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
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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
9
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
11
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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