Beruflich Dokumente
Kultur Dokumente
1. Deposit Insurance and Credit Guarantee Corporation insures deposits in Banks up to the following
limit per account. 1
A Rs. 0.5 lakh.
B Rs. 1.0 lakh.
C Rs. 1.5 lakh.
D No insurance is available.
2. If one is a fundamental analyst, he/she would follow which one of the following approaches? 1
A. Passive diversified portfolio approach
B. Quantitative Analysis (searching for undervalued securities)
C. Efficient market hypothesis-strong
D. Efficient market hypothesis-weak
3. Derivatives on gold related securities and government securities that are traded on the stock
exchanges are regulated by _______. 1
A SEBI
B RBI
C Department of Company Affairs
D Company Law Board
5. Priti wants to invest in XYZ Ltd's stock, however, she must wait several months till her Fixed Deposit
matures. What type of option should she invest in to protect against the market value of the stock
increasing before her money becomes available?
A Buy a call option
B Buy a put option
C Write a put option
D Sell a call option
9. If the post tax rate of return on an investment is 8% and the inflation rate is 5% the real rate of return
is _______. 2
A 3.5%.
B 3%.
C 2.86%.
D -3%
10.A 6% 2014 GOI Bond of Rs.100 Face Value trades at Rs.102 on 15/12/2004. There is a Call Option in
2008. The Yield to Call will be ________ than the Yield to Maturity. 2
A Higher
B Lower
C Same
D Cannot Say
11. A treasury bill of face value of Rs. 1,00,000/- is selling at Rs. 97,500/- today. It is slated to mature in
60 days. The annual yield is _______.2
A 13.3%
B 15.59%
C 16.43%
D 14.27%
12. If the Buying price of a property is Rs. 20 lakh, Net income is Rs. 2 lakh and Market yield is 8%, the
value of the property is Rs. __________. 2
A 20 lakh
B 22 lakh
C 25 lakh
D None of the above
13. A company offers a rights issue of one for two for Rs. 7 each. The current market price is Rs. 13. The
expected ex-right market price would be Rs. _______. 2
A9
B 10
C 11
D None of the above
15. Gita sold her equity holding of X Ltd on 1st of July, 2006. The total sale value of the shares was Rs.
75,000/-. The Securities Transaction Tax that Gita is liable to pay would mandatorily be collected by
_____. 2
A Stock Exchange
B Mutual Fund
C Income Tax Authority
D Gita.s Broker
16. Security A has a standard deviation of 23% and the market has a standard deviation of 18%. The
correlation coefficient r between Security A and the market is 0.80. What is the % of the change in
Security A can be explained by changes in the market? 4
A 80%
B 50%
C 36%
D 64%
17. The Portfolio consists of two securities, X and Y in the ratio of 70:30. Given that -
i) Standard Deviation of X is 10%
ii) Standard Deviation of Y is also 10% and covariance between them is 16%, what is the portfolio risk?
A 8.04%.
B 13.77%.
C NIL
D 25%.
18. Which of the following statements is/are true regarding strategic and tactical asset allocation?
1) Strategic asset allocation involves selection of the correct asset allocation based on risk tolerance of
the client, economic forecasts, and expectations of selected asset classes and rebalancing once or twice
per year to keep the portfolio within the parameters of the desired strategic mix.
2) Tactical asset allocation involves evaluating asset classes or industries as to their value and selling
undervalued classes and purchasing overvalued classes. 4
A 1 only is true
B 2 only is true
C Both 1 & 2 are true
D Neither 1 nor 2 is true
20. Which of the following is not a ratio to measure solvency of the client? (1)
A) Savings Ratio
B) Non mortgage debt service ratio
C) Debt service coverage ratio
D) Debts to asset ratio
A) (A) only
B) (A) & (C) only.
C) (A), (B) & (C) only
D) All the above
22. The matching contribution by the Government, to the Contributory Provident Fund, for its
employees, is ____________. (1)
A) 8.33%
B) 12%
C) 10%
D) None of the above
26. Bond prices are sensitive to the coupon rate of the bond and the maturity term of the bond. Bond
prices are less sensitive to changes in interest rates when the bonds have_______. (1)
A) small coupons and short maturity
B) large coupons and long maturity
C) large coupons and short maturity
D) small coupons and long maturity
27. Among the given four bonds, each having a 20 years maturity, which one of them is the most volatile
A) Zero Coupon.
B) Treasury.
C) Municipal.
D) BB-rated corporate.
28. A PPF account was opened on 10th July 1990. It will mature on ________. (1)
A) 11/07/2005
B) 10/07/2005
C) 09/07/2005
D) 01/04/2006
A) (A) only
B) (B) only
32. Consider a portfolio of two investments viz. A & B. The sum total of volatility of A and B respectively,
represented by standard deviation of the two investments, will be equal to the volatility of the portfolio
as a whole if _________. (2)
A) A and B have a correlation of 1
B) the portfolio is equally divided between A and B
C) A and B have a correlation of Zero
D) the return on the portfolio is equal to the sum of returns of A and B
33. Risk free rate of return is 8%, expected market premium is 15% and Beta of security is 0.80. What is
the expected rate of return of the security? (2)
A) 13.6%
B) 15.00%
C) 12.00%
D) 20.00%
34. If a Corporation declares and pays dividend, this transaction will________. (2)
A) reduce stockholders equity
B) increase liabilities
C) decrease net income
D) not affect total assets
35. Which of the following technical indicators measure the strength of the market by comparing the
num ber of stocks that advance or decline in a particular trading day? (2)
A) Support level.
B) Breadth of the market.
C) Short interest.
D) Call-Put ratio.
36.Dividend received by the writer of a Call during the life span of an Option ________. (2)
A) can be pocketed by the writer
B) has to be given to the buyer of the option, only if he eventually exercises the option
C) increases the premium value by an equivalent amount
D) decreases the strike price
37. The NAV of a debt oriented Mutual Fund is 22.25 cum dividend. It has declared a dividend of 6%,
record date being 25th June 2007. Calculate the dividend receivable by an individual investor post tax if
he holds 10,000 units. (2)
A) Rs. 5,250.
B) Rs. 6,000.
C) Rs. 5,150
D) Rs. 4,653.
39. Which of the following financial transactions / events would affect net worth of your client?
(A) Repayment of a loan using fund from a savings account.
(B) Purchase of car which is 75% financed with 25% down payment.
(C) The Nifty is appreciating, and the client is holding Nifty Indexed Mutual Fund.
(D) Interest rate increases and the client holds substantial bond portfolio. (4)
40. Girish received an inheritance of Rs. 2 Lakh. He wants to withdraw equal periodic payments at the
beginning of each month for 10 years starting after 10 years. He expects to earn 12% annual interest,
compounded monthly on his investments. How much can he receive each month? (4)
A) Rs. 9,470
B) Rs. 9,376
C) Rs. 8,912
D) Rs. 8,824