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THE PURPOSE OE THIS PLATFORM IS MAINLY TO SHARE THE IMPORTANT
INFORMATION,MATERIALS, KNOWLEDGE EXCHANGE AND
TO BECOME EXPERTS IN THE FINANCIAL FIELD.
1. The Price at which a company’s shares are offered initially in the primary
market?
a) Issue Price
b) Listing Price
c) Market Price
a) Price rigging
b) Market Capitalization
c) Stock Invest
a) Preference Shares
b) Deferred Shares
c) Convertible Bonds
4. Issue of shares to its employees or directors at discount or for
consideration other than cash for providing know-how or making available
rights in the nature of intellectual property rights or value addition.
a) Sweat Equity
c) Seasoned Equity
c) Red-Herring Prospectus
a) Certificate of Deposit
b) Commercial Paper
c) Treasury Bill
c) Call Option
a) Growth Investing
b) Value Investing
c) Stock Invest
a) Depository
b) Trustee
c) Stock exchange
b) Rights Issue
c) Buy back
12. A__________ is like a bank wherein the deposits are securities (viz. shares,
debentures, bonds, government securities, Units etc.) in electronic form.
a) Depository
b) Safety Net
c) EIPO
13 ______________is the process by which physical certificates of an investor
are converted to an equivalent number of securities in electronic form and
credited to the investor’s account with his Depository Participant (DP).
a) Demutualisation
b) Dematerialization
c) Rematerialisation
15. The Securities and Exchange Board of India (SEBI) is the regulatory
authority in India established under Section 3 of SEBI Act, _______
a) 1990
b) 1992
c) 1991
a) Rights Issues
c) Private Placement
17. Lead Manager stipulates the floor price or a price band and leave it to
market forces to determine the final price.
a) Remutualisation
b) Book Building
c) Fixed Price
19. An existing listed company either makes a fresh issue of securities to the
public or makes an offer for sale of securities to the public for the first time.
b) Follow on offering
a) SBTS
b) NEAT
a) Rematerialisation
b) Demutualisation
c) Dematerialisation
b) Index
c) Commodity Ex
b) Follow on offer
c) Secondary offer
a) Eurobonds
b) Yankee Bonds
26. The external factors that affects the industry as a whole is termed as
a) Controllable risk
b) Systematic risk
c) Unsystematic risk
a) Decrease
b) Increase
c) Not affected
a) alpha
b) Beta
c) Arithmetic Mean
a) market risk
b) Systematic risk
c) Unsystematic risk
a) Decrease
b) Increase
c) Neutralise
31. If a bond is purchased at Rs.110 and sold at Rs. 117. The interest received
for the year was Rs. 10. The rate of return will be ___________
a) 15 % p.a
b) 7 % p.a
c) 10 % p.a
32. ______ analysis is based on past information of prices and trading volume
of stocks
a) Economic
b) Fundamental
c) Technical
33. ___________ is to measure the intrinsic value of a stock with the help of the
company’s financial information
a) Fundamental analysis
b) Technical analysis
c) Industry analysis
34. The expected return as per CAPM, when Rm=22%, Rf=9%, β = 0.6%
a) 14.6%
b) 16.8%
c) 7.8%
a) John Litner
b) Harry Markowitz
c) Jensen
36. According to the APT theory, an investor shall increase returns from his
portfolio
c) eliminate arbitrage
38. The investors by investing in the Mutual Funds get the benefit of
a) Potential of Returns;
b) Diversified portfolio;
c) Flexibility
39. The Mutual Funds that are listed in the stock Exchanges are
a) Growth schemes;
b) Closed-End Scheme;
c) Open-End Scheme
a) 10:90
b) 60:40
c) 50:50
a) Hybrid scheme
b) Index scheme;
c) Sectoral Scheme.
b) Index scheme
44. The investor has the choice of investing regular sums of money every
month to buy units of a mutual fund scheme resorting to ‘Rupee Cost
Averaging’.
c) Closed-Ended Scheme.
a) Beta factor
b) Alpha factor;
47. The spot value of Sensex is 12140. An investor buys a one moth Index
12157 call option for a premium of Rs.8. The option is __________
a) In the money
b) At the money
49. Mr. X agrees to exchange 100 Kgs of basmati rice three months later at
Rs. 80 per Kg. This is an example of __________
a) Spot contract
b) Forward Contract
c) Futures Contract
50. The Spot is currently selling at Rs. 270. The call option to buy the stock
at Rs. 265 costs Rs. 12. What will be the Time Value of the option?
a) Rs. 17
b) Rs. 5
c) Rs. 7
51. The spot value of Nifty is 4430. An investor bought a one month Nifty for
4410 call option for a premium of Rs. 12. The option is ________
a) in the money
b) at the money
52. The RComm is currently selling at Rs. 530. The call option to buy the
stock at Rs. 550 Cost Rs. 15. What would be the Time Value of the option?
a) 5
b) 20
c) 0
a) Rs. 0
b) Rs. 8
c) Rs. 20
54. A special contract under which the owner of the contract enjoys the right
to buy or sell something without the obligation to do so_________
a) Forward
b) Option
c) Future
a) American option,
b) European option
c) Index option
a) ITM
b) OTM
c) ATM
57. The fixed price at which the option holder can buy/sell the underlying
asset is called the _________
a) Strike Price
b) Spot Price
c) Market Price
58. The value of the option contract on individual securities shall not be less
than Rs.__________
a) Rs. 200000
b) Rs. 500000
c) Rs. 100000
59. Sweat equity is (i) a new class of equity shares(ii) issued to the
employees and directors (iii) issued to the investors also (iv) issued out of the
class of equity shares already issued by the company. Which of the following
statement is true?
b) rights and bonus issues for non-voting shares can be issued in the form of
voting shares
b) Wall Street
d) Dalal street
a) Treasury bills
c) Certificate of deposit
d) Commercial Paper
c) sold at a premium
a) index fund
c) function independently
a) registrar
b) lead manager
a) any public issue of listed company with three years track record of
sales
b) any public issue of unlisted company with three years track record of
personnel management.
c) any public issue of listed on unlisted company with three years track
record of profitability
d) any public issue of listed company
a) fixed one
b) variable
c) equal to 10
d) equal to 5
b) limit order
c) discretionary order
b) T + 7
c) T + 2
d) T +15
a) 60 days
b) 30 days
c) 75 days
d) 90 days
a)20 cr
b)5 cr
c)10 cr
d)15 cr
c) merger
d) thin trading
84. The VSAT which connects the main central computer means
86. Over the Counter Exchange of India was started after the role model of
a) NASQ
b) JASQ
a. OTCEI
b. NSE
c. BSE
d. ISE
93. Mr. A purchase a stock in the stock market. His holding Period return
depends on the
94.A stock of Rs. 10 face value has declared 35% dividend for the current
year. The stock is currently selling for Rs. 40. What is its dividend yield?
a) 35%
b) 70%
c) 8.75%
d) 8.5%
95. According to constant growth model, the next year’s dividend is 20%,
required rate of return is 10% and the growth rate is 15 per cent. The
market price would be
a)Rs. 50
b)Rs. 55
c)Rs. 45
d)Rs. 40
a) Inflation or deflation
97. The fall in the interest rate is conducive to the stock market because
d) B and c
98. One of the following factors leads the activity of stock market
a) Money supply
c) Unemployment rate
a) Defensive industry
a)Gives the owner the right to buy an asset or any security to someone else
a) The premium of the call option and stock price is inversely related
107. The Black Schools Option pricing theory is based on the following
assumption
d) The call option can be exercised any time during its life period.
108. An investor who anticipates fall in price of Telco shares after an year
could hedge his risk by
c) Speculative activity
d) a and b
c) Arbitrageurs make the price stock index futures to deviate from the
underlying index value
b) Inflation risk
c) Interest risk
d) Unique risk
b) Treasury bills
c) Shares
d) Commercial papers
a) Risk averse
b) Risk neutral
c) A risk taker
d) All above
b) Market risk
c) Unique risk
d) Inflation risk
118. The risks involved in the purchase of InfoTech and Satyam Computers
shares are measured with help of
a) Security enters
b) Security leaves
c) Security enters or leaves
c) Creates disequilibrium
122. The mutual funds that are listed in the stock exchanges are
a) Closed-end funds
c) Open-end funds
d) Growth schemes
a) Professional management
b) Diversification
c) Return potential
d) All the above
124. The market returns standard deviation is 15. The X stock return is
25%. The risk less rate of interest is 5%. The risk premium of the X stock
is
a) 1.33
b) 5
c) 15
d) 20
125. The market return is 20% and the riskless rate of return is 7%. The
fund’s beta coefficient is 1.2. What is its expected return?
a) 2.5
b) 22.6
c) 31.0
d) 24.8
a) 60:40
b) 70:30
c) 40:60
d) 50:50
129. The rupee cost averaging approach seems to work better with
130. In the rupee cost averaging plan when the stock prices are low
a) to public
d) both B and C
132. Non-Voting shares carry
a) No voting right
b) Additional dividends
c) Listing benefits
133. The Beta co-efficient of equity stock of ECOBOARD LTD. Is 1.6. The risk-
free rate of return is 12% and the required rate of return is 18% on the market
portfolio. If the dividend expected during the coming year is Rs. 2.50 and the
growth rate of dividend and earnings is 8%, at what price the stock of
Ecoboard Ltd. Can be sold (based on the CAPM)?
a) Rs. 18.38
b) Rs. 15.60
c) Rs. 12.50
d) None of A,B,C
a) Call option
b) Compound option
d) Follow on offer
136. The members of IRDA, other than Chairman of IRDA are appointed by
b) Government of India
c) The ROC
d) RBI
137. SEBI (Disclosure and Investor Protection) Guidelines, 2000 are not
applicable to
c) Infrastructure companies
b) Trust
140. The following are the common assumptions to both APT and CAPM:
a) 25 stocks
b) 30 stocks
c) 33 stocks
d) 35 stocks
a) 1992
b) 1993
c) 1994
d) 1995
a) Mean
b) Mode
c) Variance
d) Co-variance
b) Government Bonds
c) ICICI Bonds
d) IDBI Bonds
a) Coupon Rate
b) Years to maturity
d) a & b
c) He is a risk lover
d) He loves gambling