NISM Series XIX-C AIF Managers Certification Exam - 14

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Q 1. How does IRR provide insight into the growth of returns over time?

a) By calculating the total return on investment

b) By measuring the average return per year

c) By analyzing the trends in IRR year-on-year

d) By determining the risk-adjusted return
 
Q 2. What is the primary goal of the Global Investment Performance Standards (GIPS®)?

a) To maximize investment returns

b) To promote ethics and integrity in the investment management industry

c) To minimize investment risks

d) None of the above
 
Q 3. What is the primary difference between Indian Securities Markets and other financial markets?

a) Indian Securities Markets have lower liquidity.

b) Indian Securities Markets are more regulated.

c) Indian Securities Markets offer higher returns.

d) Indian Securities Markets have more speculative activity.
 
Q 4. What are the objectives of investments?

a) To accumulate wealth for short-term goals.

b) To ensure financial stability.

c) To minimize risks.

d) To speculate on market trends.
 
Q 5. What is the relationship between risk and return in investments?

a) Higher risk always leads to higher returns.

b) Lower risk always leads to higher returns.

c) Risk and return are not correlated.

d) Higher risk guarantees lower returns.
 
Q 6. Which category of investors comprises mutual funds, pension funds, and insurance companies?

a) Institutional Investors

b) Non-Institutional Investors

c) Retail Investors

d) None of the above
 
Q 7. Why is it said that every investor is a saver and not vice versa?

a) Because savers always invest their savings.

b) Because investors only focus on short-term goals.

c) Because saving involves accumulating funds without necessarily investing them while investing requires committing savings with the expectation of returns.

d) Because investors always speculate on market trends.
 
Q 8. Which index provider offers a comprehensive range of indices for measuring the global bond market?

a) S&P Dow Jones Indices

b) MSCI

c) FTSE Russell

d) Morningstar
 
Q 9. What characteristics should a valid composite or pooled fund benchmark possess, according to the CFA Institute?

a) It must be unpredictable.

b) It must be subjective.

c) It must be ambiguous.

d) It must be variable.
 
Q 10. What data does an AIF need to report to benchmarking agencies?

a) Only performance-related data

b) Only cash-flow data

c) Only scheme-wise valuation data

d) Only market-wide benchmarking data
 
Q 11. What values are used for computing returns for Category III AIFs?

a) Post-expense, post-carry, post-tax values

b) Pre-expense, pre-carry, pre-tax values

c) Post-expense, pre-carry, pre-tax values

d) Post-expense, pre-carry, post-tax values
 
Q 12. How do market indices reflect investor attitudes and behavior?

a) By predicting future market trends

b) By providing access to complex market indicators

c) By serving as benchmarks for portfolio evaluation

d) By assessing individual security performance
 
Q 13. What is the primary criterion for issuer selection in the NIFTY Corporate Bond Indices?

a) Secondary market performance

b) Credit rating

c) Primary market issuances

d) Trading volume
 
Q 14. What is the primary objective of the Long-Short Equity Strategy?

a) Achieving short-term capital gains

b) Maximizing leverage

c) Identifying overpriced and underpriced stocks

d) Minimizing market risk
 
Q 15. What is the purpose of a mezzanine round of financing?

a) To fund initial operations

b) To finance working capital requirements

c) To scale the business in different markets

d) To acquire competitors in the market

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