Quick and Easy Guides

Advanced Wealth Management Course (IIBF) - Paper 3
Part I: Ch 2: Financial Investment Products
Q1.
A company’s EPS is Rs. 5. Dividend of Rs. 2 has been declared on the share which is trading in the market at Rs. 20. What is the P/E ratio?
Q2.
A company’s earnings of Rs. 10 crores after interest, tax and preference dividend. If the number of equity shares outstanding is Rs. 2 crores , then EPS is:
Q3.
Dividend yields fall when the market is bullish.
Q4.
(I) Momentum shares set the tone of the market. (II) Value shares are shares whose valuation in the market does not reflect something positive about the company.
Q5.
Nifty includes _________ stocks from __________ sectors.
Q6.
Preference shares need to be issued as redeemable within a period of __________ years.
Q7.
Sensex, NIFTY and S&P CNX 500 are not composite indices
Q8.
(I) If the preference shares are issued as “cumulative”, then the investor not only earns a fixed rate of dividend, but also participates in the profits of the company to some extent. (II) Generally, fundamental analysis helps in taking the decision.
Q9.
(I) Redeemable preference shares have a scheduled date on which they are to be redeemed. (II) Debentures are generally issued in the form of promissory notes.
Q10.
The schemes of Mutual Funds are:
Q11.
(I) Forward contract are guaranteed by any stock exchange. (II) In Forward contract, their pricing information is normally not in public domain.
Q12.
(I) In a future both parties are obliged to the terms of the contract; (II) In an option, one party (option buyer) has the right (but not the obligation) to the terms of the contract; the other party (option writer) is obliged to the terms of the contract.
Q13.
An American option can be exercised only on the maturity date.
Q14.
The intrinsic value of a call option is equivalent to:
Q15.
In call option, if spot price of the underlying is lower than its exercise price, the option is said to be:
Q16.
A swap is an arrangement between two parties to exchange streams of payments calculated on different bases.
Q17.
(I) Future contracts are liquid. (II) National stock Exchange has set the expiration date at the last Friday of the month for each month.
Q18.
Employees of the AMC who perform the role of managing investments are the:
Q19.
(I) In India, Mutual funds are governed by the regulations of Securities and Exchange Board of India (SEBI). (II) If the preference shares are issued as “participating”, then dividend not paid in any year would be payable in subsequent years out of future profits.
Q20.
Company Fixed deposits are generally for ___________ years.
Q21.
A company’s EPS is Rs. 5. Dividend of Rs. 2 has been declared on the share which is trading in the market at Rs. 20. What is the dividend yield?

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