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Stock A & B are positively correlated with a correlation co efficient of .75. When stock A moves up by 12%, how will stock B perform?

A.

Stock B will move up by 12%

B.

Stock B will move down by 12%

C.

Stock B will move up by 9%

D.

Stock B will move down by 9%

Which of the following statement is not true?

A.

Value of a bond with semi-annual interest rate, is greater than the value of bond providing interest on annual basis T

B.

Constant/variable growth model, for the valuation of equity share, is applicable for the growth rate g ? ke F

C.

In a variable growth model, the dividend is assumed to grow at a constant rate forever after a initial growth period T

D.

All of the above

Which of the following statement is true?

A.

Statement I is true but II is false

B.

Statement II is true but A is false

C.

Statements I & II both are true

D.

Statements I & II both are wrong

Negative amortization leads to ______________

A.

A decrease in loan amount

B.

A bullet repayment

C.

Increase in the loan amount

D.

None of the above

The approved superannuation fund has to deposit all the contributions received from the employer

A.

With The Government of India through the Reserve Bank of India

B.

In a savings Bank account with the Reserve Bank of India

C.

In a savings Bank account with a post office or a Scheduled Bank if they are not invested in any of the approved investment specified

D.

None of the above

Financial intermediaries

A.

exist because there are substantial information and transaction costs in the economy.

B.

improve the lot of the small saver.

C.

are involved in the process of indirect finance.

D.

Do all of the above.

The following parameters are available for two mutual funds:

Calculate Sharpe measure?

A.

0.10, 0.33

B.

0.8, 0.33

C.

0.22, 0.17

D.

0.18, 0.25

Consideration' under the law is a return promise to:

A.

(I), (II), and (III) only

B.

(I), (II), and (IV) only

C.

(I), (III), and (IV) only

D.

(II), (III), and (IV) only

A contract is said to be caused by coercion when it is obtained by:

A.

I,II and III

B.

I,III and IV

C.

II,III and IV

D.

All of the above

An investment required an initial cash outlay of Rs. 15,000/- and yield cash flows over the next 5 years. The cash flows generated are:

You are required to calculate the payback period:

A.

3 Years

B.

3.5 Years

C.

4 Years

D.

4.5 Years

A mutual fund that invests in Indian Equities, foreign equities, Indian Corporate Bonds, Indian Government Gilts is subject to the following risks?

A.

(a) & (c) only

B.

(a), (iii) & (iv) only

C.

(iii) & (iv) only

D.

(a), (ii), (iii) & (iv)

Which of the following statement is false?

A.

Statement I is wrong

B.

Statement II is wrong

C.

Statement III is wrong

D.

Statement IV is wrong

Which one of the following statements is/are correct?

A.

(i) only

B.

(ii) only

C.

Both are wrong

D.

None of the above

Investment made in a stock 2 years ago is Rs. 175; the current value is Rs. 250. The dividend received at the end of 2nd year is Rs. 40. What is the CAGR?

A.

28.72%

B.

40%

C.

118%

D.

140%

An increase in the market value of a company indicates:

A.

Increase in profitability

B.

Increase in revenues

C.

Increase in future prospects

D.

None of the above

Expenses are 10% of the gross (office) premium. Pure premium is Rs. 200. Calculate office premium.

A.

222

B.

220

C.

182

D.

180

Akash has only compulsory third party policy for his car. He jumped a red light and collided with another car and then with the boundary wall of a nearby house. Damage to his car was of Rs. 17,000/-, damage to other car was of Rs. 15,000/- and damage to the boundary wall of house was of Rs. 15,000. The insurance policy of Akash will pay:

A.

Rs. 17,000

B.

Rs. 15,000

C.

Rs. 30,000

D.

Rs. 47,000

Ram born in 1950 has a life expectancy at birth of 65 years. Sita his wife born in 1955 has a life expectancy at birth of 70 years. Assuming that the life expectancies have not changed. Ram is planning to buy an annuity to be paid to him or his wife till anyone of them is alive. Assuming Ram will retire on attaining age 58 i.e. in 2008, what should be the time period of the annuity?

A.

10 years

B.

12 years

C.

7 years

D.

17 years

Suresh a 30 years old person has joined ABHG on 1/07/2006. His monthly salary (net salary) after deduction is payable Rs. 20500.His monthly expenses details are as follows:

Assume that Suresh has taken his flat on rent from 01/07/2006. On 01 /07/2006 he has cash in hand Rs. 2450. What will be his cash in hand on 31/03/2007.

A.

Rs. 72150/-

B.

Rs. 83150/

C.

Rs. 94070/-

D.

Rs. None of the above

Minimum net-worth of an AMC should be ______

A.

1 crore

B.

2 crore

C.

5 crore

D.

10 crore