Set of 25 Questions.

1) The price in two markets for the same tradable assets will be different only
to the extent of
a) Exchange rate difference
b) Holding period cost
c) Tax liability
d) Transaction cost

2) To calculate the Value of Equity, FCFE is DISCOUNTED using the?

a) Cost of Equity
b) Cost of Interest
c) Risk free rate of return
d) None of the Above

3) The requirement of providing disclosure document to the prospective

client at least two days prior to signing the PMS agreement be discontinued
under SEBI portfolio manager regulation 2020
a) True
b) False

4) The portfolio manager is required to preserve the book of accounts and

other records and documents for proceeding —--------------------- accounting
years
a) 5 year
b) 3 year
c) 4 year
d) 7 year
 5) if an individual is said to be resident in India that the provisions of the
presidency will not apply in this case
a) True
b) false

6) Indian company be considered as a non resident person when

a) a subsidiary of a foreign company
b) controlled from a place located outside India
c) Managed by a place located outside India
d) None of the above

7) The lower left quadrant of the five personalities graph represents

a) a celebrity people
b) adventurous people
c) individualistic people
d) Guardian People

8) A —------------------------ is a measure of economic recovery that shows

improvement before the actual economy does
a cyclical economic indicator
b legging economic indicator
C leading economic indicator
d) Defensive economist indicator

9) Of an investor deal with how the investor approach life in

terms of career wealth or money
a method of action
b time of Action
c level of confidence
d investment choice
10). The tactical asset allocation decisions of a manager involve time in the
market
a) True
b) False

11) In case of a joint account holding in Demat account addition or deletion of

folder is not allowed once the account is opened
a) True
b) False

12) —--------------- characterized by the period when income exceeds expenses

a) Accumulation phase
b) Gifting phase
c) Earning phase
d) The consolidation phase

13) The payment for the units of a MF cannot be made through —-------
a) Cheque
b)-RTGS NEFT
c) ASBA
d) None of the above

14) The —------------------------- as required under the provision of the income tax
Act 1961 shall be recorded in the portfolio account
a) Tax deducted at source
b) Tax on residential income
c) Tax on Redemption
d) Tax on purchase
15) The preference share ranks over equity share with respect to
a) The payment of dividend
b) Distribution of company’s net asset
c) Voting rights
d) One and two

16) In cost leadership strategy firm seeks be the —------------- and hence the cost
leader in its industry
a) Low cost seller
b) Low cost producer
c) Low cost retailer
d) Low cost consumer

17) The reporting to financial intelligence unit by a PMS is mandated under

a) Indian trust act 1882
b) PMLA 2002
c) Contract Act 1872
d) LLP act 2008

18) Lower correlation among securities portfolio leads to higher reduction of risk
a) True
b) False

19) Option buyer is expected to exercise the option only when the option is –
a) On the money
b) At the money
c) Out of the money
d) In the money
 20) Every portfolio manager said farmers to —-------- – a net worth certificate
issued by a chartered accountant as and when required by
a) SIDBI
b) AMFI
c) RBI
d) SEBI

21.) The portfolio manager shall derive indirect benefit out of the client funds
or securities.
a) True
b) False

22) The availability of investment opportunity is determined by the

……………………… of the economy .
a) Inflation rate
b) Risk free rate
c) Nominal Growth Rate
d) Real growth Rate

23) An unauthorized official of the —--------------- conducts an in person

verification of the applicant as part of the KYC process
a) Regulator
b) Intermediary
c) Stock exchange
d) None of the above
24) – —---- is the calculation that computes period by period return on an
investment and remove the effect of external cash flow is called
a) Internal rate of return
b) Money weighted rate of return
c) Time weighted rate of return and
d) Risk free rate of return

25) —------------------ are parts of the acquisition cost of the sale realization.
a) Investment management and advisory fees
b) Transfer agent fees
c) Depository fees
d) The brokerage and transaction cost

A Compilation By:--

Bhardwaj Edumotive Consultancy Bangalore

sanatbharadwaj@gmail.com
1 A 6 D 11 A 16 B 21 B
2 A 7 D 12 D 17 B 22 D
3 A 8 C 13 D 18 A 23 B
4 A 9 C 14 A 19 D 24 C
5 A 10 B 15 D 20 D 25

****************************