LIST OF ATTEMPTED QUESTIONS AND ANSWERS

________. Correct Answer Rail average Your Answer Freight average

Multiple Choice Multiple Answer Question The Two-Stage dividend discount model is best suited for the firms that are :Correct Answer In high growth rate phase , Expecting to maintain the growth rate phase steadily for a specific time period , Sources of high growth are expected to disappear after specific period of time 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

Multiple Choice Single Answer Question As per the exhibit 18-1 for individual stock futures on NSE, the price steps in respect of all futures contract admitted to the dealings of the exchange shall be :Correct Answer 0.05 Multiple Choice Multiple Answer Question The features of bond are :Correct Answer Collateral , Call provision , Sinking fund and protective covenants Multiple Choice Single Answer Question What is a technical approach to investment? Correct Answer A reflection of the idea that prices move in trends which are determined by various factors Match The Following Question MCX Sensex Nifty Lifex Correct Answer Commodity Exchange BSE Index NSE Index ET Index Your Answer Commodity Exchange BSE Index NSE Index Gold Index

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The Blank Question ________ is affected by the leverage decisions of the firm. Correct Answer Return on equity Your Answer Return on equity Select The Blank Question Debentures rated "BB" refers ________ of timely payment of interest and principal. Correct Answer Inadequate safety Your Answer Inadequate safety Select The Blank Question S&P NSE 50 index is known as ________. Correct Answer NIFTY Your Answer NIFTY True/False Question The risk associated to get the required rate of return on the stock is measure by market beta. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer NSE&BSE are regulated by Securities Exchange Board of India Securities Exchange Board of India Under options contract When you expect prices to fall, then, you take a long position by buying puts. When you expect prises to rise, then you take a short position by selling puts. Cost of Carry model Options contract A contract where both the parties are equally responsible Futures contract Futures contract The amount which the buyer of the option has to pay to the option writer to induce him to accept the risk associated with the contract. Option price Option price True/False Question A segment is unattractive if the buyers possess strong or growing bargaining powers. Correct Answer True Your Answer True Multiple Choice Single Answer Question Debt instruments that have a maturity period of more than one year are called as :Correct Answer Bonds Your Answer Bonds

Multiple Choice Single Answer Question The present value of all the future cash payments to be paid on the security to the investor is termed as :Correct Answer Intrinsic value of a security Your Answer Intrinsic value of a security Multiple Choice Multiple Answer Question What are the features of Retail government securities (Gsecs) ? Correct Answer Safest investment option available , Demat account is required for investment , Choice of tenure varies from less than 1 year to 30 years Your Answer Safest investment option available , Demat account is required for investment , Choice of tenure varies from less than 1 year to 30 years True/False Question A higher value of current ratio indicates a better short term solvency of the firm. Correct Answer True Your Answer True Select The Blank Question ________seeks to safeguard against potential losses on the outstanding position in futures market. Correct Answer Initial margin Your Answer Initial margin Select The Blank Question Risk can be referred as the ________ in the return with respect to the expected return. Correct Answer Volatility Your Answer Volatility Multiple Choice Multiple Answer Question The return to the bond investor can be measured in terms of :Correct Answer Current yield , Yield to maturity , Realised yield Your Answer Current yield , Yield to maturity , Realised yield True/False Question Certificate of Deposits offers high rate of interest than Treasury Bills. Correct Answer True Your Answer True 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 Multiple Choice Multiple Answer Question Which of the following are important momentum indicators used widely?

Correct Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD) Your Answer Rate of change (ROC) , Relative strength indicator (RSI) , Moving average convergence divergence(MACD) Multiple Choice Single Answer Question What is Gross National Product ? Correct Answer Gross income generated from within the country Your Answer Gross income generated from within the country Select The Blank Question An ________ is a series of equal payments or receipts occurring at regular intervals of time. Correct Answer Annuity Your Answer Annuity Multiple Choice Single Answer Question If the price of a share at the beginning of the year was Rs.100/-, no dividend received during the year and the price at the end is Rs.115/-. What is the rate of return? Correct Answer 0.15 Your Answer 0.15 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 Match The Following Question Correct Answer Your Answer Ratio used as a measure of relative value PEG ratio PEG ratio The market value of the firms assets divided by the replacement cost of these assets Market value to replacement cost ratio Market value to replacement cost ratio Key determiner of revenue multiples Profit margin Profit margin The market value of the equity in a firm reflects the markets expectations of the firms earnings power and cash flows. Price to book value ratio Price earning ratio Multiple Choice Multiple Answer Question Features of PSU Bonds are :Correct Answer No TDS , Transferable by endorsement , No stamp duty on transfer Your Answer No TDS , Transferable by endorsement , No stamp duty on transfer True/False Question If a rupee weakens against the dollars it has favourable impact for the exporters. Correct Answer True Your Answer True

Multiple Choice Single Answer Question Credit rating companies assign ratings for which of these investments? Correct Answer Company deposits Your Answer Company deposits True/False Question If rupee weakens against the dollar, it has favourable impact for the importers. Correct Answer False Your Answer False Multiple Choice Single Answer Question What is the objective of Portfolio management? Correct Answer To Minimize risk and maximize return Your Answer To Minimize risk and maximize return Select The Blank Question Acid test ratio is more stringent measure of liquidity compared to the ________. Correct Answer Current ratio Your Answer Current ratio Multiple Choice Multiple Answer Question An option is :Correct Answer A contract between two parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee Your Answer A contract between two parties , Where buyer receives a privilege for which he pays a premium , Where the seller accepts an obligation for which he receives a fee Select The Blank 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 True/False Question The basic assumption of Technical analysis is that, price discounts everything and it is the outcome of all forces affecting a stock. Correct Answer True Your Answer True

******************************** Dow Jones transportation average was previously known as Logistics average Road average Freight average.

Rail average

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