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FMBM Mock Test 02 

Mock Test  :  RMG Student Exclusive :        
Total Marks 60

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12/16/2017 12:27:12 PM

Total Questions  60
 

Pass Marks is 55%

Time Left : 00:00:00 Hrs

 


Question 1 :What is the outstanding position on which initial margin will be calculated if Mr Madanlal buys 800 units at the rate of Rs 1060 and sells 450 units at the rate of Rs 1055 [Marks 2]





Question 2 :Forward markets world wide are afflicted by _________[Marks 2]





Question 3 :The future value of a Rs 10000 investment done today which gives an annual rate of return of 20 percent per annum after one year should be ____________ [Marks 3]





Question 4 :Who issues the registration to a Mutual Fund in India [Marks 2]





Question 5 :In index or stock futures trading profits are received or losses are paid ______ [Mark 1]





Question 6 :Derivative includes 1st a security derived from a debt instrument and share and loan whether secured or unsecured and risk instrument or contract for differences or any other form of security 2nd a contract which derives its value from the prices or index or prices of underlying securities [Marks 2]





Question 7 :The _________ issued by SEBI aim to secure fuller disclosure of the relevant information about the issuer and the nature of issue so that the investors can take informed decision [Mark 1]





Question 8 :If the company pays dividend of Rs 10 every year and the expected return for the investor is 8 percent what is the theoretical value of the share of the company for a period of one year if the par value of the share is Rs 80 [Marks 2]





Question 9 :The difference between primary markets and secondary markets is __________ [Marks 2]





Question 10 :Which of the following is not a speculative transaction [Mark 1]





Question 11 :Assume security A with a beta of 1 point 1 is being considered at a time when risk free rate of return is 5 percent and market return is expected to be 14 percent What is the required rate of return according to Capital Asset Pricing Model [Marks 2]





Question 12 :Which one of the following is NOT an immediate measure taken by NSCCL in case a member fails to meet any obligation [Mark 1]





Question 13 :Stock price of XYZ Ltd is trading at Rs 60 The firm is expected to declare dividend of Rs 6 per share and is expected to grow at rate of 12per cent per year What is the cost of equity under dividend growth model [Marks 2]





Question 14 :S and P CNX Nifty includes _______most liquid stocks that trade on NSEIL [Mark 1]





Question 15 :Register of transactions Sauda Book shall be preserved for a period of ___ years by the stock broker as per the Securities Contracts Regulation Rules 1957 [Marks 2]





Question 16 :An order which is activated when a price crosses a limit is _________ in F and O segment of NSEIL [Mark 1]





Question 17 :Auction is held in Reliance for 10000 shares and The closing price of Reliance on that day was Rs 146 and The last traded price of Reliance on that day was Rs 141 and The close price of Reliance last Friday was Rs 142 and The previous days close price of Reliance was Rs 151 What is the maximum allowable price at which the member can put a sell order in the auction for Reliance Price band applicable for Auction market is plus minus 15 percent [Marks 3]





Question 18 :What is the current yield if a 11 point 50 percent bond sells in the market for Rs 125 [Marks 2]





Question 19 :On May 20 2003 SATYAM COMP closed at Rs 224 while the June futures contract on SATYAM COMP closed at Rs 226 point 4 and On May 21 2003 SATYAM COMP closed at Rs 227 and the June futures contract on SATYAM COMP closed at Rs 228 point 70 Santosh is long 2 contracts of SATYAM COMP minimum lot size per contract of SATYAM COMP is 1000 What is the profit and loss made by Santosh on his position on May 21 2003 [Marks 3]





Question 20 :Which of the following statements is correct regarding B2B portals [Marks 2]





Question 21 :What is the average rate of return if the returns during the previous three years are 10 percent 25 percent and 42 percent [Mark 1]





Question 22 :In which market does Buyer and seller not know each other [Mark 1]





Question 23 :Which of the following is not the main objective of SEBI [Marks 2]





Question 24 :_______ is also known as profitability index which measures the present value of the returns per rupee invested [Mark 1]





Question 25 :Calculate the value 5 years hence of a deposit of Rs 1000 made today if the interest rate is 7 percent compounded annually [Marks 2]





Question 26 :The branch manager can view all the order details for _______ in the Outstanding Orders screen in the NEAT system 1st a specific dealer under his own branch 2nd all dealers under his own branch 3rd the whole broking firm [Mark 1]





Question 27 :Total Margin levied on a member in respect of options contracts comprises of _____ [Mark 1]





Question 28 :Security A gives a return of 12 percent with a dispersion of 4 percent while security B gives return of 15 percent with a dispersion of 5 percent which security is more risky [Marks 2]





Question 29 :Which of the following is NOT true about corporate securities market reforms [Marks 2]





Question 30 :A stock currently sells at 120 The put options to sell the stock sells at Rs 134 costs Rs 18 What is the time value of the option [Marks 2]





Question 31 :The authority regulating the issue of shares by companies in the primary markets is the ________ [Mark 1]





Question 32 : ______ can be defined as the futures price minus the spot price [Marks 2]





Question 33 :What are securities issued at Discount and redeemed at par [Mark 1]





Question 34 :For what kind of results is Limited review mandatory [Marks 2]





Question 35 :An at the money option contract would generate ______upon exercise for the buyer [Mark 1]





Question 36 :The cost of debt capital is cheaper in the capital structure under________ [Mark 1]





Question 37 :Where securities are listed on the application of any person on any recognised stock exchange, such person shall comply with the conditions of the listing agreement with __________ [Marks 2]





Question 38 :Average Collection Period is given by _________ [Mark 1]





Question 39 :The pre issue and post issue obligations are discharged by _______ [Mark 1]





Question 40 :Find the spot rate uptill next coupon using Nelson Seigel Model when settlement date is 15th March 2003 and next coupon is 23rd September 2003 Beta 0 is equal to 8 and Beta 1 is equal to minus 1 point 85 and Beta 2 is equal to minus 4 and Tau equal 15 [Marks 3]





Question 41 :What is the present value of Rs 4000 receivable after two years at a discount rate of 5 percent under continuous discounting [Marks 2]





Question 42 :Find the forward leg consideration for Security 11 point 50 percent 2012 for Settlement date of 25th August 2003 and Maturity date of 14th December 2012 with Market Price of Rs 133 Ex Interest Price and Repo rate 8 percent pa and Repo term of 5 days [Marks 3]





Question 43 :Pay in and pay out of funds and securities are effected on the same day in the __________ [Mark 1]





Question 44 :Trading member Mr Shantilal took proprietary purchase in a March 2000 contract He bought 1500 units at the rate of Rs 1200 and sold 1200 at the rate of Rs 1220 The end of day settlement price was Rs 1221 What is the outstanding position on which initial margin will be calculated [Marks 2]





Question 45 :Which of the following is FALSE about the NEAT system [Marks 2]





Question 46 :A call option that is out of the money or at the money has ________ [Mark 1]





Question 47 :Which of the following is a criterion for admission of a stock into S and P CNX Nifty [Mark 1]





Question 48 :NSE has set up Investor Protection Fund as a ________ [Mark 1]





Question 49 :The power to withdraw recognition to a Stock Exchange vests in ______ [Mark 1]





Question 50 :How much is the correlation coefficient between the companies A and B if their covariance is 30 and their standard deviations respectively are 6 and 8 [Marks 2]





Question 51 :Mr Harsh purchased 16000 shares of MTNL Options having strike price of 120 The market lot of the shares before adjustment was 1600 After the corporate action of 1 is to 1 bonus in MTNL the revised details in respect of strike price and Market lot and positions would be _________ [Marks 2]





Question 52 :Spot value of Nifty is 1240 An investor buys a one month nifty 1255 put option for a premium of Rs 17 The option is __________ [Marks 2]





Question 53 :For a security B if price at the beginning of the year is Rs 20 dividend receivable at the end of the year is Rs 0 point 5 and the price at the end of the year is Rs 22 then what is the rate of return on the security [Marks 2]





Question 54 :Which of the following is NOT true about corporate securities market reforms [Marks 2]





Question 55 :The depositories assist NSCCL to pay in and pay out of _________ [Mark 1]





Question 56 :Mr A purchased equity shares of XYZ Ltd at a cost of Rs 95000 on 1st June 2001 He sold the same on 1st January 2003 for Rs 98000 Given Cost inflation index FY 2001 to 02 is equal to 426 and FY 2002 to 03 is equal 447 and 447 by 426 is equal 1 point 05 Long term capital profit and loss on this transaction would be _______ [Marks 2]





Question 57 :Which of the following is TRUE about primary markets [Marks 2]





Question 58 :Premium Margin is levied at ________ level [Mark 1]





Question 59 :In the case of a GTC order each day counted is a calendar day inclusive of ____________ [Mark 1]





Question 60 :Which of the following is NOT true about a credit rating agency or CRA [Marks 2]