McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce in Finance (B.Com Finance) .
| 151. |
Which speculator expects a rise in price in future? |
| A. | Bull |
| B. | bear |
| C. | stag |
| D. | lame duck |
| Answer» A. Bull | |
| 152. |
When a right to purchase a security is given it is called |
| A. | Put option |
| B. | call option |
| C. | put and call option |
| D. | none of the above |
| Answer» B. call option | |
| 153. |
OTCEI deals in |
| A. | money market |
| B. | industrial securities |
| C. | giving long term loans |
| D. | factoring services |
| Answer» B. industrial securities | |
| 154. |
The first stock exchange which was fully computerized was |
| A. | BSE |
| B. | NSE |
| C. | OTCEI |
| D. | DSE |
| Answer» C. OTCEI | |
| 155. |
Interest rate risk is associated with |
| A. | Inflation |
| B. | taxation |
| C. | business cycle |
| D. | bank rate |
| Answer» D. bank rate | |
| 156. |
Volatile stock has beta value |
| A. | Greater than one |
| B. | equal to one |
| C. | less than one |
| D. | none of the above |
| Answer» A. Greater than one | |
| 157. |
Total risk in a security usually measured by |
| A. | Range |
| B. | standard deviation |
| C. | beta |
| D. | co efficient of variation |
| Answer» B. standard deviation | |
| 158. |
Systematic risk is measured with |
| A. | Range |
| B. | standard deviation |
| C. | beta |
| D. | co efficient of variation |
| Answer» C. beta | |
| 159. |
The term beta is synonymous with |
| A. | systematic risk |
| B. | unsystematic risk |
| C. | portfolio risk |
| D. | all of the above |
| Answer» A. systematic risk | |
| 160. |
SEBI has made it mandatory for the companies to disclose |
| A. | The yearly annual report |
| B. | monthly report and annual report |
| C. | Quarterly report and annual report |
| D. | monthly review and annual report |
| Answer» C. Quarterly report and annual report | |
| 161. |
The minimum number of shares applied for is |
| A. | 100 |
| B. | 200 |
| C. | 300 |
| D. | 500 |
| Answer» B. 200 | |
| 162. |
For every RS 1 lakh of fresh issue of capital there should be at least |
| A. | 5 share holders |
| B. | 10share holders |
| C. | 15 share holders |
| D. | 20 share holders |
| Answer» A. 5 share holders | |
| 163. |
Marketability risk of bond is |
| A. | The market risk which affect all the bonds |
| B. | variation in return caused by difficulty in selling stocks |
| C. | The failure to pay the agreed value of the bond by the user |
| D. | A & B |
| Answer» B. variation in return caused by difficulty in selling stocks | |
| 164. |
Default risk is lower in |
| A. | Treasury bills |
| B. | government bonds |
| C. | ICICI bonds |
| D. | IDBI bonds |
| Answer» A. Treasury bills | |
| 165. |
The value of the bond depends on |
| A. | The coupon rate |
| B. | years to monthly |
| C. | expected yield to maturity |
| D. | all of the above |
| Answer» D. all of the above | |
| 166. |
The bond yield remains constant over its life and the discount or premium amount will decrease |
| A. | at an decreasing rate as its life gets shorter |
| B. | at an decreasing rate as its life gets longer |
| C. | at an increasing rate as its life gets shorter |
| D. | at an increasing rate as its life gets longer |
| Answer» C. at an increasing rate as its life gets shorter | |
| 167. |
Yield to maturity is the single factor that makes |
| A. | The future value of the present cash flows from a bond equal to bond value |
| B. | The future value of the present cash flows from a bond equal to the future price of the bond |
| C. | Present value of the future cash flows of the bond equal to the current price of the bond |
| D. | The future value of the bond equal to the present price |
| Answer» C. Present value of the future cash flows of the bond equal to the current price of the bond | |
| 168. |
The term structure of the bond is the relationship between the |
| A. | interest rate and bond’s maturity period |
| B. | interest rate of the bond and market rate of interest |
| C. | interest rate and the price of bond |
| D. | yield and time taken to mature |
| Answer» D. yield and time taken to mature | |
| 169. |
The problem with Markowitz’s model is that a number of covariance have to be estimated. for example for a portfolio of 30 stocks, the covariance that to be estimated are |
| A. | 300 |
| B. | 350 |
| C. | 435 |
| D. | 450 |
| Answer» C. 435 | |
| 170. |
For portfolio of 40 stocks to adopt Sharpe index model, the bit of information needed are |
| A. | 80 |
| B. | 100 |
| C. | 120 |
| D. | 122 |
| Answer» D. 122 | |
| 171. |
The risk explained in the index is equal to |
| A. | Beta value of the stock |
| B. | variance of the security return |
| C. | a^2x variance of market index return |
| D. | a^*variance of security return |
| Answer» C. a^2x variance of market index return | |
| 172. |
The unsystematic risk is explained by |
| A. | Variance of the index |
| B. | unexplained variance of index |
| C. | Explained variance of the index |
| D. | none of the above |
| Answer» B. unexplained variance of index | |
| 173. |
For securities X,Y,Z,,T are selected for analysis. The returns of the securities are 10 %, 12%,13% and 16% the risk free rate of interest rate is 6%.the standard deviation of the return of the securities are 4,7,5 and 10 which security yield highest return for the risk undertaken? |
| A. | X |
| B. | Y |
| C. | T |
| D. | Z |
| Answer» A. X | |
| 174. |
the X company has the beta of 1.5 .the expected return is 15% the risk free rate of interest is 5 %.which is the market return. |
| A. | 6.67% |
| B. | 10.33% |
| C. | 15.66% |
| D. | 12.33% |
| Answer» A. 6.67% | |
| 175. |
The X stocks return relationship with the stock index is given by its correlation co efficient being 0.8.what is the percentage of variation explained by the index ? |
| A. | 80% |
| B. | 60% |
| C. | 64% |
| D. | 20% |
| Answer» C. 64% | |
| 176. |
The broker shall have to furnish SEBI a copy of audited balance sheet and profit and loss account within |
| A. | one month of each accounting year |
| B. | two month of each accounting year |
| C. | three months of each accounting year |
| D. | six month of each accounting year |
| Answer» D. six month of each accounting year | |
| 177. |
Mutual fund can make investment |
| A. | in any company listed or unlisted |
| B. | in privately place d securities of associated company |
| C. | up to 40 % of the listed or unlisted securities of group of companies |
| D. | Should not exceed 10% of the funds in securities of a single company |
| Answer» D. Should not exceed 10% of the funds in securities of a single company | |
| 178. |
FII’S are permitted |
| A. | to invest in the listed company only |
| B. | to invest in the listed and unlisted company |
| C. | not to invest in the debentures |
| D. | to invest in the shares of list, unlisted companies and debentures |
| Answer» D. to invest in the shares of list, unlisted companies and debentures | |
| 179. |
The finance minster in 2000 Feb announced the aggregate investment limit of FII/NRI/OCB IN A company as |
| A. | 35 % |
| B. | 30% |
| C. | 40% |
| D. | 35% |
| Answer» C. 40% | |
| 180. |
In the weakly efficient market, the stock price reflects |
| A. | the company financial performance |
| B. | the price of the scrip |
| C. | the demand for the scrip |
| D. | the past price and traded volumes |
| Answer» D. the past price and traded volumes | |
| 181. |
If the markets are efficient, the security price provides |
| A. | Inadequate return for taking up risk |
| B. | normal return for the level of risk taken |
| C. | high return for the level of risk taken |
| D. | B and C |
| Answer» B. normal return for the level of risk taken | |
| 182. |
According to efficient market theorist the stock price |
| A. | moves in trend |
| B. | each successive change depends on the previous one |
| C. | each successive change does not depend on the previous one |
| D. | price movements crate patterns |
| Answer» C. each successive change does not depend on the previous one | |
| 183. |
The stock price in the stock market |
| A. | movers around the support level or resistance level |
| B. | moves between the same support and resistance level |
| C. | move between the changing support and resistance level |
| D. | a and b |
| Answer» C. move between the changing support and resistance level | |
| 184. |
Technical indicators help |
| A. | to find out the present state of the stock market |
| B. | to estimate the growth of stock market |
| C. | to indicate the economic activity |
| D. | to show the direction of the overall market |
| Answer» D. to show the direction of the overall market | |
| 185. |
In a bullish market, a bearish signal is given when |
| A. | advance decline line sloped down |
| B. | BS E sensex is falling |
| C. | fall in the trade volumes |
| D. | A/D lines slopes downward while BSE sensex is raising |
| Answer» D. A/D lines slopes downward while BSE sensex is raising | |
| 186. |
Oscillators show the share price movement |
| A. | over a reference period |
| B. | below a reference point |
| C. | through a reference point |
| D. | b and c |
| Answer» C. through a reference point | |
| 187. |
The chartist believe that the charts |
| A. | Spot the current trend for buying and selling |
| B. | indicates the future action to be taken |
| C. | Shows the past historic movements |
| D. | all of the above |
| Answer» D. all of the above | |
| 188. |
The market value of the scrip is determined by |
| A. | The dividend declared by the company |
| B. | The present statues of the stock market |
| C. | The number of floating shares |
| D. | The interaction of demand and supply |
| Answer» D. The interaction of demand and supply | |
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