Question1: Section A (1 Mark)
Division of the market into groups based on variables such as age, gender, size, income, occupation, education, religion, race and nationality comes under which of the following market segmentation?
Question2: Section B (2 Mark)
Which of the following statements is most correct?
Question3: Section B (2 Mark)
A constant proportion portfolio insurance (CPPI) policy calls for:
Question4: Section B (2 Mark)
As per Double Taxation Avoidance Agreement, the Dividends in UAE is charged at:
Question5: Section B (2 Mark)
Mr. Jain is projecting an income stream providing Rs. 2,000/- for first 3 months, Rs. 3,200 for next 2 months, Rs. 4,500 for next 1 month, Rs. 3,700 for next 6 months and Rs. 800 for 2 months thereafter. EACH CASH FLOW starts from the beginning of the month. Please calculate the Present Value of this cash stream if rate of interest is 9 % per annum compounded monthly?
Question6: Section A (1 Mark)
Which of the following is not a broad category of Alpha drivers?
Question7: Section B (2 Mark)
An investor is bearish about Tata Motors and sells ten one-month ABC Ltd. Futures contracts at Rs.6,06,000.
On the last Thursday of the month, Tata Motors closes at Rs.600. He makes a _________. (assume one lot =
100)
Question8: Section A (1 Mark)
A UHNW segment client has investible assets worth of
Question9: Section B (2 Mark)
PPF is a
Question10: Section A (1 Mark)
Which of the following is least indicative of the pyramid structure seen when individuals create portfolios?
Question11: Section A (1 Mark)
Which of the following is an effective strategy in times of falling interest rates?
Question12: Section C (4 Mark)
Read the senario and answer to the question.
Mr. Bhatia owns a Maruti Wagonr with a monthly EMI of Rs. 6,312. The above loan will be completely repaid by August 2008. Mr. Bhatia planning to purchase a new car worth of Rs. 15 lakh. For this he has to take a full value loan of the car with 9% interest for 5 years. But his present car is in good condition and life of this car is approximately another 5 years repairs and maintenance cost are minimum. If he postpones his car purchasing plan now and deposit the same EMI outflow required for new car into an SIP with a minimum 15% yield for the next five years, then calculate the fund he can accumulate?
Question13: Section A (1 Mark)
Financial Independence usually occurs between _______
Question14: Section B (2 Mark)
The following parameters are available for two mutual funds:
Calculate Treynor's performance index for Fund A & Fund B respectively
Question15: Section B (2 Mark)
Which of the following statements regarding a buy and hold strategy are true?
Question16: Section A (1 Mark)
The long term use is 120% of long term source. This indicates the unit has
Question17: Section B (2 Mark)
After making an investment, assume that an investor overhears a news report that has negative implications regarding the potential outcome of the investment he has just executed. How likely is he to then seek information, if he exhibits self attribution bias, that could confirm that you've made a bad decision?
Question18: Section B (2 Mark)
Information processing errors consist of
Question19: Section B (2 Mark)
The current market price of a share of XYZ stock is Rs50. If a call option on this stock has a strike price of Rs45, the call
Question20: Section A (1 Mark)
Credit reports provided by credit bureaus provide lenders:
Question21: Section C (4 Mark)
Read the senario and answer to the question.
Nimita wants to know if she were to meet with an accident and get permanent disability in the third year of her Term Insurance policy, what amount of the premium due in the fourth year would be payable by her if the premium being paid towards the policy is Rs. 15,000 with sum assured of Rs. 50 lakh?
Question22: Section A (1 Mark)
The risk that occurs when the index used for determination of interest earned on the CDO trust collateral is different from the index used to calculate the interest to be paid on the CDO trust is known as______________.
Question23: Section A (1 Mark)
The use of P/E ratios to select stocks suggests that
Question24: Section A (1 Mark)
Which of the following is NOT one of the phases of the life-cycle theory of asset allocation?
Question25: Section C (4 Mark)
Read the senario and answer to the question.
Pallavi's marriage is expected by the end of December, 2010 with an expected present cost of Rs. 24,00,000.
He is expected to realize from his Tatanagar Flat 18, 00,000 by that time. Calculate what additional amount is required for his daughter's marriage. With 8% pa. risk free rate compounding monthly what amount he has to save per month (BEGIN) in a debt fund?
Question26: Section A (1 Mark)
_____________ is the transfer of the balance of an existing home loan that you availed at a higher rate of interest (ROI) to either the same HFC or another HFC at the current ROI a lower rate of interest.
Question27: Section A (1 Mark)
The life-cycle theory of asset allocation proposes that as investors progress through life, their
Question28: Section A (1 Mark)
___________is concerned with the rational solution to the problem at hand. It defines an idea that actual decisions should strive to approximate.
Question29: Section A (1 Mark)
_______________ reveals that people often focus on short-term financial events to the detriment of their long-term needs.
Question30: Section A (1 Mark)
Retiring early will need
Question31: Section B (2 Mark)
The risk-free return is 9 percent and the expected return on a market portfolio is 12 percent. If the required return on a stock is 14 percent, what is its beta?
Question32: Section A (1 Mark)
Technical analysis reflects the idea that stock prices
Question33: Section B (2 Mark)
The Motor Vehicle Insurance Policy has inbuilt cover for death/disability of driver/owner caused by accident during the use of the insured motor vehicle up to Rs. __________ in case of car/commercial vehicle and Rs.
_________ in case of two wheelers.
Question34: Section A (1 Mark)
Which of the following statement is true?
Question35: Section B (2 Mark)
The equity risk premium for the market is 8 percent. Jackson Products has a beta of 0.4. The real risk-free rate is 2 percent and the expected inflation premium is 5 percent. The required rate of return for Jackson is
__________ percent.
Question36: Section A (1 Mark)
The concept of designing marketing communication programs that coordinate all promotional activities to provide a consistent message across all audiences is called
Question37: Section B (2 Mark)
There are three stocks, A, B, and C. You can either invest in these stocks or short sell them. There are three possible states of nature for economic growth in the upcoming year; economic growth may be strong, moderate, or weak. The returns for the upcoming year on stocks A, B, and C for each of these states of nature are given below:
If you invested in an equally weighted portfolio of stocks A and B, your portfolio return would be
___________ if economic growth were moderate.
Question38: Section A (1 Mark)
______________represents the corollary effect-the irrational denial of responsibility for failure.
Question39: Section B (2 Mark)
Babu Lal sold his residential house on 28-06-2010 and made a long term capital gain of Rs. 372229. He purchased a new house on 22-10-2010 for Rs. 360000 which is again sold for Rs.620000 on 16-6-2011. He purchased another house on 20-12-2011 for Rs.786000. Calculate the exemption available u/s 54 for the assessment year 2012-13. [CII-12-13: 852,11-12: 785,10-11:711]
Question40: Section B (2 Mark)
An appraiser estimates that a property will produce NOI of Rs 25,000, the Yo is 11 percent, and the growth rate is 2.0 percent. What is the total property value (unrounded)?
Question41: Section A (1 Mark)
For a "single income family" priority is on
Question42: Section A (1 Mark)
In hedge funds the risk of no standard platform for measurement and no standard format for reporting is called
__________________
Question43: Section C (4 Mark)
J&M had a return on equity of 31.5% in 1993, and paid out 37% of its earnings as dividends. The stock had a beta of 1.25. (The treasury bill rate is 6%.) The extraordinary growth is expected to last for ten years, after which the growth rate is expected to drop to 6% and the return on equity to 15% (the beta will move to 1).
Assuming the return on equity and dividend payout ratio continue at current levels for the high growth period, estimate the P/BV ratio for J&M.
Question44: Section A (1 Mark)
Which of the following might be used as a factor in an APT factor model?
Question45: Section A (1 Mark)
Which of the following is/are the challenges of Private Banking?
Question46: Section B (2 Mark)
To maximize this benefit a bank must:
Question47: Section B (2 Mark)
Under the Payment of Gratuity Act, 1972, where the employee employed in a seasonal establishment is deemed to be in continuous service for such period if he actually worked for not less than __________% of the number of days on which the such establishment was in operation during such period.
Question48: Section B (2 Mark)
You purchase one ILM 70 call option for a premium of Rs6. Ignoring transaction costs, the break-even price of the position is
Question49: Section A (1 Mark)
A testator sometimes make two wills one relating to his property in his native country and other relating to his property in some foreign country this type of will is called
Question50: Section A (1 Mark)
The quantum of deduction allowed u/s 80U is:
Question51: Section B (2 Mark)
In the maturity stage of the industry life cycle
Question52: Section B (2 Mark)
You have Rs. 5 Lacs available to invest. The risk free rate as well as the borrowing rate is 8%. The return on the risky portfolio is 16%. If you wish to earn 22% return, you should:
Question53: Section C (4 Mark)
Read the senario and answer to the question.
Harish wants to go abroad on a family vacation tour in January next year. A tour operator is offering him a package in which he has to pay only Rs. 20,000 on 1st January, 2011 which is 10% upfront amount, while the remaining amount is to be repaid in 36 EMIs of Rs. 7,500 each, first EMI payable on 1st February, 2011.
Harish wants to know the annual effective rate of interest which he may incur in subscribing to this offer.
Question54: Section C (4 Mark)
The returns of 2 shares are as follows
Calculate the covariance of returns.
Question55: Section B (2 Mark)
Which of the following statements is/are correct?
Question56: Section C (4 Mark)
Watts Industries, a manufacturer of valves for industrial and residential use, had the following projected free cash flows to equity per share for the next five years , in nominal terms.
The terminal price is based upon a stable nominal growth rate of 6% a year after year 5. The discount rate, based upon financial market rates, is 14%, and the expected inflation rate is 3%.
Estimate the value per share, using nominal cash flows and the nominal discount rate.
Question57: Section A (1 Mark)
Hybrid plans are
Question58: Section C (4 Mark)
Read the senario and answer to the question.
Mr. Bhatia is interested to invest in a mutual fund SIP account and expecting which will grow by atleast 12% for Neena's education need. Calculate how much he has to deposit per month?
Question59: Section A (1 Mark)
Risk factors in the APT must possess all of the following the characteristics except:
Question60: Section A (1 Mark)
In The CAMPARI model of Credit evaluation 'C' stands for:
Question61: Section B (2 Mark)
If an investor strongly believes that the stock market is going to have a sharp decline shortly, he or she could maximize profit by
Question62: Section A (1 Mark)
Mr. Kashyap took a business premise on lease with the provision that he himself had to pay the insurance premium for fire and other perils on the premises and not the owner of the premises. This would be an instance of_______________ on the part of owner of the premises.
Question63: Section C (4 Mark)
Mr. Rajesh Rawat deposits Rs. 15,000 per month at the end of the month for 6.50 years in an account that pays a ROI of 8.80% per annum compounded quarterly. What will be the amount in the account after 6.50 years?
Question64: Section C (4 Mark)
Read the senario and answer to the question.
Compute Expanded Liquidity Ratio before his retirement as (beginning of October 2007) and find out for how many months of expenses, his liquid assets are sufficient enough to cover?
Question65: Section A (1 Mark)
The "lockup" problem involved in rebalancing refers to the:
Question66: Section A (1 Mark)
Which of the following is not true in respect of CIBIL?
Question67: Section A (1 Mark)
A public trust is created for the benefit of
Question68: Section B (2 Mark)
Which of the following is closest to the forward price of a share price if
Dividend expected is 6%?
Question69: Section B (2 Mark)
Which of the following is true with regard to wealth planner's liability?
Question70: Section C (4 Mark)
Which of the following statements is/are correct?
Question71: Section B (2 Mark)
Withholding Tax Rates for payments made to Non-Residents are determined by the Finance Act passed by the Parliament for various years. The current rates for Interest are:
Question72: Section A (1 Mark)
Credit cards are the best example of a _____________ that offer consumers convenience and flexibility.
Question73: Section B (2 Mark)
Which of the following statement is/are correct?
Question74: Section B (2 Mark)
____________compares the price charged for property or services transferred in a controlled transaction to the price charged for property or services transferred in a comparable uncontrolled transaction in comparable circumstances
Question75: Section A (1 Mark)
A firm has a higher asset turnover ratio than the industry average, which implies
Question76: Section A (1 Mark)
Generally speaking, high severity of losses will be accompanied by
Question77: Section B (2 Mark)
Commutation of pension up to a limit of _______________ is tax exempt in case the gratuity is also received.
Question78: Section A (1 Mark)
The eligibility Criteria for Personal Loans Salaried Individuals for Maximum Age of Applicant at Loan Maturity in case of personal loan is:
Question79: Section A (1 Mark)
For any given stock, which of the following must be true?
Question80: Section A (1 Mark)
Equifax Credit Report Contain
Question81: Section B (2 Mark)
Which one of the following statements is/are correct?
Question82: Section A (1 Mark)
The minimum annual income for availing Auto Loan is:
Question83: Section B (2 Mark)
Mr. Subhash Bansal, a marketing manager is employed with IMFB limited. He took an advance of Rs.
1,20,000 against the salary of Rs. 30,000 per month in the month of March 2007. The gross salary of Mr Bansal for the assessment year 2007-08 shall be:
Question84: Section C (4 Mark)
Read the senario and answer to the question.
Calculate the tax liability of Mr. Neeraj for the A.Y.08-09 assuming that he has avail full deduction under section 80C
Question85: Section A (1 Mark)
The most common type of interest rate swap is
Question86: Section A (1 Mark)
Which of the following statements regarding inflation and investing are true?
Question87: Section A (1 Mark)
If a certain stock has a beta greater than 1.0, it means that
Question88: Section A (1 Mark)
How many types of power of attorney are there?
Question89: Section B (2 Mark)
Mr. Patel expects the stock of A to sell for Rs. 70/- a year from now and to pay Rs. 4/- dividend. If the stock's correlation with the Market is -0.3, and the standard deviation of A is 40% and standard deviation of the Market is 20% and the risk free rate of return is 5% and the market risk premium is 5%, what would be the price of stock A be now ?
Question90: Section C (4 Mark)
Mr. XYZ buys a Nifty Call with a Strike price Rs. 4100 at a premium of Rs. 170.45 and he sells a Nifty Call option with a strike price Rs. 4400 at a premium of Rs. 35.40.
What would be the Net Payoff of the Strategy?
* if Nifty closes at 4200
* if Nifty closes at 5447
Question91: Section A (1 Mark)
During the past five years, the returns of a stock were as follows:
Calculate the expected rate of return
Question92: Section C (4 Mark)
Pizer Drugs, a large drugstore chain, had sales per share of Rs122 in 1993, on which it reported earnings per share of Rs2.45 and paid a dividend per share of Rs1.12. The company is expected to grow 6% in the long term, and has a beta of 0.90. The current Risk Free Rate is 7%.
Estimate the appropriate Price for Pizer Drug and what would the profit margin need to be to justify the price per share if the stock is currently trading for Rs34 per share, assuming the growth rate is estimated correctly,
Question93: Section B (2 Mark)
In regard to moving averages, it is considered to be a ____________ signal when market price breaks through the moving average from ____________.
Question94: Section B (2 Mark)
Which of the Following are the Negative Effects of Sample-Size neglect for investors
Question95: Section B (2 Mark)
As per Double Taxation Avoidance Agreement, the Technical Fees in UK is charged at:
Question96: Section B (2 Mark)
The Sachdeva family includes a financially well-informed couple, both aged thirty-two, and two children aged four and six. They are financially sound, but were not in the market during the bull market of the 2003 to 2007 as many of their neighbors were. The couple's total income, Rs.12,00,000 which is not expected to grow significantly. They have saved Rs.15,00,000, which they hope will be the financial foundation from which they will send their children to college and retire comfortably. The Sachdeva's suffer from:
Question97: Section C (4 Mark)
Zenith Finance is a big financial firm which owns several mutual funds. The funds are managed individually by portfolio managers but it has an investment committee that oversees all of the funds. This committee is responsible for evaluating the performance of the funds relative to the appropriate benchmark and relative to stated investment objectives of each individual fund. During a recent investment committee meeting, the poor performance of its Equity Funds were discussed. In particular, the inability of the portfolio managers to outperform their benchmarks was highlighted. The net conclusion of the committee was to review the performance of the manager responsible for each fund and dismiss those managers whose performance had lagged substantially behind the appropriate benchmark.
The fund with the worst relative performance is the Zenith Large Cap Fund which invests in large cap stocks.
A review of the operations of the fund found the following:
* The turnover of the fund was almost double that of other similar style mutual funds
* The fund's portfolio manager solicited input from her entire staff prior to making any decision to sell an existing holding
* The beta of the Zenith Large Cap Fund's portfolio was 65% higher than the beta of other similar style mutual funds
* The portfolio manager refuses to increase the Capital Goods sector weighting because of past losses the fund incurred in the sector
* The portfolio manager sold all the fund's Oil Marketing Companies stocks as the price per barrel of oil rose above $105. He expects oil prices to fall back to the $80 to $85 per barrel
* No stock is considered for purchase in the Large Cap Fund unless the portfolio manager has 10 years of financial information on that company.
A committee member made the following 2 comments:
Comment 1: "One reason for the poor performance of Large Cap Mutual Fund is that the portfolio lacks recognizable companies. I believe that good companies make good investments Comment 2: "The portfolio manager of the Large Cap Fund refuses to acknowledge his mistakes. He seems to sell stocks that appreciate, but she holds stocks that have declined in value The two behavioral biases exhibited respectively in the above 2 comments from the committee are:
Question98: Section B (2 Mark)
A financial institution plans to issue a group of bonds backed by a pool of automobile loans. However, they fear that the default rate on the automobile loans will rise well above 4 percent of the portfolio - the projected default rate. The financial institution wants to lower the interest payments if the loan default rate rises too high. Which type of credit derivative contract would you most recommend for this situation?
Question99: Section B (2 Mark)
Under the Workmen Compensation Policy, when the employment injury results in death, the insurance company pays 40 % of the monthly wages of the deceased multiplied by the relevant factor or Rs. _________ whichever is more.
Question100: Section A (1 Mark)
The potential loss for a writer of a naked call option on a stock is
Question101: Section A (1 Mark)
In which of the following is the loss unlimited?
Question102: Section A (1 Mark)
Select the CORRECT statement regarding basis risk associated with futures.
Question103: Section A (1 Mark)
The slope of the CML is the:
Question104: Section B (2 Mark)
A disadvantage of using swaps to control interest rate risk is that
Question105: Section B (2 Mark)
If after the partition of an HUF 2 members became partners in 3 firms on behalf of their respective HUFs and they also become partners in a fourth firm. The funds were obtained by means of loans from the other 3 firms.
The share incomes of the members from the fourth firm were assessable as their individual income only.
Question106: Section A (1 Mark)
Which of the following is true regarding the resistance level?
Question107: Section A (1 Mark)
Income which accrue or arise outside India but are received directly in India are taxable in case of:
Question108: Section A (1 Mark)
_____________ is defined as fairness in spending in US.
Question109: Section A (1 Mark)
A ____________________ tax system takes the same percentage of each person's income, regardless of whether the income is high, medium, or low.
Question110: Section C (4 Mark)
Mr. XYZ buys a Nifty Call with a Strike price Rs. 4100 at a premium of Rs. 170.45 and he sells a Nifty Call option with a strike price Rs. 4400 at a premium of Rs. 35.40.
What would be the Net Payoff of the Strategy?
* If Nifty closes at 4343
* If Nifty closes at 3419
Question111: Section C (4 Mark)
Suppose you have decided to sell your house and downsize by acquiring a townhouse that you have been eyeing for several years. You do not feel extreme urgency in selling your house; but the associated taxes are eating into your monthly cash flow, and you want to unload the property as soon as possible. Your real estate agent, whom you have known for many years, prices your home at Rs 90,00,000-you are shocked.
You paid Rs 250,000 for the home only 15 years ago, and the Rs 900,000 figure is almost too thrilling to believe. You place the house on the market and wait a few months, but you don't receive any nibbles. One day, your real estate agent calls, suggesting that the two of you meet right away. When he arrives, he tells you that Pharma Growth, a company that moved into town eight years ago in conjunction with its much-publicized initial public offering (IPO), has just declared bankruptcy.
Now, 7,500 people are out of work. Your agent has been in meetings all week with his colleagues, and together they estimate that local real estate prices have taken a hit of about 10 percent across the board. Your agent tells you that you must decide the price at which you want to list your home, based on this new information. You tell him that you will think it over and get back to him shortly.
Assume your house is at the mean in terms of quality and salability.
What is your likeliest course of action if you exhibit Anchoring and Adjustment bias?
Question112: Section C (4 Mark)
Navin Corporation, a manufacturer of do-it-yourself hardware and housewares, reported earnings per share of Rs2.10 in 1993, on which it paid dividends per share of Rs0.69. Earnings are expected to grow 15% a year from 1994 to 1998, during which period the dividend payout ratio is expected to remain unchanged. After
1998, the earnings growth rate is expected to drop to a stable 6%, and the payout ratio is expected to increase to 65% of earnings. The firm has a beta of 1.40 currently, and it is expected to have a beta of 1.10 after 1998.
The Risk Free rate is 6.25%.
What is the value of the stock, using the two-stage dividend discount model?
Question113: Section C (4 Mark)
Read the senario and answer to the question.
Calculate the income from house property for Vinay. Municipal rental value 75000, Fair Rental value is
80000, Standard rent is 1,10,000. Municipal taxes paid for full house are Rs. 10,000 during the year. Interest paid by Vinay on borrowed money during the year is Rs. 101070.
Question114: Section A (1 Mark)
Deduction under section 80QQB is allowed to an author of a book of literary or artistic or scientific nature who is resident in India to the extent of:
Question115: Section A (1 Mark)
The way to reduce tax liability by taking full advantage provided by the Act is
Question116: Section C (4 Mark)
As a CWM you are required to calculate the tax liability of an individual whose Taxable income is:
* $125000 in US dollars and he is a US citizen (single individual)
* $109000 in SGD and he is a citizen of Singapore
Question117: Section C (4 Mark)
Read the senario and answer to the question.
By calculating HLV of Mahesh indicate the shortfall in his life insurance coverage using the given data:
Mr. Mahesh age 52, retirement age 60, paying professional tax of Rs. 5800 and income tax subject to allowable deductions as Rs. 230000, reasonable self maintenance expenditure estimated Rs. 140000 p.a., life insurance premium for self Rs. 25000 with total sum assured Rs. 1200000. He also pays insurance premium of Rs. 15500 and Rs. 7000 for life insurance policy of his wife and son respectively. Rate of interest assured for capitalization of future income is at 7%
Question118: Section A (1 Mark)
Essential requirement for the person who can attest the will is that he
Question119: Section A (1 Mark)
Mr. Vikas is now 50 years old. He has invested some amount in an annuity which will pay him from the END.
of 5th year Rs. 35,000/- p.a. at the end of every year for 10 years. Rate of interest is 7% p.a. Calculate how much he has invested now?
Question120: Section A (1 Mark)
_______________ is concerned with capturing, storing, extracting, integrating, processing, interpreting, distributing, using and reporting customer-related data to enhance both customer and company value.
Question121: Section A (1 Mark)
A market timing approach that increases the proportion of funds in stocks when the stock market is expected to be rising, and increases cash when the stock market is expected to be falling is a:
Question122: Section A (1 Mark)
Securities with betas less than 1 should have:
Question123: Section A (1 Mark)
Trust banks are ____________
Question124: Section B (2 Mark)
A bank has a limited geographic area. It would like to diversify its loan income with loans in other market areas but does not want to actually make loans in those areas because of their limited experience in those areas. Which type of credit derivative contract would you most recommend for this situation?
Question125: Section A (1 Mark)
investment plan pays Rs. 1 lac at the beginning of 10th year for 5 years and Rs. 2 lacs for next 5 years. If the rate of interest is 10% per annum. What will be the present value of this investment?
Question126: Section B (2 Mark)
Ajay is considering to purchase a house which will bring rental income of Rs. 15,000/- p.m at the end of month. Ajay is looking for 12% returns and he is expecting to sell the property after 5 years for Rs. 6 lac.
What price Ajay should pay for this property now?
Question127: Section A (1 Mark)
Which of the followings are the important features of Real estate Investment?
Question128: Section A (1 Mark)
Fiscal termites are factors that threaten the integrity of tax systems, and most of which relate to the internationalization of tax. These are:
Question129: Section A (1 Mark)
The effect on a bond portfolio's value of a decrease in yield would be most accurately estimated by using:
Question130: Section C (4 Mark)
Read the senario and answer to the question.
Sajan and Jennifer want to accumulate funds for their vacation expenses as per their determined goal. They want to invest a fixed amount immediately from the Bonus amount he has received, and then in the beginning of every financial year till April, 2020 in a separate scheme of an Equity Mutual Fund. He would withdraw the required amount annually as adjusted for inflation from the Scheme from April, 2021 till April, 2036 for undertaking vacation trips. What approximate amount should be invested every year to achieve this goal?
Question131: Section A (1 Mark)
An example of ________ is that a person may reject an investment when it is posed in terms of risk surrounding potential gains but may accept the same investment if it is posed in terms of risk surrounding potential losses.
Question132: Section A (1 Mark)
In case of self occupied property, higher deduction u/s24(b) for interest on loan for construction can be claimed if borrowing was made
Question133: Section A (1 Mark)
A financial contract that obligates one party to exchange a set of payments it owns for another set of payments owned by another party is called a
Question134: Section C (4 Mark)
Read the senario and answer to the question.
If Saxena's debentures have a balance maturity period of 15 years &the coupons are payable annually, what should be the market valuation of these debentures, if risk free interest rate is taken as the required IRR?
Question135: Section A (1 Mark)
Which of the following is an element of an organization's internal-environment?
Question136: Section A (1 Mark)
The steps to establishing an investment policy are to state the
Question137: Section C (4 Mark)
Read the senario and answer to the question.
Saxena bought agricultural land in notified urban limits of Mumbai on 15-June-1996 for Rs. 6 lakh and had been using the same for agricultural purposes. However the land was compulsorily acquired by the Government on 15-July-2003 and the compensation fixed was Rs. 25 lakh. Out of this, Rs 10 lakh was received by Saxena on 15-Jan-2005 and the balance on 06-Apr-2005. Saxena was not satisfied with the compensation and filed a suit in the court. The compensation was enhanced by Rs 8 lakh which was received on 25-Mar-2008. Which one of the following statement regarding capital gains arising from these transactions is correct:
Question138: Section A (1 Mark)
Which of the following statements is/are correct?
Question139: Section C (4 Mark)
Mr. XYZ is bullish on Nifty when it is at 4191.10. He sells a Put option with a strike price of Rs. 4100 at a premium of Rs. 170.50 expiring on 31st July. If the Nifty index stays above 4100, he will gain the amount of premium as the Put buyer won't exercise his option. In case the Nifty falls below 4100, Put buyer will exercise the option and the Mr. XYZ will start losing money. If the Nifty falls below 3929.50, which is the breakeven point, Mr. XYZ will lose the premium and more depending on the extent of the fall in Nifty.
What would be the Net Payoff of the Strategy?
* If Nifty closes at 3400
* If Nifty closes at 4800
Question140: Section A (1 Mark)
Ideally, clients would like to invest with the portfolio manager who has
Question141: Section C (4 Mark)
Read the senario and answer to the question.
Assume Neeraj bought a second hand car in June 2007. Since the insurance premium was due, Neeraj paid it in the old owner's name.Neeraj didn't receive the original policy despite repeated requests. The car later met with an accident causing damages worth Rs. 10000. Neeraj had not transferred the car in his name, as Neeraj did not have the original documents. Can the insurer reject his claim?
Question142: Section B (2 Mark)
The minimum service required for entitlement to payment of gratuity under the Act, in case of an employee leaving service by death or incapacitation is
Question143: Section A (1 Mark)
Which factor can trigger the stagnation or decline in value of a property?
Question144: Section A (1 Mark)
Mr. Sharma is aged 50 years at present. He has invested some amount in an annuity which will pay him after
10 years Rs. 25,000/- p.a. at the beginning of every year for 10 years. Rate of interest is 6% p.a. Calculate how much amount he has invested now?
Question145: Section A (1 Mark)
Which of the following is not normally one of the reasons for a change in an investor's circumstances?
Question146: Section C (4 Mark)
Monika has a investment portfolio of Rs. 100000, a floor of Rs. 75000, and a multiplier of 2. So the initial portfolio mix is 50000 in stocks and 50000 in bonds. If stock market falls by 20%, what should Monika do?
Question147: Section A (1 Mark)
The following is capital receipt:
Question148: Section A (1 Mark)
A(n)____________________________________________ is where the customer can use the difference between some percentage of the appraised value of their home and the mortgage remaining to secure a loan.
This loan can be used to fund a college education, pay for a vacation or pay for home improvements.
Question149: Section C (4 Mark)
The expected return and standard deviations of stock A & B are:
Amit buys Rs.20,000 of Stock A and sells short Rs.10,000 of Stock B using all the Proceeds to buy more or Stock A.
The correlation Between the two securities is .35. What are the expected return & standard deviation of Amit's portfolio?
Question150: Section A (1 Mark)
The information in your credit report is primarily used by the credit bureau to compute your
Question151: Section B (2 Mark)
The breakdown of commodity future returns over the past 30 days for 2 upcoming oil future contracts is given below:
What is the roll return for the period 15th September to 15th October for the contracts maturing in November and February?
Question152: Section B (2 Mark)
If a portfolio manager has a good ability to select undervalued securities but a poor ability to forecast overall market, the following makes sense for him:
Question153: Section B (2 Mark)
Major phases of budgeting process are:
Question154: Section B (2 Mark)
The current market price of a share of MOD stock is Rs15. If a put option on this stock has a strike price of Rs20, the put
Question155: Section A (1 Mark)
Wealth Enhancement is _____________
Question156: Section B (2 Mark)
What is the correlation coefficient between the companies A and B, if their covariance is 23 and their standard deviation is 8 and 7 respectively?
Question157: Section B (2 Mark)
Total income for assessment year 2012-13 of an individual including long-term capital gain of Rs. 60,000/- is Rs. 1,80,000/-. The tax on total income shall be: [CII-12-13: 852,11-12: 785,10-11:711]
Question158: Section A (1 Mark)
Tax exemption limit for the lump sum received towards Leave encashment on retirement is at
_______________
Question159: Section A (1 Mark)
A loan where the borrower pays interest each period, and repays some or all of the principal of the loan over time is called a(n) _________ loan.
Question160: Section C (4 Mark)
Read the senario and answer to the question.
Harish incurred Rs. 10 Lakh on the construction of his house five years ago which has depreciated today to Rs.
7 Lakh. The cost of construction over the period has gone up by 70%.The depreciated value of household items is Rs. 2.5 Lakh and their present cost of replacement is Rs. 4 Lakh. Harish wants to buy a Householders' insurance policy in such a way that the house is insured on reinstatement basis and household goods on the basis of written down value. How much total insurance coverage should he take from the insurance company?
Question161: Section A (1 Mark)
Which of the following is an investment analysis approach to determine real estate values?
Question162: Section B (2 Mark)
Nomination in gratuity can be done in favor of
Question163: Section B (2 Mark)
Calculate Gross Annual Value where Gross Municipal Value is Rs.120, Fair Rent is Rs.105. Actual rent receivable is Rs.100& Standard Rent is Rs.125
Question164: Section A (1 Mark)
Marketing relationships are:
Question165: Section B (2 Mark)
Choose the amount of final tax liability of R for the assessment year 2007-08:
Question166: Section C (4 Mark)
Which of the following statements is/are correct?
Question167: Section A (1 Mark)
A bank is considering making a loan to Sandeep Hunjan. Sandeep owns his own home and has lived there for the past four years. What aspect of evaluating a consumer loan application is this fact most concerned with?
Question168: Section C (4 Mark)
Which of the following statements is/are correct?
Question169: Section C (4 Mark)
KB, a household product manufacturer, reported earnings per share of Rs3.20 in 1993, and paid dividends per share of Rs1.70 in that year. The firm reported depreciation of Rs315 million in 1993, and capital expenditures of Rs475 million. (There were 160 million shares outstanding, trading at Rs51 per share.) This ratio of capital expenditures to depreciation is expected to be maintained in the long term. The working capital needs are negligible. KB had debt outstanding of Rs1.6 billion, and intends to maintain its current financing mix (of debt and equity) to finance future investment needs. The firm is in steady state and earnings are expected to grow
7% a year. The stock had a beta of 1.05. (The Risk Free Rate is 6.25%.) Estimate the value per share, using the FCFE Model.
Question170: Section B (2 Mark)
The ________________provides that where the total income of an enterprise is computed by the AO on the basis of the arm's length price as computed by him, the income of the other associated enterprise shall not be recomputed by reason of such determination of arm's length price in the case of the first mentioned enterprise, where the tax has been deducted or such tax was deductible, even if not actually deducted under the provision of chapter VIIB on the amount paid by the first enterprise to the other associate enterprise.
Question171: Section B (2 Mark)
Assume that you purchased 100 shares of ABC in a self directed account and paid a commission on the transaction. Shortly following the purchase, you realize that you momentarily overlooked another 100 shares of ABC that you already owned in another account. Now, the redundant holdings are causing an imbalance in your overall portfolio.
What is your reaction to this situation, in case of Endowment Bias?
Question172: Section A (1 Mark)
A person saves Rs. 5,000/- every quarter for 9 years @ 15 % per annum compounded Quarterly. What amount would he be having after 9 years ?
Question173: Section B (2 Mark)
A collar with a net outlay of approximately zero is an options strategy that
Question174: Section B (2 Mark)
Pranoy is entitled to a basic salary of Rs. 5,000 p.m. and dearness allowance of Rs. 1,000 per month, 40% of which forms the part of the retirement benefits. He is also entitled to HRA of Rs. 2,000 p.m. He actually pays Rs. 2,000 p.m. as rent for a house in Delhi. Compute the taxable HRA.
Question175: Section B (2 Mark)
Total income of an individual including long-term capital gain of Rs. 50,000 is Rs. 1,10,000, the tax on total income shall be:
Question176: Section A (1 Mark)
We try to avoid actions that confirm that we have made mistakes. Which of the following is most likely consistent with this bias?
Question177: Section C (4 Mark)
What amount needs to be deposited today in an account that would pay Rs. 1,10,000 per year for the first 10 years and Rs. 2,25,000 for the next 5 years. If the ROI for the first 10 years if 10.75 % p.a. compounded annually and 13% p.a. compounded quarterly for the balance period?
Question178: Section C (4 Mark)
Belstate reported net income of Rs221 million in 1993 on revenues of Rs8298 million. It paid out 31% of its earnings as dividends, a payout ratio that is expected to remain level from 1994 to 1998, during which period earnings growth is expected to be 13.5%. After 1998, earnings growth is expected to decline to 6%, and the dividend payout ratio is expected to increase to 60%. The beta is 1.15 and this figure is expected to remain unchanged. The treasury bill rate is 7%.
Estimate the price/sales ratio for Walgreens, assuming its profit margin remains unchanged at 1993 levels.
Question179: Section A (1 Mark)
During "Building the foundation" life stage, we learn about _______
Question180: Section A (1 Mark)
Which one of the following has not caused the huge growth in hedge funds and private equity?
Question181: Section C (4 Mark)
As a CWM you are required to calculate the tax liability of an individual whose taxable income is:
* $321500 in SGD and he is a Singapore citizen
* £ 35214p.a (only dividends) and he is a UK citizen
Question182: Section A (1 Mark)
Which portion of his property can a muslim normally be guest according to muslim personal law?
Question183: Section C (4 Mark)
Read the senario and answer to the question.
Saxena wants to know his income tax liability for FY 2007-08 without taking into consideration any interest income from NSC. Calculate the same including surcharge and Educational Cess.
Question184: Section A (1 Mark)
An equity analyst working for a growth oriented mutual fund has a tendency to misvalue the stocks of popular companies that she has previously recommended and the fund already owns. Her behavior is most likely consistent with which of the following biases?
Question185: Section B (2 Mark)
Any income chargeable under the based "Salaries" is exempt from tax under Section 10(6)(viii), if it is received by any non resident individual as remuneration for services rendered in connection with his employment in a foreign ship where his total stay in India does not exceed a period days in that previous year.
Question186: Section A (1 Mark)
The Markowitz model identifies the efficient set of portfolios, which offers the
Question187: Section A (1 Mark)
All the following real estate investors will acquire an income property except those who invest in
Question188: Section A (1 Mark)
Which of the following is not a derivative transaction?
Question189: Section B (2 Mark)
What is the outstanding balance at the 23rd payment interval of a 16-year loan for Rs11 234 with semi-annual payments and an interest rate of 7.95% compounded quarterly?
Question190: Section B (2 Mark)
Ramesh has invested Rs 3,000/- in Reliance Growth Fund two years ago and its worth is now 4,000/-. Ram has received dividend Rs.300 at the end of two years. Calculate Compounded annual growth rate (CAGR) of Ram's investment.
Question191: Section A (1 Mark)
All of the following are examples of capital expenditures except:
Question192: Section B (2 Mark)
To pay for new equipment with a cash price of Rs7500, you need to borrow at 5.3% compounded monthly, then make monthly payments for 32 months. How many fewer months would it take to pay back the loan if you had also saved Rs600 to pay at the end?
Question193: Section B (2 Mark)
Differences between hedge funds and mutual funds are that
Question194: Section A (1 Mark)
A cognitive heuristic in which a decision-maker relies upon knowledge that is readily available rather than examining other alternatives or procedures. Which of the following is most likely consistent with this bias?
Question195: Section C (4 Mark)
Samantha celebrated her 21st birthday today, her father gave her Rs. 6,25,000/- which is deposited in a account that pays a ROI of 12.25% p.a. compounded monthly. If she wants to withdraw Rs. 7,50,000 on her
31st. Birthday and balance on her 41stBirthday. How much can she withdraw on her 41st. birthday ?
Question196: Section A (1 Mark)
Which of the following types of income is received by individuals without deduction of basic rate tax?
Question197: Section A (1 Mark)
Deduction under section 80RRB is allowed to the extent of:
Question198: Section A (1 Mark)
A well-diversified portfolio is defined as
Question199: Section C (4 Mark)
Read the senario and answer to the question.
Neeraj's portfolio consist shares of company X Ltd. which is paying a dividend of Rs. 2 per share. The dividend is expected to grow @15% annual rate for 3 years, then @10% for the next 3 years, after which it is expected to grow @5% forever. What among the following would be your advice to Neeraj in case the market value of the share is Rs. 85? Assume capitalization rate to be 9% per annum
Question200: Section A (1 Mark)
Companies can build interest and enthusiasm by using databases to remember customer preferences. This strategy helps to which of the following?
Question201: Section C (4 Mark)
Read the senario and answer to the question.
What will be the taxable amount of Gratuity on his retirement?
Question202: Section B (2 Mark)
Which of the following statements is TRUE concerning zero coupon bonds?
Question203: Section A (1 Mark)
Investments that are difficult to convert to cash are said to have _________
Question204: Section C (4 Mark)
Read the senario and answer to the question.
Mr. Bhatia thinks he would require 50 lacs in today's terms for Neena's wedding at 25 years of age. What amount he has to save at the end of every month for Neena's wedding requirement with a 7% inflation rate and investment earning minimum 12% p.a.
Question205: Section B (2 Mark)
In case of a defined benefit plan where the benefit payable is based on the terminal salary, an increase in of
10% of the wages of the employees would increase the contribution to be made by the employer for the benefit by
Question206: Section A (1 Mark)
Tarun has Rs. 100000/- in a account and starts investing Rs. 7500/-per month at the beginning of the month. If the account pays 10% p.a interest compounded half yearly. What will be the accumulated amount in his account after 20 years.
Question207: Section B (2 Mark)
The two aspects of Regret bias are_____________ and _____________.
Question208: Section B (2 Mark)
Defined contribution plans put investment and performance risk on
Question209: Section A (1 Mark)
The most profitable credit card customers for a bank are those that:
Question210: Section A (1 Mark)
When markets are in equilibrium, the CML will be upward sloping
Question211: Section A (1 Mark)
While matching orders for equity trading in NSE, which one of the following gets precedence over all the others?
Question212: Section A (1 Mark)
Mr. X's minor daughter earned Rs. 50000 from his special talent. This income will be clubbed with
Question213: Section B (2 Mark)
A stock with a Beta of 0.7 currently priced at Rs 50 is expected to increase in price to Rs 55 by year end and pay Rs 1 as dividend. The expected market return is 15% and the risk free rate is 8%. The stock is:
Question214: Section A (1 Mark)
A zero-investment portfolio with a positive expected return arises when _________.
Question215: Section C (4 Mark)
Paridhi has an investment portfolio of Rs.2,00,000; the initial portfolio mix is Rs.1,00,000 in stocks, Rs.60000 bonds and Rs.40000 in bank.
If market goes up by 10% and the value of bonds decreases by 10%, what should Paridhi do under the constant mix policy?
Question216: Section C (4 Mark)
Tapley Dental Supply Company has the following data:
If Tapley could streamline operations, cut operating costs, and raise net income to Rs300, without affecting sales or the balance sheet (the additional profits will be paid out as dividends), by how much would its ROE increase?
Question217: Section B (2 Mark)
X Ltd. has given a dividend of Rs. 3 per share last year. The company is growing at a constant rate of 5 % every year and the investor's required rate at this share is 12 % per annum. Find out the Intrinsic value of this share.
Question218: Section A (1 Mark)
If a female dies without leaving any issue them property inherited from her father or mother the property will devolve upon
Question219: Section B (2 Mark)
Portfolio A has expected return of 10% and standard deviation of 19%. Portfolio B has expected return of 12% and standard deviation of 17%. Rational investors will
Question220: Section A (1 Mark)
Income of Rs. 300000 is received in Sri Lanka by a resident of India. But later on Rs. 50000 is remitted to India
Question221: Section B (2 Mark)
Which of the following is an inferential data (i.e. data which may not be correctly obtained by simply asking a direct question)?
Question222: Section A (1 Mark)
_____________ is defined as the transfer of services to private enterprise in US.
Question223: Section B (2 Mark)
Which of the following statements with respect to Transfer Pricing is/are correct?
Question224: Section B (2 Mark)
Financial Year 2012-13 shall be considered as
Question225: Section A (1 Mark)
After buying two stocks, one rises by 25% an d the other drops by 25%. You congratulate yourself on your brilliance for the first stock and blame bad luck on the second. You are demonstrating which investor bias?
Question226: Section A (1 Mark)
Which of the following act is done by the most dissatisfied customers?
Question227: Section A (1 Mark)
Stock broker's human capital is _________ to stock market as compared to a school teacher
Question228: Section B (2 Mark)
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:
Question229: Section A (1 Mark)
The difference between the cash price and the futures price on the same asset or commodity is known as the
Question230: Section B (2 Mark)
Why tilting your portfolio towards growth stocks, may theoretically amplify its performance?
Question231: Section C (4 Mark)
Read the senario and answer to the question.
Nimita purchased 500 shares of ABC Ltd., a listed company at Rs. 45 per share on Sep. 15,2002. The company offered to buy back its shares on June 15, 2009 which Nimita accepted at a price of Rs. 75 per share on Jul 1, 2009. What is the tax liability in the hands of Nimita for this transaction for Assessment Year
2010-11? Cost inflation indices are 2002-03: 447 and 2009-10 632. (Ignore Education Cess)
Question232: Section C (4 Mark)
Ms. Sonali Briganza is 22 years old. She is currently earning a salary of Rs.5,00,000/- per annum and saves
20% of her salary every year. If her salary increases by 10% every year and she is able to get a return of 11% p.a. compounded annually throughout her investment horizon what would be the corpus of funds available at her age 58.
Question233: Section B (2 Mark)
Rakesh owes Rs. 10000 to Haresh who transfers the debt amount to Chirag. Haresh then demands the same from Rakesh, who does not have a notice of the transfer as per section 131 but still pays to Haresh. This payment is invalid &Chirag can sue Rakesh for the debt
Question234: Section A (1 Mark)
A good wealth management plan must include an analysis of all of the following EXCEPT
Question235: Section A (1 Mark)
One aspect of the tax considerations in asset allocation is that
Question236: Section B (2 Mark)
Which of the following are the two skills associated with being a good listener?
Question237: Section A (1 Mark)
In case of non-resident, who is carrying on shipping business, his Indian income shall be presumed to be:
Question238: Section A (1 Mark)
A "Family Office" segment client has investible assets worth of
Question239: Section B (2 Mark)
Which of the following statements is/are correct with respect for Resident Senior Citizen i.e. who is of an age of 60 years and above, but below 80 years?
Question240: Section B (2 Mark)
What is the outstanding balance after 60 payments on a 20-year mortgage that has monthly payments of Rs1062.32 and an interest rate of 5.8% compounded semi-annually?
Question241: Section C (4 Mark)
Arvind Ltd. currently EPS is Rs.5. Its return on equity (ROE) is 25% and it retains 60% of its earning. Stocks of similar risk are priced to return 18%. What is the intrinsic value of Arvind Ltd's Stock?
Question242: Section C (4 Mark)
Read the senario and answer to the question.
What amount he would have piled up at the end of the 20 years if it earns 8.5% compounded interest and discontinues making deposits after 9th deposit?
Question243: Section B (2 Mark)
A typical personal accident policy would normally have provisions to pay
Question244: Section A (1 Mark)
A(n) _________________________ guarantees the swap parties a specific rate of return on their credit asset.
Bank A may agree to pay the total return on the loan to Bank B plus any appreciation in the market value of the loan. In return Bank A will often get LIBOR plus a fixed spread plus any depreciation in the value of the loan.
Question245: Section A (1 Mark)
Quicker attention and resolution of complaints lead to ________
Question246: Section A (1 Mark)
________ refers to the activity of the real estate market as it reacts to the force of supply and demand.
Question247: Section B (2 Mark)
Shiva Industries Ltd. earns Rs. 2 per share and distributes 40% of its earnings as cash dividends. Its dividends grew annually at 7%. What will be the stock's price if the required rate is 10%?
Question248: Section C (4 Mark)
Azhar deposits Rs. 12,500 in an account that pays a ROI of 20% p.a compounded annually on 5th. Of March
2010. Calculate the date on which the balance in his account would be Rs.35,338/-
Question249: Section A (1 Mark)
Which of the following is allowed as deduction from net annual value of a property?
Question250: Section A (1 Mark)
What is the Present Value of an annuity which pays Rs. 10,000/- for 3 years at the END of each year, assuming ROI @ 7% per annum compounded annually?
Question251: Section A (1 Mark)
Corrections are often followed by ________.
Question252: Section B (2 Mark)
Total income of an individual including long-term capital gain of Rs. 50,000/- is Rs.1,60,000/-, the tax on total income for the assessment year 2012-13 shall be: CII-12-13: 852,11-12: 785,10-11:711]
Question253: Section C (4 Mark)
Omax Inc. one of the largest developer of residential projects, reported earnings per share of Rs 8.0 in 2003, and paid dividends per share of Rs 4.8 in that year. The firm is expected to report earnings growth of 25% in
2004, after which the growth rate is expected to decline linearly over the following six years to 7% in 2009.
The stock is expected to have a beta of 0.85 and current risk free rate is 6.25%.
Estimate the value of the firm using the H Model.
Question254: Section A (1 Mark)
Which of the following is true regarding the resistance level?
Question255: Section C (4 Mark)
Mr. XYZ is bearish about Nifty and expects it to fall. He sells a Call option with a strike price of Rs. 2600 at a premium of Rs. 154, when the current Nifty is at 2694. If the Nifty stays at 2600 or below, the Call option will not be exercised by the buyer of the Call and Mr. XYZ can retain the entire premium of Rs.154.
What would be the Net Payoff of the Strategy?
* If Nifty closes at 2900
* If Nifty closes at 2400
Question256: Section B (2 Mark)
In 2011-12, Steven has business profits of £34,125, net bank interest of £1,240 and net dividends of £9,000.
He claims the personal allowance of £7,475. What is the income tax payable for the year after subtracting tax deducted at source?
Question257: Section A (1 Mark)
An investor will take as large a position as possible when an equilibrium price relationship is violated. This is an example of _________.
Question258: Section B (2 Mark)
In a "Pure Play" model of wealth management
Question259: Section B (2 Mark)
What is the PV of an Annuity Due which provides Rs. 2,000/- per month for first 3 years and then Rs. 3,000/- per month for next 2 years. This annuity starts 4 years from now and ROI is 9 % per annum compounded monthly?
Question260: Section A (1 Mark)
Conflict of interest should be discussed in ________
Question261: Section A (1 Mark)
Which of the following is a risk of using credit derivatives?
Question262: Section B (2 Mark)
Buyers of call options __________ required to post margin deposits and sellers of put options __________ required to post margin deposits.
Question263: Section B (2 Mark)
The expected returns and standard deviations of stock A and B are:
Manish buys Rs.20000 stock A and sells short Rs.10000 of stock B, using all the proceeds to buy more of stock A.
The correlation between the two securities is 0.25. What are the expected return and the standard deviation of Manish's portfolio?
Question264: Section B (2 Mark)
The Wilson Corporation has the following relationships:
What is Wilson's profit margin and debt ratio?
Question265: Section A (1 Mark)
Following is not a head of income
Question266: Section C (4 Mark)
Yogesh Jain is a Chartered Accountant by profession and a very disciplined investor he has started investing from today in an account Rs. 1,00,000 every year (beginning of year) and plans to increase his contribution by
10% every year. If the ROI he gets is 15% per annum compounded half yearly calculate the corpus he would be able to accumulate in 25 years.
Question267: Section C (4 Mark)
A Portfolio manager is holding the following portfolio:
The risk free rate of return is 6% and the portfolio's required rate of return is 12.5%. The manager would like to sell all of his holdings in stock A and use the proceeds to purchase more shares of stock D.
What would be the portfolio's required rate of return following this change?
Question268: Section A (1 Mark)
Real estate investments can be categorized into:
Question269: Section A (1 Mark)
Teena Dutta wants to buy a used car and wants a loan that she will pay off over the next three years with monthly payments. What type of loan does Teena want?
Question270: Section A (1 Mark)
Income received in India in previous year is taxable in the hands of:
Question271: Section A (1 Mark)
A business angel is best described in which one of the following statements?
Question272: Section A (1 Mark)
The steps to establishing an investment policy are to state the
Question273: Section B (2 Mark)
Which of the following statements is/are true?
Question274: Section A (1 Mark)
Which one of the following statements is false?
Question275: Section A (1 Mark)
In US, how many states do not have a corporate income tax?
Question276: Section A (1 Mark)
Which one of the following statements is incorrect?
Question277: Section B (2 Mark)
A Family consists of karta, his wife four sons and their wires and children and its income is Rs. 1000000 if by family arrangement income yield property is settled on karta his wife and sons & daughter in law than tax liability would be
Question278: Section A (1 Mark)
According to behavioral finance, investors prefer dividends because:
Question279: Section A (1 Mark)
The legal heir of the deceased who receives family pension is allowed a standard deduction from such family pension received to the extent of:
Question280: Section A (1 Mark)
Conventional theories presume that investors ____________ and behavioral finance presumes that they
____________.
Question281: Section C (4 Mark)
National City Corporation, a bank holding company, reported earnings per share of Rs2.40 in 1993, and paid dividends per share of Rs1.06. The earnings had grown 7.5% a year over the prior five years, and were expected to grow 6% a year in the long term (starting in 1994). The stock had a beta of 1.05 and traded for ten times earnings. The treasury bond rate was 7%.
Estimate the P/E Ratio for National City Corporation and the long term growth rate that is implied in the firm's current P/E ratio.
Question282: Section A (1 Mark)
For calculating the benefit under Entertainment allowance, Salary means,
Question283: Section B (2 Mark)
An investment opportunity having a market price of Rs. 100,000 is available. You could obtain a Rs. 75,000,
25-year mortgage loan requiring equal monthly payments with interest at 9.5 percent. The following operating results are expected during the first year.
What is the Overall capitalization rate?
Question284: Section C (4 Mark)
Read the senario and answer to the question.
Calculate his Life Insurance Coverage Ratio based on his net worth.
Question285: Section A (1 Mark)
Active portfolio management consists of __________.
Question286: Section B (2 Mark)
In 2011-12, an individual receives net building society interest of £792. The equivalent gross income is:
Question287: Section A (1 Mark)
Merton's theory is ___________
Question288: Section B (2 Mark)
You buy a share of ABC Ltd for Rs. 20. You expect it to pay dividends of Re.1, Rs.1.10 and Rs.1.21 in coming three years. Calculate the growth rate in dividend:
Question289: Section C (4 Mark)
Read the senario and answer to the question.
Whether Mrs. Deepika as a resident individual can invest in units of Mutual Funds, Venture Funds, and Promissory notes without opening the bank account in foreign country?
Question290: Section A (1 Mark)
A(n) _____________ is related to the credit option and is usually aimed at lenders able to handle comparatively limited declines in value but wants insurance against serious losses.
Question291: Section A (1 Mark)
If you cosign a loan:
Question292: Section B (2 Mark)
Manav wishes to have a retirement corpus of Rs. 2,50,000/- in 30 years' time. Assuming that he can earn a ROI of 12 % per annum, what amount he should invest yearly into a fund to reach his goal?
Question293: Section C (4 Mark)
Nifty is presently at 2694. Mr. XYZ expects Nifty to fall. He buys one Nifty ITM Put with a strike price Rs.
2800 at a premium of Rs. 132 and sells one Nifty OTM Put with strike price Rs. 2600 at a premium Rs. 52.
What would be the Net Payoff of the Strategy?
* If Nifty closes at 2359
* If Nifty closes at 3561
Question294: Section B (2 Mark)
Customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance best describes by which of the following?
Question295: Section A (1 Mark)
An insured becomes entitled for getting No Claim Bonus only at the renewal of a policy after the expiry of the full duration of _________ months.
Question296: Section B (2 Mark)
As per Double Taxation Avoidance Agreement, the Interest Rate in Mauritius is charged at:
Question297: Section B (2 Mark)
Mr.Neeraj has a portfolio consisting of two stocks A & B has a standard deviation of 5% while stock B has a standard deviation of 15%. Stock A comprises 40% of the portfolio and stock B consists of 60%. If the correlation of returns of A and B is 0.5, the variance of return on the portfolio is_______
Question298: Section B (2 Mark)
What is the size of the final unequal payment of a loan that has 89.34 payments and the equal payment size is Rs215.64? The interest rate is 3% per compounding period.
Question299: Section B (2 Mark)
The assumptions concerning the shape of utility functions of investors differ between conventional theory and prospect theory. Conventional theory assumes that utility functions are __________ whereas prospect theory assumes that utility functions are __________.
Question300: Section A (1 Mark)
As per Hindu succession Act 1956 following person is not considered as a class I heir of the person who dies intestate
Question301: Section A (1 Mark)
Fundamental Analysis of security valuation includes ............
Question302: Section A (1 Mark)
_______________ consists of the constatation that people buy both insurances and lottery tickets .
Question303: Section A (1 Mark)
The factors contributing to a Credit Score are :
Question304: Section A (1 Mark)
An aggressive asset allocation would contain larger proportions of __________ than a conservative allocation.
Question305: Section A (1 Mark)
___________CRM automates and improves customer-facing and customer supporting business processes
Question306: Section A (1 Mark)
Book building is used to help in better
Question307: Section B (2 Mark)
Which of the following statement is correct w.r.t to the obligations of an Investment Advisor Registered under SEBI Investment Advisor Regulations 2013.
Question308: Section A (1 Mark)
We prefer a sure gain from a much larger gain that is very likely but not certain. This makes us close winning positions even if we think that they are likely to get even better.
Question309: Section A (1 Mark)
NSSO stands for ____________
Question310: Section B (2 Mark)
Narayan expects to receive Rs 25000 in net receipts each year for five year and to sell the property for Rs
350,000 at the end of the five-year period, if Narayan expects a 15% return, what would be the value of the property?
Question311: Section B (2 Mark)
Which of the following statements concerning index funds and actively managed funds is true?
Question312: Section A (1 Mark)
Riskier stocks have
Question313: Section C (4 Mark)
Read the senario and answer to the question.
Keshav average purchase rate of Infosys share is Rs. 1,000/- per share. At present it is Rs.2,000/- per share. He wants to protect his gains. What would you advise him as the best Option? Assume Rate of 2010 Call is Rs 50,
2010 Put is Rs.55, 1980 Call is at Rs.60 and 1980 Put is at Rs.63. Assume that ten days are left for expiry of the Option.
Question314: Section B (2 Mark)
How much total principal is repaid between the 1st and 17th payment interval of a 4.5-year loan for Rs 4567 at an interest rate of 7.44% compounded monthly. The payments are also monthly.
Question315: Section B (2 Mark)
Which of the following statement is/are correct?
Question316: Section A (1 Mark)
Which of the following is a special human trait that we need to sharpen and use very often in CRM?
Question317: Section A (1 Mark)
The best way to maintain your credit rating is to:
Question318: Section A (1 Mark)
A(n)______________________ loan is a short- or medium-term loan repayable in two or more consecutive payments, usually monthly or quarterly.
Question319: Section A (1 Mark)
________ bias means that investors are too slow in updating their beliefs in response to evidence.
Question320: Section A (1 Mark)
Where the return of income is filed after the due date specified u/s 139(1):
Question321: Section B (2 Mark)
___________ applies where there are multiple transactions which are inter-related and cannot be evaluated separately for the purpose of determining arm's length price of any one transaction.
Question322: Section A (1 Mark)
Which of the following is/are correct?
Question323: Section B (2 Mark)
A bond has a market value of Rs100,000 and a duration of 9.42. What is the price value of a basis point?
Question324: Section A (1 Mark)
A document which is used to hand over the legal powers to sign on legal documents pertaining to the property to someone other than the owner is called_____________
Question325: Section B (2 Mark)
What an employee should check in his retirement benefit plan offered by the employer?
Question326: Section A (1 Mark)
The goal of the Dow theory is to
Question327: Section C (4 Mark)
Which of the following statements is/are correct?
Question328: Section A (1 Mark)
The Base Year for BSE Realty index is____________
Question329: Section B (2 Mark)
Calculate the treynor measure, Sharpe measure and Jensen measure from the following data:
The mean risk free rate was 6 percent.
Question330: Section A (1 Mark)
Which one of the following equations correctly defines the dividend yield (Y) from a share of common stock?
Question331: Section A (1 Mark)
Which of the following is/are the challenges of Private Banking?
Question332: Section C (4 Mark)
As a CWM you are required to calculate the tax liability of an individual whose taxable income is:
* $ 83560 in SGD and he is a Singapore citizen
* £ 73150p.a (only employment) and he is a UK citizen
Question333: Section A (1 Mark)
Shyam invests in a plan in which he has to pay Rs. 10,000/- per year Starting from the end of 5th year till the end of 12th. How much amount Should he invest today in order to meet his objective. If the interest rate is
10%p.a.?
Question334: Section A (1 Mark)
The minimum income criteria for Personal Loans in case of Salaried employees is:
Question335: Section B (2 Mark)
From the following data in respect to the property price, calculate the value of the property for your client Mr.
Nitin Sharma, as per the capitalization rate.
Question336: Section A (1 Mark)
Which of the following is an assumption of the CMT?
Question337: Section C (4 Mark)
Dab Ltd manufactures, markets, and services automated teller machines. The following are selected numbers from the financial statements for 1992 and 1993 (in millions):
The firm had capital expenditures of Rs15 million in 1992 and Rs18 million in 1993. The working capital in
1991 was Rs180 million.
Estimate the cash flows to equity in 1992 and 1993. (in Rs Millions)
Question338: Section B (2 Mark)
Suppose that Chicken Express, Inc. has a ROA of 7% and pays a 6% coupon on its debt. Chicken Express has a capital structure that is 70% equity and 30% debt. Relative to a firm that is 100% equity-financed, Chicken Express's Net Profit will be ________ and its ROE will be ________.
Question339: Section B (2 Mark)
Withholding Tax Rates for payments made to Non-Residents are determined by the Finance Act passed by the Parliament for various years. The current rates for Royalities are:
Question340: Section C (4 Mark)
As a CWM you recommended Mr. Raj Malhotra to put his money in Asset A offering 15% annual return with a standard deviation of 10%, and balance funds in asset B offering a 9% annual return with a standard deviation of 8%. Assume the coefficient of correlation between the returns on assets A and B is 0.50. Calculate the expected return after 1 year and standard deviation of Mr. Raj Malhotra's portfolio.
Question341: Section C (4 Mark)
Read the senario and answer to the question.
Portfolio A had a return of 12% in the previous year, while the market had an average return of 10%. The standard deviation of the portfolio was calculated to be 20%, while the standard deviation of the market was
15% over the same time period. If the correlation between the portfolio and the market is 0.8, what is the Beta of the portfolio A?
Question342: Section B (2 Mark)
If two customers choose exactly the same package of certain service, but customer A calls for help weekly and customer B calls only twice a year, which is most valuable customer?
Question343: Section A (1 Mark)
Mr. Murli is 55 years old at present. He has invested some amount in an annuity which will pay him begining of the 5th year Rs. 30,000/- p.a. at the beginning of every year for 10 years. Rate of interest is 7% p.a.
Calculate how much amount he has invested now?
Question344: Section B (2 Mark)
Which of the following two outcomes is an example of Loss Aversion Bias:
Question345: Section B (2 Mark)
Which of the following portfolios falls below the Markowitz Efficient Frontier?
Question346: Section A (1 Mark)
____________ is defined as a dollar per thousand dollars of assessed value of property and is used to calculate a property owner's tax bill.
Question347: Section A (1 Mark)
Which of the following statements regarding debit and credit card liability is correct?
Question348: Section A (1 Mark)
Convertible bond arbitrage is to event driven as _________ is to corporate restructuring.
Question349: Section B (2 Mark)
Total income for assessment year 2007-08 of an individual including long-term capital gain of Rs. 60,000 is Rs. 1,40,000. The tax on total income shall be:
Question350: Section A (1 Mark)
The price that the buyer of a put option pays to acquire the option is called the
Question351: Section B (2 Mark)
_____________ begins with the price at which a product that has been purchased from an Associated Enterprise AE is resold to an independent enterprise
Question352: Section A (1 Mark)
The Net Operating Income (NOI) for a real estate investment is calculated as:
Question353: Section B (2 Mark)
Number One Flight Stock currently sells for Rs53. A one-year call option with strike price of Rs58 sells for Rs10, and the risk free interest rate is 5.5%. What is the price of a one-year put with strike price of Rs58?
Question354: Section B (2 Mark)
Reliance Ltd. has issued a preferred stock that pays Rs.10 per share. The dividend is fixed and the stock has no expiration date. What is the intrinsic value of Reliance Ltd. stock, assuming a discount rate of 14%?
Question355: Section B (2 Mark)
A property has 120 rooms and each room has a monthly rent of Rs.750. The occupancy rate throughout the year is 80% and maintenance expenses per year works out to be Rs.3,00,000. Capitalization rate is 12%.
Calculate the value of the property.
Question356: Section A (1 Mark)
The core of the_________________ is that even though stocks appear to be an attractive asset - they have high average returns and a low covariance with consumption growth - investors appear very unwilling to hold them.
Question357: Section A (1 Mark)
The principle in real estate valuation which acknowledges limitation on growth in market value, not ably in the case of improvements is known as:
Question358: Section A (1 Mark)
In US Over one-half the money spent by state and local governments goes to just three services. Which of the following is not one of these services?
Question359: Section A (1 Mark)
As per presumptive income scheme under section 44AE, the presumed income shall be:
Question360: Section A (1 Mark)
Notice of loss should be given to the insurer within ________days of the event of loss.
Question361: Section C (4 Mark)
A share pays nil dividend and its current market price is Rs.100. The possible selling prices at the end of a year and the probabilities are:
What is the expected rate of return at the end of the year?
Question362: Section C (4 Mark)
Read the senario and answer to the question.
Mrs. Deepika's brother is impressed with Manav Fashion Ltd. an online clothing firm that focuses on the
18-22 age bracket. Their prices are much lower than their competitors, and the quality is high. Reading about the firm on its web site and in various financial newspapers, her brother has learned that the company plans to expand its clothing lines. The prevailing price of its share is 70 per share. Manav Fashion Ltd. has had recent annual earnings of Rs. 5 per share. Only three other companies have very similar business to Manav Fashion Ltd. and have stock that is traded and there PE ratios are as follows:
Her brother asked Mrs. Deepika to guide him in investing the Manav Fashion Ltd. Getting the query from her brother Mrs. Deepika asks your advice on this matter. As a Chartered Wealth Manager what will be your advice?
Question363: Section A (1 Mark)
Wages for the purpose of gratuity payment as per the Act means
Question364: Section C (4 Mark)
Read the senario and answer to the question.
Calculate the Solvency ratio?
Question365: Section B (2 Mark)
Mr. Nimesh is bullish about ABC Ltd stock. He buys ABC Ltd. at current market price of Rs. 4000 on 4 July.
To protect against fall in the price of ABC Ltd. (his risk), he buys an ABC Ltd. Put option with a strike price Rs.3900 (OTM) at a premium of Rs. 143.80 expiring on 31st July.
What would be the Pay-off of the strategy if the stock closes on 4200 at expiry?
Question366: Section A (1 Mark)
"Early accumulation" life stage is normally during ______
Question367: Section A (1 Mark)
In Working Capital Finance, what should be the minimum current ratio the borrower needs to ensure the compliance under the first method of lending.
Question368: Section A (1 Mark)
An Agreement between the tenant and the landlord for the right to use the property for a specified period of time is known as ____________.
Question369: Section A (1 Mark)
Depending on how questions are asked, ___________ can cause investors to communicate responses to questions about risk tolerance that are either unduly conservative or unduly aggressive.
Question370: Section C (4 Mark)
In addition to social security benefits of $6,000, Mr. and Mrs. Lopez have adjusted gross income of $36,000, tax-exempt interest of $1,000 and will file a joint return.
Determine the taxable portion of their social security benefits.
Question371: Section A (1 Mark)
Which of the following is a challenge of making a consumer loan?
Question372: Section B (2 Mark)
Encashment of leave during service tenure is
Question373: Section C (4 Mark)
Read the senario and answer to the question.
Vinay wants to have 80% of the desired retirement corpus from his monthly savings from now itself. If he expects to earn 12% p.a. on these savings, how much amount should the couple save at the end of each month to achieve this target?
Question374: Section C (4 Mark)
Suppose ABC Ltd. is trading at Rs. 4457 in June. An investor Mr. A buys a Rs 4500 call for Rs. 100 while shorting the stock at Rs. 4457. The net credit to the investor is Rs. 4357 What would be the Net Payoff of the Strategy?
* If ABC Ltd closes at 4145
* If ABC Ltd closes at 4983
Question375: Section A (1 Mark)
A bank is considering making a loan to Neelam Pandey. The bank is looking at her credit report from Equifax and also examining the reason Neelam has put on the loan application for needing the loan? What aspect of evaluating a consumer loan application is the bank looking at?
Question376: Section B (2 Mark)
Which of the following Statements are correct?
Question377: Section A (1 Mark)
As per Hindu succession Act
Question378: Section A (1 Mark)
The cumulative number of futures contracts that are not offset at any point in time is called:
Question379: Section B (2 Mark)
Calculate the total maturity amount payable in a policy of Rs. 4,00,000/-, if the term of the policy was 17 years and bonus was Rs. 52 per thousand per annum and a final bonus of Rs. 125/- per thousand was payable.
Question380: Section A (1 Mark)
__________ is the symptom of poor listening.
Question381: Section B (2 Mark)
The feature of the APT that offers the greatest potential advantage over the CAPM is the ______________.
Question382: Section A (1 Mark)
Which of the following income is not exempt under section 10-
Question383: Section C (4 Mark)
Read the senario and answer to the question.
If the interest on a sum of amount is compounded annually at the rate of 14% per annum for 3 years, what is the effective continuously compounding rate of interest?
Question384: Section B (2 Mark)
NRIs are granted a special benefit by way of an option of being taxed at concessional tax rate of ________ as regards "investment income" and _______ as regards "long term capital gains" arising from "specified assets.
Question385: Section A (1 Mark)
What is the crucial determinant of value of a property?
Question386: Section A (1 Mark)
Hedge funds often seek to take advantage of market inefficiencies such as:
Question387: Section A (1 Mark)
Comprehensive Wealth Management addresses
Question388: Section B (2 Mark)
Rakhi purchased a piece of land on 25-4-1979 for Rs.80000. This land was sold by him on 23-12-2011 for Rs.1250000. The market value of the land as on 1-4-1981 was Rs.98000. Expenses on transfer were 1.5% of the sale price. Compute the capital gain for the assessment year 2012-13. [CII-12-13: 852,11-12:
785,10-11:711]
Question389: Section A (1 Mark)
Multi period hedging is ________
Question390: Section A (1 Mark)
Cash Flow is a tool that is more useful for
Question391: Section A (1 Mark)
______________ is based on a particular (theoretical) lottery game that leads to a random variable with infinite expected value, i.e., infinite expected payoff, but would nevertheless be considered to be worth only a very small amount of money.
Question392: Section A (1 Mark)
In reality, when risk and uncertainty or incomplete information about an alternative or high degree of complexity is introduced, people or organizations may be have somewhat different from rationality. This is called ___________.
Question393: Section C (4 Mark)
The Meryl Corporation's common stock is currently selling at Rs100 per share, which represents a P/E ratio of
10. If the firm has 100 shares of common stock outstanding, a return on equity of 20 percent, and a debt ratio of 60 percent, what is its return on total assets (ROA)?
Question394: Section C (4 Mark)
Read the senario and answer to the question.
Calculate the income chargeable to tax from rented flat of Kolkata, for the assessment years 2008-09 and
2009-10.
Question395: Section A (1 Mark)
Who would get the first preference when the property of a deceased person is to be distributed?
Question396: Section C (4 Mark)
Read the senario and answer to the question.
Which of the following would affect Net Worth of Keshav?
Question397: Section A (1 Mark)
The bank's real estate loan officer should consider which of the following aspects of the customer's loan application carefully when making a home mortgage?
Question398: Section B (2 Mark)
Gold trades at Rs.16000 per 10 gms in the spot market. Three-month gold futures trade at Rs.16150. One unit of trading is 1kg and the delivery unit for the gold futures contract on the NCDEX is 1 kg. A speculator who expects gold prices to rise in the near future buys 1 unit of gold futures. Two months later gold futures trade at Rs.15900 per 10 gms. He makes a profit/loss of ______________.
Question399: Section A (1 Mark)
...................... Is implied in favor of the party creating it
Question400: Section B (2 Mark)
As per article 12 Double Taxation Avoidance Agreement with Singapore, Royalties and fees for technical services arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.However, such royalties and fees for technical services may also be taxed in the Contracting State in which they arise and according to the laws of that Contracting State, but if the recipient is the beneficial owner of the royalties or fees for technical services, the tax so charged shall not exceed__________ per cent.
Question401: Section B (2 Mark)
How much should you pay for a share of stock that offers a constant growth rate of 10%, requires a 16% rate of return, and is expected to sell for Rs50 one year from now?
Question402: Section B (2 Mark)
An employee joined in the year 2000 in a sugar mill. After working all the years as a seasonal employee up to the year 2011. He retires with the following monthly salary
How much gratuity is payable to him?
Question403: Section A (1 Mark)
To take care of the risks during the foreign travel, Overseas Travel Insurance policy cover provides various other covers, in addition to __________ insurance, such as baggage cover, loss of transport cover, personal accident cover, personal legal liability cover etc.
Question404: Section B (2 Mark)
Which of the following statements is / are correct?
Question405: Section A (1 Mark)
What amount needs to be invested today at 10 % per annum, so that it pays Rs. 1 lac per annum for 5 years, starting from 6th year to 10thyear. First payment starts at BEGIN of 6thyear.?
Question406: Section C (4 Mark)
An investor Mr. Dayal, executes a Long Strangle by buying a Rs. 4300 Nifty Put for a premium of Rs. 23 and a Rs 4700Nifty Call for Rs 43. The Nifty is at 4500 The Net Payoff of Long Strangle
* If Nifty closes at 4100
* If Nifty closes at 5300
Question407: Section A (1 Mark)
A _________ portfolio is a well-diversified portfolio constructed to have a beta of 1 on one of the factors and a beta of 0 on any other factor.
Question408: Section A (1 Mark)
If your credit application is denied, you:
Question409: Section B (2 Mark)
How much interest is paid in total on a 3-year loan for Rs27 400? The interest rate is 8.6% compounded monthly and the payments are monthly?
Question410: Section A (1 Mark)
Mr. Dhir is now 50 years old. He has invested Rs. 1,50,000/- in an annuity which will pay him after 10 years a certain amount p.a. at the beginning of every year for 10 years. Rate of interest is 7% p.a. Calculate how much he will receive at the beginning of every year after 10 years?
Question411: Section C (4 Mark)
Read the senario and answer to the question.
Assuming that Mahesh owns a building which he insures along with its contents for Rs. 12 lakh. However the market value of the building and its content is Rs. 15 lakh. Assuming that the building along with its contents is partially destroyed by fire and the loss assessed of Rs. 1 lakh what is the amount of money insurance company would pay as claim reimbursement to Mahesh?
Question412: Section B (2 Mark)
As Per Article 11 Double Taxation Avoidance Agreement with UK, a dividend paid by a company which is a resident of the United Kingdom to a resident of India may be taxed in India. Where under paragraph 2 of this Article, a resident of India is entitled to a tax credit in respect of that dividend, tax may also, be charged in the United Kingdom and according to the laws of the United Kingdom on the aggregate of the amount or value of the dividend and the amount of the tax credit, at a rate not exceeding ___________ percent.
Question413: Section B (2 Mark)
Resident but not ordinary resident (RNOR) is ____________ on Indian Income and ___________ on Foreign Income.
Question414: Section A (1 Mark)
Trading horizon is ______________
Question415: Section B (2 Mark)
Which of the following investment options would most likely be part of the portfolio of a Moderate investor?
Question416: Section B (2 Mark)
Mr.Dinesh is transferred to Delhi and is paid a shifting allowance of Rs.20000 by his employers out of which he spends Rs.18000 for shifting his family and personal effects. Which of the following is true?
Question417: Section B (2 Mark)
If a portfolio manager has a good ability to forecast overall market but a poor ability to select undervalued securities, the following makes sense for him.
Question418: Section C (4 Mark)
Assume the following;
With this agreement, every 6 months, the transfer of funds takes place between fixed rate payer and floating rate payer.
What would Net Cash flows after 6-months from the initiation date?
Question419: Section B (2 Mark)
Withholding Tax Rates for payments made to Non-Residents are determined by the Finance Act passed by the Parliament for various years. The current rates for Dividends are:
Question420: Section B (2 Mark)
A bond has the following terms:
If you expect the bond to be called at the end of the year, what would be the maximum price you should pay for the bond if comparable yields are 7 percent?
Question421: Section A (1 Mark)
The definition of a drawdown is
Question422: Section B (2 Mark)
Which of the following statements with respect to DTAA is/are correct?
Question423: Section B (2 Mark)
If the currency of your country is appreciating, the result should be to ______ exports and to _______ imports.
Question424: Section B (2 Mark)
Investors will choose investments that resonate with their own personality or that have characteristics that investors can relate to their own behavior. Taking the opposite view, investors ignore potentially good investments because they can't relate to or do not come in contact with characteristics of those investments.
For example, thrifty people may not relate to expensive stocks (high price/earnings multiples) and potentially miss out on the benefits of owning these stocks.
Which of the following Availability Bias have been exhibited in the case above?
Question425: Section B (2 Mark)
Suppose you are working with two factor portfolios, Portfolio 1 and Portfolio 2. The portfolios have expected returns of 15% and 6%, respectively. Based on this information, what would be the expected return on well-diversified portfolio A, if A has a beta of 0.80 on the first factor and 0.50 on the second factor? The risk-free rate is 3%.
Question426: Section B (2 Mark)
As per Double Taxation Avoidance Agreement, the Royalties in UK is charged at:
Question427: Section C (4 Mark)
Read the senario and answer to the question.
What is the monthly extra saving at beginning required to be done by Raman during his remaining working period to accumulate his required retirement corpus?
Question428: Section C (4 Mark)
Mr. Rajesh constructs a Long Straddle Strategy with one Nifty Call Option having a Strike price of Rs. 4500 available at a premium of Rs. 122 and one Nifty Put Option with a strike price Rs. 4500 at a premium of Rs.
85
What would be the Net Payoff of the Strategy?
* If Nifty closes at 4234
* If Nifty closes at 4766
Question429: Section A (1 Mark)
With the______________, the buyer gets no protection from encumbrances. This deed type has very specialized uses.
Question430: Section C (4 Mark)
Your company had the following balance sheet and income statement information for 2003:
The industry average inventory turnover is 5. You think you can change your inventory control system so as to cause your turnover to equal the industry average, and this change is expected to have no effect on either sales or cost of goods sold. The cash generated from reducing inventories will be used to buy tax-exempt securities which have a 7 percent rate of return. What will your profit margin be after the change in inventories is reflected in the income statement?
Question431: Section A (1 Mark)
What would be the tax liability if tea and snacks are provided in the office after office hours?