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Merton’s theory is ___________

A.

Of continuous time finance

B.

a link from Arrow-Debreu world to real world

C.

about dynamic replication

D.

All of the above

Under the Provisions of Transfer, of Property Act, the unborn child acquires vested interest-

A.

Upon his birth

B.

7 days after his birth

C.

12 days after his birth

D.

18 years after his birth

If an assessed earns rent from a sub-tenant in respect to tenanted property let out as a residence, the said rent is:

A.

Exempt under Section 10.

B.

Taxable under the head income from house property.

C.

Taxable as business income, as the letting out is a commercial activity.

D.

Taxable as income from other sources, unless the assessed is in the business of subletting properties on a regular basis.

………………………arises by operation of law eg trust created under MWP Act

A.

Express trust

B.

Implied trust

C.

Pre-catory trust

D.

Constructive trust

Difference between coparceners & member is that coparcener can demand partition of an HUF

A.

TRUE

B.

FALSE

A “Mass Affluent” segment client has investible assets worth of

A.

$50,000

B.

$100,000

C.

$200,000

D.

None of the above

Which of the following is not correct in relation to ETFs?

A.

ETFs provide exposure to an Index or a basket of securities that trade on the exchange like a single stock

B.

ETFs can be bought and sold on the exchange at prices that are usually closer to the actual intra –day NAV of the scheme

C.

ETFs trade very close to their actual NAVs

D.

Intra Day trading of ETFs is very expensive

______ holds that the exchange of currencies should be determined not by state institutions but by individuals in the market.

A.

Liberal view

B.

Social democratic view

C.

Neo classical view

D.

Classical view

PTA stands for

A.

Parent Teacher Association

B.

Preferential Trading Area

C.

Preferential Transportation Assembly

D.

Payment Trade Ambit

Cash Flow is a tool that is more useful for

A.

Short period financial analysis

B.

Long period financial analysis

C.

It is period agnostic

D.

None of the above

Wills which are not valid in India except in case of privileged wills or in case of Mahomadans are called as:

A.

Mutual wills

B.

Concurrent wills

C.

Nuncupative wills

D.

Holograph wills

The following is not ‘plant’ u/s 43(3) of the Income-Tax Act, 1961

A.

Books

B.

Know-how

C.

Road in the factory building

D.

Electrical fittings

Trust banks are ____________

A.

UK equivalent of traditional American private bank

B.

US equivalent of traditional European private bank

C.

Japanese equivalent of traditional European private bank

D.

None of the above

Aakash a trustee for Mahesh allows the trust to be executed solely by his co-trustee, Suresh. Suresh misapplies the trust property. Is Aakash personally answerable to the loss?

A.

Yes

B.

No

Urban land means land situated in area not being more than ………………from local list of local authority as notification in official Gazette

A.

5 km

B.

8 km

C.

10 km

D.

20 km

Diversification is most effective when the returns on securities are:

A.

Positively correlated.

B.

Zero correlated.

C.

Negatively correlated.

D.

High correlation

At the beginning of 2006 you have invested Rs 2000 in 40 Shares of ABC Ltd. During the year you received dividends @ 7 per share. At the end of 2006 you expect to sell share for Rs. 59. Compute return?

A.

114.80%

B.

32%

C.

1.32%

D.

14.89%

According to the capital asset pricing model, the expected rate of return on any security is equal to __________.

A.

[(the risk-free rate) + (beta of the security)] x (market risk premium)

B.

(the risk-free rate) + [(variance of the security's return) x (market risk premium)]

C.

(the risk-free rate) + [(security's beta) x (market risk premium)]

D.

(market rate of return) + (the risk-free rate)]

Document required to open a bank account is/are

A.

Identity Proof

B.

Residence Proof

C.

Photographs

D.

All of the above

Which of the is/are not the risk management technique in the old paradigm of Life Cycle Finance?

A.

Only II

B.

II and IV

C.

III and IV

D.

Only IV