Docstoc

Security_Analysis___Portfolio_Management_7

Document Sample
Security_Analysis___Portfolio_Management_7 Powered By Docstoc
					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of investment division and windmills , Nominee director of UTI resigned and ceased to be the director nomination withdrawn by UTI Your Answer Demerger of investment division and windmills , Nominee director of UTI resigned and ceased to be the director nomination withdrawn by UTI True/False Question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 Equity shares Government Securities Bank Deposits Mutual Funds

Correct Answer High risk No risk Low risk Average risk

Your Answer High risk No risk Low 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 Turnover ratios

Correct Answer Help measure the efficiency of utilisation of assets Debt / Equity Highly liquid assets

Your Answer How fast the inventory is being converted Debt / Equity Highly liquid assets

Debt Equity ratio Quick 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

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

Question

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

When a debenture is sold to the general public a ________ is appointed. Correct Answer Trustee Your Answer Trustee

Question

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


				
DOCUMENT INFO
Description: Sysmbiosis Center for Distance Learning exam papers.