Inter PN-11 FMDA Quiz 1

1. Credit Rating of a debt security is:

2. Which of the following is the benefit of Depositories?

3. Which of the following is not available in India?

4. Which of the following is true for mutual funds in India?

5. Which of the following is not regulated by SEBI?

6. Short selling refers to:

7. Basic objective of a money market mutual fund is:

8. Prime duty of a merchant banker is -

9. Assets Management company is formed:

10. CAPM accounts for -

11. Efficient portfolios are those portfolios, which offer (for a given level of risk)

12. A portfolio consisting of two risky securities can be made risk less i.e., Sp = 0, if:

13. To create a minimum variance portfolio, in what proportion should the two securities be mixed if the following information is given S1 = 10%, S2 = 12%, P12 = 0.6?

14. If the rate of interest is 12%, what are the doubling periods as per the rule 72 and the rule of 69 respectively?

15. A portfolio consists of two securities and the expected return on two securities is 12% and 16% respectively. Calculate return of portfolio if first security accounts for 40% of portfolio.

16. Risk of two securities having different expected return can be compared with:

17. A company wants to repay a loan of Rs. 5,00,000, 10 years from today. What amount should it invest each year for 10 years if the funds can earn 8% per annum? The first investment will be made at the beginning of this year.

18. A bank offers 12% compound interests payable quarterly. If you deposit Rs.2,000 now, how much it will grow at the end of 5 years?

19. How much amount should an investor invest now in order to receive five annuities starting from the end of this year of Rs. 10,000 if the rate of interest offered by bank is 10% per annum?

20. A student takes a loan of Rs. 50,000 from SBI. The rate of interest being charged by SBI is 10% per annum. What would be the amount of equal annual instalment if he wishes to pay it back in five instalments and first instalment, he will pay at the end of year 5?

21. If annual effective rate of interest is 10.25% per annum and nominal rate of return is 10% per annum what is the frequency of compounding?

22. Relationship between annual effective rate of interest and annual nominal rate of interest is, if frequency of compounding is more than 1:

23. If the nominal rate of interest is 10 per cent per annum and frequency of compounding is 4 i.e. quarterly compounding, the effective rate of interest will be:

24. Time value of money facilitates comparison of cash flows occurring at different time periods by:

25. Time value of money explains that: