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Objective Type Set
Online MCQ Assignment
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In each of the cases given below, one out of four is correct. Indicate the correct answer and give workings/reasons briefly in support of your answer.
Q1: MR. DEBASHIS has formed a portfolio and the characteristics of his portfolio are given below:
 

SecuritySontex Ltd.Polar Ltd.Treasury BillIndex Fund
Weight0.070.250.250.43
Beta (β)1.720.89??

Beta of his portfolio is :
(A) 0.8229
(B) 0.7729 [Ans]
(C) 0.4629
(D) None of the above
 
Q2: ZENION LTD. issued right shares that increased the market value of the shares of the company by Rs.180 crore. The existing base year average is Rs.750 crore. If the aggregate market value of all the shares included in the index before the right issue made is Rs.1200 crore, what will be the new base year average?
(A) Rs.782.30 crore
(B) Rs.862.50 crore [Ans]
(C) Rs.978.20 crore
(D) Insufficient information
 
Q3: The shares of NABANI LTD. are trading at Rs.370. If put options with a strike price of Rs.380 are priced at Rs.20, the intrinsic value and time value of the options respectively are :
(A) Rs.8, Rs.8
(B) Rs.10, Rs.10  [Ans]
(C) Rs.8, Rs.10
(D) Incomplete information
 
Q4: The Co-efficient of Correlation between returns of MOONSHINE LTD. and SENSEX is 0.98. The expected returns on the stock of Moonshine Ltd. and Sensex are 16% and 13.77% respectively. The return on 182 day T Bill is 6.35%. If the standard deviation of the returns of Moonshine Ltd. is 21%, what would be the standard deviation of SENSEX’s return?
(A) 15.83% [Ans]
(B) 16.51%
(C) 22.42%
(D) None of (A), (B), (C)
 
Q5: Consider the following data of SUN INDIA MUTUAL FUND (Growth Plan):

Particulars Rs.In crore
Value of investments
Receivables
Other current Assets
Liabilities
Accrued Expenses
2757.00
221.00
643.00
390.00
87.00

If the number of outstanding units is 155 crore and sales charge is 2.20% on the NAV, the public offering price will be:
(A) Rs.20.74 [Ans]
(B) Rs.20.81
(C) Rs.21.41
(D) Insufficient information
 
Q6: BSE Index is currently quoting at 1620. Each lot is 300. MS ASHA, an investor purchases a July contract at 1710. She has been asked to pay 8% initial margin. What is the amount of initial margin required to be paid by her?
(A) Rs.31,800
(B) Rs.41,040 [Ans]
(C) Rs.44,810
(D) None of the above
 
Q7: MR. MOHON has purchased a stock of MAXI OILS LTD. (MOL). Currently the company pays dividend of Rs.8.50 per share. Thereafter the dividend is expected to grow at a constant rate of 6.5% p.a. the stock of MOL has beta of 1.40. If the risk free rate of return is 7.5% p.a. and the expected market return is 12% p.a., what would be the stock’s expected price four years from now?
(A) Rs.137.79
(B) Rs.159.53 [Ans]
(C) Rs.163.18
(D) None of the above
 
Choose the most appropriate one from the stated options and write it down (only indicate A, or B or C or D as you think correct):
Q1: The following Act empowers the government departments to accept filing, creating and retention of official documents in the digital format:
(A) Indian Companies Act, 1956
(B) E commerce Act, 2011
(C) Information Technology Act, 2000 [Ans]
(D) None of the above
 
Q2: The Board for Financial Supervision (BFS) was constituted in November, 1994 as a Committee of:
(A) The Ministry of Finance
(B) The Central Board of Directors of the RBI [Ans]
(C) The Ministry of Company Affairs
(D) Incomplete information
 
Q3: Following is not a Money Market Instrument:
(A) Treasury Bill
(B) Certificate of Deposit
(C) Equity Shares [Ans]
(D) Commercial Paper
 
Q4: Which of the following statements is/are true?
(A) If market price = face value, then Coupon Rate > YTM > Current Yield
(B) If market price < face value, then Coupon Rate > Current Yield > YTM
(C) If market price > face value, their Coupon Rate > Current Yield > YTM [Ans]
(D) If market price = face value, then Coupon Rate < Current Yield < YTM
 
Q5: Which of the following option strategies involve the purchase of call options and writing of put options are exactly the same exercise price?
(A) Synthetics [Ans]
(B) Spreads
(C) Conversions
(D) None of the above
 
Q6: A process of investment by a Sponsor or a Syndicate of Investors/Sponsors directly in a Company is referred as
(A) Bought out deal [Ans]
(B) Buy back of shares
(C) Irredeemable preference shares
(D) Deferred shares
 
SECTION – II
(Corporate Laws)
 
Choose the most appropriate one from the stated options and write it down (only indicate A or B or C or D as you think correct).
Q1: There are 11 directors in GROW WELL LTD. a Public Limited Company. It has a Managing Director and a nominee of IDBI. How many directors are liable to retire by rotation?
(A) Four
(B) Six
(C) Seven [Ans]
(D) Eight
 
Q2: The concept of Corporate Governance was initiated on the recommendation of the report by
(A) Mr. Narayana Murthy
(B) Mr. Kumar Mangalam Birla [Ans]
(C) Dr. Y.V. Reddy
(D) None of the above
 
 
Q3: The nationality of a company is decided by:
(A) Place of residence of the directors in charge of management of the company
(B) Place of registered office of the company [Ans]
(C) Place where the books of accounts of the company are kept
(D) None of the above
 
Q4: Prospectus is not required to issued by/in respect of:
(A) Private limited company
(B) Sweat equity shares
(C) Rights issue
(D) For all of the above [Ans]
 
Q5: Under the RTI Act, A second appeal against the decision of Public Information Officer shall lie within ___________ from the time by which the decision should have been made or receipt of a decision, prefer an appeal to the relevant Information Commissioner, (Fill in the gap from the below):
(A) 30 days
(B) 60 days
(C) 90 days [Ans]
(D) None of the above
Fill in the Blanks in the following sentences by using appropriate word(s)/phrase(s)/ number(s):
Q1: The key features of Corporate Governance are given in section ____________of the  Companies Act, 1956.
Ans: 292A
Q2: The Competition Commission of India was established in the year _____ .
Ans: 2003
Q3: The minimum number of subscribers sign in the memorandum of Association of a public limited company at the time of its formation is.
Ans: 7
Q4: An applicant for access to information ________ (shall/shall not) be required to give any reason for requesting access to that information.
Ans: Shall not
Q5: As per clause 49 of the listing agreement, independent directors should account for atleast ________% of board of directors of listed companies.
Ans: 50%