NISM Series XIX-C AIF Managers Certification Exam - 32
NISM Series XIX-C AIF Managers Certification Exam - 32
Q 1. What is the purpose of calculating the variance of return for individual security?
a) To determine the average return of the security
b) To assess the riskiness of the security
c) To estimate the risk-free rate of return
d) To evaluate the historical performance of the security
Q 2. How do investors estimate the risk of a portfolio in MPT?
a) By focusing solely on the expected return of constituent assets
b) By ignoring the variability of expected returns of constituent assets
c) By maximizing one-period expected utility
d) By disregarding the benefits of diversification
Q 3. How does portfolio optimization help investors?
a) By maximizing returns for a given level of risk
b) By minimizing risk for a given level of return
c) By identifying optimal investment combinations
d) All of the above
Q 4. What characterizes Portfolio M according to capital market theory?
a) It has the lowest portfolio return
b) It includes only equity stocks
c) It has the highest portfolio return
d) It includes only corporate bonds
Q 5. What information does an investor need to expect a desired return using the Security Market Line (SML)?
a) The asset's non-systematic risk
b) The asset's expected return
c) The asset market beta
d) The asset's liquidity
Q 6. How is the risk of a portfolio with a risk-free asset and risky assets calculated?
a) It is equal to the standard deviation of the risk-free asset
b) It is equal to the standard deviation of the risky assets
c) It is equal to the covariance between the risk-free asset and the risky assets
d) It is linearly proportional to the risk of the risky asset
Q 7. What is the primary characteristic of an Alternative Investment Fund (AIF) according to SEBI (AIF) Regulations, 2012?
a) Publicly pooled investment vehicles
b) Privately pooled investment vehicles
c) Government-regulated investment vehicles
d) Foreign investment vehicle
Q 8. Which entities are considered eligible angel investors under SEBI (AIF) Regulations?
a) Registered AIFs under SEBI (AIF) Regulations
b) Venture capital funds registered under SEBI (Venture Capital Funds) Regulations, 1996
c) Only individuals with high net worth
d) Only government entities
Q 9. What types of funds are included in Category III AIF?
a) Funds that invest in start-ups, early-stage ventures, and SMEs
b) Funds that employ diverse or complex trading strategies and may employ leverage
c) Funds that invest primarily in government securities
d) Funds that invest primarily in publicly traded stocks
Q 10. What factors determine the suitability of AIF investments for individual investors?
a) Size of the investment company
b) Regulatory framework
c) Investment objective and strategy outlined in the Private Placement Memorandum (PPM)
d) Industry sector focus
Q 11. What type of investors might find adding a component of AIF assets to the overall portfolio desirable?
a) Risk-averse investors
b) Investors seeking guaranteed returns
c) Investors with limited risk appetite
d) Institutional investors only
Q 12. What is the purpose of providing performance fees to fund managers?
a) To minimize the fund's expenses
b) To encourage outperformance of benchmarks and high-water marks
c) To reduce the management fee
d) To discourage fund managers from taking risks
Q 13. What are the purpose of class-wise drawdowns?
a) To increase management fees
b) To simplify the investment process
c) To cater to different investor preferences
d) To limit investor returns
Q 14. What duties do the Sponsor and Manager/Trustee of an AIF owe to investors according to SEBI regulations?
a) Financial returns only
b) Compliance with taxation laws
c) Fiduciary duty
d) None of the above
Q 15. What criterion must a sponsor satisfy to be considered a 'fit and proper person'?
a) Financial expertise
b) Industry experience
c) Meeting the criteria specified in Schedule II of the SEBI (Intermediaries) Regulations, 2008
d) All of the above