Q1.
The approach to evaluating equity shares based on the study of past price behavior is:
Q2.
A portfolio manager analyses a company’s growth prospects & financial statements to evaluate its equity shares. He is using:
Q3.
Which of the following does not form a study of the fundamental analysis?
Q4.
Markets tend to trade based on:
Q5.
P/E ratios remain consistent over a period of time.
Q6.
Lower the margin of safety, safer would be the investment.
Q7.
A high price to book value ratio may indicate that the company’s shares are:
Q8.
The profit after tax of company ABC for 2012-13 is Rs. 300 crores and the analysts estimate that the PAT in 2013-14 would be Rs. 500 crores. The company has issued 10 crore shares. The shares of the company are currently trading at Rs. 150. What is the P/E ratio of the company?
Q9.
The profit after tax of company ABC for 2012-13 is Rs. 300 crores and the analysts estimate that the PAT in 2013-14 would be Rs. 500 crores. The company has issued 10 crore shares. The shares of the company are currently trading at Rs. 150. What is the forward P/E ratio of the company?
Q10.
The profit after tax of company ABC for 2012-13 is Rs. 300 crores and the analysts estimate that the PAT in 2013-14 would be Rs. 500 crores. The company has issued 10 crore shares. The shares of the company are currently trading at Rs. 150. The projected P/E ratio of other companies in the same industry is 7 times. The target price of the stock is___ and the analyst would suggest a ____ at the current market price.
Q11.
The shares of the company are currently trading at Rs. 200 and the intrinsic value of the shares is Rs. 500. What is the margin of safety?
Q12.
The net worth of company XYZ is Rs. 4800 crores. The company has issued 10 crore shares. The shares of the company are currently trading at Rs. 800. The Price to book value ratio of the company is:
Q13.
Investment decisions can be taken based on ratios alone.
Q14.
Which of the following is not a key assumption underlying technical analysis?
Q15.
Fundamental analysts use charts to read the market.
Q16.
Which one of the following is incorrect according to Charles Dow?
Q17.
Which of the following is incorrect according to Dow theory?
Q18.
When the stock price goes up, it should be sold closer to its ____ level, where ____ of the stock increases.
Q19.
200-day moving average of the stock price helps in reading the long term trend.
Q20.
The approach to technical analysis where the opening and closing price for every trading period is shown in the form of a box is known as:
Q21.
Upward movement of price in candle stick analysis is shown as:
Q22.
Which of the following is false about Elliot wave theory?
Q23.
It is generally accepted that technical analysis aids decisions on buy, sell or hold. Once the decision is taken, timing of the implementation can be guided by fundamental analysis.
Q24.
Algorithms based on analysis such as probability distributions which are used for trading is known as:
Q25.
Which of the following is not a trading approach driven by computer based investment models that use advanced mathematics and statistics?
Q26.
The annualized yield of a debt instrument with a half yearly coupon of 6% would be?
Q27.
Total return until maturity of the debt security including interest and capital gain/loss is called:
Q28.
An increase in the overall interest rates in the market will lead to ____ in value of fixed interest rate debt securities.
Q29.
______ the balance tenor, _______ would be the fluctuation in value of the fixed rate debt security arising out of the same change in interest rates in the market.
Q30.
The modified duration of a debenture is 5. If the yields in the market increase by 0.5%, the change in the value of the debenture would be:
Q31.
Which of the following is the primary risk in debt investment?
Q32.
Sovereign securities are said to be:
Q33.
The credit risk rating of a security was downgraded. The yield from the security is expected to:
Q34.
A zero coupon debenture has the highest re-investment risk.
Q35.
The sovereign yield curve is upward sloping. The inherent interest yield in the debt security would _____ with the tenor
Q36.
Which of the following is not a derivative?
Q37.
For the same underlying, derivative contracts can be structured in various ways, depending on the type of position envisaged.
Q38.
Which of the following is not a feature of the forward contract?
Q39.
Which of the following is not a feature of the futures contract?
Q40.
Which of the following is common about forwards and futures?
Q41.
Which of the following are prevalent in India?
Q42.
Which of the following is true about option contracts?
Q43.
A has the right but not the obligation to buy a security from B. Which of the following applies? i) A has bought the call option ii) B has sold the put option iii) B has written the call option iv) A has sold the call option v) B has bought the put option
Q44.
American options can be exercised:
Q45.
The buyer of the option has to pay:
Q46.
European options can be exercised only on the date of expiry of the contract.
Q47.
In case of futures and options, the counter party to all the parties is the clearing corporation.
Q48.
Swaps can take place between:
Q49.
Bank treasuries cannot intermediate in the swap market.
Q50.
A fund manager protects the NAV during a temporary period of weakness usually by:
Q51.
When the fund manager buys the stock and sells the futures on the same stock, he
Q52.
Which of the following is a form of arbitrage in the debt market?
Q53.
Calendar spread trading is a form of arbitrage to earn riskless profits by trading between the cash and the futures market.
Q54.
A fund manager can change the duration of the investment portfolio through:
Q55.
Futures cannot be used to immunize international portfolios from foreign currency risk.
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