Question 1

Single Correct Option, +1.00, -0.00

Business Risk is an Unsystematic Risk - State True or False ?

A true

B false

Your Answer is Correct

Correct Answers: A
Your Answers: A
Question 2
Single Correct Option, +1.00, -0.00
In the process of valuation of a business, the growth rate is calculated by adding the
retention rate and the return on equity - State True or False ?

A true

B false

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Correct Answers: B
Question 3
Single Correct Option, +1.00, -0.00
The Total Assets of a company are Rs 124000 and the Total Liabilities are Rs 79000.
Calculate the Equity to Asset Ratio.

A 1.64

B 2.5

C 0.54

D 0.36

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Correct Answers: D
Question 4
Single Correct Option, +1.00, -0.00
The main role of FMC is to deal with all matters relating to the promotion and orderly
growth of pension markets in India - State True or False ?
A true

B false

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Correct Answers: B
Question 5
Single Correct Option, +1.00, -0.00
The EBIT of a company is Rs 400000 and the EBIT % is 40% of the business. What is
the Net Profit of the company if the Net Profit margin is 10%

A Rs 10000

B Rs 100000

C Rs 40000

D Rs 16000

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Correct Answers: B
Question 6
Single Correct Option, +1.00, -0.00
A warrant is relatively _________ option to buy ________ at a specified exercise price
over a specified period of time.

A Long Term , Bonds

B Long Term , Common Stock

C Short Term , Bonds

D Short Term , Common Stock

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Correct Answers: B
Question 7
Single Correct Option, +1.00, -0.00
The objective(s) of all the regulators in a financial markets is / are ________.

A create a fair and competitive market place

B ensure that intermediaries high standard of services to the market
participants

C ensure orderly growth of financial markets

D All of the above

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Correct Answers: D
Question 8
Single Correct Option, +1.00, -0.00
__________ handles the matters relating to all the Direct and Indirect Taxes through
two statutory Boards namely, the Central Board of Direct Taxes (CBDT) and the
Central Board of Excise and Customs (CBEC).

A Department of Financial Services

B Department of Economic Affairs

C Income Tax Department

D Department of Revenue

You skipped this question

Correct Answers: D
Question 9
Single Correct Option, +1.00, -0.00
Dividend Payout Ratio is calculated by ________ .

A dividing the company's earnings per share by dividend per share.

B dividing the company's profits by dividend per share.

C dividing the company's dividend per share by earnings per share.

D None of the above

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Correct Answers: C
Question 10
Single Correct Option, +1.00, -0.00
The Debt to Equity Ratio of a company is 2 : 1. The total size of its Balance Sheet is
Rs 27,00,000. Calculate the Debt of the company.
A Rs 600000

B Rs 900000

C Rs 1800000

D Rs 2700000

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Correct Answers: C
Question 11
Single Correct Option, +1.00, -0.00
Buy-side Analysts work for firms that provide investment banking, broking, advisory
services for clients - State True or False ?

A true

B false

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Correct Answers: B
Question 12
Single Correct Option, +1.00, -0.00
Macroeconomics helps us understand the general state of the economy – Domestic
Production, Domestic Consumption, General Price levels, Growth, Quality of life etc -
State True or False ?

A true

B false

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Correct Answers: A
Question 13
Single Correct Option, +1.00, -0.00
A company has 200000 shares. The Price to Book Value ratio of this company is 7
and the Book Value is 5. Calculate the Networth of the company.

A Rs 1000000

B Rs 2000000
C Rs 1400000

D Rs 3500000

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Correct Answers: A
Question 14
Single Correct Option, +1.00, -0.00
__________ covers Banks, Insurance, Financial Services provided by various
government agencies and private corporations.

A Department of Revenue

B Department of Economic Affairs

C Department of Expenditure

D Department of Financial Services

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Correct Answers: D
Question 15
Single Correct Option, +1.00, -0.00
Mark to Market (MTM) margin is the notional ______ which an outstanding trade has
during a specified period on account of price movements.

A Profit

B Loss

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Correct Answers: B
Question 16
Single Correct Option, +1.00, -0.00
Sometimes, Bottom-up analysts focus purely on dynamics of business and industry
with little or no attention to the Economic factors - State True or False ?

A true

B false

You skipped this question

Correct Answers: A
Question 17
Single Correct Option, +1.00, -0.00
FDI leads to job destruction in the economy - State True or False ?

A true

B false

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Correct Answers: B
Question 18
Single Correct Option, +1.00, -0.00
The Net Profit of a company is Rs 12,00,000 and the Market Capitalisation is Rs
60,00,000. Calculate the Earnings Yield.

A 20%

B 5%

C 500%

D 0.20%

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Correct Answers: A
Question 19
Single Correct Option, +1.00, -0.00
Corporate actions like Bonus Issue, Stock Split and Share Consolidation will lead to
change in the per share data - State True or False ?

A true

B false

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Correct Answers: A
Question 20
Single Correct Option, +1.00, -0.00
RBI announces a hike in interest rates. In reaction the Bond prices will generally
_______ .
A Fall

B Rise

C No change

D None of the above

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Correct Answers: A
Question 21
Single Correct Option, +1.00, -0.00
Return on Capital Employed can be calculated as ________ .

A EBIT / Total Capital Employed ( Where Capital Employed = Networth -

Debt )

B EBIT / Total Capital Employed ( Where Capital Employed = Networth +

Debt )

C EBIT x Total Capital Employed ( Where Capital Employed = Networth -

Debt )

D EBIT x Total Capital Employed ( Where Capital Employed = Networth +

Debt )

You skipped this question

Correct Answers: B
Question 22
Single Correct Option, +1.00, -0.00
Mr. Singh purchases MF units at NAV Rs 11. After 400 days , he redeems it at NAV Rs
12.50. What is his compounded rate of return ?

A 16.20%

B 14.18%

C 13.55%

D 12.36%

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Correct Answers: D
Question 23
Single Correct Option, +1.00, -0.00
Investors looks for businesses with _______ entry barriers.

A High

B Low

C Either high or low depending on the nature of business

D None of the above

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Correct Answers: A
Question 24
Single Correct Option, +1.00, -0.00
Weighted Average Cost of Capital WACC = [Ke * We] x [Kd * (1-Tx)*Wd] State True
or False ?

A true

B false

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Correct Answers: B
Question 25
Single Correct Option, +1.00, -0.00
Most of the businesses are price takers and not price makers as there is competition
in the market. State True or False?

A true

B false

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Correct Answers: A
Question 26
Single Correct Option, +1.00, -0.00
If an investor is not be able to sell his investment when desired, or it has to be sold
below its intrinsic value, or there are high costs to carrying out transactions then this
risk is called as _______ .
A Transactional Loss Risk

B Liquidity Risk

C Reinvestment Risk

D Credit Risk

You skipped this question

Correct Answers: B
Question 27
Single Correct Option, +1.00, -0.00
In which analysis the performance, the structure and the conduct of an industry is
considered ?

A PESTLE Analysis

B Michael Porter’s Model

C SCP Analysis

D BCG Analysis

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Correct Answers: C
Question 28
Single Correct Option, +1.00, -0.00
A company has a sales of Rs 12400 and from this they have a operating profit of Rs
2400. If the corporate tax is at 35%, calculate the net profit margin of the company.
( There is no interest expense )

A 7.66%

B 10.87%

C 12.58%

D 14.70%

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Correct Answers: C
Question 29
Single Correct Option, +1.00, -0.00
The current stock price of ABC Software Ltd is Rs 1200. Its Profit After Tax (PAT) is Rs
68,00,000. The number of outstanding shares are 100000. Calculate the P/E Ratio.

A 17.64

B 19.66

C 21.47

D 23

You skipped this question

Correct Answers: A
Question 30
Single Correct Option, +1.00, -0.00
Editing a research report includes the following EXCEPT _____ .

A Checking the financial figures

B Spelling checks

C Correction of Grammatical Errors

D Validation of conclusion

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Correct Answers: D
Question 31
Single Correct Option, +1.00, -0.00
______ regulates the money market segment of securities market and is also the
manager of Indian Government's borrowing program.

A Ministry of Finance

B RBI

C SEBI

D Commerce Ministry

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Correct Answers: B
Question 32
 Single Correct Option, +1.00, -0.00
In the Pioneering Stage of a business life cycle, _______ .

A the business get many customers as the business becomes viable

B the business becomes very large and captures a good market share

C the business threats from new technologies

D the business concept is still being proven or just been proven

You skipped this question

Correct Answers: D
Question 33
Single Correct Option, +1.00, -0.00
As per the SEBI standards of corporate governance, independent directors should
constitute at least ______ of the board if the chairman is an executive director.

A 25%

B 50%

C 65%

D 70%

You skipped this question

Correct Answers: B
Question 34
Single Correct Option, +1.00, -0.00
Which committee is responsible for reviewing the financial statements of the
company and for nominating the auditors ?

A Audit committee

B Nomination committee

C Remuneration committee

D Board committee

You skipped this question

Correct Answers: A
Question 35
Single Correct Option, +1.00, -0.00
The work of a research analyst can be hampered by _______ .

A Lots of unnecessary and irrelevant information

B Contradiction of data from multiple sources

C Inaccessibility of data

D All of the above

You skipped this question

Correct Answers: D
Question 36
Single Correct Option, +1.00, -0.00
Rahul invests Rs. 75000 at the rate of 6% p.a. Calculate the future value of his
investments after 10 years.

A Rs. 98,540

B Rs. 1,34,250

C Rs. 1,12,500

D Rs. 1,48,650

You skipped this question

Correct Answers: B
Question 37
Single Correct Option, +1.00, -0.00
Which of these financial instruments do not have a default risk?

A Investment Grade Corporate Bonds

B Equity Shares

C Foreign Currency Bonds

D High Yield Corporate Bonds

You skipped this question

Correct Answers: B
Question 38
Single Correct Option, +1.00, -0.00
If imports are more than exports, then country will have a _______

A current account deficit

B current account surplus

C capital account deficit

D capital account surplus

You skipped this question

Correct Answers: A
Question 39
Single Correct Option, +1.00, -0.00
A company has 14 million shares, currently trading at Rs 20. The company has
assets worth Rs 100 million and liabilities of Rs 30 million. Calculate the Price to Book
value.

A 2.5

B3

C4

D 4.8

You skipped this question

Correct Answers: D
Question 40
Single Correct Option, +1.00, -0.00
A foreign investor has invested in the existing financial instruments of a country. This
is known as ______ .

A Foreign Direct Investment

B Foreign Portfolio Investment

C Foreign Aid

D Foreign Financial Participation

You skipped this question

Correct Answers: B
Question 41
Single Correct Option, +1.00, -0.00
Which of these can be considered as 'Threat' in SWOT analysis of a company?

A The patents held by the company are expiring

B Financial position of the company is very weak

C No succession planning in the company

D Pressure on Government to ban the company's products

You skipped this question

Correct Answers: D
Question 42
Single Correct Option, +1.00, -0.00
The views mentioned in a research report should be consistent with the _____ .

A views of individual research analyst publishing the report

B views of the research entity chief person

C views of the research entity

D views of the compliance team

You skipped this question

Correct Answers: A
Question 43
Single Correct Option, +1.00, -0.00
A Research Analyst gives his views and recommendations on a company based on
______ .

A Personal Understanding of the business

B Personal Understanding of the industry

C Communication with management

D All of the above

You skipped this question

Correct Answers: D
Question 44
Single Correct Option, +1.00, -0.00
To do good investing, one is required to _______ .

A Do rigorous research

B Evaluate alternate investment opportunities

C Have clear investment goals

D All of the above

You skipped this question

Correct Answers: D
Question 45
Single Correct Option, +1.00, -0.00
The Pradhan Mantri Jan Dhan Yojana (2014) was started and is being run by which
department?

A Department of Financial Services

B Department of Commerce

C Department of Revenue

D Department of Disinvestment

You skipped this question

Correct Answers: A
Question 46
Single Correct Option, +1.00, -0.00
There are two companies with P/E ratios of 9 and 27. But they have different growth
potentials of 8% and 32 % for the next few years. Which of the companies is cheaper
on the basis of PEG ratio ?

A The company with P/E ratio of 9

B The company with P/E ratio of 27

C Both the companies are very expensive

D From PEG ratio, one cannot judge the valuation of a company

You skipped this question
Correct Answers: B
Question 47
Single Correct Option, +1.00, -0.00
As per the Structure Conduct Performance (SCP) analysis, FMCG is an example of
which type of business?

A Round the year

B Seasonal

C Festive

D Cyclical

You skipped this question

Correct Answers: A
Question 48
Single Correct Option, +1.00, -0.00
What is the advantage of the 'CHECKLIST' approach to investing?

A There are less chances of overlooking data

B It ensures a disciplined approach

C It leaves a decision-making trail that can be modified and corrected with

time.

D All of the above

You skipped this question

Correct Answers: D
Question 49
Single Correct Option, +1.00, -0.00
What is the reason that even though the prices of a product shoots up, still there is
no fall in the demand?

A The customers are very brand loyal

B The customers are addicted to the product

C Pricing power of the business

D All of the above

You skipped this question

Correct Answers: D
Question 50
Single Correct Option, +1.00, -0.00
The profit before tax of a company is Rs. 200000. The P/E ratio is 2.5 and the current
market price of the company's shares is Rs. 200. The number of shares outstanding
are 2000. Calculate the approximate tax rate for this company.

A 20%

B 30%

C 35%

D 40%

You skipped this question

Correct Answers: A