Level 2 – Final Quiz – Set A

As far as their value is concerned, the top priority group in company should be

Preferred stock is considered as hybrid security because it includes

_________ uses financial analysis to envisage the movement of stock prices.

Fundamental analysis is a ___________methodology

In order to have a smoothed rate of growth, we use

Which group of ratios measure a firm’s ability to meet short-term obligations?

The oldest approach to common stock selection is

Which of the following is most closely associated with the terms “primary trend,” “intermediate trend,” and “short-term trend”?

Amount of money involved in swap transaction is classified as

The size of the interest rate payment depends on

The risk profile of hedge funds ______, making performance evaluation __________.

Hedge funds are typically set up as __________ and provide _________ information about portfolio composition and strategy to their investors.

This principle observes that consistency in ownership of land and zoning or usage, tends to maximize value. The principle states that, “Land values tend to increase when adjacent lots are combined into single ownership and put to a single zoning or use.” This is

Restrictions have been imposed on the borrowings to be made by the fund which has been restricted to of the total value of the asset.

The REIT scheme will be managed by

Which of the following is the least related to one another?

Theory in which consumers make their own alternatives on basis of benefits and failure is classified as

_________involve patterns in stock returns from year to year or month to month

To profit from time-related market anomalies, one might sell stocks just prior to

The main drawback of CRM is

Which of the following should Wealth Managers have a clear view on, for CRM to work?

______are the commercial, technical, financial, administrative and other connections that are formed between companies in interaction.

The_____________ school argues that B2B transactions occur within the context of broader, long-term relationships, which are, in turn, situated within a broader network of relationships.

The first step in the market segmentation process is to

Credit blocking occurs

A formal, legal commitment to extend credit up to some maximum amount over a stated period of time

Which is a full service credit rating agency exclusively set up for micro, small and medium enterprises?

Which of the following are well-known Credit Information Companies in India?

______________ means investment to be safe from social disorders, government confiscations or unacceptable levels of taxation, property must be concealable and leave no record of income received from its use or sale

For registration as a portfolio manager,an applicant has to pay a non-refundable fee of _________as an application fee

Diversification Strategy is used to gain market share in

Remember to keep in mind that__ levels of uncertainty are associated with _____potential returns

Retention, acquisition and some add-on spending together makes up

The extensive array of investment fund products on offer has led to the development of

With a niche market business strategy, the focus is on

Which of the following is part of establishing a customer retention program?

_______ is one of the most critical factors to be considered while investing in any company.

The net value of GDP after deducting depreciation from GDP is

The value of national income adjusted for inflation is called

For most firms, P/E ratios and risk

In primary markets, the property of shares which made it easy to sell newly
issued security is considered as

The money market where debt and stocks are traded and maturity period is more
than a year is classified as

Which one of the following has not caused the huge growth in hedge funds and private equity?

Hedge funds exhibit a pattern known as a

A hedge fund pursuing a ______ strategy is attempting to exploit temporary misalignments in relative pricing.

Which of the following statements are false?
I) Debt securities are contractual obligations to repay corporate borrowing.
II) Equity securities are shares of common stock and preferred stock that represent non contractual claims to the residual cash flow
III) There are two types of collateral for debt i.e. security over a specified asset or security over the business as a whole.
IV) Debt against property never gives financial leverage.

Which of the following are true about Reverse Mortgage?
I) It is also called lifetime mortgage
II) It is used to release the home equity in the property as one-time payment or multiple installments

All of the following would be consideration for an item being real property except

The principle of value that states that two adjacent parcels of land combined into one larger parcel could have a greater value than the two parcels valued separately is called

Which of the following is not an marketing automation within operational CRM ?

In IDIC model, D represents

Manufacturing companies break-down manufacturing process into different operational steps to complete process operating cycle consists of

Which of the following would be consistent with a conservative approach to financing working capital?

Volatility risk can be calculated by

Suppose you buy a portfolio of long-dated bonds at a price of Rs. 200 each. Shortly afterwards, interest rates rise by 1.5% and the market value of your bonds falls to Rs. 190. This is an example of

Which of the following is not regulated at SEBI level?

Which of the following is not an assumption of the (APT)Arbitrage Pricing Theory?

Which of the following statements about the Arbitrage Pricing Theory (APT) is not correct?

In regression of capital asset pricing model, an intercept of excess returns is classified as

Which of the following statements is correct according to the theory of arbitrage?

XYZ company has an expected ROE of 10%. The dividend growth rate will be __________ if the firm follows a policy of paying 20% of earnings in the form of dividends.

Most professionally managed equity funds generally

In this model private client and Institutional asset management are kept entirely separate. This typically enables greater private client product customization and a closer relationship between client, relationship manager and portfolio manager.

____________ is where a universal private banking package covers all major processes and functions of the private banking operations. There are only a few satellites for special purposes (e.g. regulatory reporting).

A sustainable business model requires investment for

Ability of an organization to generate revenue with appropriate cost structure results in

Mrs.& Mr. Mehta are aged 55 and 58 years respectively. Both expect to work till they turn 65. Their only goal is to fund their retirement. Which of the following is likely to be an appropriate asset allocation strategy for them?

Mr. Dinesh is paying every month an EMI on a home loan of 2000000 he has taken @8% p.a. for 25 years. So what will be the EMI that he is paying and what will be the outstanding amount after 148th EMI?

Charan is a minor. His father Mr. Karan, an employee working in a MNC. His mother is a home maker. If Charan being an artist has earned an income of Rs.30,00,000. Such income is invested in fixed deposit and earned an interest of Rs.50,000. How much amount will be clubbed in the hands of his parents?

Gartner’s CRM Maturity Model is a tool in which the group used in rating enterprises in terms of their capabilities in effectively using CRM. To determine the category in which an enterprise is placed on the model, they are first evaluated in terms of Overall CRM vision and strategy, consistent valued-customer experience, organizational collaboration, processes, information, technology, metrics.

Ted’s TV Company earned $100,000 of net income during the year and decided to distribute $20,000 of dividends to its shareholders. Ted’s plowback ratio would be

A company paid a dividend last year of Rs. 1.75. The expected ROE for next year is 14.5%. An appropriate required return on the stock is 10% If the firm has a plowback ratio of 75%, then dividend in the coming year should be

With the following information find the company A’s Dupont analysis ROE .
Net income : 2000 ; revenue : Rs. 8000 ; Average assets :Rs. 5000 ; Average equity : Rs.2000

A company has declared a dividend of Rs. 2.50 per share for the current year. The company has been following a policy of enhancing its dividends by 10 per cent every year and is expected to continue this policy in the future also. An investor who is considering the purchase of the shares of this company has a required rate of return of 15 per cent.

A company paid a dividend of Rs. 1.75 per share during the current year. It is expected to pay a dividend of Rs. 2 per share during the next year. Investors forecast a dividend of Rs. 3 and Rs. 3.50 per share respectively during the two subsequent years. After that it is expected that annual dividends will grow at 10 per cent per year into an indefinite future. Assume rate of return to be 12%. Find the intrinsic value of the company.

let’s assume that during the last 10 days the highest high was 46 and the lowest low was 38–a range of 8 points. If today’s closing price was 41, %K would be calculated as

Mr. XYZ is bullish on Nifty on 24th June, when the Nifty is at 4191.10. He buys a call option with a strike price of Rs. 4600 at a premium of Rs. 36.35, expiring on 31st July. When will Mr. XYZ will make a net profit (after deducting the premium) on exercising the option.

Suppose Nifty is at 4450 on 27th April. An investor, Mr. A, enters into a short straddle by selling a May Rs 4500 Nifty Put for Rs. 85 and a May Rs. 4500 Nifty Call for Rs. 122. Find upper and lower breakeven prices

. consider a hedge fund manager in 2000 who had a 100% long exposure to tobacco industry stocks and had a 20% short exposure to semiconductor stocks. The beta of the S&P Tobacco index is 0.5, and for the Semi-Conductor index it is 1.5. The weighted average beta of the portfolio is.

Suppose the current price of an ounce of gold is Rs.2750, the risk-free rate is 6%, the cost of storage is 2% of the purchase price, and the lease rate to lend gold is 1%. A 6-month futures contract on gold will be.

According to Porter, which of the following is most important to achieving a competitive advantage?

Which of these situations is likely to cause high bargaining power of suppliers?

X Ltd., is expected to pay a dividend of Rs. 7 in the coming year. Dividends are expected to grow at the rate of 15% per year. The risk-free rate of return is 6% and the expected return on the market portfolio is 14%. The stock of X Ltd., has a beta of 3. The return you should require on the stock is

Versatile Company is expected to pay a dividend of Rs. 3.50 in the coming year. Dividends are expected to grow at a rate of 10% per year. The risk-free rate of return is 5% and the expected return on the market portfolio is 13%. The stock is trading in the market today at a price of Rs. 90.
What is the market capitalization rate and what is the approximate beta of Versatile Company?

The current dividend on an equity share of Blue-chip Ltd., is Rs. 5. the present growth rate is 50%. However , this will decline linearly over a period of 8 years and then stabilize at 10%. What is the intrinsic value per share of Blue-chip Ltd., if investors require a return of 18% from it’s stock?