6.

A segment is more attractive when there are actual or potential substitutes for the
product.

True
False
12. The GDP growth rate in the economy in real terms has fluctuated between :-

a)
b 4% and 5%
) 3% and 4%
c) 6% and 7%
5% and 6%
d
)
The sideways trend is essentially a transitional one which separates the two major
14.
market movements.

True
False
17. What is the minimum investment amount in G-secs?

a)
b 1000
) 10000
c) 50000
100000
d
)
30. The Two-Stage dividend discount model is best suited for the firms that are :-

a)
b In high growth rate phase
) Expecting to maintain the growth rate phase steadily for a specific time period
c) Expecting a established dividend payout ratio
Sources of high growth are expected to disappear after specific period of time
d
)

How can the financial statements can be manipulated while giving the
estimates for growth?
a) Change
method of rate
b of
) depreciation
c) Change
method of
d stock
) valuation
Inflating sales
for current
year by
advancing
sales for the
following year
Changing the
management
of the
company
frequently

Marks : 2

45. What are the ways of measuring relative strength?

a) Calculate the rates of return and classify securities that have earned superior
historical returns
b
Calculating certain ratios will help in analyzing whether a security has relative strength
) Calculating the Return on investment
c) Working out the high and low price fluctuations
d
)

46. The average investor in the market is driven more by emotions than by rational
analysis is a rule of :-

a) Fundamental Analysis
Intrinsic value analysis
b
Economic Analysis
)
Technical analysis
c)
d
)

49. What levels if increased will have unfavourable impact on the stock market?
a) Higher levels of unemployment
Unstable economy
b
Higher levels of taxation
)
Low levels of interest rates
c)
d
)
55. Why does every investor have different investment objectives?

a) Since every investor has a different set of circumstances, needs and opportunities
Since it depends on their investment strategies
b Every investor has different risk bearing capacities
) Every investor has different perception of the markets
c)
d
)

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 , 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