Wednesday, November 5, 2008

Security Analysis And Portfolio Management - 6

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 Your Answer
NSE Nifty Nifty
SEBI Redressal of investor
complaints
Redressal of investor
complaints
NAV Net asset value Net asset value
AMFI Association of mutual
funds of India
Association of mutual
funds of India
Multiple Choice Multiple Answer
Question What were the Chairman's comments during the speech in
the Annual report of the FY 2002-03?
Correct Answer Best year in the history of the company , 146% growth in
exports , Highest pre and post tax profits
Your Answer Best year in the history of the company , 146% growth in
exports , Highest pre and post tax profits
Select The Blank
Question Under the options contract ________ gives the holder the
right, but not the obligation to buy or sell the underlying
instrument only on the expiry date.
Correct Answer European option
Your Answer European option
Multiple Choice Single Answer
Question When was the Dow theory first published?
Correct Answer Between 1900 and 1902
Your Answer Between 1900 and 1902
Multiple Choice Multiple Answer
Question What are the features of point and figure charts?
Correct Answer Charts are constructed using a combination of X's and O's
known as boxes. , X's show that the prices are moving up ,
O's show that the prices are moving down
Your Answer Charts are constructed using a combination of X's and O's
known as boxes. , X's show that the prices are moving up ,
O's show that the prices are moving down
Select The Blank
Question The ________ phase carries a lot of significance because it
marks the turning point between a rising and a falling market.
Correct Answer Transitional
Your Answer Transitional
Multiple Choice Single Answer
Question Credit rating companies assign ratings for which of these
investments?
Correct Answer Company deposits
Your Answer Company deposits
Select The Blank
Question When a debenture is sold to the general public a ________
is appointed.
Correct Answer Trustee
Your Answer Trustee
Select The Blank
Question A security is said to be ________ if its current market price is
over its intrinsic value.
Correct Answer Over priced
Your Answer Over priced
Multiple Choice Multiple Answer
Question What are the different types of profitability ratios?
Correct Answer Gross profit margin ratio , Earnings power , Return on equity
Your Answer Gross profit margin ratio , Earnings power , Return on equity
Select The Blank
Question Dow Jones transportation average was previously known as
________.
Correct Answer Rail average
Your Answer Rail average
Multiple Choice Single Answer
Question An agreement to buy or sell a specified quantity of an asset
at a certain future date or a certain price is know as :-
Correct Answer Forward contract
Your Answer Forward contract
Multiple Choice Single Answer
Question When was the first mutual fund set up?
Correct Answer 1963
Your Answer 1963
Multiple Choice Single Answer
Question Which market is affected with the improving and higher
growth rate in economy?
Correct Answer Stock market
Your Answer Stock market
Multiple Choice Single Answer
Question What is the art of technical analysis?
Correct Answer To identify trend changes at an early stage and maintain
investment posture till the trend has reversed
Your Answer To identify trend changes at an early stage and maintain
investment posture till the trend has reversed
Multiple Choice Single Answer
Question In any Economy, bridge is created between savers and who
need the funds by this system :-
Correct Answer Financial
Your Answer Financial
True/False
Question The basic inputs of the general model are expected
dividends and required rate of return on stock.
Correct Answer True
Your Answer True
True/False
Question Quick assets consist of current assets less inventories.
Correct Answer True
Your Answer True
True/False
Question Bonds and Debentures represent long term debt
instruments.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question The expected price of the stock at the end of the holding
period is determined by future dividends and the value of the
stock is the present value of dividends through infinity are the
underlying assumptions of :-
Correct Answer The General model
Your Answer The Dividend discount model
True/False
Question American option gives the holder the right, but not the
obligation to buy or sell the underlying instrument on or
before the expiry date and the option can be exercised early.
Correct Answer True
Your Answer True
True/False
Question If rupee weakens against the dollar, it has favourable impact
for the importers.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question What are the features of Kisan Vikas Patra?
Correct Answer Term is for 8 years seven months , Provision of premature
withdrawal , Interest rate is 8.4% compounded annually
Your Answer Term is for 8 years seven months , Interest rate is 8.4%
compounded annually , Tax benefits under 80 L available
Select The Blank
Question ________ is the ratio of the market price per share to the
earnings per share.
Correct Answer Price earning ratio
Your Answer Price earning ratio
Multiple Choice Multiple Answer
Question What are the warning indicators to be considered before
analysing the financial statements of a firm ?
Correct Answer Growth in profits outstripping the revenue growth by a large
extent , Non operating expenses occur frequently ,
Accounting rules changed frequently
Your Answer Growth in profits outstripping the revenue growth by a large
extent , Non operating expenses occur frequently ,
Accounting rules changed frequently
Select The Blank
Question ________ is the value today of a stream of cash flows that
occurs in future.
Correct Answer Present value
Your Answer Present value
Select The Blank
Question Under futures market ________ process provides for
collection of losses that have already occurred.
Correct Answer The daily settlement
Your Answer The daily settlement
Multiple Choice Single Answer
Question A security represent evidence of :-
Correct Answer A property right
Your Answer A property right
Match The Following
Question Correct Answer Your Answer
The yield to maturity is
same as the
Geometric mean return
or the internal rate of
return
Geometric mean return or
the internal rate of return
Periodic interest
payments and principal
repayment at the time of
maturity
Debt instrument/Bonds Debt instrument/Bonds
The actual yield earned
by an investor on a bond
Realised yield Yield to maturity
Present value interest
factor of annuities and
present value interest
factor
Yield to maturity Interest rate risk
True/False
Question A price rise accompanied by expanding volume denotes a
potential trend reversal.
Correct Answer False
Your Answer False

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