1. Which of the following is an example of systematic risk in stocks? (DEC 2019)
(a) Company strike
(b) Industrial recession
(c) Unexpected entry of a new competitor in the market
(d) Bankruptcy of a major supplier
2. Treasury Bills are issued by: (DEC 2019)
(a) Public limited companies.
(b) Blue chip companies.
(c) Banks and selected all-India Financial Institutions only.
(d) Central government.
3. An equity share with beta greater than unity would be called: (DEC 2019)
(a) A defensive stock,because it is expected to decrease more than the market increase
(b) An aggressive stock,because it is expected to increase more than the market increase
(c) A defensive stock,because it is expected to increase more than the market decrease
(d) A aggressive stock,because it is expected to decrease more than the market increase
4. The risk aversion of investors can be measured by: (DEC 2019)
(a) Risk-free rate of return.
(b) Market rate of return.
(c) Variance of the return from a security.
(d) The difference between the market rate of return and the risk-free rate of return.
5. An investor purchases an 8% bond having a face value of ₹1,000 and maturity of 5 years for ₹900. A year later he sells it for ₹960 in the market. The holding period gain of the investor is: (DEC 2019)
(a) 8.88%
(b) 14.00%
(c) 14.58%
(d) 15.55%
6. Which of the following does not contribute to systematic risk? (DEC 2019)
(a) Change in the interest rates.
(b) Change in the level of government spending.
(c) Emergence of a new competitor.
(d) Change in the industrial policy.
7. Which of the following investment decisions is required to be taken for a stock,if its intrinsic value is greater than its market value? (DEC 2019)
(a) Sell
(b) Hold
(c) Buy
(d) Indifferent
8. Before taking investment decision,an investor makes a comparison of the………………… available from each avenue and elements of involved in it. (DEC 2020)
(a) Gross profit,Management
(b) Returns,Management
(c) Returns,Risk
(d) Risk,Returns
9. Speculator is a person: (DEC 2020)
(a) Who acts in a risky financial transaction,in the hope of substantial profit
(b) Who acts in a less risky financial transaction,in the hope of substantial profit
(c) Who uses only his own fund to make profit
(d) Who analyse the performance of the company but does not make any transactions
10.......................................... According to theory,it is futile to engage in Technical analysis. (DEC 2020)
(a) Dow Jones theory
(b) Random Walk theory
(c) Efficient Market theory
(d) None of the above
11. Which of the following statement defines the efficient market? (DEC 2020)
(a) Information is fully reflected on the stock prices
(b) The stock exchanges is fully automated
(c) The market is mentioned by the regulation authorities
(d) Free entry and exit of the investors
12. …………………… focus more on past price movements of firm’s stock than on the underlying determinations of future profitability. (DEC 2020)
(a) Fundamental Analysis
(b) System Analysis
(c) Credit Analysis
(d) Technical Analysis
13. If the markets are efficient,the security price provides: (DEC 2020)
(a) Inadequate return for taking up risk
(b) Normal return for the level of risk taken
(c) High return for the level of risk taken
(d) Both (a) and (c)
14. The standard deviation of market returns is 15. The return of stock X is 25%. The riskless rate of interest is 5%. The risk premium of the X stock is: (DEC 2020)
(a) 1.33
(b) 5
(c) 15
(d) 20
15. In ,the future earning capacity is predicted with the help of accounting ratios. (AUG 2021)
(A) Technical Analysis
(B) Industry Analysis
(C) Economic Analysis
(D) Company Analysis
16. Tansen Ltd. has a beta of 0.80. If the expected market return is 21.50 and the risk freerate of return is 9.50%. Using CAPM mode to calculate the appropriate required rate of return: (AUG 2021)
(A) 19.10%
(B) 20.10%
(C) 20.30%
(D) 22.00%
17. Which of the following is most closely associated with the terms ‘primary trend.’‘intermediate trend.’ and ‘short-term trend’ ? (AUG 2021)
(A) Trend line
(B) Dow Theory
(C) Candlestick chart
(D) Bar chart
18. Bar chart is used to illustrate: (AUG 2021)
(A) High,Low and closing stock price on a daily basis
(B) Reversal in the direction of stock prices without consideration of tune
(C) High,Low,opening and closing price on a daily basis
(D) The candlestick line
19. Which of the following is not a basic principle of the Dow Theory ? (AUG 2021)
(A) A bear market is established when the Dow Jones Industrial Average is movingdown
(B) There is usually a positive relationship between a trend and the volume of sharestraded
(C) The financial market has three distinct types of movements : the primary trend,theintermediate trend and short-term trends
(D) The intermediate trend has duration of three weeks to six months
20. According to Dow Jones theory,share prices demonstrate a pattern over: (DEC 2021)
(A) one to two years
(B) two to three years
(C) three to four years
(D) four to five years
21. The term “ECMH” refers to: (DEC 2021)
(A) Efficient Capital Micro Investment Hypothesis
(B) Efficient Capital Macro Investment Hypothesis
(C) Efficient Capital Management Investment Hypothesis
(D) Efficient Capital Market Hypothesis
22. Doubt bottom formation chart represents: (DEC 2021)
(A) a bullish development
(B) a bearish development
(C) a pattern of uncertainty
(D) None of the above
23. Which of the following are two major tools of technical analysis? (DEC 2021)
(A) Line chart,Bar chart
(B) Triangular task,Range taks
(C) Candlestick chart,Point and figure chart
(D) Charts,Indicators
24. Risk can be classified into: (DEC 2021)
(A) Planned,Unplanned
(B) Regular,Irregular
(C) Organized,Unorganized
(D) Systematic,Unsystematic
25. Which of the following is not a requirement for an efficient security market? (DEC 2021)
(A) Taxes are assumed to have no noticeable effect on investment policy
(B) Investors are rational
(C) Transaction costs of securities are considered
(D) Every investor has similar access to investible funds at the same terms and conditions