NISM-Series-XV - Research Analyst Certification Exam - 1
NISM-Series-XV - Research Analyst Certification Exam - 1
Q 1. What is the primary function of a Research Analyst (RA)?
a) Designing marketing strategies
b) Collecting and analyzing data for investment decisions
c) Conducting customer satisfaction surveys
d) Creating financial reports for companies
e) Managing human resources within a company
Q 2. What factors related to the Socio-cultural aspect might impact a business's success in a foreign country?
a) GDP growth and its contributors
b) Inflation and interest rates
c) Balance payment and exchange rate stability
d) Communal tensions and violence
e) Stability in legislation and policy
Q 3. 6: Why is EV/Sales considered a more suitable metric for companies likely to turn profitable in the future?
a) It is biased towards profitability
b) It is based on the historical cost of assets
c) It focuses on common equity
d) Sales can never be negative
e) It prioritizes long-term potential
Q 4. Why is valuation considered both an art and a science?
a) Because it involves mathematical formulas
b) Because it relies solely on experience
c) Because it requires a combination of knowledge, experience, and professional judgment
d) Because it is based on precise numbers
e) None of the above
Q 5. What is a critical metric for the automobile and capital goods industry, considering their internal constraining factors for sales?
a) Economic Growth Rate
b) Customer Satisfaction Index
c) Volume and volume growth
d) Regulatory Compliance Ratio
e) Social Media Engagement
Q 6. 2: What does the Annualized Return aim to achieve in investment calculations?
a) It considers the time value of money
b) It ignores the investment horizon
c) It reduces the return to a single uniform period
d) It simplifies complex investment computations
e) It maximizes the absolute return
Q 7. What is the distinguishing feature of Global Depositary Receipts (GDRs) mentioned?
a) GDRs are issued and traded only in European Union member states
b) GDRs have the longest history among all depositary receipts
c) GDRs are preferred for issuance in the U.S.A.
d) GDRs are allowed to be traded in more than one country
e) GDRs are the only depositary receipts that grant voting rights
Q 8. When is stamp duty payable, and how does it affect the real estate industry?
a) Payable at the time of secure sales; Discourages short-term trading
b) Lifetime tax paid upfront; Increases acquisition cost of automobiles
c) Payable at the time of purchase or sale of an asset; Affects the real estate industry
d) Paid at the time of sale of goods or services; Calculated as a percentage of the invoice value
e) Paid by individuals on their income; Influences spending patterns
Q 9. 3: How can Ashima reduce credit risk in her bond portfolio?
a) Increase the proportion of highly-rated bonds
b) Increased exposure to interest rate risk
c) Diversify across various market segments
d) Invest in equities instead of bonds
e) Hold only long-term bonds
Q 10. What does an investor have the option to do with the rights received in a Rights Issue?
a) Sell the rights to the company.
b) Transfer the rights to another investor.
c) Let the rights lapse or expire.
d) Convert the rights into bonus shares.
e) Exchange rights for cash.
Q 11. How might regulatory changes create opportunities for businesses?
a) By restricting geographical expansion
b) By creating stronger capital control regulations
c) By limiting market opportunities
d) By presenting new business opportunities
e) By reducing the market share of existing players
Q 12. 5: What is anchoring in the context of cognitive biases in investment decision-making?
a) Relying on the latest information when making decisions.
b) Ignoring the first piece of information offered in decision-making.
c) Making decisions based on outdated or irrelevant information.
d) Remaining indifferent to new information.
e) Making decisions purely based on current market conditions.
Q 13. How are Category II AIFs different from Category I and Category III AIFs according to SEBI categorization?
a) Category II AIF exclusively invested in infrastructure projects
b) Category II AIF undertaking leverage and complex investment strategies
c) Category II AIFs invest in start-up or early-stage ventures
d) Category II AIFs do not undertake leverage and focus on specific funds like real estate and distressed assets
e) Category II AIFs are regulated by sectoral regulators other than SEBI
Q 14. What does the ESG framework evaluate companies on?
a) Economic, Sustainable, Governance
b) Ethical, Social, Government
c) Environment, Social, Governance
d) Equity, Sustainability, Growth
e) Efficiency, Standards, Growth
Q 15. 6: What is suggested as an important aspect of the language used in a research report?
a) Complexity.
b) Long sentences.
c) Unnecessary details.
d) Inconsistent views.
e) Simplicity.
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