a result of over optimism and over pessimism. Correct Answer Technical distortions Question In a heads and shoulders formation the deeper the pattern, the greater is the ________ significance once it is completed Correct Answer Bearish Question Debt is less riskier source of finance than equity. Correct Answer 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 Question What does flow-of fund analysis help in understanding? Correct Answer Availability of money for the stock market Question The normal relationship is for the volume to expand on rallies and contract on declines. Correct Answer True 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 Question The security analysis process will achieve :Correct Answer True picture of a company , Normal earning power , Projection of future profitability Question The general dividend model is based on the principle of :Correct Answer Present value of the expected future cash flow Question The index futures symbols of BSE are represented as :Correct Answer BSX JAN 2005 (January contract) 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 Question Risk on a portfolio of assets is always same as the risk on individual asset. Correct Answer False Question UTI was set up in the year ________. Correct Answer 1963 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 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 Question The return to the bond investor can be measured in terms of :Correct Answer Realised yield , Current yield , Yield to maturity

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 Question Debentures rated "BB" refers ________ of timely payment of interest and principal. Correct Answer Inadequate safety 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 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 Question A ________ rally for stocks generally takes place because of an improved outlook for business conditions over that was anticipated. Correct Answer Bear market 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 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 Question The bond issuing firm enjoys the flexibility of being able to call the bonds if :Correct Answer Interest rates are falling 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 Question The growth rate is used to forecast future revenues and earnings and are inputs in valuing :- Correct Answer Stable firms Question A security analysis is done :Correct Answer For decision making for investments Question Which ratios are commonly used? Correct Answer Debt equity ratio , Interest coverage ratios , Debt service coverage ratios 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 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 Question An investor with a higher tolerance of risk should tilt his portfolio in favour of ________. Correct Answer Stocks Question S&P NSE 50 index is known as ________. Correct Answer NIFTY Question Mutual fund schemes could be broadly classified as :Correct Answer Open ended scheme , Close ended scheme

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 Question Investors in high tax bracket would benefit by investing in equity schemes. Correct Answer False 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 marginProfit 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 SET 8 Question Gilt Edged Securities are :Correct Answer Central Govt , State Govt. , Quasi-Govt Question What is GDP at factor cost ? Correct Answer Excludes net income received from abroad 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 Question The 8% taxable savings bonds are repayable after ________ years. Correct Answer 6 Question Formula for calculation of portfolio variance requires :Correct Answer Expected return on portfolio , Expected return on assets , Weight of asset in the portfolio 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 Question Risk can be referred as the ________ in the return with respect to the expected return. Correct Answer Volatility Question With the introduction of on-line trading by NSE and BSE, the role of regional stock exchanges have diminished. Correct Answer True Question The price earning ratio can be estimated for the firms with negative earnings per share. Correct Answer False 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 Question ________ absorbs the excess demand or supply generated by hedgers and assume the risk of price fluctuations. Correct Answer Speculators Question Who are the constituents of a mutual fund? Correct Answer Sponsor & trustees , Asset management company , Custodian Question A share certificate indicates that the investor owns a certain number of shares. Correct Answer True Question What is the percentage of variation the market and industry influence account for?

Correct Answer

2/3rd

Question How can transition phases be projected? Correct Answer Transition phases are signalled by clearly definable price patterns Question Balance of payments surplus augments foreign reserves of the country and have a favourable impact on he exchange rate. Correct Answer True 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 NSE SEBI NAV AMFI Nifty Nifty Redressal of investor complaints Net asset value Net asset value Association of mutual funds of India Redressal of investor complaints Association of mutual funds of India

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 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 Question When was the Dow theory first published? Correct Answer Between 1900 and 1902 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 Question The ________ phase carries a lot of significance because it marks the turning point between a rising and a falling market. Correct Answer Transitional Question Credit rating companies assign ratings for which of these investments? Correct Answer Company deposits Question When a debenture is sold to the general public a ________ is appointed. Correct Answer Trustee Question A security is said to be ________ if its current market price is over its intrinsic value. Correct Answer Over priced Question What are the different types of profitability ratios? Correct Answer Gross profit margin ratio , Earnings power , Return on equity Question Dow Jones transportation average was previously known as ________. Correct Answer Rail average 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 Question When was the first mutual fund set up? Correct Answer 1963 Question Which market is affected with the improving and higher growth rate in economy? Correct Answer Stock market

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 Question In any Economy, bridge is created between savers and who need the funds by this system :- Correct Answer Financial Question The basic inputs of the general model are expected dividends and required rate of return on stock. Correct Answer True Question Quick assets consist of current assets less inventories. Correct Answer True Question Bonds and Debentures represent long term debt instruments. Correct Answer False 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 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 Question If rupee weakens against the dollar, it has favourable impact for the importers. Correct Answer False 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 Question ________ is the ratio of the market price per share to the earnings per share. Correct Answer Price earning ratio 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 Question ________ is the value today of a stream of cash flows that occurs in future. Correct Answer Present value Question Under futures market ________ process provides for collection of losses that have already occurred. Correct Answer The daily settlement Question A security represent evidence of :Correct Answer A property right 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 Question A price rise accompanied by expanding volume denotes a potential trend reversal. Correct Answer False

SET 9 Question Measures of ________ tells us what we can expect a typical or middle data point of a distribution to be. Correct Answer Central tendency Question ________ ratio indicates the margin available after meeting the manufacturing expenses. Correct Answer Gross Profit margin 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 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 Question The ________ phase is characterized by resistance area and support level. Correct Answer Transition Question The 6.________% tax saving bonds of government of India have a tenure of 5 years. Correct Answer 5 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 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 Question Currently in India index options are both European and American in nature. Correct Answer False Question Return can be in the form of :Correct Answer Dividends , Interests , Capital appreciation 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) Question The Derivative market is divided into Future market and ________ market. Correct Answer Options Question European style options are more expensive than American style because they offer greater flexibility to the buyer. Correct Answer False Question A segment is unattractive if the buyers possess strong or growing bargaining powers. Correct Answer True 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 Question In a typical stock market cycle which are the types of trends? Correct Answer Trends upward , Trend downward , Sideway trend Question What is a resistance level? Correct Answer A point where there is opposition to further price rise Question Debentures rated as "A" are judged to offer ________ of timely payment of interest and principal. Correct Answer Adequate safety 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 Question ________ measures the efficiency of credit management. Correct Answer Average collection period Question How would you rate a portfolio with 90% investment in stocks? Correct Answer Highly aggressive Question ________ is due to the fact that a borrower may not pay interest and/or principal on time. Correct Answer Default risk 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 Question Agriculture account for how much portion of the economy? Correct Answer Quarter 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 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 Question In case of fixed income securities like debentures, you get the return in the form of dividend. Correct Answer False Question What are primary trends? Correct Answer Reflection of investor's attitudes towards unfolding fundamentals in the business cycle 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/Question Default is normally evaluated and indicated by the rating assigned to the debt instruments by independent credit ratings agencies. Correct Answer True 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/Question The Dow theory was published in a series of editorials in the ________. Correct Answer Wall street journal

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 Question The greater the deviation of the actual returns from the actual return :Correct Answer Greater the variance Question Features of PSU Bonds are :Correct Answer No TDS , Transferable by endorsement , No stamp duty on transfer 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 Question Which are the different types of accounts offered to investors by the stock brokers? Correct Answer Cash trading , Margin trading Question In a forward contract there is :Correct Answer No Exchange of cash 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 Question If a rupee weakens against the dollars it has favourable impact for the exporters. Correct Answer True 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 Question The growth period in the industry life cycle is defined as :Correct Answer Period of rapid market acceptance and substantial profit improvement Question What is the objective of Portfolio management? Correct Answer To Minimize risk and maximize return Question A rally that develops on contracting volumes is suspect and warns of a potential trend reversal in price Correct Answer True Question Post office monthly schemes have a 10 year tenor. Correct Answer False 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 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/SET 10 Question What does a transitional phase indicate? Correct Answer It marks the turning point between a rising and falling market 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

Question The issuing firm enjoys the flexibility to call the bonds if the interest rates fall significantly and it can issue :Correct Answer New bonds at a lower rates Question The sideways trend is essentially a transitional one which separates the two major market movements. Correct Answer True Question More than half the variation in stock price could be attributed to which factor? Correct Answer Market influence Question Features of PSU Bonds are :Correct Answer No TDS , Transferable by endorsement , No stamp duty on transfer Question What do you understand by money supply? Correct Answer Total money in existence at any given time Question Security analysis serves the investment decision maker by identifying ________securities. Correct Answer Under priced 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/Question Under ________ EMH investors cannot earn abnormal/superior profits on securities on a consistent basis. Correct Answer Semi-strong form 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 Question While calculating geometric mean calculation of root is not important. Correct Answer False Question Risk can be referred as the ________ in the return with respect to the expected return. Correct Answer Volatility 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/Question The return to the bond investor can be measured in terms of :Correct Answer Current yield , Yield to maturity , Realised yield Question Which are the different styles of displaying charts? Correct Answer Bar and line charts , Candle stick charts , Point and figure charts Question ________ measures the profitability of operations without considering the influence of financial structure and tax rate. Correct Answer Earnings power The yield to maturity is same as the Geometric mean return or the internal rate of return Geometric mean return or the internal rate of return Periodic interest payments and principal repayment at the time of maturity Debt instrument/Bonds Debt instrument/Bonds The actual yield earned by an investor on a bond Realised yield Realised yield Present value interest factor of annuities and present value interest factor Yield to maturity Yield to maturity

Question A security analysis is done :Correct Answer For decision making for investments 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/Question Dividend discount model is considered as the simplest model for :Correct Answer Valuing Equity 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/Question ________ refers to the possibility that there may not be a readily available market for the particular bond. Correct Answer Liquidity risk Question Mr. Suresh is expecting to receive Rs.1,50,000/- at the end of 3 years. He wanted to know what is the present value of this amount, if the rate of interest is 9% p.a ? Correct Answer Rs.1,15,827/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 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 Question A security represent evidence of :Correct Answer A property right 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 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 Question With the use of diversification you can reduce the risk. Correct Answer True Weak form model is also termed as Random walk model Weak form EMH Investors are rational Efficient market hypothesis Passive managers Securities current prices fully reflect all historical information Weak form EMH Framework on efficient capital markets, a review of theory and empirical work

Strong form Fama Fama

Question What are intermediate trends? Correct Answer They are counter-cyclical trends within the confines of a primary trend Question ________involves a simultaneous sale and repurchase agreement. Correct Answer Repos Question In any Economy, bridge is created between savers and who need the funds by this system :- Correct Answer Financial 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 Question What are the important macro economic indicators? Correct Answer GNP growth rate , Price Conditions , Monsoons Question If index future is taken under futures contract, the underlying asset would be :Correct Answer Stock index Question European style options are more expensive than American style because they offer greater flexibility to the buyer. Correct Answer False 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 Question ________ absorbs the excess demand or supply generated by hedgers and assume the risk of price fluctuations. Question When a debenture is sold to the general public a ________ is appointed. Correct Answer Trustee Question Five paisa.com is an example of on line trading portal. Correct Answer True 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 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 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 Question If rupee weakens against the dollar, it has favourable impact for the importers. Correct Answer False SET 11 Question With the introduction of on-line trading by NSE and BSE, the role of regional stock exchanges have diminished. Correct Answer True Question The Derivative market is divided into Future market and ________ market. Correct Answer Options Question All trades in the futures market are cash settled on a ________ basis. Correct Answer T+1 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 Question What is GDP at factor cost ? Correct Answer Excludes net income received from abroad

Question ________seeks to safeguard against potential losses on the outstanding position in futures market. Correct Answer Initial margin 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 Question Under futures market ________ process provides for collection of losses that have already occurred. Correct Answer The daily settlement Question S&P NSE 50 index is known as ________. Correct Answer NIFTY Question What does a Balanced fund seek to achieve? Correct Answer Growth and regular income 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 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 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 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 Question There may be convertible clause which gives! the deb enture holder the option to convert the debentures into equity shares. Correct Answer True Question Bearish actions come from a series of declining peaks and troughs. Correct Answer True Question The issuing firm enjoys the flexibility to call the bonds if the interest rates fall significantly and it can issue :Correct Answer New bonds at a lower rates Question Debentures rated "BB" refers ________ of timely payment of interest and principal. Correct Answer Inadequate safety Question When we invest in only one asset we are not exposed to any specific or market risk. Correct Answer False Question A higher value of current ratio indicates a better short term solvency of the firm. Correct Answer True 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 Question ________ identified five forces that determine the intrinsic long run profit attractiveness of a market or market segment. Correct Answer Michael Porter

Question What were the Chairman's comments during the speech in the Annual report of the FY 2002-03? Correct Answer 146% growth in exports , Highest pre and post tax profits , Best year in the history of the company Question The regulations of SEBI with respect to mutual funds were fully revised in the year ________. Correct Answer 1996 Question What are short term trends? Correct Answer Trends which interrupt the course of the intermediate cycle Question Dow Jones transportation average was previously known as ________. Correct Answer Rail average Question Measures of ________ tells us what we can expect a typical or middle data point of a distribution to be. Correct Answer Central tendency Question What are the features of candle stick charts? Correct Answer ! Indicate s 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 Question Five paisa.com is an example of on line trading portal. Correct Answer True 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 c! ontract Question What are the different types of profitability ratios? Correct Answer Gross profit margin ratio , Earnings power , Return on equity Question The ratios between profits and investments are called rate of return measures. Correct Answer True Question Where are gilt funds invested? Correct Answer Government securities Question What are the features of public providen! t scheme Correct Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is available from 7th year Question What levels if increased will have unfavourable impact on the stock market? Correct Answer Higher levels of taxation Question The margining system is future contract is based on ________ recommendations. Correct Answer J R verma committee Question Till 1990's secular Indian economy's inflation rate has been of what percentage? Correct Answer 0.07 Question Capital expenditure -depreciation +change in working capital -(new debt issued - debt repaid) = Correct Answer Equity reinvested in business 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

Question Default is normally evaluated and indicated by the rating assigned to the debt instruments by independent credit ratings agencies. Correct Answer True 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 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 Question A segment is more attractive when there are actual or potential substitutes for the product. Correct Answer True Question What are index funds? Correct Answer Investment in securities in the same weightage which replicates a particular index 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