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SCDL- PGDBA-IV Sem (Finance) Security Analysis & Portfolio Management Paper Code 134
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 The Gordons dividend growth Answer 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 Correlation coefficient Answer 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 The General model Answer Select The Blank Question Debentures rated ________ are judged to offer sufficient safety of timely payment of interest and repayment of principal. Correct "BBB" Answer Multiple Choice Single Answer Question Stock Exchanges are the part of :Correct Answer Your Answer Secondary market 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
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SCDL- PGDBA-IV Sem (Finance) Security Analysis & Portfolio Management Paper Code 134 Multiple Choice Multiple Answer Question Equity analysts provides estimates of earnings and earnings growth for future, using historical data and :Correct Macro economic information that may impact future Answer 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 Correct Answer True/False Question
The normal relationship is for the volume to expand on rallies and contract on declines. True
Correct Answer
In case of assured returns, A scheme cannot promise returns unless such returns are fully guaranteed by sponsor or AMC. 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 Default risk Answer 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
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SCDL- PGDBA-IV Sem (Finance) Security Analysis & Portfolio Management Paper Code 134 higher than the opening price Your Answer , Displays the correlation between the high and low prices
True/False Question Correct Answer
A firm uses a combination of equity and debt for financing its assets. 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 Consolidation pattern Answer True/False Question
Correct Answer
Policies of the government and the attitude of the government towards the industry have a considerable influence on the industry. 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 H- Model for valuing growth , H-Two stage model for Answer growth , H-Model unlike the classic two stage model Multiple Choice Multiple Answer Question What are the features of line charts? Correct Answer True/False Question It connects closing prices from one period to the next , It is ideal for securities with no high or low price data
Investors in high tax bracket would benefit by investing
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SCDL- PGDBA-IV Sem (Finance) Security Analysis & Portfolio Management Paper Code 134 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 Call risk Answer 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 Market influence Answer Match The Following Question Correct Answer Price pattern Primary trend Intermediate trend Short term trend Resistance level Last between 1-2 years
Your Answer Head and shoulders formation Last between 1-2 years
Last between 3 weeks Last between 3 weeks to as long as 6 months to as long as 6 months Last 1 to 3-4 weeks Last 1 to 3-4 weeks
Select The Blank Question ________are good benchmark to compare the ratios for a firm. Correct Industry averages Answer Select The Blank
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SCDL- PGDBA-IV Sem (Finance) Security Analysis & Portfolio Management Paper Code 134 Question Correct Answer True/False Question The ________ phase is characterized by resistance area and support level. Transition
Correct Answer
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. True
Multiple Choice Single Answer Question In India we have index futures contracts based on :Correct Answer True/False Question Correct Answer S&P CNX Nifty and the BSE sensex
When we invest in only one asset we are not exposed to any specific or market risk. False
Multiple Choice Single Answer Question In India, the futures on individual securities have been introduced from :Correct 2001 Answer Select The Blank Question ________ measures the efficiency of credit management. Correct Average collection period Answer 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?
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SCDL- PGDBA-IV Sem (Finance) Security Analysis & Portfolio Management Paper Code 134 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 Calculating the Return on investment
Your Answer
Multiple Choice Multiple Answer Question The Peer group of Bharat Forge consists of which all companies? Correct Am forge industries , Kalyani Forge , EL Forge Answer True/False Question Correct Answer
Five paisa.com is an example of on line trading portal. 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 Research and development , Capital investment and Answer focus on balance sheet , Overseas acquisitions Select The Blank Question Dow Jones transportation average was previously known as ________. Correct Rail average Answer Your Answer Freight average Multiple Choice Multiple Answer Question The Two-Stage dividend discount model is best suited for the firms that are :Correct In high growth rate phase , Expecting to maintain the Answer growth rate phase steadily for a specific time period , Sources of high growth are expected to disappear after
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SCDL- PGDBA-IV Sem (Finance) Security Analysis & Portfolio Management Paper Code 134 specific period of time True/False Question
Correct Answer
A mutual fund is required to dispatch the dividend warrants to the unit holders within thirty days of the declaration of dividend. 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 0.05 Answer 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 Sensex Nifty Lifex
Your Answer
Commodity Exchange Commodity Exchange BSE Index NSE Index ET Index BSE Index NSE Index Gold Index
Multiple Choice Single Answer Question A pledge of real assets as insurance against the nonpayment of default by the buyer represents Correct Collateral Answer
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True/False Question Correct Answer
Bearish actions come from a series of declining peaks and troughs. True
Multiple Choice Single Answer Question Who developed Dow's Principles and organised them into a theory as it is known today? Correct William Peter Hamilton Answer 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
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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
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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
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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.
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LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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
Select The Blank Question ________ deal in futures to offset a preexisting risk. Correct Answer Hedger Your Answer Hedger
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 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 use the firm's growth rate based on the arithmetic average and the geometric average Multiple Choice Single Answer
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Question Your Answer
In a forward contract there is :No Exchange of cash
Correct Answer No Exchange of cash
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 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 An option is a contract which gives the buyer ________ to buy or sell shares of the underlying security at a specific price on or before a specific date. Correct Answer Right but not obligation Your Answer Right but not obligation
Multiple Choice Multiple Answer Question What are the features of point and figure charts? Correct Answer Charts are constructed using a combination of X's and O's known as boxes. , X's show
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Your Answer
that the prices are moving up , O's show that the prices are moving down 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 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 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 True/False Question Rs.14.693/-
When we invest in only one asset we are not exposed to any specific or market risk. Correct Answer False Your Answer False
Match The Following Question Correct Answer Expiration period for options The world's first largest options exchange Nine months Chicago Board of options exchange
Your Answer Nine months Chicago Board of options exchange
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The most popular Black Scholes pricing options model published in the year 1973 When the writer Put option gives the buyer of the option the right to sell the underlying asset on or before the expiry date
Black Scholes
Put option
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 True/False Question Rs. 37363/-
When you are making an investment you are expecting certain future benefits from your investment. Correct Answer True Your Answer True
Match The Following Question Correct Answer Technical collaboration of Bharat Forge with SIFCO industries USA Bharat Forge was 1981
Your Answer 1981
1961
1961
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incorporated at Mumbai Shares of 100 each 1971 subdivided of Bharat forge 930000 bonus 1976 shares issued by Bharat Forge
1971
1976
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 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 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 If option is given to you to receive Rs.1,000/- today or after one year, you will choose to receive it today because :For more solved assignments, Assignment and project help visit www.oqp.in or
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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
A mutual fund is required to dispatch the dividend warrants to the unit holders within thirty days of the declaration of dividend. Correct Answer True Your Answer True
Multiple Choice Single Answer Question Which market is affected with the improving and higher growth rate in economy? Correct Answer Stock market Your Answer True/False Question Stock market
The price earning ratio can be estimated for the firms with negative earnings per share. Correct Answer False Your Answer False
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
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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 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 As a barometer of business conditions rather than a basis for forecasting stock prices True/False Question
The normal relationship is for the volume to expand on rallies and contract on declines. Correct Answer True Your Answer False
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 Multiple Answer Question Which are the different types of accounts
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offered to investors by the stock brokers? Correct Answer Cash trading , Margin trading Your Answer Cash trading , Margin trading
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
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 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 Agriculture account for how much portion of
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the economy? Correct Answer Quarter Your Answer True/False Question Quarter
If rupee weakens against the dollar, it has favourable impact for the importers. Correct Answer False Your Answer False
True/False Question
The labour conditions do not play an important role in the industry analysis. Correct Answer False Your Answer False
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 ________ 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

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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 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/-
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 Single Answer Question Mr. Shekhar invests Rs.50,000/- in a scheme of LIC, the rate of interest is 8%
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compounded annually. What will be the value of his investment after 5 years? Correct Answer Rs. 73466/Your Answer Rs. 73466/-
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 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
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 a technical approach to

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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 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
LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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
Select The Blank Question ________are good benchmark to compare the ratios for a firm. Correct Answer Industry averages Your Answer Industry averages
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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 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 UTI was set up in the year ________. Correct Answer 1963 Your Answer True/False Question 1963
European style options are more expensive than American style because they offer greater flexibility to the buyer. Correct Answer False 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
Select The Blank

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Question
A ________ rally for stocks generally takes place because of an improved outlook for business conditions over what was anticipated. Correct Answer Bear market Your Answer Bear market
Multiple Choice Multiple Answer Question 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 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 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 levels if increased will have unfavourable impact on the stock market? Correct Answer Higher levels of taxation Your Answer Low levels of interest rates
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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 ________ 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
Select The Blank Question The Derivative market is divided into Future market and ________ market. Correct Answer Options Your Answer Present
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 Multiple Choice Single Answer Question In India futures on individual securities have been introduced by :For more solved assignments, Assignment and project help visit www.oqp.in or
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Correct Answer BSE & NSE Your Answer BSE & NSE
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 True/False Question The Dividend Capitalisation model
Sensex is the index of Calcutta Stock Exchange. Correct Answer False Your Answer False
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 Single Answer Question What is GDP at factor cost ? Correct Answer Excludes net income received from abroad Your Answer True/False Question Excludes net income received from abroad
Quick assets consist of current assets less inventories. Correct Answer True
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Your Answer
True
Multiple Choice Multiple Answer Question The Gordon growth model is best suited for firms :Correct Answer Growing at a rate equal to or lower that the growth in the economy , Which have well established dividend payout ratio policy , Whose earnings are steady and perpetual Your Answer Growing at a rate equal to or lower that the growth in the economy , Which have well established dividend payout ratio policy , Whose earnings are steady and perpetual Select The Blank Question Mutual fund is to be registered with ________ before raising funds from public. Correct Answer SEBI Your Answer SEBI
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 The GDP growth rate in the economy in real terms has fluctuated between :Correct Answer 4% and 5% Your Answer 4% and 5%
Select The Blank Question An investor with a higher tolerance of risk should tilt his portfolio in favour of ________.
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Correct Answer Stocks Your Answer Stocks
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 Mutual fund schemes could be broadly classified as :Correct Answer Open ended scheme , Close ended scheme Your Answer Open ended scheme , Close ended scheme
Match The Following Question Correct Answer Development of Dow's principles Breadth Indicator Momentum indicator Trend lines William Peter Hamilton Advance/decline line MACD Useful tool in technical analysis
Your Answer William Peter Hamilton Advance/decline line MACD Useful tool in technical analysis
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

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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 True/False Question New bonds at a lower rates
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 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 Which of the following are important momentum indicators used widely? Correct Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD) Your Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD) Match The Following Question Correct Answer Turnover ratios Help measure the efficiency of utilisation of assets Debt / Equity
Your Answer Help measure the efficiency of utilisation of assets Debt / Equity
Debt Equity ratio
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Quick assets
Highly liquid assets Highly liquid assets Similar to debtors turnover
Average collection Similar to debtors period turnover
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
Policies of the government and the attitude of the government towards the industry have a considerable influence on the industry. Correct Answer True Your Answer True
Multiple Choice Single Answer Question What do you understand by money supply? Correct Answer Total money in existence at any given time Your Answer Total money in existence at any given time
Multiple Choice Multiple Answer Question 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
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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 What is net national product also known as? Correct Answer National income Your Answer National income
Select The Blank Question Risk can be referred as the ________ in the return with respect to the expected return. Correct Answer Volatility Your Answer True/False Question Volatility
Currently in India index options are both European and American in nature. Correct Answer False Your Answer False
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 Under ________ EMH investors cannot earn abnormal/superior profits on securities on a consistent basis. Correct Answer Semi-strong form Your Answer Semi-strong form
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True/False Question
The returns of sector specific funds are solely dependant on the performance of the respective sectors / industries. Correct Answer True Your Answer True
Multiple Choice Multiple Answer Question The security market is the market for :Correct Answer Equity , Debt , Derivatives Your Answer
s
Equity , Debt , Derivatives
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
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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.
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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
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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 The yield to maturity is same as the
Correct Answer
Your Answer
Geometric mean return or Geometric mean return or the internal rate of return the internal rate of return Debt instrument/Bonds
Periodic interest payments Debt instrument/Bonds and principal repayment at the time of maturity The actual yield earned by Realised yield an investor on a bond Present value interest factor of annuities and present value interest factor Yield to maturity
Realised yield 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
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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
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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 Weak form model is also termed as Investors are rational Securities current prices fully reflect all historical information Framework on efficient capital markets, a review of theory and empirical work
Correct Answer Random walk model Efficient market hypothesis Weak form EMH
Your Answer Weak form EMH Passive managers Strong form
Fama
Fama
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
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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
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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
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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

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True/False Question Correct Answer True/False Question

True/False Question Correct Answer

Investors in high tax bracket would benefit by investing

Five paisa.com is an example of on line trading portal. True

True/False Question Correct Answer

Question Your Answer

In a forward contract there is :No Exchange of cash

Correct Answer No Exchange of cash

Your Answer Nine months Chicago Board of options exchange

Your Answer 1981

Select The Blank

Multiple Choice Single Answer Question What is a technical approach to

LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question

Select The Blank

Correct Answer Stocks Your Answer Stocks

Multiple Choice Single Answer

Debt Equity ratio

Highly liquid assets Highly liquid assets Similar to debtors turnover

Average collection Similar to debtors period turnover

Equity , Debt , Derivatives

Match The Following Question The yield to maturity is same as the

Realised yield Yield to maturity

With the use of diversification you can reduce the risk.

Correct Answer True Your Answer True

Your Answer Weak form EMH Passive managers Strong form

Five paisa.com is an example of on line trading portal.

Correct Answer True Your Answer True

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