NISM Series XIX-C AIF Managers Certification Exam -24
NISM Series XIX-C AIF Managers Certification Exam -24
Q 1. What does ROI provide insight into when analyzing investments?
a) The time value of money
b) The annualized rate of return
c) Total return without considering the time value of money
d) The wider economic benefits of an investment
Q 2. What challenges may AIFs face in terms of information security despite having adequate internal procedures?
a) Difficulty in detecting unauthorized access
b) Inability to access necessary data
c) Lack of third-party involvement
d) None of the above
Q 3. What are the potential consequences of market volatility on investment expectations?
a) Increased investment returns
b) Decreased investment returns
c) Stable investment returns
d) None of the above
Q 4. What potential issues might arise if the MOIC to RVPI ratio is consistently large?
a) Unrealized returns may not materialize as expected.
b) The fund may be overvaluing its assets.
c) Investors may not receive distributions as anticipated.
d) The fund's performance may not accurately reflect its true value.
Q 5. When does DPI equal TVPI?
a) During the capital raising phase
b) During the vintage years and growth cycle of the investments
c) During the harvesting phase
d) During the fund's liquidation phase
Q 6. How does IRR calculate the return on investment?
a) By comparing the present value of cash outflows to the present value of inflows
b) By calculating the total return without considering cash flows
c) By analyzing the holding period return
d) By considering the wider economic benefits of the investment
Q 7. What is the purpose of computing Since-Inception IRR?
a) To calculate returns since the last reporting period
b) To calculate returns since the fund's liquidation
c) To calculate returns from the fund's inception until a specific date
d) To calculate returns from the fund's launch date to the current date
Q 8. What role does return attribution play for the investment manager of an AIF?
a) It determines the tax liabilities of the fund
b) It helps in securing future capital contributions from investors
c) This ensures compliance with regulatory standards
d) None of the above
Q 9. How is Kurtosis calculated?
a) By comparing the mean to the median
b) By taking the square root of the sum of squared deviations from the mean
c) By dividing the sum of squared deviations from the mean by the number of observations
d) By measuring the tails of the distribution
Q 10. What limitations of IRR should investors be aware of when comparing different investment options?
a) It does not consider the time value of money
b) It does not account for wider economic benefits
c) It does not measure the total return of an investment
d) It may not provide an accurate comparison due to different cash flow patterns
Q 11. What is the primary purpose of estimating the required rate of return?
a) To guarantee returns from investments
b) To forecast returns from investments
c) To determine the minimum expected return
d) To adjust for market trends
Q 12. What is country risk?
a) Possibility of loss due to changes in exchange rates
b) Possibility of loss due to fluctuations in financial markets
c) Possibility of loss due to geopolitical tensions
d) Possibility of loss due to changes in interest rates
Q 13. What term is used for the variability in the expected outcomes or their causal factors when there is existing or developing theoretical or empirical knowledge?
a) Risk
b) Uncertainty
c) Variability
d) Exposure
Q 14. Which investment objective is suitable for those who want their portfolio value to grow over time?
a) Capital preservation
b) Regular income
c) Tax saving
d) Doubling the wealth
Q 15. How can market-capitalization groups be blended with styles to create further cap-based style segments?
a) By combining large and mid-cap stocks
b) By categorizing stocks into value and growth categories
c) By segregating stocks based on their dividend yield
d) By focusing on their trading frequency