Wednesday, November 5, 2008

Security Analysis And Portfolio Management - 12

Select The Blank
Question 1 ________ deal in futures to offset a pre-existing risk.
Correct Answer Hedger
Your Answer Speculator
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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
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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
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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
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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
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Question 19 ________involves a simultaneous sale and repurchase agreement.
Correct Answer Repos
Your Answer Repos
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Question 28 Current liabilities include all liabilities due in the next ________ and
provisions.
Correct Answer 12 months
Your Answer 12 months
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Question 30 S&P NSE 50 index is known as ________.
Correct Answer NIFTY
Your Answer NIFTY
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Question 31 ________seeks to safeguard against potential losses on the outstanding
position in futures market.
Correct Answer Initial margin
Your Answer Daily settlement
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Question 35 ________ ratio is the ratio of net profit to the sales.
Correct Answer Net Profit Margin
Your Answer Net Profit Margin
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Question Mutual fund is to be registered with ________ before raising funds from
public.
Correct Answer SEBI
Your Answer SEBI
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Question An investor with a higher tolerance of risk should tilt his portfolio in favour
of ________.
Correct Answer Stocks
Your Answer Bank deposits
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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 Sideways
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Question Acid test ratio is more stringent measure of liquidity compared to the
________.
Correct Answer Current ratio
Your Answer Current ratio
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Question ________ measures the efficiency of credit management.
Correct Answer Average collection period
Your Answer Average collection period
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Question ________ measures the profitability of operations without considering the
influence of financial structure and tax rate.
Correct Answer Earnings power
Your Answer Earnings power
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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
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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
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Question ________ ratio is the ratio of net profit to the sales.
Correct Answer Net Profit Margin
Your Answer Net Profit Margin
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Question When a debenture is sold to the general public a ________ is appointed.
Correct Answer Trustee
Your Answer Brokers
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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
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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
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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

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