NISM Series XIX-C AIF Managers Certification Exam - 47

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Q 1. Which investment avenue is characterized by investments in publicly traded companies near bankruptcy?

a) Hedge funds

b) Real estate funds

c) REITs

d) Infrastructure funds
 
Q 2. What is the primary reason investors are looking at alternative investments beyond just returns?

a) To avoid risk

b) To guarantee income

c) To maximize liquidity

d) To minimize regulatory oversight
 
Q 3. What is the primary focus of the semi-strong form of the Efficient Market Hypothesis (EMH)?

a) Insider trading activities

b) Publicly available information

c) Technical analysis

d) Historical information
 
Q 4. What does the Efficient Market Hypothesis (EMH) propose about the current market price?

a) It reflects only historical information

b) It reflects all available information

c) It is influenced by future expectations

d) It is determined solely by investor sentiment
 
Q 5. How do researchers typically measure firm size in the context of the Size Anomaly?

a) Total sales revenue

b) Total market value

c) Total assets

d) Total profit
 
Q 6. How is the expected rate of return for an individual investment opportunity calculated?

a) By multiplying the historical returns with their corresponding probabilities

b) By calculating the average of historical returns

c) By dividing the expected returns by their corresponding probabilities

d) By adding the expected returns multiplied by their corresponding probabilities
 
Q 7. What does the correlation coefficient measure between two assets' returns?

a) The average return of the assets

b) The dispersion of returns around the expected value

c) The degree to which the returns of the assets move together relative to their individual mean values

d) The risk-free rate of return
 
Q 8. In what decade was CAPM developed?

a) 1950s

b) 1960s

c) 1970s

d) 1990s
 
Q 9. What is the main benefit of diversification according to MPT?

a) Maximizing risk

b) Minimizing return

c) Minimizing risk

d) Ignoring risk and return
 
Q 10. What type of risk is eliminated in Portfolio X through diversification?

a) Market risk

b) Systematic risk

c) Non-market risk

d) Inflation risk
 
Q 11. How can undervalued or overvalued securities be identified using the Security Market Line (SML)?

a) By looking at their expected returns

b) By comparing their betas

c) By comparing their standard deviations

d) By comparing their liquidity ratios
 
Q 12. What does the introduction of a risk-free asset allow investors to do?

a) Eliminate the need for diversification

b) Borrow money at no cost

c) Form efficient portfolios of risky assets

d) Reduce the complexity of portfolio management
 
Q 13. What conditions must an individual meet to qualify as an angel investor according to SEBI (AIF) Regulations?

a) Early-stage investment experience

b) Serial entrepreneur experience

c) Senior management professional with at least 10 years of experience

d) None of the above
 
Q 14. What is the primary focus of a Social Impact Fund?

a) Investing in government securities

b) Investing primarily in publicly traded stocks

c) Investing primarily in securities or partnership interests of social ventures or social enterprises

d) Investing in real estate properties
 
Q 15. What type of fund was established under the Department for Promotion of Industry and Internal Trade (DPIIT) to act as an enabler for attracting private capital in start-ups?

a) Hedge Fund

b) Angel Fund

c) Private Equity Fund

d) Social Impact Fund

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