Time Value

TIME VALUE OF MONEY 1. In the event that you were booked to get Rs 100,000 five years consequently, however you wish to sell your agreement note for its current worth, which sort of exacerbating would you rather have the buyer of your agreement note to use to discover the price tag, 8 percent intensified: (a) (b) (c) (d) (e) Continuously Quarterly Semi-every year Annually None of the over 2. As per the standard of 69, the multiplying time frame is equivalent to (a) (b) (c) (d) (e) 0. 25 + (69/Interest rate) 0. 35 + (69/Interest rate) 0. 69 + (0. 35/Interest rate) 0. 69 + (0. 25/Interest rate) None of the over 3. For a contributor, when the recurrence of intensifying is expanded (a) (b) (c) (d) (e) Additional additions increment Additional increases lessen Additional additions are unaffected There are no extra increases None of the over 4. Present worth intrigue factor of an unendingness speaks to (a) (b) (c) (d) (e) Interest rate in rate terms Reciprocal of loan fee in rate terms Reciprocal of financing cost in decimal terms Interest rate in decimal terms None of the over 5. The current estimation of an interminability of one rupee when the loan cost is r percent is: (a) (b) (c) (d) (e) 1/r 1/r2 1/r0. 2 r2 None of the over 1 6. The current estimation of an annuity due is equivalent to the current estimation of a standard annuity duplicated by : (a) (b) (c) (d) (e) r (1 + r) 1/r r(1 + r) None of the over 7. Repeating store in a bank is a run of the mill case of: (a) (b) (c) (d) (e) Deferred Annuity due Regular annuity Compound annuity None of the over 8. Stores in a sinking reserve is a case of: (a) (b) (c) (d) (e) Deferred Annuity due Regular annuity Either an or c None of the over 9. In a credit amortization plan, as the quantity of years builds: (a) (b) c) (d) (e) The intrigue sum expands The foremost reimbursement sum expands The yearly portion sum diminishes Both an and c None of the above KEY 1 (d) 2 (b) 3 (b) 4 (c) 5 (a) 6 (b) 7 (b) 8 (d) 9 (a) 2 VALUATION OF STOCKS AND BONDS 1. The yearly enthusiasm on a security corresponding to its overall market cost is called its: (a) (b) (c) (d) (e) Coupon rate Promised yield Current Yield to development None of the over 2. Inward pace of profit for a security venture is its (a) (b) (c) (d) (e) Current Yield to development Holding period return Realized yield None of the above . The steady development profit rebate model won't produce a limited worth if the profit development rate is: (a) (b) (c) (d) (e) Above its recorded normal Below its verifiable normal Above the market capitalisation rate Below the market capitalisatio n rate None of the over 4. For some random stock, which of the accompanying must be valid? (a) (b) (c) (d) (e) Market esteem ? book esteem ? standard worth Book esteem ? advertise esteem ? standard worth Par esteem ? showcase esteem ? book esteem Par esteem = book esteem ? showcase esteem None of the above must be genuine 5. Restricted development possibilities are demonstrated by (a) (b) (c) (d) (e) High profit High P/E proportion Low profit High profit and low P/E proportion None of the over 3 6. More hazardous stocks have (a) (b) (c) (d) (e) Higher P/E various Lower P/E different Higher change (b) and (c) None of the over 7. Which of coming up next isn't accurate? (a) (b) (c) (d) (e) Earnings-value proportion is equivalent to r when PVGO is zero Earnings-value proportion is not as much as r when PVGO is certain Earnings-value proportion is not as much as r when PVGO is negative Earnings-value proportion is more than r when PVGO is negative None of the over 8. An expansion in the market estimation of an organization demonstrates: (a) (b) (c) (d) (e) Increase in productivity Increase in incomes Increase in future possibilities All the above None of the over 9. Natural estimation of a security is its: (a) (b) (c) (d) (e) DCF esteem Book esteem Real worth Market capitalization esteem None of the over 10. Which one of coming up next is certainly not a significant driver of development? (a) (b) (c) (d) (e) Sales development proportion Ploughback proportion Return on value All the above None of the over 11. On account of stocks with lower P/E products: (a) Liquidity is low (b) Required return is high (c) Risk is high 4 d) All the abovementioned (e) None of the over 12. All exchanges on NSE are ensured by: (a) (b) (c) (d) (e) SEBI NSDL NSCC CDSL None of the over 13. In regard of the example shares, sensex mirrors the development of: (a) (b) (c) (d) (e) Average absolute market estimation of the coasting stocks Average market estimation of the drif ting stocks times a fixed various Average capitalisation of the gave and settled up stocks Average total market estimation of the bought in stocks None of the above Formatted: Font shading: Auto Formatted: Font shading: Auto Formatted: Font shading: Auto 14. The book estimation of a firm? s value is only the book estimation of its advantages less the book estimation of its liabilities: a. Genuine b. Bogus 15. Market estimation of a firm must be in any event equivalent to its: (a) (b) (c) (d) (digital book esteem Cash and bank balance Net resource esteem Lowest of the above None of the over 16. Characteristic estimation of a security is its: (a) (b) (c) (d) (e) Market esteem Book esteem Economic worth Resale esteem None of the over 5 KEY 1 (c) 12 (c) 2 (b) 13 (a) 3 (c) 14(a) 4 (e) 15(e) 5 (d) 16(c) 6 (d) 7 (c) 8 (e ) 9 (a) 10 (a) 11 (d) 6 RISK AND RETURN 1. Fluctuation will consistently be (a) (b) (c) (d) (e) Positive Negative Variable Very high None of the over 2. An ordinary appropriation is totally portrayed by (a) (b) (c) (d) (e) Expected return and standard deviation Required return and change Expected return and range Standard return and expected difference None of the over 3. On the off chance that a variable is ordinarily disseminated what level of the qualities fall inside a band of one standard deviation on either side of the math mean. (a) (b) (c) (d) (e) 95. 4 percent 68. 3 percent 99. 7 percent 57. 5 percent None of the over 4. In the event that a variable is ordinarily circulated what level of qualities will fall inside a band of three standard deviations on either side of the number juggling mean? (a) (b) (c) (d) (e) 95. 4 percent 68. 3 percent 99. 7 percent 57. 5 percent None of the over 5. Which of coming up next is valid? (a) (b) (c) (d) The geometric mean is in every case not exactly the number-crunching mean The geometric mean is constantly more noteworthy than the number-crunching mean The geometric mean and the math mean are consistently the equivalent The geometric mean is in every case not exactly the number-crunching mean, with the exception of when all the arrival esteems being considered are equivalent (e) None of the over 7 . At the point when the likelihood conveyance of pace of return of a security is characterized, the potential results: (a) (b) (c) (d) (e) Should be totally unrelated Should be all in all comprehensive Should not add to more than 1 All the above None of the over 7. Setting up the likelihood dissemination of pace of return of a security is: (an) A target practice dependent on the common economic situations (b) A target practice dependent on the previous history of the protections execution (c) A target practice dependent on the future possibilities of the security. d) An abstract exercise (e) None of the over 8. While breaking down the profits of a security dependent on a ceaseless likelihood appropriation, probabilities are appointed to: (a) (b) (c) (d) (e) Individual focuses on the bend Intervals between two focuses on the bend The inclination between any two referenced focuses on the bend Either b or c None of the over 9. Expansion disposes of hazard if returns are: (a) (b) (c) (d) (e) Not superbly decidedly associated Perfectly emphatically corresponded Perfectly contrarily connected All the above None of the over 10. In the event that the arrival on a security is contrarily connected with the market return, its beta is: (a) (b) (c) (d) (e) Less than zero Less than one however in excess of zero More than one Independent of the market return None of the over 8 11. To pass judgment on financial soundness of firms, driving worldwide rating firms use obligation proportions communicated in: (a) (b) (c) (d) (e) Market esteems Book esteems Real qualities Discounted values None of the over 12. A cautious stock is described by: (a) (b) (c) (d) (e) Negative beta Positive beta short of what one Positive beta more than one Beta equivalent to one None of the over 3. At the point when you need to know the focal inclination of a progression of profits, the math mean is the fitting measure: a. Genuine b. Bogus 14. For a given arrangement of profits geometric mean is constantly more noteworthy than the Arithmetic mean: b. Genuine b. Bogus 15. Business danger of a firm : (a) (b) (c) (d) (e) Is the danger of the fir m without monetary influence Depends on cyclicality of incomes Depends on working influence All the above None of the over 16. Obligation rating firms, for example, Standard and Poor? furthermore, Moody? s use obligation proportions communicated in advertise qualities to pass judgment using a loan value: a. Genuine b. Bogus KEY 1 (a) 12 (b) 2 (a) 13(a) 3 (b) 14(b) 4 (c) 15(d) 5 (d) 16(b) 9 6 (d) 7 (d) 8 (b) 9 (c) 10 (a) 11 (b) TECHNIQUES OF CAPITAL BUDGETING 1. As markdown rate expands, NPV of a straightforward task (a) (b) (c) (d) (e) Increases at a diminishing rate Decreases at an expanding rate Decreases at a diminishing rate Decreases at a consistent rate None of the over 2. At the point when time-shifting rebate rates are included the reasonable venture standard is (a) (b) (c) (d) (e) NPV IRR MIRR Discounted Pay Back Period None of the over 3. On the off chance that underlying speculation is Rs. 10 million and NBCR is 0. 2, the NPV is (a) (b) (c) (d) (e) Rs. 50 million Rs. 2 million Rs. 8 million Rs. 5 million None of the over 4. IRR is problematic for positioning activities when (a) (b) (c) (d) (e) Life of the undertakings are long Projects have various examples of income Projects have diminishing incomes Both an and c None of the above . In the event that you don't have the foggiest idea about the rebate rate for a venture, the correct speculation measure to be utilized will be (a) (b) (c) (d) (e) IRR MIRR NPV BCR None of the over 10 6. The IRR of a capital venture (a) Changes when the expense of capital changes (b) Is equivalent to yearly incomes separated by the task? s cost when the incomes are an annuity (c) Is like th