1. Interest rate that every bond/debenture carries on its face value and is fixed at the time of issue is
called----------.
Correct : C. Coupon rate
2. G. securities are issued by the ---------- on the behalf of the Government of India.
Correct : B. RBI
3. Gilt securities are issued by ---------- .
Correct : B. RBI
4. ---------- instruments are those instruments, which have a maturity period of less than one year .
Correct : B. Money market
5. Dow theory is associated with
Correct : B. Technical analysis
6. Estimating the return and risk for individual securities is known as
Correct : B. Securities analysis
7. Financial literacy / awareness programmes are conducted by
Correct : D. All of these
8. Value investing means, buying the stock
Correct : B. before the growth cycle begins
9. Value investing is investing in
Correct : D. All of above
10. In fundamental analysis
Correct : A. Buy the security if IV>MP
11. Opening up of the Indian economy means
Correct : A. Indian markets and global markets are linked
12. Boom period means
Correct : A. High demand for products and services
13. Depression means
Correct : D. all of these
14. Repo rate means
Correct : B. rate at which RBI lends to banks
15. ----------- combines economic, industry and company analysis to forecast future stock price.
Correct : C. Fundamental analysis
16. Stock valuation method that uses financial data to predict price movements.
Correct : A. Fundamental analysis
17. An example for a sunrise industry is
Correct : B. Animation industry
18. Growth industry means
Correct : A. growth rate of industry exceeds the average growth of economy
19. Which of the following is a defensive industry?
Correct : B. Pharmaceuticals
20. Technical analysis study
Correct : B. Behaviour of stock prices
21. When rupee in the ventilator, dollor in the escalator,
Correct : A. IT companies will shine
22. Level that the technical analyst believes that a stock price will not fall below.
Correct : A. Support level
23. Level that the technical analyst believes a stock price will not exceed.
Correct : B. Resistance level
24. White candlestick represents
Correct : A. Bullish trend
25. Black candlestick represents
Correct : B. Bearish trend
26. Flat trend in technical analysis means
Correct : C. prices move within a narrow range
27. GDP indicates
Correct : B. the status of the economy
28. The fall in the interest rate is good to the stock market because
Correct : D. all of these
29. The price earnings ratio of a stock reflects
Correct : B. the market mood for the company’s stock
30. This fund is one that is available for subscription all through the year.
Correct : A. Open ended fund
31. This fund is open for subscription only during a specified period
Correct : B. closed ended fund
32. These funds are stocks funds that invest in stocks with the potential for long term capital
appreciation
Correct : C. growth fund
33. The aim of this fund is to provide regular and steady income to investor.
Correct : D. income fund
34. Stock mutual funds also sometimes called
Correct : D. equity fund
35. Mutual funds are
Correct : C. both a and b
36. uti-64 is a
Correct : A. Open ended fund
37. Credit rating is mandatory
Correct : C. debentures
38. Systematic risk is also known as
Correct : A. Unavoidable risk
39. Unsystematic risk is also known as
Correct : D. both b and c
40. Investor can build a risk free portfolio, when two assets have ---------correlation
Correct : C. perfect negative
41. A set of securities held by an individual investor is called --------
Correct : A. Portfolio
42. Which of the following helps in reduction of risk in portfolio management?
Correct : D. diversification
43. The risk in portfolio is measured through the
Correct : C. Variance co-variance matrix
44. If an investment assures a fixed return in the future, then the standard deviation of return will be
Correct : A. 0
45. The securities contact act was passed in
Correct : B. 1956
46. In secondary market
Correct : A. Second hand securities are traded
47. The first stock exchange was set up in
Correct : B. Mumbai
48. Over the counter market is for
Correct : B. buying /selling of unlisted securities
49. Over the counter market is a part of
Correct : B. secondary market
50. Which speculator expect fall in prices in future
Correct : B. bear
51. Which speculator expects a rise in price in future?
Correct : A. Bull
52. When a right to purchase a security is given it is called
Correct : B. call option
53. OTCEI deals in
Correct : B. industrial securities
54. The first stock exchange which was fully computerized was
Correct : C. OTCEI
55. Interest rate risk is associated with
Correct : D. bank rate
56. Volatile stock has beta value
Correct : A. Greater than one
57. Total risk in a security usually measured by
Correct : B. standard deviation
58. Systematic risk is measured with
Correct : C. beta
59. The term beta is synonymous with
Correct : A. systematic risk
60. SEBI has made it mandatory for the companies to disclose
Correct : C. Quarterly report and annual report
61. The minimum number of shares applied for is
Correct : B. 200
62. For every RS 1 lakh of fresh issue of capital there should be at least
Correct : A. 5 share holders
63. Marketability risk of bond is
Correct : B. variation in return caused by difficulty in selling stocks
64. Default risk is lower in
Correct : A. Treasury bills
65. The value of the bond depends on
Correct : D. all of the above
66. The bond yield remains constant over its life and the discount or premium amount will decrease
Correct : C. at an increasing rate as its life gets shorter
67. Yield to maturity is the single factor that makes
Correct : C. Present value of the future cash flows of the bond equal to the current price of the bond
68. The term structure of the bond is the relationship between the
Correct : D. yield and time taken to mature
69. The problem with Markowitz’s model is that a number of covariance have to be estimated. for
example for a portfolio of 30 stocks, the covariance that to be estimated are
Correct : C. 435
70. For portfolio of 40 stocks to adopt Sharpe index model, the bit of information needed are
Correct : D. 122
71. The risk explained in the index is equal to
Correct : C. a^2x variance of market index return
72. The unsystematic risk is explained by
Correct : B. unexplained variance of index
73. For securities X,Y,Z,,T are selected for analysis. The returns of the securities are 10 %,
12%,13% and 16% the risk free rate of interest rate is 6%.the standard deviation of the return of the securities are 4,7,5 and 10 which security yield highest return for the risk undertaken?
Correct : A. X
74. the X company has the beta of 1.5 .the expected return is 15% the risk free rate of interest is
5 %.which is the market return.
Correct : A. 6.67%
75. The X stocks return relationship with the stock index is given by its correlation co efficient
being 0.8.what is the percentage of variation explained by the index ?
Correct : C. 64%
76. The broker shall have to furnish SEBI a copy of audited balance sheet and profit and loss
account within
Correct : D. six month of each accounting year
77. Mutual fund can make investment
Correct : D. Should not exceed 10% of the funds in securities of a single company
78. FII’S are permitted
Correct : D. to invest in the shares of list, unlisted companies and debentures
79. The finance minster in 2000 Feb announced the aggregate investment limit of FII/NRI/OCB
IN A company as
Correct : C. 40%
80. In the weakly efficient market, the stock price reflects
Correct : D. the past price and traded volumes
81. If the markets are efficient, the security price provides
Correct : B. normal return for the level of risk taken
82. According to efficient market theorist the stock price
Correct : C. each successive change does not depend on the previous one
83. The stock price in the stock market
Correct : C. move between the changing support and resistance level
84. Technical indicators help
Correct : D. to show the direction of the overall market
85. In a bullish market, a bearish signal is given when
Correct : D. A/D lines slopes downward while BSE sensex is raising
86. Oscillators show the share price movement
Correct : C. through a reference point
87. The chartist believe that the charts
Correct : D. all of the above
88. The market value of the scrip is determined by