Final Practice Exam 3

The full form of UPSI _______

Top Down approach to fundamental analysis involves study of __________, ___________ & _______ in order

Bottoms UPS approach to fundamental analysis involves study of __________, ___________ & _______ in order

Real Estate Industry is a typical case of _______________

Holder can sell the Bonds back to the issuer before maturity at a pre determined Costs on specified dates in which type of Bond?

Price of a BOND and the Interest rate have inverse relationship:

In order to measure Risk Adjusted Return, the _____________ measures the return of the Portfolio during downside volatility

Every portfolio manager shall furnish to SEBI a net worth certificate issued by a chartered accountant every ________________

Client On boarding Process starts with

Regulatory RISKS is lower in start-ups and new business than the older and matured business:

Preference shares ranks above the equity shares with respect to the ____________-

_____________ of Investor bridges the gap between Standard finance and behavioural finance

The Annualized standard deviation of the portfolio is 6.5% and the Annualized Rate of return of the portfolio s is 10.50% and the risk free return is 5.5%. Calculate the Sharpe Ratio?

In case of Discretionary Portfolio Management Services, the performance of the portfolio has to be disclosed to clients using the following method:

A material financial relationship is where the one person is a recipient of any kind of payment in the way of loan from a designated person during the immediately preceding 12 months, equivalent to at least __________ of the annual income of such designated person.

The underlying principle for calculating TWRR is

The minimum netowrth required for PMS business is:

Mr. Sharma have 100 shares of ABC Ltd. Recently they announces 1:4 Bonus shares. What is the current amount of Shares available in the demat holdings of Mr. Sharma

Minimum amount of unlisted shares in a Discretionary PMS is set at ___________

Total Expenses charged to the fund excluding brokerage for a PMS is set at ________-

GIPS is a trademark of ________

The nominal rate of return is the amount of money generated by an investment before factoring in expenses such as ___________________

Minimum ticket size of investment for Cat I AIF is

Which of these a MF cannot manage in house Custodial services

What is the Duration of a Zero Coupon Bond?

Which of the following is a measure of the duration of a bond with an embedded options?

If a Bond has 1 year kept to maturity, Coupon to be received in a bond is Rs. 100 and the face value of the bond is Rs 1000. What will be the price of the Bond now when the one year Yield is 12%

Which of the following is NOT CORRECT?

The registration fee to get the PMS registration for body corporate is:

The definition of Body Corporate is defined in the following section of Companies Act

Following Non Individual entity can start PMS in India and launch fund

The minimum Income criterion for Deemed Resident is

The portfolio manager shall transact in securities within the limitation placed by the client himself with regard to dealing in securities under the provisions of

The counterparty risks in a futures is mitigated primarily through __________________

________________ is the central agency responsible for reviewing, processing, analysing and disseminating information relating to suspected financial transaction to enforcement agencies

The feature that allows the issuing firms to retire the bonds before the maturity by paying a prescribed price is called _______________

An _______________ is a board outlay of the type of securities and permissible instruments to be invested in by the portfolio manager for the customer, taking into accounts factors specific to clients and securities

__________________ Industries rise and fall and very closely follow the general economic activity in comparison to other industries

The agreement between PMS and the client should include which of the following?

SEBI Mutual Funds Regulations came in the year ________________

______________________ Portfolio Manager manages the funds in accordance with the directions of the clients.

While making an application for a Portfolio manager, Financial information has to be submitted for which of the tree (3) years?

A reputed portfolio manager has deployed funds of a client with a corporate. The corporate has promised that convertible bonds will be issued against these funds. Is this transaction in order?

The time period restrictions for a contra trade by a designated persons of a company is __________

__________________ is the thresh hold limit for the suspicious transaction for which record needs to be kept as per the money Laundering Acts

Define the relationship between price of the bond and the Yield

A portfolio Manager has changed its office address. The information should be informed to _________________

A reputed PMS firm has 5 group companies. Identify which amongst the following is the best practises about disclosing these to the clients

Who are the following institution can issues bonds in India?

The Price of the Equity Shares has reached its resistance line. As per technical analysis, this is good time to __________

Identify the True Statements:-

Which type of compensation is not embedded in the Nominal Risk free Rate?

The fund which is established to facilitate and organise the investment of the retirement funds contributed by the employees and employers are know is known as _______________

________________ as a factor is recognised by RBI Act 1934 to derive the value of Derivative

Which of this is NOT contained in the Investment Policy Statement?

A net amount of Rs.10,000 has to be paid to an investor as Interest. The TDS (Tax deducted at source) is 10%. Calculate how much should be set aside for the payment of interest?

Identify the correct statement with respect to Foreign Currency Convertible Bonds (FCCB)

As per which regulations is the KYC compliance been made mandatory

Ms. Preeti invested in the US and she earned on that US investment. If the US dollar depreciates during this investment period, then the return in INR terms will be ________________

Which type of disciplinary action can be taken as per the SEBI (Insider trading) regulations?

The currency pair of ________________ does not have futures or options trading on Indian stock Exchanges

Identify the statement which is NOT true regarding the organisation of Portfolio Manager?

Mr. Mehta’s initial contribution is Rs. 2 crores which then rises to 2.3 Crores in the first year. Therefore, a performance fee will be payable on Rs.30 lakhs. Is this statement correct?

Identify the INCORRECT Statement with respect to UNSYSTEMATIC RISK

The nominal rate of return protects the investor from Inflation Risk. Comment on the statement

Identify the distinguishing feature of a body corporate?

Identify which of these is NOT a Cost of Investing in PMS?

The application for registering as a Portfolio Management Service has to be made in _________________ of SEBI PMS regulations

Identify the TRUE statements with respect to BOND

The prime motto of portfolio attribution analyses is _________________

When is a Call Options said to be OT of the Money (OTM)

An investor wants to invest for some near term goals and he does not have tolerance for variation. In this case, the investment universe should be restricted to _______________

Let us take an example of two investment portfolios P and S, with the rate of return of 13% and 19%, while during the same period, the benchmark rate of return is 6%. On the other hand, the tracking error  for portfolio P and S is 5% and 14%. Determine which portfolio is the better investment given the risk associated.

The Full form of CAPM is ____________

The full form of DCF method is _________-

The clients expectation from Equity investment can be measured by the following ___________-

___________ was set by the Government of India on 18 November 2004 as the  central national agency  responsible for receiving, processing, analysing and disseminating information relating to suspect financial transactions.

Which is true in case of OTC market?

The full form of CRS is ____________–

The Finance Bill 2021 has proposed to introduce the definition of the term “liable to tax” by inserting a new clause 29A in ________ of the Income Tax Act (ITA).

Why do Government Securities generally offer lower coupon as compared to other debt securities with same tenor?

Income Tax rules restricts the employer’s contribution, whether to the provident fund or the super annuation fund or a combination of both, to ______ of the employee’s earnings.

The Debt repayment obligations are categorised as ___________ in retirement expenses

As per the Corporate model in NPS, the contributions made by the employee is routed through __________

Which is the following is a result of inflation?

From the below given options, which asset class is most unsuitable for an investor who wants high liquidity?

When a fixed amount is invested periodically in an equity mutual fund in a volatile market, how does the average cost of acquisition come down?

What are eth essentials for preparing a WILL?

What should be considered before taking on debt in retirement?

What could trigger a new asset allocation strategy in a retirement portfolio?

In the early retirement years, which of these is a good mix of investments?

In a deferred annuity, the retirement corpus is built _____________

What are the charges for Non financial transaction done in the National Pension Schemes and how are they collected?

An investment is considered a risky investment if ____________

In which order do the bucket gets emptied in the Bucket Strategy?

Who provides the Central Grievance Management System under NPS>

What is the role of a Policy Account in a Variable insurance product?

On which of the following factors will the creation of retirement corpus in the NPS depends on?

_______________ Investments instruments are structured to earn total return from interest income as well gain/loss from change in Values.

From the following investments theories, which will show the highest volatility in total return?

Mr. Gautam is a risk averse investor. So he will choose an investment which has _______ standard deviation.

Subscription to the NPS accounts can be made through ______________—

Mr. Jayesh purchased an company stock (ABC Yarn Ltd) at Rs 500 per stock. Currently the price of the stock has fallen to INR 300 and also the future looks weak and bleak. My Jayesh is still holding on to this stock think and believing that the price will rise again to the purchase price. What type of Bias is this>

Who appoints the officers of the Pension Fund Regulatory and Development Authority?

The PFRDA authority extends over ______–

When the retirement corpus is calculated, the value of the existing investments will be adjusted in what way?

How is the return on Investment Calculated?

Who can become a NPS Subscriber?

If the government opts for large scale borrowings to bridge the fiscal deficit, what will be the impact of this on equity markets?

Which features of Mutual fund makes it suitable for accumulating a retirement corpus?

________ is not considered for calculating the Returns in Investments (RoI)

What will be the consequence if the returns earned on a retirement portfolio is on the higher side?

______________ expenses is likely to be higher in retirement years.

______________ expenses is likely to be lower in retirement years.

Which of the following will be considered as an Investment?

What is suitable strategy to invest in growth securities in the distribution stage?

When a person looks for a retirement income which of the following is a desirable features he/she looks for?

________________ is registered to establish the ownership and title to the property.

________________ is a legal document used for computing and filing property tax. It contains all the property details, such as the owner’s details, property size, location, carpet area, built-up area, tax assessment, and property identification number

In NPS, what tax benefit is available under Section 80 CCD (2)

How can risks be managed in the investments held in Bucket 2 or 3 under the Bucket Strategy for retirement corpus?

Which is responsible to acts as a the operational interface with the external agencies under NPS?

What is the ideal way to manage outstanding debt when One prepares for retirement?

________________ is responsible for registering and regulating intermediaries under NPS

_____________ is the accepted measure of return for investments with investment horizons of over one year

A Person should have a life insurance cover in his retirement if ________________

Which of the following statement is TRUE with respect to the type of expenses in retirement?

The risks and Return from a Mutual Fund depends on _____________

Which of the following statements in True with respect of income tax in retirement?

Mr B is planning for his retirement which is about 20 years away. Which of the below investments is currently not suitable for him?

A retiree looks for multiple features from retirement income and the retirement portfolio and one of the primary requirement is ___________

The subscribers to the NPS have the option of Active Choice. Which decision(s) can the subscriber make under this options?

Who maintains the records of subscribers in the NPS?

In which way can a Power of Attorney (PoA) be used for the benefits of retirees?

For which category of below mentioned investor is a tax free bond which pays 7% interest most suitable for?

_______________ will lead to a greater risk to the accumulated retirement corpus running out.

Protecting the retirement income from inflation a primary goal of the retirement planning process in the distribution stage

A NRI subscriber can contribute to the NPS from _______

What is the minimum market capitalisation of companies whose equity shares can be chosen for investment in the NPS

Each Gold ETF typically represents how much of Gold?

Under the Bucket Strategy for managing the retirement corpus, in which way can the bucket 1 can be refilled>

In Defined Contribution plan (DCP), the retirement benefit depends upon _____________-

Which of the following features in NPS help in accumulating a good corpus by compounding the returns?

What determines the asset allocation in a Life Cycle fund?

A recently retired person finds that there is a significant shortfall in the retirement corpus. Which of the following options should be considered to bridge the Gap?

Why are Gsec not suitable for investments in the Accumulating stage of a retirement corpus?

The primary role of Gold in a long term retirement portfolio is _______________

For which calculations are the Years in Retirement required?

Which of the following is of main importance in relation to maintaining documents related to health and health insurance?

_____________ mutual funds are best suited for the needs in retirement

What is true respect to TOP-UPS in insurance policies?

Which of these is an indicator of an good improvement in the financial situation of an individual?

In retirement planning, inflation at which stage is considered to ensure that its impact is covered while creating the corpus?

__________________ is / are the advantage(s) to the subscriber for investing in the NPS?

One can manage his own fund / portfolio or invest in managed funds. What advantage does managed funds have over directly managing own portfolio?

Under ________________, all the charges relating to the primary retirement account are NOT borne by the account holder.

Which of the following features represents investments that fall under the same Asset Class?

Why is it that income from Mutual funds is unsuitable to meet essential expenses?

The securities purchased by each pension fund under the NPS will be held in the name of __________

The Atal pension Yojana (APY) account has to be opened at the ____

What role is contemplated for a nominee in an investment?

Why are growth assets unsuitable to be held in a portfolio as retirement comes closer?

A person will be disqualified to open a NPS account if ___________

For withdrawing funds from NPS, which of the following statements is TRUE?

The POP -SP through whom the registration form is submitted is mapped to the PRAN generated for the subscriber – what s the implication of this for the subscriber?

Which of these options is a role of the pension fund regulatory and development Authority (PFRDA)?

A stock has Beta of greater than 1. What does that mean?

____________ has the responsibility of ensuring that the subscribers in the NPS adheres to the Prevention of Money Laundering Act 2002

When is a Tier – I account closed?

The NPS regulations require that at least _____ percent of the accumulated corpus in the NPS account has to be used to purchase an annuity on reaching the age of 60 years

Which factors affect the health situation of an individual in retirement?

Which features of a Bank Deposit makes it ideal for investment for accumulation of retirement corpus?

__________________ should ideally not form a part of retirement expense

A retirement Adviser has to consider which of the following factors before suggesting a suitable scheme for a NPS subscriber?

How should a long term portfolio be managed?

How can one manage the risk of longevity and the risk of inflation on the retirement corpus by ___________

A person decides that he will save for retirement when all his other financial goals are met as he expects his income and savings to be higher later on. What is the risk such a plan can face?

The stock market fall by 10%. What will be the impact on the price of a stock which has a BETA of -0.7

Life expectancy directly affects which of the following features of the retirement goal?

Which of these is a non-financial concern in retirement?

Why do Government Securities generally offer lower coupon as compared to other debt securities with same tenor?

Income Tax rules restricts the employer’s contribution, whether to the provident fund or the super annuation fund or a combination of both, to ______ of the employee’s earnings.

The Debt repayment obligations are categorised as ___________ in retirement expenses

As per the Corporate model in NPS, the contributions made by the employee is routed through __________

Which is the following is a result of inflation?

From the below given options, which asset class is most unsuitable for an investor who wants high liquidity?

When a fixed amount is invested periodically in an equity mutual fund in a volatile market, how does the average cost of acquisition come down?

What are eth essentials for preparing a WILL?

What should be considered before taking on debt in retirement?

What could trigger a new asset allocation strategy in a retirement portfolio?

In the early retirement years, which of these is a good mix of investments?

In a deferred annuity, the retirement corpus is built _____________

What are the charges for Non financial transaction done in the National Pension Schemes and how are they collected?

An investment is considered a risky investment if ____________

In which order do the bucket gets emptied in the Bucket Strategy?

Who provides the Central Grievance Management System under NPS>

What is the role of a Policy Account in a Variable insurance product?

On which of the following factors will the creation of retirement corpus in the NPS depends on?

_______________ Investments instruments are structured to earn total return from interest income as well gain/loss from change in Values.

From the following investments theories, which will show the highest volatility in total return?

Mr. Gautam is a risk averse investor. So he will choose an investment which has _______ standard deviation.

Subscription to the NPS accounts can be made through ______________—