NISM-Series-XV - Research Analyst Certification Exam - 17
NISM-Series-XV - Research Analyst Certification Exam - 17
Q 1. What is the expected role of Research Analysts (RAs) as described?
a) To solely interpret data without collecting it
b) To provide biased recommendations to clients
c) To collect and interpret data and convert it into unbiased recommendations
d) To follow rules and regulations loosely as specified by SEBI
e) Avoid using technology while interacting with clients
Q 2. What are the three broad categories of key constraining factors that analysts consider while determining Key Performance Indicators (KPIs) for industries?
a) Economic, Social, and Technological
b) Demand side, Supply-side, and Regulatory
c) Internal, External, and Environmental
d) Profitability, Liquidity, and Solvency
e) Management, Operations, and Marketing
Q 3. What are the two components that form the total returns from an investment?
a) Periodic income and market volatility
b) Capital preservation and risk compensation
c) Periodic payouts and appreciation of the value of investments
d) Past returns and future estimates
e) Benchmark performance and risk evaluation
Q 4. What is the minimum percentage of unit capital that must be invested in revenue-generating infrastructure projects for Infrastructure Investment Trusts (InvITs)?
a) 80%
b) 90%
c) 70%
d) 60%
e) 50%
Q 5. What should analysts prioritize to substantiate their findings when dealing with qualitative questions about a company?
a) Industry-specific factors
b) Management's strategic planning
c) Necessary data
d) Business model
e) Governance structure
Q 6. How is sensitivity analysis useful in securities valuation?
a) Predicting future market trends
b) Identify critical variables and analyze their impact under different scenarios
c) Analyzing historical stock prices
d) Determining intrinsic value
e) Guaranteeing a successful investment
Q 7. How do Insurance Companies contribute to the securities market?
a) Specializing in early-stage development enterprises
b) Pooling money from investors to purchase securities
c) Ensuring assets through core business activities
d) Issuing instruments to overseas investors
e) Actively participating in buyouts of companies
Q 8. What is the primary role of credit rating for equity investors?
a) It determines the share price of a company
b) It assesses the company's ability to service its debt obligations
c) It evaluates the company's profit margin
d) It focuses on the historical evolution of a company
e) It provides perspectives on how management reacts to external feedback
Q 9. What is listed as the reason for the failure of the research report?
a) Clear structure.
b) Unnecessary details.
c) Consistent views.
d) Concise language.
e) Effective use of long sentences.
Q 10. What is a key characteristic of Hedge Funds mentioned?
a) Hedge Funds primarily invest in listed equities
b) Hedge Funds are always hedged against market risks
c) Hedge Funds have a narrow mandate for capital investment
d) Hedge Funds pool capital from a limited number of investors
e) Hedge Funds may invest across diverse assets, products, and geographies
Q 11. Why is the historical evolution of credit ratings relevant for equity investors?
a) It determines the return expectations of investors
b) It focuses on the management's reaction to internal feedback
c) It assesses the company's profit margin
d) It identifies the risks associated with the business
e) It evaluates the company's market share
Q 12. What are the prevalent recommendations used by research analysts while rating stocks?
a) Strong, Medium, Weak.
b) Top, Middle, Bottom.
c) Buy, Overweight, Hold, Underweight, Sell.
d) Positive, Neutral, Negative.
e) Excellent, Good, Average, Poor.
Q 13. What is the reverse process of dematerialization in the securities market?
a) Arbitrage
b) Pledging
c) Rematerialization
d) Long-term investment
e) Hedging
Q 14. What is Goodwill in the context of a balance sheet?
a) The fair value of net assets
b) Fictitious assets
c) Current liabilities
d) Tangible assets
e) Capital reserves
Q 15. What functions does SEBI perform with stock brokers and sub-brokers?
a) Issuing currency and coins.
b) Regulating monetary policy.
c) Prohibiting insider trading.
d) Registering and regulating their work.
e) Managing foreign exchange.
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