Q1.
Based on the risk profiling of the client, an investor can be broadly classified as following except:
Q2.
Optimal portfolio allocation arrived at by understanding the risk profile of the client is known as:
Q3.
An asset allocation which is in line with an investor’s life stage, wealth stage, risk appetite and goals is tactical asset allocation.
Q4.
Which of the following statement is incorrect about asset allocation?
Q5.
Time value of money is based on:
Q6.
Cash inflows or outflows can be in the form of an annuity or a stream of uneven cash flows in time value of money concept.
Q7.
Each individual has his own strategic asset allocation.
Q8.
Mr. Manish has invested 50% of his investment in equity and 50% in debt. Based on his view about the markets, he changes his asset allocation to 70% equity and 30% debt. This is known as:
Q9.
Strategic asset allocation is better than tactical asset allocation
Q10.
Which of the following can be in the form of an annuity?
Q11.
Senior citizen savings scheme is an example of:
Q12.
Mr. Fracis bought a 7% annuity for RS. 200000 where the benchmark is inflation. This is a:
Q13.
Which of the following is irrelevant in representation of an EMI?
Q14.
Initial investment amount/ Cash flow per year represents:
Q15.
Which of the following is incorrect about the payback period?
Q16.
The opportunity to reinvest the interest and earn interest on interest is known as:
Q17.
PV (1+r/100)^n represents:
Q18.
Which of the following is/are irrelevant for an investor to gauge an investment proposition?
Q19.
Holding period return does not take into account the interim cash flows during the period of investment and only considers the principal investment.
Q20.
Which of the following does not require a discount rate for its computation?
Q21.
________=_________- Required investment
Q22.
An investment proposal can be accepted if NPV of the investment is positive
Q23.
Which of the following incorporates the inflation adjustment?
Q24.
Which of the following captures both inflation and tax effects?
Q25.
________ assigns equal weights to the results achieved in each time period and does not account for cash flows pattern.
Q26.
Which of the following represents the rate at which NPV equals zero?
Q27.
Which of the following statement is incorrect?
Q28.
Which of the following statements are true? 1. NPV is expressed in % terms 2. Between NPV and IRR, Only IRR is a discounted cash flow model 3. NPV calculates additional wealth 4. IRR is an absolute number
Q29.
Investment A has a higher NPV and investment B has a higher IRR. If the investments are mutually exclusive, which investment is to be selected?
Q30.
The number of units held in a mutual fund scheme will increase in:
Q31.
At the time of redemption, the value of your mutual fund portfolio will be the same, whether you opted for re-investment or growth.
Q32.
Performance against a benchmark for investment analysis is
Q33.
. Which are the options available when benchmark is not available for mutual funds? 1. An equity fund can be compared with a debt fund benchmark 2. A composite benchmark can be created 3. Peer performance can be measured
Q34.
Excess return per unit of market risk is measured by:
Q35.
Excess return per unit of total risk is measured by:
Q36.
Which of the following statement is incorrect about Sharpe ratio?
Q37.
For risk measures, _______ the better; for risk adjusted returns, _________ the better.
Q38.
Sharpe Ratio (S) = (r (Portfolio return) – rf (Risk free rate)) / (standard deviation of the portfolio or s) represents:
Q39.
Which of the following statement is true about Treynor ratio?
Q40.
The SML is a useful tool in determining whether an asset being considered for a portfolio offers a reasonable expected return for risk.
Q41.
Which ratio measures the fund manager’s performance?
Q42.
___________ measures the average return of the portfolio over and above that predicted by the Capital Asset Pricing Model (CAPM), given the portfolio’s beta and the average market returns.
Q43.
A positive alpha means that:
Q44.
Difference of actual portfolio return and expected return represents:
Q45.
Which of the following is/are the returns from an investment vehicle?
Q46.
Capital asset does not include:
Q48.
STCG tax for capital asset would be:
Q49.
LTCG tax for stocks would be:
Q50.
LTCG tax for a mutual fund other equity oriented mutual fund would be:
Q51.
In India, inflation is measured by Consumer Price Index.
Q52.
Which of the following statements about capital losses is untrue?
Q53.
If shares are bought within ________ months of record date of dividends and sold within ________ months after record date then loss to the extent of dividend is ignored.
Q54.
If mutual fund units are bought within ________ months before the record date of dividend or bonus and sold within _________ months after record date then loss to the extent of such dividend is ignored.
Q55.
Indexation is the process of adjusting the cost price by using the Cost inflation index
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