NISM-Series-XV - Research Analyst Certification Exam - 14

Find More Mock Tests Here

1. What is prohibited in advertisements to avoid misleading investors?

a) Inclusion of factual details of awards received

b) Extensive use of technical or legal terminology

c) Statements that are consistent with the risk profile

d) Statements likely to be misunderstood

e) Superlative terms such as "Best" or "No. 1"
 
Q 2. What determines buyers' bargaining power in an industry?

a) the level of innovation in products/services

b) the size and profile of the sellers in the market

c) the number of buyers and sellers and the differentiation in products/services

d) the government's role as a buyer of the product or service

e) competitive intensity in the industry
 
Q 3. What does PEG Ratio aim to address in assessing stock valuation?

a) Market liquidity

b) Dividend payout

c) Growth potential

d) Debt levels

e) Historical performance
 
Q 4. What are the common features of Treasury Bills, Commercial Papers, and Certificates of Deposit mentioned?

a) they are fully convertible into ordinary shares

b) they are backed by collateral support

c) they are redeemable on maturity

d) they are long-term debt instruments

e) they are used to raise short-term debt for periods not exceeding one year
 
Q 5. What are the key external factor that affects the business of commercial banks and NBFCs?

a) Average Price Growth

b) Central Bank Policy Rates

c) Volume Growth

d) Non-Performing Asset (NPA) Ratio

e) Regulatory Capital
 
Q 6. What does the CAGR of an investment represent?

a) the actual rate of return for each year

b) the average annual rate of return

c) the total return over the investment period

d) the volatility of the investment

e) the risk associated with the investment
 
Q 7. How does a futures contract differ from a managed futures contract?

a) Futures contracts involve direct ownership of underlying assets, while managed futures contracts do not.

b) Futures contracts are actively managed by professionals, while managed futures contracts are not.

c) Futures contracts are fixed-price contracts, while managed futures contracts involve actively managed portfolios.

d) Futures contracts are limited to commodities, while managed futures contracts apply to all asset classes.

e) Futures contracts are only for institutional investors, while managed futures contracts are open to individual investors.
 
Q 8. Which aspect of SWOT analysis focuses on internal factors within a company?

a) Strengths

b) Weaknesses

c) Opportunities

d) Threats

e) Strengths and weaknesses
 
Q 9. What is the formula for calculating Jensen's Alpha?

a) Return on portfolio - Risk-free rate

b) Risk-free rate + Beta market risk premium

c) Standard deviation / Return on portfolio

d) Excess return over benchmark without considering risk

e) (Risk-free rate - Return on portfolio) / Standard deviation
 
Q 10. Who are Retail Investors?

a) Companies and organizations trading securities on behalf of individuals

b) High Net-worth Individuals (HNIs) and Ultra High Net-worth Individuals (UHNIs)

c) Institutional investors engaging in large-scale trades

d) Individual investors trading securities for personal accounts

e) Reserve Bank of India (RBI) officials participating in the market
 
Q 11. Which source of information is considered the most easily available, reliable, and consistent for analyzing a company?

a) Conference Call transcripts

b) Ministry of Corporate Affairs website

c) Investor Relations (or Company) Presentations

d) Annual/Quarterly reports

e) Parent Company’s annual report and website
 
Q 12. 6: describe the impact of market rewards on investing approaches.

a) Rewards emotional and distracted approaches.

b) Rewards disciplined investing and punishes emotional approaches.

c) Rewards information overload.

d) Rewards inconsistent and disorganized approaches.

e) Rewards checklists for over-disciplined investing.
 
Q 13. How is Earnings Per Share (EPS) calculated?

a) Earnings Before Interest and Taxes (EBIT) / Number of shares

b) Net Profit / Number of shares outstanding

c) Trailing earnings / Number of outstanding shares

d) Market price per share / Earnings per share

e) Dividend Per Share (DPS) / Number of shares
 
Q 14. What does "Finance cost" in the profit and loss account refer to?

a) Gradual and permanent reduction in the value of assets

b) Expenditure incurred towards interest, processing fee, and amortization of expenses incurred towards security issuance

c) Salaries, benefits, notional expenses towards stock-based compensation granted, and staff welfare expenditure

d) Amount of raw material consumed in the production process

e) Amount spent towards the purchase of goods for resale
 
Q 15. What does Regulation 2(n) of the SEBI (Prohibition of Insider Trading) Regulations 2015 define as "unpublished price sensitive information"?

a) Any information related to the company or its securities, whether available or not.

b) Information generally available to the public.

c) Information that is not likely to affect the price of securities.

d) Information about the company's marketing strategy.

e) Information about competitors in the industry.
 
Find More Mock Tests Here