Beruflich Dokumente
Kultur Dokumente
About PASS4SURE.in
PASS4SURE is a professional online practice test bank for various NSE NCFM, NISM and BSE exams. The team
behind PASS4SURE has decades of experience in the financial and stock markets and have succeeded in preparing
practice question bank which will help not only to pass the exams easily but also get good knowledge of the
subject.
Our online mock exams contain questions which are carefully analysed by the experts and have a high probability
of being asked in the exams. Thus all PASS4SURE questions are highly valued and contribute to an almost 100%
success rate.
We do not believe in offering you thousands of questions but most important 400 – 500 practice questions and
answers. PASS4SURE understands that time and money is valuable for our students, so we regularly update all our
exams. The old questions are deleted and new important questions are added. Our LAST DAY REVISION test are
on the spot. This is done to ensure that the students learns what is most important and pass the exams. You do
not have to try again and again wasting time and money.
Our simple aim is to simplify the NCFM, NISM and BSE exams. ALL THE BEST.
IMPORTANT – The viewing rights for this downloaded Question Bank will automatically
expire after 60 days from the date of purchase.
TEST DETAILS – The NISM Research Analyst Module exam is a 100 mark exam with 60% as passing marks. The
question paper will consist of 100 multiple choice questions. There is 0.25% negative marking. The time duration is
120 Minutes.
All Rights Reserved. No Part of this documents may be reproduced, stored in a retrieval system, or transmitted, in any form or
by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission from
PASS4SURE.in. For any clarification regarding this document or if you feel there are errors in the question bank, please write
us at info@pass4sure.in
NISM SERIES XV – RESEARCH ANALYST
CERTIFICATION EXAM : LAST DAY REVISION TEST . 1
Earnings Before Interest & Tax (EBIT) less Tax plus Depreciation &
Non-cash charges less Increase (Decrease) in working capital Divided by
Capital Expenditure Incurred (Sale of assets) - State True or False ?
(a) TRUE
(b) FALSE
Question 2 Calculate the Net Profit margin if the operating profit margin of a
business is 50% and the operating profit is three times of Net Profit.
Calculate the Net Profit margin.
(a) 16.67%
(b) 19.20%
(c) 21.57%
(d) 22.66%
Question 4 The P/E ratio of a company is 12 and the EPS is Rs 8. The market
capitalisation of this company is Rs 120000 and the book value per share
is Rs 40. Calculate the Networth of the company.
(a) Rs 75000
(b) Rs 70000
(c) Rs 65000
(d) Rs 50000
Answer Structure analysis refers to the analysis of competitive intensity in the industry
Explanation (number of players), concentration of business in industry, relationship among
the various players, market size, its growth rate, etc.
Question 5 Buying long dated high coupon bond is a good hedge against falling
interest rates - State True or False ?
(a) FALSE
(b) TRUE
Question 6 If Depository Receipts are issued in several countries together and listed
on a stock exchange outside the U.S., they are called as _______ .
Answer When interest rates fall, bond holders experience a rise in the price of bonds as
Explanation there is an inverse relationship between bond prices and interest rates.
Question 7 For analysts, which is the authentic source to check facts on a Company?
Question 8 The Mutual Fund schemes which have a fixed unit capital are known as
_______.
Question 9 RBI in India is vested with the responsibility of administering the Fiscal
policy - State True or False ?
(a) TRUE
(b) FALSE
Question 10 M/s. Alpha Industries has a Gross Sales revenue of Rs 25,00,000 which is
inclusive of Indirect Taxes of Rs 4,00,000 and Direct taxes of Rs 3,00,000.
Calculate the Net sales of Alpha Industries.
(a) Rs 25,00,000
(b) Rs 22,00,000
(c) Rs 21,00,000
(d) Rs 18,00,000
Question 11 ________ policy is intended to cool down the heated up economy through
reduction in the money supply and increase in the interest rates.
(a) Contractionary
(b) Expansionary
(c) Neutral
Question 12 The price of the stock of a company is Rs 380 and the PE ratio is 12. Find
the amount retained by the company if the retention ratio is 25%.
(a) Rs 3
(b) Rs 7.92
(c) Rs 9.74
(d) Rs 12.07
Question 13 A high Price to book value ratio means that the assets are available cheap
- State True or False ?
(a) TRUE
(b) FALSE
(b) Expensive
(c) Cheap
Question 15 XYZ Computers Ltd. gets a huge order which could lead to good profits
in the near future. Based on this information and other analysis, a
research analyst recommends buying this stock. What type of research
approach is this ?
Question 17 When an investor estimates the distance future based on recent past,
completely ignoring the distant past - This bias is known as ________ .
Question 18 An industry with rivalry and competition will see lower pricing power
and higher incomes for the industry participants - State True or False ?
(a) FALSE
(b) TRUE
Question 19 A trader supplies goods to M/s PQR Ltd but the company defaults and is
unable to make the payments. What type of risk is this ?
Question 20 Which authority was set up with the primary responsibility of promoting
old age income security by establishing, developing and regulating
pension funds?
Question 21 As per SCRA, the term securities include which of the following?
(a) Derivatives
Question 22 Current Ratio measures the ability of the company to satisfy its long term
obligations as and when they come due - State True or False ?
(a) TRUE
(b) FALSE
Answer Current Ratio measures the ability of the company to satisfy its SHORT term
Explanation obligations as and when they come due.
NISM SERIES XV – RESEARCH ANALYST
CERTIFICATION EXAM : LAST DAY REVISION TEST . 1
Question 23 If financials are great, it is expected that the quality of business is also
good. State whether True or False.
(a) TRUE
(b) FALSE
(a) Profitability
(b) Integrity
(c) Efficiency
Question 25 The Market Capitalisation of a company is Rs. 2 Crores. The Earning per
Share of this company is Rs 18 and the Book Value per share is Rs 48.
Calculate the Return on Equity.
(a) 37.50%
(b) 26.66%
(c) 41.55%
Question 26 Opportunities and Threats deal with the external environment of the
business - State True or False ?
(a) TRUE
(b) FALSE
(a) FALSE
(b) TRUE
Question 28 Price to earnings ratio of a business is 10, price to book value ratio of this
business is 5, book value per share is Rs. 15 and outstanding number of
shares are 10,000, what would be the return on equity of this business?
(a) 20%
(b) 25%
(c) 50%
(d) 70%
Question 29 In the discounted cash flow method of valuation of a business, free cash
flows ie. inflows over outflows are used instead of all cash flows - State
True or False ?
(a) TRUE
(b) FALSE
Question 30 Where the entire face value of the debenture is converted into equity
shares, it is known as _____________.
Question 31 Sell side Analyst generally work for money managers like mutual funds,
hedge funds, portfolio managers who purchase and sell securities for their
own investment accounts or on behalf of their clients. State whether True
or False.
(a) TRUE
(b) FALSE
Question 32 PE ratios of all stocks tend to be _____ in a bull market and tend to be
______ in a bear market.
(a) Quantitative
(b) Qualitative
Correct Answer 33 Research Analyst help their clients take informed decisions
Question 35 When an analyst uses the checklist approach for making an investment
report, the checklist should contain which parameter(s) ?
(a) qualitative
(b) quantitative
(c) valuation
Question 36 _________ helps us understand how the prices of the products and
services get determined in an economy and how individuals and firm
behave with regard to those prices.
(a) Macroeconomics
(b) Microeconomics
Question 37 Factors such as age of the population, their education and skills, health,
social values, lifestyle factors etc are issues related to which of the
following factors in PESTLE analysis ?
Question 38 A business has a total assets of Rs 1000000 and the Earning Per Share is
Rs 1. The Net Income is Rs 80000. The Price to Earning ratio is 12 and the
Price to Book Value ratio is 1.3 . Calculate the Asset to Equity ratio.
(a) 1.13
(b) 1.35
(c) 5.4
(d) 2.33
Question 39
Code of ethics for a Research Analyst does NOT include _______ .
(d) Confidentiality
Question 41 The Price to Book Value Ratio of a company is 12 and the Book Value is
7. The Market Capitalisation is Rs 2100000 . Find the number of shares
outstanding.
(a) 12500
(b) 25000
(c) 32600
(d) 39500
Question 42 An industry which has High barriers to entry, Weak buyers bargaining
power, Few substitutes and Low competition would have _________ .
Answer Price to book value ratio = Market price per share/ Book value per share
Explanation So Market Price = P/BV x BV
= 12 x 7 = 84
Market Cap = No. of Shares outstanding x Market Price of a share
No. of shares Outstanding = Market Cap / Market Price
= 2100000 / 84 = 25000
Question 44 A company has 25000 shares. The Price to Book Value ratio of this
company is 12 and the Book Value is 9. Calculate the Networth of the
company.
(a) Rs 2700000
(b) Rs 450000
(c) Rs 225000
(d) Rs 386000
Answer Price to book value ratio = Market price per share / Book value per share
Explanation 12 = Market Price / 9
Market Price = 12 x 9 = 108
Market Cap = 108 x 25000 = 2700000
Another formula for Price to Book Value Ratio = Market Cap / Networth
ie. 12 = 2700000 / Networth
So Networth = 2700000 / 12 = Rs. 225000
NISM SERIES XV – RESEARCH ANALYST
CERTIFICATION EXAM : LAST DAY REVISION TEST . 1
Question 46 A bond is issued at a face value of Rs. 100 and a coupon of 9% p.a. The
interest rates in the market have increased subsequently. This bond is
likely to quote at:
Question 47 The Debt to Equity Ratio of a company is 2:1 and the total size of its
Balance Sheet is 9,00,000. If the return on equity is 18%, calculate the Net
Profit of the company.
(a) Rs 162000
(b) Rs 108000
(c) Rs 67000
(d) Rs 54000
Question 48 The gross sales of a business is Rs 200000 and the Net Profit margin is at
12%. Calculate the Equity Capital of this business is the Return on Equity
is 25%.
(a) Rs 24000
(b) Rs 59000
(c) Rs 84000
(d) Rs 96000
Answer Systematic risk or market risk refers to those risks that are applicable to the
Explanation entire financial market or a wide range of investments.
Systematic risk is caused due to factors that may affect the economy/markets
as a whole, such as changes in government policy, external factors, wars or
natural calamities.
These risks are also known as undiversifiable risks, because they cannot be
eliminated through diversification.
(a) Free cash flows to the firm (FCFF) Less Interest plus Net borrowing
(b) Free cash flows to the firm (FCFF) Less Interest Less Net borrowing
(c) Free cash flows to the firm (FCFF) plus Interest plus Net borrowing
(d) Free cash flows to the firm (FCFF) plus Interest plus Net borrowing
Question 52 An investor bought 800 shares of a company for Rs 48000. The face value
of these shares is Rs 5. Calculate the dividend yield on the value invested
in these shares if the company declares 200% dividend.
(a) 10%
(b) 12.55%
(c) 16.67%
(d) 23.80%
Correct Answer 51 Free cash flows to the firm (FCFF) Less Interest plus Net borrowing
(Please remember the formula)
Question 54 Which of the below mentioned actions is NOT included in the powers of
Securities and Exchange Board of India (SEBI) ?
(c) Impound and retain the proceeds or securities in respect of any transaction
which is in violation of regulations.
Answer Structure Conduct Performance (SCP) Analysis look at the industry structure
Explanation (monopoly, oligopoly), its conduct (commoditized or specialized, seasonal or
round the year.) and its performance (RoE, RoIC, etc.).
Question 55 The Earning per Share of a company is Rs 10 and the Book Value per
share is Rs 50. The Market Capitalisation of this company is Rs.
25,00,000. Calculate the Return on Equity.
(a) 500%
(b) 50%
(c) 20%
Answer Top Down approach starts with economic analysis, moves to industry analysis
Explanation and then finally to selection of companies in an Industry.
NISM SERIES XV – RESEARCH ANALYST
CERTIFICATION EXAM : LAST DAY REVISION TEST . 1
Question 58 Mrs. Reeta purchases MF units at NAV Rs 13. After 500 days , she
redeems it at NAV Rs 15.70. What is the compounded rate of return ?
(a) 10.88%
(b) 14.70%
(c) 12.30%
(d) 9.63%
Answer The formula to find the CAGR - Compounded Annual Growth Rate holding
Explanation period return is :
[ ( End Price / Begin Price) ^ (1/n) ] -1
End Price = 15.70 , Begin Price = 13
n = time. We have to find yearly return so 500 / 365 = 1.369
So [( 15.70/13 )^ 1/1.369] – 1
= (1.207 ^ 0.73) – 1
On the scientific calculator of your computer type 1.207 then use x^y key and
then type 0.73 = 1.147
1.147 - 1 = .147 x 100 = 14.7 %
NISM SERIES XV – RESEARCH ANALYST
CERTIFICATION EXAM : LAST DAY REVISION TEST . 1
Question 59 To be eligible for a share buyback, a company should not have defaulted
on ___________ .
Answer Retail store formats rely on low cost procurement of goods from
Explanation manufacturers and selling it on wafer thin margins to a large number of
people.
Hence foot falls becomes an important industry driver.
NISM SERIES XV – RESEARCH ANALYST
CERTIFICATION EXAM : LAST DAY REVISION TEST . 1
Answer Debentures are instruments for raising long term debt. Debentures are
Explanation either unsecured or secured (backed by collateral support) in nature.
There are variety of debentures/bonds such as fully convertible, non-
convertible and partly convertible debentures.
Non-Convertible Debentures are pure debt instruments without a feature of
conversion. They are repayable / redeemable on maturity.
Answer Bonus shares or Stock dividend are additional shares are given to the
Explanation shareholders in proportion of their holdings by capitalisation of revenue
reserves.
Rights issue is given to the existing shareholders to buy additional shares at a
price, generally lower than the prevailing market price.
Stock split means existing shares are replaced by the reduced face value
shares and increased number to maintain the pre-corporate action total face
value held by shareholders.
NISM SERIES XV – RESEARCH ANALYST
CERTIFICATION EXAM : LAST DAY REVISION TEST . 1
(a) TRUE
(b) FALSE
Question 64 The Net Profit of a company is Rs 50000 and the Market Capitalisation is
Rs 600000. Calculate the Earnings Yield.
(a) 12%
(b) 10.55%
(c) 8.33%
(d) 13.87%
Answer Top Down approach starts with economic analysis, moves to industry
Explanation analysis and then finally to selection of companies in an Industry.
Bottom Up approach starts with company analysis first, then industry and
economic analysis.
Sometimes, bottom-up analysts focus purely on dynamics of business and
industry with little or no attention to the Economic factors as their focus
remains on buying and holding fundamentally strong businesses
Question 65 The risk of a company unable to honour its debt obligation is known as
____ .
Answer The risk of loss of principal or loss of a financial reward stemming from a
Explanation borrower's failure to repay a loan or otherwise meet a contractual obligation is
known as Credit Risk.
Answer The oragnisation structure and accounting policies can be same in many
Explanation organisations but what is most important is the quality and integrity of the
management.
NISM SERIES XV – RESEARCH ANALYST
CERTIFICATION EXAM : LAST DAY REVISION TEST . 1
Question 67 Of the below given options, which is NOT a component of the Current
A/c of a country with the rest of the world ?
(a) Loans
(b) Imports
(c) Exports
Question 68 From the given data, calculate the Net Sales. Sales Revenues : Rs 10
Lakhs. Direct Taxes Rs 1 Lakh and Indirect Taxes Rs 2 Lakhs. The sales
figure includes both direct and indirect taxes.
(a) Rs 10 Lakhs
(b) Rs 9 Lakhs
(c) Rs 8 Lakhs
(d) Rs 7 Lakhs
Answer All indirect taxes such as Excise Duty, Value Added Tax (VAT), Service Tax
Explanation etc. have to be deducted from the Gross Sales to get the Net Sales figure as
these taxes are collected by the business for the government and don’t belong
to the business.
So in the above question Net Sales = Sales Less Indirect Taxes
= 10 lakhs - 2 Lakhs
= 8 Lakhs
NISM SERIES XV – RESEARCH ANALYST
CERTIFICATION EXAM : LAST DAY REVISION TEST . 1
Question 70 Analysts who prepare research report of a listed company shall not trade
in securities of that company for ______ days from preparation of such
report.
(a) 15
(b) 30
(c) 45
(d) 60
Correct Answer 70 30
NISM SERIES XV – RESEARCH ANALYST
CERTIFICATION EXAM : LAST DAY REVISION TEST . 1
(b) Depreciation
Answer Non cash charges are basically accounting entries and no payment is actually
Explanation made.
Interest on borrowings is actually paid to the lender and so its a cash charge.
Answer All the above Macroeconomic Variables will be considered while analysing
Explanation an economy.
NISM SERIES XV – RESEARCH ANALYST
CERTIFICATION EXAM : LAST DAY REVISION TEST . 1
Question 74 The Current Ratio of a company is 2.5 and the Quick Ratio is 1.5. The
total current assets are Rs 1,00,000. Calculate the Inventory of this
company ?
(a) Rs 25000
(b) Rs 40000
(c) Rs 150000
(d) Rs 250000
Answer In a simple bond, the timing and amount of interest receipts and principal
Explanation amount payment is certain and known to the investor.
Question 78 The Net Profit of a company was Rs 75 crores. The company's equity
capital stood at Rs 5,73,47,560. The company has not issued any
preference shares. The face value of its shares is Rs 5. Calculate the
Earning Per Share of the company.
(a) 24.66
(b) 65.39
(c) 88.5
(d) 109.12
Question 79 To get a quick sense of quality while analyzing business, one must look at
_________ .
(a) The Macro and Micro economic factors
Question 81 Whats the formula for calculating Weighted Average Cost of Capital
(WACC) ?
Question 82 The investor receives only one time cash inflow in which of the following
asset ?
(a) Gold
(b) Equity
(c) Bonds
Answer WACC = [Ke * Equity / (Equity+ Debt)] + [Kd * (1-Tax)* Debt / (Equity+
Explanation Debt)]
= [Ke * We] + [Kd * (1-Tx)*Wd]
Where Kd = Cost of Debt, Wd = Weight of Debt, Ke = Cost of Equity, We =
Weight of Equity
Answer In Equity and Bonds, there are regular inflows in the form of dividend and
Explanation interest and then the final inflow when they are sold. But in gold there are no
regular inflows but only one time inflow on sale of gold.
NISM SERIES XV – RESEARCH ANALYST
CERTIFICATION EXAM : LAST DAY REVISION TEST . 1
Question 83 Most of the businesses are price takers and not price makers, Why ?
(b) As there is stiff competition and one has to match the competitors prices
Question 84 The Non Performing Assets (NPAs) are typically low when ________ .
Correct Answer 83 As there is stiff competition and one has to match the competitors prices
Answer NPAs are typically low when interest rates are low as defaults become less
Explanation due to affordability of Equated Monthly Installments (EMIs).
NISM SERIES XV – RESEARCH ANALYST
CERTIFICATION EXAM : LAST DAY REVISION TEST . 1
Question 85 The important factor(s) for long term sustainability of a business with
regard to competition is/are ___________ .
Question 86 ___________ measures the ability of the company to satisfy its short term
obligations as and when they come due?
Answer Businesses with high entry barriers will have pricing power viz. can sell the
Explanation products at a premium without fear of losing customers. Such business can
easily sustain for a long term.
Answer Current ratio measures the ability of the company to meet its short-term
Explanation liabilities.
Current Ratio = Current Assets/ Current Liabilities
NISM SERIES XV – RESEARCH ANALYST
CERTIFICATION EXAM : LAST DAY REVISION TEST . 1
Question 88 The net profit of a company is Rs 146 crores. The current price of its
stock is Rs 66.40. The number of outstanding shares of the company are
38744620. Find the P/E ratio of the company.
(a) 1.762
(b) 17.62
(c) 2.198
(d) 21.98
Answer Valuation parameters consist of intrinsic value, P/E, P/BV, margin of safety
Explanation aspects.
Qualitative parameters take care of aspects like business/revenue model,
SWOT analysis, competition in the industry, technology aspects etc.
Quantitative parameters would consist of financial aspects such as ratio
analysis, analysis of cash flows etc.
(a) EPS
(c) Beta
(d) PE Ratio
Question 90 The unemployment rate is _____ during boom times in the economy.
(a) High
(b) Low
(c) Nil
(d) 100%
Answer Price to Earnings Ratio ( PE Ratio ) measures the price that the market is
Explanation willing to pay for the earnings of a company.
The PE multiple moves high when prices run ahead of the earnings numbers
and the market is willing to pay more and more per rupee of earnings.
When markets correct and uncertainty about future earnings increases, the PE
multiple also drops. A value investor, who would like to pick up stocks when
they are cheap, may be interested to purchase when PE is low.
Answer Unemployment rate refers to the eligible and willing to work unemployed
Explanation population of the country.
During an expansion phase / boom time, the unemployment rate falls as more
jobs are created as production goes up.
NISM SERIES XV – RESEARCH ANALYST
CERTIFICATION EXAM : LAST DAY REVISION TEST . 1
(a) Bull
(b) Bear
(c) Emerging
Answer Correct and detailed management views can be obtained only through
Explanation personal interactions with them. These views are generally not available
elsewhere.
Question 93 The Mutual Fund schemes which does not have any fixed date of
redemption is known as _______ .
Question 94 ‘Tom' trades are the trades where settlement occurs on ______ day(s)
(a) T+0
(b) T+1
(c) T+2
(d) T+3
Answer An open-ended scheme offers the investors an option to buy and sell the units
Explanation at any time. These schemes do not have any fixed maturity period.
Answer Tom trades are the trades where settlement (payment and delivery) occurs on
Explanation the day next to the trading day ie T + 1.
Cash trades are the trades where settlement occurs on the same trading day
ie.T+0.
NISM SERIES XV – RESEARCH ANALYST
CERTIFICATION EXAM : LAST DAY REVISION TEST . 1
Question 96 A fund manager buys a security to maintain its weight in the portfolio.
What does this indicate ?
Question 97 The Debt to Equity Ratio of a company is 1.5 : 1. The total size of its
Balance Sheet is Rs 50 Lakhs. Calculate the Equity of the company.
(a) Rs 10 lakhs
(b) Rs 20 lakhs
(c) Rs 30 lakhs
(d) Rs 40 lakhs
Question 98 While investing in shares, which of the below options should you not
consider ?
Question 99 In which bias, investors lose even after having won a trade ?
Question 100 __________ is the authority appointed under the Companies Act to
register companies and to ensure that they comply with the provisions of
the law.
Answer Winner’s curse is the tendency to make sure that a competitive bid is won
Explanation even after overpaying for the asset.
While behaviourally it is a win, financially, it may be a loss.
Correct Answer
100 The Registrar of Companies (ROC)
NISM SERIES XV – RESEARCH ANALYST
CERTIFICATION EXAM : LAST DAY REVISION TEST . 1
NISM
NCFM
BSE