Simulated Test 01

Marks 0/140 Grade 0 out of a maximum of 10 (0%) Question 1 Marks: 1

If one is a fundamental analyst, he/she would follow which one of the following approaches?

Choose one answer. a. Passive diversified portfolio approach b. Quantitative Analysis (searching for undervalued securities) c. Efficient market hypothesis-strong d. Efficient market hypothesis-weak Incorrect Marks for this submission: 0/1. Question 2 Marks: 1
Derivatives on gold related securities and government securities that are traded on the stock exchanges are regulated by _______.

Choose one answer. a. SEBI b. RBI c. Department of Company Affairs d. Company Law Board Incorrect Marks for this submission: 0/1. Question 3 Marks: 1
Priti wants to invest in XYZ Ltd's stock, however, she must wait several months till her Fixed Deposit matures. What type of option should she invest in to protect against the market value of the stock increasing before her money becomes available?

Choose one answer. a. Buy a call option b. Buy a put option c. Write a put option d. Sell a call option Incorrect

Marks for this submission: 0/1. Question 4 Marks: 1

The risk of the writer of an option is _______

Choose one answer. a. Market price at expiry b. Purchase price c. Limited by the premium d. Unlimited Incorrect Marks for this submission: 0/1. Question 5 Marks: 1
A professional indemnity policy protects the insured from risk arising out of _____.

Choose one answer. a. Intentional misconduct b. Misrepresentation of professional competence c. Negligence d. Undisclosed conflict of interest Incorrect Marks for this submission: 0/1. Question 6 Marks: 1
Deferred Annuity means ___________.

Choose one answer. a. purchase price may also be paid in a single installment b. annuity payments begin at the end of a selected term c. purchase price is paid in regular installments spread through the period of deferment d. All of the above. Incorrect Marks for this submission: 0/1. Question 7 Marks: 1
A convertible preference share, depending upon the terms of issue, may be converted into a common share at the option of the shareholder_________.

(i) at a conversion ratio that never changes (ii) within a limited number of years after the preferred stock is issued (iii) only after a specified number of years have elapsed since the preference share was initially issued.

Choose one answer. a. (i) only b. (i), (ii) & (iii) c. (i) & (ii) only d. (i) & (iii) only Incorrect Marks for this submission: 0/1. Question 8 Marks: 1
Which of the following statement/s is correct

(i) Income received by Mutual Fund is Tax free. (ii) Dividend income received by investors from Mutual Funds is Tax free.

Choose one answer. a. Only (i) is correct. b. Only (ii) is correct. c. Both (i) & (ii) are incorrect d. Both (i) & (ii) are correct Incorrect Marks for this submission: 0/1. Question 9 Marks: 1
A PPF account was opened on 10th July 1990. It will mature on ________.

Choose one answer. a. 1/4/2006 b. 9/7/2005 c. 10/7/2005 d. 11/7/2005 Incorrect Marks for this submission: 0/1. Question 10

Marks: 1
An Option premium is_______. (i) market price of an underlying asset (ii) difference between the current share price and the strike price (iii)profit made on the Option

Choose one answer. a. Only (iii) is true. b. Only (ii) is true. c. Both (i) & (ii) are true. d. None of the above. Incorrect Marks for this submission: 0/1. Question 11 Marks: 1
A proprietary company can be a subsidiary of a listed company. The statement is ________.

Choose one answer. a. False. b. True. c. Cannot say. d. Sometimes. Incorrect Marks for this submission: 0/1. Question 12 Marks: 1

Choose one answer. a. Only (i) is correct. b. Only (ii) is correct. c. Both (i) & (ii) are incorrect. d. Both (i) & (ii) are correct. Incorrect Marks for this submission: 0/1. Question 13 Marks: 1

Among the four bonds given below, (each having a 20 years maturity), which one is the most volatile?

Choose one answer. a. Municipal b. Treasury. c. Zero Coupon. d. BB-rated corporate. Incorrect Marks for this submission: 0/1. Question 14 Marks: 1
Interest rate on Post Office Savings Bank is payable__________.

Choose one answer. a. quarterly b. half yearly c. annually d. monthly Incorrect Marks for this submission: 0/1. Question 15 Marks: 1
If an investment has a correlation coefficient of 0.80 with the market, which of the following performance measures is the best measure of risks?

Choose one answer. a. Jensen b. Sharpe & Jensen c. Sharpe d. Treynor Incorrect Marks for this submission: 0/1. Question 16 Marks: 1
Bond prices are sensitive to the coupon rate of the bond and the maturity term of the bond. Bond prices are less sensitive to changes in interest rates when the bonds have_______

Choose one answer. a. large coupons and short maturity b. large coupons and long maturity c. small coupons and short maturity d. small coupons and long maturity

Incorrect Marks for this submission: 0/1. Question 17 Marks: 1

The bid-ask spread is________. (A) Broker.s commission (B) Dealer.s gross income from a transaction (C) Larger for illiquid securities than for liquid ones.

Choose one answer. a. (C) only b. (B) only c. (A), (B) & (C) d. (A) only Incorrect Marks for this submission: 0/1. Question 18 Marks: 1
In the calculation of the present value of shares, increasing the growth factor (all other things being equal) will cause the value to________.

Choose one answer. a. Stay the same b. Decrease c. Increase d. Increase then Decrease Incorrect Marks for this submission: 0/1. Question 19 Marks: 1
If a new issue was offered to the public at 15 times earnings but the market was pricing similar shares at 19 times, this would be_______.

Choose one answer. a. an example of low gearing b. a situation where the investor cannot take a position c. an appalling proposition to the investor d. a bargain not to be missed Incorrect Marks for this submission: 0/1. Question 20 Marks: 1

Rananjoy had invested in an open ended Mutual Fund when the NAV of the Fund was Rs. 10. After 6 months the NAV was Rs. 12. The annualized percentage change in the fund is __________. (Ignore all charges)

Choose one answer. a. 22% b. 20% c. 40% d. 44% Incorrect Marks for this submission: 0/1. Question 21 Marks: 1
Raghuveer is seriously concerned with the ongoing rising inflation. Taking a bitter experience of his earlier equity investments, he is keen to do some investments in debt instruments. Keeping in view the constantly rising inflation rate into account, which type of investment, from the given options, is advisable for Raghuveer in the current scenario?

Choose one answer. a. Bank FDR b. Long Term Bonds c. Short Term Bonds d. Floating Rate Bonds Incorrect Marks for this submission: 0/1. Question 22 Marks: 1
Sameer has asked you about FPSB Indias nature of constitution. You have explained him that FPSB India is a _________________

Choose one answer. a. Self Regulatory Organization b. Professional Standards Setting Body c. Professional Regulatory Organization d. A Quasi Government Body Incorrect Marks for this submission: 0/1. Question 23 Marks: 1
What is the importance of Letter of Engagement in Financial Planning Profession?

Choose one answer. a. It is a professional requirement under Code of Ethics of FPSB India. b. It is a professional requirement under Practice guidelines of FPSB India.

c. It is legal contract as per Contract Act 1872. d. There is no legal importance of this document Incorrect Marks for this submission: 0/1. Question 24 Marks: 1
Which of the following is not a basic and fundamental requirement for a contract to be legally enforceable?

Choose one answer. a. The contract is globally enforceable. b. There is an agreement between the parties or their power of attorney. c. The parties have intended the agreement to be legally binding. d. The contract must be supported by valid consideration. Incorrect Marks for this submission: 0/1. Question 25 Marks: 1
A member shall disclose to all the prospective clients the capacity in which they are able to provide Financial Planning services. This pertains to the Code of Ethics of ___________

Choose one answer. a. Compliance b. Fairness c. Competence d. Integrity Incorrect Marks for this submission: 0/1. Question 26 Marks: 1
A Systematic Investment Plan helps to manage ________. (A) Volatility Risk (B) Systematic Risk (C) Unsystematic Risk

Choose one answer. a. (A) & (B) b. (A) only c. (B) only d. (A), (B) & (C Incorrect Marks for this submission: 0/1. Question 27

Marks: 1
Ram is a Financial Planner in a large firm. His wife has some large investments in shares of a few companies. Ram is required to offer views on almost all of these holdings to clients. Under the Code of Ethics and Rules of Professional Conduct ________

Choose one answer. a. Ram will not violate the Code and the Rules if he does not disclose his wifes holdings b. Ram has to disclose the fact to his client(s) so as to make them aware of any potential conflict of interest c. Ram needs to disclose the holdings only if he himself has a beneficial interest in those shares so as to avoid potential conflict of interest d. Ram has to disclose these holdings only to his employers, if required by the firm .s internal compliance rules Incorrect Marks for this submission: 0/1. Question 28 Marks: 1
Before providing Financial Planning to a prospective client it is mandatory that the planner discloses_________.

Choose one answer. a. his credentials and educational background b. the number of clients he presently advises c. the size of his clients portfolio d. how he will earn for the services he is providing Incorrect Marks for this submission: 0/1. Question 29 Marks: 1
Which of the following is not a correct interpretation of the Rules of Conduct pertaining to the Ethic of Diligence for CFP Certificant?

Choose one answer. a. The Certificant shall enter into an engagement only after securing sufficient information to satisfy the Certificant that the individuals needs and objectives warrant the relationship. b. A significant recommendation may be given orally if it is not practicable to give it in writing. c. A Certificant is considered to be more knowledgeable than the client and hence may not need to explain the recommendation and basis in a manner that the client comprehends. d. A Certificant shall confirm in writing to the client where a subsequent instruction given by the client alters the Financial strategy of a portfolio under the Certificant.s supervision Incorrect Marks for this submission: 0/1.

Question 30 Marks: 1
Which of the following is a reasonable assumption to make about the understanding of a client on the Financial Planning process?

Choose one answer. a. Client would have identified a desirable asset allocation. b. He would have some knowledge of the assumptions on which Financial Plans are made. c. He would understand the financial products being recommended. d. He would be able to identify his financial goals. Incorrect Marks for this submission: 0/1. Question 31 Marks: 1
The statement Members shall ensure their conduct does not bring discredit to the Financial Planning profession, relates to the FPSB Code of Ethics of ____________.

Choose one answer. a. Compliance b. Professionalism c. Fairness d. Integrity Incorrect Marks for this submission: 0/1. Question 32 Marks: 1
Protector International is a financial services firm that specializes in investment advisory services. In its brochure for Financial Planning services, it may state _______

Choose one answer. a. it has the competence to take care of all Financial advisory requirements of the customer b. its competence in investment advisory services and the arrangements to offer advice in other areas c. it can offer superior investment returns on customer portfolios and talk of the arrangements to offer advice in other areas d. its Financial Planning services are the best available in the market in light of its investment advisory capabilities and arrangements to offer advice in other areas Incorrect Marks for this submission: 0/1. Question 33 Marks: 1
An immovable property will be termed as a short-term capital asset if it is held by the assessee for _______.

Choose one answer. a. not more than 36 months b. more than 36 months c. exactly twelve months d. more than 12 months Incorrect Marks for this submission: 0/1. Question 34 Marks: 1
A certificate of deposit (CD) is a promissory note issued by Banks and Financial Institutions. They form part of __________.

Choose one answer. a. CRR b. SLR c. both SLR and CRR d. neither SLR nor CRR Incorrect Marks for this submission: 0/1. Question 35 Marks: 1
A CFPCM Certificant is permitted to offer: (i) Comprehensive Financial Planning Advice. (ii) Limited Planning Advice. (iii) Product Related Advice.

Choose one answer. a. (i) only b. (ii) only c. Both (i) & (ii) d. (iii) only Incorrect Marks for this submission: 0/1. Question 36 Marks: 1
In regards to the Funds of a client, a CFP certificant acts as a ______________.

Choose one answer. a. Trustee b. Fiduciary c. Professional d. Beneficiary

Incorrect Marks for this submission: 0/1. Question 37 Marks: 1

Mukesh has taken a loan from his employer, a PSU, for pursuing his higher studies. The amount that he pays to hisemployer for the loan for FY 2008-09 is Rs. 80,000. Out of this Rs. 30,000 is towards repayment of the capitalamount of the loan and the rest is towards repayment of interest. Deduction available to Mukesh u/s 80E of IT Act would be _________.

Choose one answer. a. NIL b. Rs. 80,000 c. Rs. 50,000 d. 30,000 Incorrect Marks for this submission: 0/1. Question 38 Marks: 1
When a firm pays creditors the transaction does not affect the equity capital shown in its balance sheet in any way.

Choose one answer. a. True b. False Incorrect Marks for this submission: 0/1. Question 39 Marks: 1
In ranking portfolio performance, which measure of risk does the Treynor Index use?

Choose one answer. a. standard deviation b. variance c. beta d. alpha Incorrect Marks for this submission: 0/1. Question 40 Marks: 1
_________ funds have the highest expense ratio

Choose one answer. a. Customised b. Novated

c. Standardised d. Without counterparty risk Incorrect Marks for this submission: 0/1. Question 41 Marks: 2
Consider a portfolio of two investments viz. A & B. The sum total of volatility of A and B respectively, represented by standard deviation of the two investments, will be equal to the volatility of the portfolio as a whole if _________.

Choose one answer. a. A and B have a correlation of 1 b. the portfolio is equally divided between A and B c. A and B have a correlation of Zero d. the return on the portfolio is equal to the sum of returns of A and B Incorrect Marks for this submission: 0/2. Question 42 Marks: 2
Risk free rate of return is 8%, expected market premium is 15% and Beta of security is 0.80. What is the expected rate of return of the security?

Choose one answer. a. 13.6% b. 15.00% c. 12.00% d. 20.00% Incorrect Marks for this submission: 0/2. Question 43 Marks: 2
Shanu buys a call option of Infosys 2040 at Rs.35 and sells a call option of 2100 at Rs.15. The lot size of Infosys is 100. What is the Maximum profit for Shanu? Ignore brokerage, STT, Service tax etc.

Choose one answer. a. Rs. 4000 b. Rs. 2000 c. Rs. 2500 d. Rs. 6000 Incorrect Marks for this submission: 0/2. Question 44

Marks: 2
A company.s current dividend is Rs. 6. However it is constantly falling @ 5% per annum. If the discount rate is 15% what is the value of its share?

Choose one answer. a. Rs. 63.00 b. Rs. 23.75 c. Rs. 28.50 d. None of the above. Incorrect Marks for this submission: 0/2. Question 45 Marks: 2
All of the following statements describe the operation of a life annuity EXCEPT:

Choose one answer. a. Because of the interest factor, an annuitant is assured of receiving back more than he or she paid in. b. The annuitant is assured that he or she cannot outlive the length of time of the annuity payments. c. The emphasis is on the liquidation of the fund as opposed to its growth. d. The older the annuitant is when he or she receives the first annuity payment; the greater will be the amount of each payment. Incorrect Marks for this submission: 0/2. Question 46 Marks: 2
Dividend received by the writer of a Call during the life span of an Option __________.

Choose one answer. a. can be pocketed by the writer b. has to be given to the buyer of the option, only if he eventually exercises the option c. increases the premium value by an equivalent amount d. decreases the strike price Incorrect Marks for this submission: 0/2. Question 47 Marks: 2
Consider that an investor writes a covered call on XYZ share. Spot price is Rs. 38, Exercise price is Rs. 40 and a 3 month call on XYZ share is traded at Rs. 3. What is the initial cash flow incurred at the time of investment?

Choose one answer. a. Rs. 37

b. Rs. 41 c. Rs. 38 d. Rs. 35 Incorrect Marks for this submission: 0/2. Question 48 Marks: 2
Assume you advice Jay to invest Rs. 70,000/- into Fund A and Rs. 30,000/- in Nifty. Changes in Nifty account for or explain 25% of the returns for Fund A. If Fund A has a standard deviation of 20% and Nifty has a standard deviation of 11.5%, what is the standard deviation of the combined Rs. 1,00,000/- portfolio as advised by you?

Choose one answer. a. 15.0% b. 15.2% c. 16.0% d. 17.5% Incorrect Marks for this submission: 0/2. Question 49 Marks: 2
Jay has entered into a covered American call option with a strike price of Rs. 75/- and a premium of Rs. 5/- and this is at-the-money. He wants you to find the break even point of this covered call option.

Choose one answer. a. Rs. 70/b. Rs. 75/c. Rs. 80/d. Rs. 85/Incorrect Marks for this submission: 0/2. Question 50 Marks: 2
Dr. Monica wants to withdraw money from her PPF account which she had opened in the year 2001-02. She wants to know when she can make her first withdrawal from this account.

Choose one answer. a. After 31-03-2008 b. After 31-03-2007

c. After 31-03-2006 d. After 31-03-2016 Incorrect Marks for this submission: 0/2. Question 51 Marks: 2
You have selected a Mutual Fund scheme which has stocks in its portfolio which move together and have a high correlation. How will that impact the risk and return of Rananjoy's portfolio?

Choose one answer. a. The Mutual Fund portfolio will have a return that is lower than the stocks included in it, but have a risk that is higher than the risk of the stocks. b. The Mutual Fund portfolio will have a return that is the average of the stocks included in it, but have a risk that is lower than the risk of the stocks. c. The Mutual Fund portfolio will have a return that is the average of the stocks included in it, but have a risk that is higher than the risk of the stocks. d. The Mutual Fund portfolio will have a return and risk, which lies in the range of risk and return of the stocks included in it. Incorrect Marks for this submission: 0/2. Question 52 Marks: 2
Which of the following statements is/are true regarding strategic and tactical asset allocation? 1) Strategic asset allocation involves selection of the correct asset allocation based on risk tolerance of the client, economic forecasts, and expectations of selected asset classes and rebalancing once or twice per year to keep the portfolio within the parameters of the desired strategic mix. 2) Tactical asset allocation involves evaluating asset classes or industries as to their value and selling undervalued classes and purchasing overvalued classes.

Choose one answer. a. 1 only is true b. 2 only is true c. Both 1 & 2 are true d. Neither 1 nor 2 is true Incorrect Marks for this submission: 0/2. Question 53 Marks: 2
Dr.Anil.s brother is an NRI working in US. He has been hearing about the phenomenal returns being generated by the Indian Stock markets. He has approached you to direct his investment in some good equity scheme of any of the top five Funds. What would you suggest to him?

Choose one answer. a. He can choose any of the existing diversified equity schemes and invest in bulk amount. b. He should make a portfolio of different funds depending upon his financial goals and investment tenure. c. Being NRI he cannot invest in Mutual Funds. d. He should wait for some time before investment as the markets may come down still further Incorrect Marks for this submission: 0/2. Question 54 Marks: 2
Which of the following items would affect net worth of your client? 1. Repayment of a loan using fund from a savings account 2. Purchase of car which is 75% financed with 25% down payment 3. The Nifty is appreciating, and the client is holding Nifty Indexed Mutual Fund 4.Interest rate increases and the client holds substantial bond portfolio

Choose one answer. a. 3 & 4 only b. 2 & 3 only c. 1, 3 & 4 only d. All of the above Incorrect Marks for this submission: 0/2. Question 55 Marks: 2
If the net present value of a series of discounted cash flows is less than zero, one could interpret that: 1. The discounted cash flows are lower than the investment outlay 2. The rate of return is lower than the cost of capital 3. The return of investment is higher than the internal rate of return 4. The internal rate of return was the discount rate used

Choose one answer. a. 1, 2, 3 & 4 b. 2 and3 only c. 1 and4 only

d. 1 only Incorrect Marks for this submission: 0/2. Question 56 Marks: 2

Cash in hand Rs.50000, Cash in bank Rs.100,000, Mutual Fund Rs.200,000, Money market instrument Rs.150,000, Fixed deposit Rs.300,000, Total debt Rs.7,00,000, Mortgage debt Rs.400,000. Find current ratio:

Choose one answer. a. 0.75 b. 1.14 c. 1 d. . 2 Incorrect Marks for this submission: 0/2. Question 57 Marks: 2
A model that describes the relationship between risk and expected return and that is used in the pricing of risky securities is better known as _________

Choose one answer. a. Efficient Market hypothesis b. CAPM c. Security Market Line d. Beta Model Incorrect Marks for this submission: 0/2. Question 58 Marks: 2
Calculate the GDP of India with the given figures: Consumption: $ 300 billion Investments: $ 400 billion Government spending: $ 300 billion Exports: $ 150 billion Imports: $ 200 billion

Choose one answer. a. $ 1,000 billion b. $ 650 c. $ 1,050 d. $ 950

Incorrect Marks for this submission: 0/2. Question 59 Marks: 2

8% coupon bond with 5 years maturity is presently trading at 950 (Face value Rs.1,000) . At what price will you buy it to get a yield of 13%?

Choose one answer. a. 1,200 b. 797 c. 950 d. .824 Incorrect Marks for this submission: 0/2. Question 60 Marks: 2
Calculate the yield value of a treasury bill with a face value of Rs. 1,50,000. It has 125 days to maturity and the market value today is Rs. 1,44,231.

Choose one answer. a. 9.85% b. 12.1% c. 11.7% d. 10.5% Incorrect Marks for this submission: 0/2. Question 61 Marks: 4
Jay is considering the following investment projects: Cash Flows (Rs) Projects C0 C1 C2 C3 1 -10,000/- +10,000/- NIL NIL 2 -10,000/- +7,500/- +7,500/- NIL 3 -10,000/- +2,000/- +4,000/- +12,000/4 -10,000/- +10,000/- +3,000/- +3,000/Assuming the projects are independent and mutually exclusive advise Jay which project he should opt for on the basis of IRR and NPV respectively at 10% rate of discount.

Choose one answer. a. 3and 2 b. 3and 4 c. 4and 3 d. 4and 2 Incorrect Marks for this submission: 0/4. Question 62 Marks: 4
Dr. Anil's 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.

Choose one answer. a. Buy a 2010 Call Option b. Buy a 1980 Call Option c. Sell a 2010 Call option. d. Buy a 2010 Put Option. Incorrect Marks for this submission: 0/4. Question 63 Marks: 4
Dr. Monica would like to have Rs. 10 lakh in today's value for Deepikas marriage which she feels would take place when Deepika is 25 years old. She is ready to invest 75% in an Equity fund and 25% in a Debt fund on a regular basis. If she gets 15% p.a return from Equity and 9% p.a return from Debt during her investment period, how much money should she invest at the end of every year to achieve this target?Assume Deepika's age is 13 years now and rate of inflation 5%

Choose one answer. a. Rs. 67,000 b. Rs. 55,000 c. Rs. 74,000 d. Rs. 69,000 Incorrect Marks for this submission: 0/4. Question 64 Marks: 4

Ajay is keen to invest in any of the four securities A, B, C or D whose betas are 0.70, 1.00, 1.15 and -0.30 respectively. The risk free rate of return being 8% and expected rate of return on market being 14%, which security would you recommend to Ajay?

Choose one answer. a. Security C, as expected return is highest. b. Security D, as expected return is least. c. Either Security A or Security B as their return is moderate. d. More data as to the time horizon is required before passing advise to Ajay. Incorrect Marks for this submission: 0/4. Question 65 Marks: 4
What is the maximum amount Rananjoy can offer to buy a house which requires an investment of Rs. 1,25,000, Rs. 50,000, Rs. 65,000 and Rs. 75,000 at the end of the first, second, third and fourteen months for restoration before sale? Rananjoy expects to sell this house at the end of 26 months for Rs.25,80,000. (For calculation purpose compounding to be done on a monthly basis). Assume brokerage to be 5%.

Choose one answer. a. Rs. 12,15,281 b. Rs. 11,68,090 c. Rs. 12,27,280 d. Rs. 11,44,251 Incorrect Marks for this submission: 0/4. Question 66 Marks: 4
The Company XYZ Ltd. is currently 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 Ajay in case the market value of the share is Rs. 85? Assume capitalization rate to be 9% per annum.

Choose one answer. a. Keep the share as the market price is higher than the current value of the share. b. Sell the share as the market price is higher than the current value of the share. c. Sell the share as the market price is lower than the current value of the share. d. Buy more shares as market price is lower than current value. Incorrect Marks for this submission: 0/4. Question 67

Marks: 4
By your recommendation Ajay has invested a sum of Rs. 25,000 in an equity Mutual Fund which is closed end for five years. The Mutual Fund Asset Management Company has collected Rs. 100 crore in NFO of this closed end fund. The initial issue expenditure is Rs. 8 crore. Ajay wants to know what would be the value of his investment in this closed end fund upon allotment

Choose one answer. a. Rs. 24,800 b. Rs. 24,375 c. Rs. 23,000 d. Rs. 24,994 Incorrect Marks for this submission: 0/4. Question 68 Marks: 4 Choose one answer. a. 12.60%and 0.809% b. 11.67%and 8.75% c. 12.60%and 8.09% d. 8.09%and 12.60% Incorrect Marks for this submission: 0/4. Question 69 Marks: 4
Avinash pays his mortgage of Rs. 12 Lakh for 15 years at an interest rate of 7%. Avinash makes the payments on a monthly basis. What is the total amount of interest Avinash will pay over the term of the mortgage? (Select closest answer)

Choose one answer. a. Rs. 6,47,000 b. Rs. 7,76,300 c. Rs. 7,30,200 d. Rs. 7,41,480 Incorrect Marks for this submission: 0/4. Question 70 Marks: 4
A client has the need to provide for his child's college education costs. He envisages that four annual payments of Rs 20,000/-, in current money terms, would be needed beginning 15 years from now. Assuming level of inflation rate at 5% per annum and that the fund earns 8% per annum returns throughout; calculate the present value to be placed on this liability when carrying out a needs analysis for this client. (Round of your answer to the nearest '000').

Choose one answer. a. Rs. 49,000/b. Rs. 50,000/c. Rs. 24,000/d. Rs. 23,000/Incorrect Marks for this submission: 0/4. Question 71 Marks: 4
You are evaluating the following table for your customer Fund A B C Market Average returns 22 14 16 12 Standard Deviations 24 18 17 15 Beta 1.3 0.9 1.1 1

Choose one answer. a. A A, B, C b. B A, C, B c. C B, A, C d. D C, B, A Incorrect Marks for this submission: 0/4. Question 72 Marks: 4
The returns of two assets under four possible states:

Choose one answer.

a. 1.00276 b. 0.997 c. 29 d. 5.39 Incorrect Marks for this submission: 0/4. Question 73 Marks: 4
The portfolio consists of 3 securities 1,2, and 3. The proportions of these securities are: w1= 0.3; w2 = 0.5; w3 = 0.2. The standard deviations of returns on these securities in percentage terms are: ?1= 6, ? 2 = 9, ? 3 = 10. The correlation coefficients among securities returns are p12 = 0.4; p13 = 0.6; p23 = 0.7. What is the standard deviation of portfolio retun?

Choose one answer. a. 11.33% b. 12.11% c. 8.27% d. None of the above Incorrect Marks for this submission: 0/4. Question 74 Marks: 4
Mohan opened PPF account in the year 2007. He wants to know about the withdrawal scheme of the PPF account?

Choose one answer. a. Amount of withdrawal cannot exceed 50% of the balance to his credit at the end of the third year immediately preceding the year of withdrawal or at the end of the preceding year , whichever is less. b. Amount of withdrawal cannot exceed 50% of the balance to his credit at the end of the fourth year immediately preceding the year of withdrawal or at the end of the preceding year , whichever is less. c. Amount of withdrawal cannot exceed 25% of the balance to his credit at the end of the fourth year immediately preceding the year of withdrawal or at the end of the preceding year , whichever is less. d. Amount of withdrawal cannot exceed 25% of the balance to his credit at the end of the third year immediately preceding the year of withdrawal or at the end of the preceding year , whichever is less Incorrect Marks for this submission: 0/4. Question 75 Marks: 4

A company declares a bonus shares in the ratio of 1:5. Further , it declares a split of 2:1. If the share is trading at Rs.480. What is the price it will trade at ex-bonus, ex- split?

Choose one answer. a. 26.66 b. Rs.53.33 c. Rs.133.33 d. Rs.200 Incorrect Marks for this submission: 0/4.