LIST OF ATTEMPTED QUESTIONS AND ANSWERS Security Analysis & Portfolio Management_6 Select The Blank Question Measures of ________ tells us what we can expect a typical or middle data point of a distribution to be. Correct Answer Central tendency Your Answer Variance Multiple Choice Single Answer Question Capital expenditure -depreciation +change in working capital -(new debt issued - debt repaid) = Correct Answer Equity reinvested in business Your Answer Equity reinvested in business Multiple Choice Multiple Answer Question What were the objectives for 2002-03 the chairman of Bharat forge had emphasised on in the annual report for 2001 - 02 Correct Answer Maintain aggressive exports thrust , Increase shares of value added products , Continue reducing costs Multiple Choice Single Answer Question What do you understand by term pioneering stage in the industry life cycle analysis? Correct Answer Slow sales growth product recently introduced Your Answer Highest sales Multiple Choice Single Answer Question In India futures on individual securities have been introduced by :Correct Answer BSE & NSE Your Answer NSE Multiple Choice Multiple Answer Question The features of bond are :Correct Answer Collateral , Call provision , Sinking fund and protective covenants Your Answer Collateral , Call provision , Sinking fund and protective covenants Select The Blank Question The compounded annual return of Kisan Vikas patra is ________. Correct Answer 0.084 Select The Blank Question ________ measures the profitability of operations without considering the influence of financial structure and tax rate. Correct Answer Earnings power Your Answer Net profit margin Select The Blank Question The 6.________% tax saving bonds of government of India have a tenure of 5 years. Correct Answer 5 1

Select The Blank Question The govt allowed public sector banks and institutions in mutual funds in ________. Correct Answer Early 90's Multiple Choice Multiple Answer Question Which ratios are commonly used? Correct Answer Interest coverage ratios , Debt service coverage ratios , Debt equity ratio Your Answer Debt equity ratio , Interest coverage ratios , Debt service coverage ratios Select The Blank Question The ________ phase is characterized by resistance area and support level. Correct Answer Transition Your Answer Horizontal Select The Blank Question ________ is due to the fact that a borrower may not pay interest and/or principal on time. Correct Answer Default risk Multiple Choice Single Answer Question What do you understand by the term redemption price? Correct Answer Price or NAV at which a scheme purchases its units True/False Question Investment decisions can be viewed as an integrated process to which security analysis makes its unique contribution. Correct Answer True Select The Blank Question Secondary reactions occurs because of ________ which arise in the market as a result of over optimism and over pessimism. Correct Answer Technical distortions Your Answer Fundamental distortions True/False Question Five paisa.com is an example of on line trading portal. Correct 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 75% Match The Following Question Correct Answer Your Answer Price pattern Primary trend Intermediate trend as long as 6 Short term trend Resistance level Secondary reaction Last between 1-2 years Last between 1-2 years Last between 3 weeks to as long as 6 months Last between 3 weeks to months Last 1 to 3-4 weeks Last 1 to 3-4 weeks 2

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 True/False Question With the use of diversification you can reduce the risk. Correct Answer True Your Answer True True/False Question Post office monthly schemes have a 10 year tenor. Correct Answer False Your Answer False Multiple Choice Single Answer Question Till 1990's secular Indian economy's inflation rate has been of what percentage? Correct Answer 0.07 Your Answer 0.07 Multiple Choice Multiple Answer Question The firm issuing bonds operating sinking fund and repurchases bonds either :Correct Answer Calling in a certain number of bonds by lot , Buying bonds in the open market , Buying bonds issued to banks and financial institutions Your Answer Calling in a certain number of bonds by lot , Buying bonds in the open market 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 Your Answer True True/False Question Fixed assets turnover ratio measures the efficiency of utilisation of total assets, fixed as well as current. Correct Answer True Select The Blank Question A pattern which does not result in reversal of a trend but reaffirmation of the underlying trend is called ________. Correct Answer Consolidation pattern Your Answer Distribution pattern 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 False 3

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 What are the SEBI regulations with respect to mutual funds? Correct Answer Mutual funds to be registered with SEBI before the launching any scheme , 2/3rds of the directors of the trustee company must be independent , An AMC approved by SEBI manages the fund True/False Question Default is normally evaluated and indicated by the rating assigned to the debt instruments by independent credit ratings agencies. Correct Answer True Your Answer True True/False Question In case of fixed income securities like debentures, you get the return in the form of dividend. Correct Answer False Your Answer False Multiple Choice Single Answer Question What are the assumptions of the Dow theory? Correct Answer Majority of stocks follow the underlying trend of the market most of the time Your Answer Majority of stocks follow the underlying trend of the market most of the time Multiple Choice Multiple Answer Question The Peer group of Bharat Forge consists of which all companies? Correct Answer Am forge industries , Kalyani Forge , EL Forge Your Answer Am forge industries , Kalyani Forge , EL Forge Multiple Choice Single Answer Question We can compare the price earning ratio of a market to its historical average to make judgements about, whether market is :Correct Answer Under valued or over valued Multiple Choice Single Answer Question What is the rate of interest on the tax free bonds issue by the government? Correct Answer 6.5%

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 4

Multiple Choice Multiple Answer Question What are the features of candle stick charts? Correct Answer Indicates in black if the closing price is lower than the opening price , Indicates in white if the closing price is higher than the opening price Your Answer Indicates in black if the closing price is lower than the opening price , Indicates in white if the closing price is higher than the opening price , Displays the correlation between the high and low prices Multiple Choice Multiple Answer Question What are the features of public provident scheme? Correct Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is available from 7th year Your Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is available from 7th year Multiple Choice Single Answer Question Investments could be made in retail government securities through :Correct Answer Primary dealers Your Answer Primary dealers 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 Multiple Choice Multiple Answer Question An options contract allows the investor :Correct Answer To earn a profit while restricting the downside risk , To use the options for speculation , Either to honour or walk away from the contract Multiple Choice Single Answer Question Mr.Satish invests Rs.10,000/- today. The rate of interest is 8% compounded annually. What will be the value of his investment after 5 years? Correct Answer Rs.14.693/True/False Question Quick assets consist of current assets less inventories. Correct Answer True Match The Following Question Correct Answer Your Answer Weak form model is also termed as Random walk model Efficient market hypothesis Investors are rational Efficient market hypothesis Random walk model Securities current prices fully Weak form EMH Weak form EMH reflect all historical information Framework on efficient capital markets, a review of theory and empirical work Fama Strong form

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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Your Answer

manages the fund Mutual funds to be registered with SEBI before the launching any scheme , 2/3rds of the directors of the trustee company must be independent , An AMC approved by SEBI manages the fund

Multiple Choice Single Answer Question The bond issuing firm enjoys the flexibility of being able to call the bonds if :Correct Answer Your Answer Interest rates are falling Interest rates are falling

Multiple Choice Single Answer Question We can compare the price earning ratio of a market to its historical average to make judgements about, whether market is :Correct Answer Under valued or over valued Your Answer Under valued or over valued

Multiple Choice Single Answer Question The growth rate is used to forecast future revenues and earnings and are inputs in valuing :Correct Answer Stable firms Your Answer High growth firms

Multiple Choice Single Answer Question A security analysis is done :Correct Answer Your Answer For decision making for investments For decision making for investments

Multiple Choice Multiple Answer Question Which ratios are commonly used? Correct Answer Your Answer Select The Blank Question Correct Answer Your Answer Debt equity ratio , Interest coverage ratios , Debt service coverage ratios Debt equity ratio , Interest coverage ratios , Debt service coverage ratios

An option is a contract which gives the buyer ________ to buy or sell shares of the underlying security at a specific price on or before a specific date. Right but not obligation Right but not obligation

Match The Following Question Growth of income

Correct Answer 40-60 % debt, 40-60 % equities

Your Answer 40-60 % debt, 40-60 % equities

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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Correct Answer True Your Answer True/False Question True

Quick assets consist of current assets less inventories.

Correct Answer True Your Answer True/False Question True

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 True/False Question The Dividend discount model

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

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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growth rate and a decreasing function of the riskiness of the firm. Correct Answer True Your Answer False

Multiple Choice Single Answer Question The greater the deviation of the actual returns from the actual return :Correct Answer Greater the variance Your Answer Greater the variance

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

Multiple Choice Multiple Answer Question What are the features of public provident scheme? Correct Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is available from 7th year Your Answer 15 year instrument , Rate of interest is 8% , Partial withdrawal is available from 7th year Multiple Choice Multiple Answer Question Which are the different types of accounts offered to investors by the stock brokers? Correct Answer Cash trading , Margin trading Your Answer General trading , Cash trading , Margin trading

Multiple Choice Single Answer Question In a forward contract there is :Correct Answer No Exchange of cash Your Answer No Exchange of cash

Multiple Choice Single Answer Question Under EMH it is assumed that if markets are efficient, securities are priced to provide a :Correct Answer Normal returns for their given level of risk Your Answer True/False Question Equal returns for their given level of risk

If a rupee weakens against the dollars it has favourable impact for the exporters.

Correct Answer True Your Answer True

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