Assign ment C (40 mu lt ip le ch oic e qu estion s)

Q . 1 D u r a t io n i s t he m e a s u r e o f ( a ) T i m e s t r u c t u r e o f t h e bo n d ( b ) I nt e r e s t r a t e r i s k (c) T ime st ruct ure & mar ket r isk ( d ) T i m e s t r u c t u r e & t h e i nt e r e s t r a t e r i s k

Q . 2 t he s t a t i s t i c a l t o o l u s e d t o m e a s u r e a c o mp a n y s r i s k i s (a) Mean (b) Mo de (c) Var ia nce ( d ) C o - va r i a n c e

Q . 3 I nt e r e s t r a t e r i s k o c c u r s w h e n ( a ) T he m a r k e t p r i c e o f bo n d m o ve s i n v e r s e l y t o t h e p r e v a i l i n g m a r k e t i nt e r e s t r a t e ( b ) T he v a r i a b i l it y i n y i e l d i s d u e t o t he m a r k e t int e r e s t r a t e f l u c t u a t io n s ( c ) T he r e i s v a r i a b i l it y i n t he c o u p o n i nt e r e s t r a t e s (d) All

Q . 4 U nc o nt r o l l a b l e r i s k o f a c o m p a n y i s ( a ) L a bo r p r o b l e m ( b ) I nc r e a s e i n l o a n s e r v i c e c h a r g e (c) Cut in su bsid y ( d ) T e c h no lo g i c a l o b s o l e s c e n c e

Q . 5 C o nc e p t u a l f r a m e w o r k o f va l u a t io n t hr o u g h P / E r a t io a r i s e s fro m ( a ) M u lt i p l e ye a r ho l d i n g mo d e l s

( b ) C o n s t a nt g r o w t h mo d e l ( c ) T w o s t a g e g r o w t h mo d e l ( d ) T hr e e s t a g e g r o w t h mo d e l

Q . 6 A n i n v e s t o r p u r c ha s e s a s t o c k i n t he s t o c k m a r k e t . H i s ho l d i n g p e r io d r e t u r n d e p e nd s o n t h e ( a ) P u r c ha s e p r i c e o f t h e s t o c k (b) Se lling pr ic e o f t he st o ck ( c ) D i v i d e nd p a i d t o t he s t o c k ( d ) A l l t he a bo ve

Q . 7 I nt e r C o n ne c t e d S t o c k e xc h a ng e i s t o i nt e r l i n k ( a ) T he B S E , N S E & O T C E I ( b ) A l l t he s t o c k e xc h a n g e s ( c ) F i ft e e n r e g io n a l s t o c k e xc h a ng e s ( d ) F o u r t e e n r e g io n a l s t o c k e xc h a n g e s

Q . 8 O ve r t h e C o u nt e r E x c ha n g e o f I n d i a w a s s t a r t e d a ft e r t he r o l e mo d e l o f ( a ) N AS AQ (b) J AS AQ ( c ) N AS D A Q & J A S D A Q (d) NSE

Q . 9 C u s t o m e r s p r o t e c t io n f u nd i s s e t u p ( a ) T o p r o t e c t t he i n v e s t o r s a g a i n s t p r i c e f l u c t u a t io n s ( b ) T o p r o t e c t t he br o k e r i n c a s e o f no n p a y m e nt o f mo n e y b y in ve st o rs ( c ) T o p r o v i d e i n s u r a n c e t o i n v e s t o r s i n c a s e o f d e f a u lt b y t h e me mber s ( d ) T o p r o t e c t t he m e m b e r & t he i n v e s t o r

Q . 1 0 t he o l d e s t s t o c k e xc h a ng e i n I nd i a i s (a) BSE (b) NSE (c) N ift y (b) ISE

Q . 1 1 T h e a c c o u nt i ng p e r io d c yc l e o f N S E is ( a ) W e d n e s d a y t o ne xt T u e s d a y ( b ) T u e s d a y t o ne xt We d ne s d a y ( c ) M o nd a y t o ne xt F r i d a y ( d ) W e d n e s d a y t o ne xt W e d n e s d a y

Q . 1 2 M a r k e t a b i l it y r i s k o f bo nd i s ( a ) T he m a r k e t r i s k w h i c h a f f e c t s a l l t h e bo nd s ( b ) V a r i a t io n i n r e t u r n c a u s e d b y d i f f i c u lt y i n s e l l i n g bo nd s ( c ) T he f a i l u r e t o p a y t h e a g r e e d v a l u e o f t he bo nd b y t he i s s u e r (d) Both a & b

Q . 1 3 D e f a u lt r i s k i s lo w e r i n (a) Treasur y b ills ( b ) G o ve r n m e nt bo nd s ( c ) I C I C I B o nd s ( d ) I D B I bo nd s

Q . 1 4 T h e va l u e o f bo n d d e p e nd s o n ( a ) T he c o u p o n r a t e ( b ) Y e a r s t o ma t u r it y ( c ) E xp e c t e d y i e l d t o ma t u r it y ( d ) A l l t he a bo ve

Q . 1 5 T he bo nd y i e l d r e m a i n s c o ns t a nt o ve r it s l i f e a n d t h e d i s c o u n t o r p r e m i u m a m o u nt w i l l d e c r e a s e ( a ) At a d e c r e a s i n g r a t e a s it s l i f e g e t s s ho r t e r ( b ) At a d e c r e a s i n g r a t e a s it s l i f e g e t s lo n g e r ( c ) At a n i n c r e a s i n g r a t e a s it s l i f e g e t s s ho r t e r ( d ) At a n i n c r e a s i n g r a t e a s it s l i f e g e t s lo ng e r

Q . 1 6 I n v e s t m e nt i s t he ( a ) N e t a d d it io n s m a d e t o t he na t io n a l c a p it a l s t o c k s ( b ) P e r s o n s c o m m it m e nt t o bu y a f l a t o r a ho u s e ( c ) E mp l o y m e nt o f f u nd s o n a s s e t s t o ea r n r e t u r n s ( d ) E mp l o y m e nt o f f u n d s o n g o o d s a nd s e r v i c e s t h a t a r e u s e d i n p r o d u c t io n p r o c e s s

Q.17 Spe cu lat o r is a p erso n ( a ) W ho e v a l u a t e s t he p e r fo r m a n c e o f t h e c o mp a n y ? ( b ) W ho u s e s h i s o w n f u nd s o n l y ? ( c ) W ho i s w i l l i n g t o t a k e h i g h r i s k fo r h i g h r e t u r n ? ( d ) W ho c o n s i d e r s he r e s a ys & m a r k e t b e ha v io u r s

Q . 1 8 t o fr a m e t h e i n v e s t m e nt p o l i c y t h e i n v e s t o r s ho u l d ha v e ( a ) K no w l e d g e a bo u t t he c o mp a n y a n d t he br o k e r s (b) I nvest ib le fu nds ( c ) K no w l e d g e a bo u t i n v e s t m e nt a lt e r n a t i ve s ( d ) K no w l e d g e a bo u t t he m a r k e t w it h f u n d s

Q . 1 9 T h e m a i n o b j e c t i v e o f a r a t io na l i n v e s t o r i s ( a ) M a x i m i s i n g r e t u r ns & m i n i m i z i n g r i s k (b) M in imis ing r et urn & ma x imiz ing r isk ( c ) s ho r t t e r m g a i n s ( d ) s a f e t y o f t he p r i n c i p a l

Q . 2 0 C l e a r i n g & s e t t le m e nt o p e r a t io n s o f t h e N S E i s c a r r i e d o u t b y ( a ) N a t io na l S e c u r it y D e p o s it o r y L t d ( b ) N a t io n a l S e c u r it y C l e a r i n g C o - o p e r a t io n ( c ) S t a t e B a nk o f I nd i a ( d ) B y t he e x c h a ng e it s e l f

Q . 2 1 I n t he s t o c k m a r k e t p s yc ho lo g y ( a ) I n v e s t o r s fo r g e t t he p a s t ( b ) H i s t o r y r e p e a t s it s e l f ( c ) M o r e fa i t h i n f u t u r e p r e d i c t io n (d) Both a &b

Q . 2 2 G r o s s d o m e s t i c p r o d u c t i s a l o g ic a l f a c t o r t o a na l yz e t h e e c o no m y i n p i c k i n g u p a s t o c k b e c a u s e it i nd i c a t e s ( a ) I n f l a t io n o r d e f l a t io n ( b ) T he m a r k e t v a l u e o f a s s e t s ( c ) T he s t a t u s o f t he e c o no m y ( d ) T he c o nd it io n o f t h e s t o c k ma r k e t

Q . 2 3 O ne o f t he fo l l o w i n g f a c t o r s le a d s t h e a c t i v it y o f t he s t o c k mar ket (a) Money supply ( b ) P e r c a p it a i n c o m e ( c ) U ne m p lo y m e nt r a t e ( d ) M a nu f a c t u r i n g & t r a d e

Q . 2 4 T he f a l l i n i n t e r e s t r a t e i s c o nd u c i v e t o t he s t o c k m a r k e t because ( a ) M o n e y m a y f lo w fr o m t he bo nd m a r k e t t o s t o c k m a r k e t

( b ) C o r p o r a t e c a n bo r r o w a t e a s y t e r m s ( c ) B r o k e r s c a n d o bu s i n e s s a t bo r r o w e d fu n d s (d) Both b & c

Q . 2 5 T h e g r o w t h i n bo o k va l u e p e r s ha r e s ho w s t h e (a) R ise in t he share pr ic e ( b ) I nc r e a s e i n t he p h ys i c a l a s s e t s o f t h e fo r m ( c ) I n c r e a s e i n t he n e t w o r t h (d) Gro wt h in re ser ve s

Q . 2 6 T h e p r i c e e a r n i n g s r a t io o f a s t o c k r e f l e c t s ( a ) T he g r o w t h o f t h e c o m p a n y ( b ) T he m a r k e t mo o d fo r t he c o mp a n y s s t o c k ( c ) T he e a r n i n g s r e t a i n e d a n d i n v e s t e d i n t he c o m p a n y ( d ) T he d i v i d e n d p a i d o u t fo r t he c o mp a n y s s t o c k Q.27 NB FC s o ffe rs hig her int ere st rate bec au se o f ( a ) T he b e s t ma n a g e m e nt fu n d s ( b ) t h e c o mp e t it io n a mo n g s t N B F C s ( c ) t he r i s k i n vo l v e d ( d ) t he c r e d it r a t i ng

Q . 2 8 O p e n e nd e d s c h e m e s a r e ( a ) o p e n fo r a p a r t ic u l a r p e r i o d ( b ) ha v e f i x e d p e r i o d o f m a t u r it y ( c ) l i s t e d i n t he s t o c k e x c h a ng e s ( d ) o p e n o n a c o nt i n u o u s ba s i s

Q . 2 9 I nt e r v a l f u nd i s ( a ) I nd e x f u nd ( b ) o p e n f u nd ( c ) a c lo s e d e nd f u nd

( d ) a c o m b i n a t io n o f c lo s e & o p e n e n d f u n d

Q.30 Inde x sc he me s ( a ) R e t u r ns e q u a l t o i nd e x r e t u r n s ( b ) r e f l e c t t he m a r k e t (c) are inco me sc he me s ( d ) a r e t a x s a v i n g s c he m e s

Q . 3 1 S t o c k e xc h a ng e ( a ) H e l p s i n t h e f i x a t io n o f s t o c k p r i c e s (b) E nsure sa fe & fa ir d ea ling ( C ) I n d u c e s g o o d p e r fo r m a n c e b y t he c o m p a n y ( d ) A l l t he a bo ve

Q . 3 2 _ _ _ _ _ _ _ _ _ _ w a s t he g r a nd f a t he r o f t e c h n i c a l a n a l ys i s . A) B) C) D) E) H a r r y M a r k o w it z W illia m S harp e C ha r l e s D o w B e n j a m i n G r a ha m no ne o f t h e a bo ve

Q . 3 3 T h e g o a l o f t he D o w t he o r y i s t o A) B) C) D) E) i d e nt i f y h e a d a nd s ho u l d e r p a t t e r ns . i d e nt i f y br e a k a w a y p o i nt s . i d e nt i f y r e s i s t a nc e l e v e l s . i d e nt i f y s u p p o r t le v e l s . i d e nt i f y l o ng - t e r m t r e nd s .

Q . 3 4 T e c h n i c a l i n d i c a t o r s he l p

( a ) T o f i n d o u t t he p r e s e nt s t a t e o f t he s t o c k ma r k e t ( b ) T o e s t i m a t e t he g r o w t h o f s t o c k m a r k e t ( c ) T o i n d i c a t e t he e c o no m i c a c t i v it y ( d ) T o s ho w t he d i r e c t io n o f t he o v e r a l l ma r k e t

Q . 3 5 T h e m a r k e t va l u e o f t h e s c r i p i s d e t e r m i n e d b y ( a ) T he d i v i d e nd d e c l a r e d b y t he c o m p a n y ( b ) T he p r e s e nt s t a t u s o f t h e s t o c k m a r k e t ( c ) T he n u m b e r o f f lo a t i n g s h a r e s ( d ) T he i n t e r a c t io n o f d e m a n d & s u p p l y

Q . 3 6 T h e n e g o t ia b l e f i n a n c i a l i n v e s t m e nt is d i f f e r e nt fr o m t he n o n n e g o t i a b l e f i n a n c i a l i n v e s t m e nt i n t e r m s o f ( a ) M a t u r it y p e r i o d ( b ) I nt e r e s t r a t e (c) Transfer a bilit y (d) Fa ce va lue

Q . 3 7 I n v e s t m e nt ma d e o n a ho u s e p r o p e r t y i s a ( a ) F i n a n c i a l i n v e s t me nt ( b ) E c o no m i c i n v e s t m e nt ( c ) N o n- ne g o t i a b l e f i n a n c i a l i n v e s t m e n t (d) Non-fina ncia l in vest ment

Q . 3 8 w h i c h o ne o f t h e fo l lo w i n g i s no t a mo ne y m a r k e t s e c u r it y ?

(a) Treasur y b ills ( b ) N a t io n a l s a v i n g s c e r t i f i c a t e ( c ) C e r t i f i c a t e o f d e p o s it (d) Co mmer c ia l p aper

Q.39Co mmerc ia l p aper s are ( a ) U ns e c u r e d p r o m i s s o r y no t e s ( b ) s e c u r e d p r o m i s s o r y no t e s (c) So ld at a pre miu m ( d ) i s s u e d fo r a p e r io d o f 1 - 2 ye a r s

Q . 4 0 T h i s p a r t ic u l a r s c h e m e h e l p s i n d e f e r r i n g t h e t a x p a y m e nt ( a ) P u b l i c p r o v i d e nt f u nd ( b ) N a t io n a l s a v i n g s s c h e m e ( c ) N a t io na l s a v i n g s c e r t i f i c a t e (d) Life insura nc e sc he me