NISM-Series-XV - Research Analyst Certification Exam - 28
NISM-Series-XV - Research Analyst Certification Exam - 28
Q 1. According to IndAS 1, what is the requirement for presenting comparable information in financial statements?
a) Comparable information is not required
b) Comparable information for at least two prior periods
c) Comparable information for the current period only
d) Comparable information for at least one prior period
e) Comparable information for a longer period, if preferred
Q 2. What is the focus area of the Department of Financial Services within the Ministry of Finance?
a) Management of government expenditures.
b) Oversight of direct and indirect taxes.
c) Administration of financial services.
d) Formulation of macroeconomic policies.
e) Handling pension reforms and industrial finance.
Q 3. What distinguishes Differential Voting Rights (DVR) from common shares?
a) DVRs have higher voting rights
b) DVRs trade at a premium to common shares
c) DVRs have voting rights equal to common shares
d) DVRs carry less than 1 voting right per share
e) DVRs cannot be traded separately
Q 4. What does the Statement of Changes in Shareholder’s Equity aim to illustrate?
a) The company's total revenue.
b) The impact of various types of transactions on different components of shareholder's equity.
c) The company's net profit.
d) The company's operating profit.
e) The company's capital expenditures.
Q 5. How does Regulation 2(1) (c) define fraud in the context of securities markets?
a) Fraud is defined based on wrongful gain or avoidance of any loss.
b) Fraud is defined as any act, expression, omission, or concealment to induce dealing in securities.
c) Fraud is defined solely by an active concealment of a fact.
d) Fraud is defined as a promise made without any intention of performing it.
e) Fraud is defined as a reckless and careless representation, whether true or false.
Q 6. What is the key distinction between insider information and mosaic analysis in the context of investment research?
a) Insider information is always reliable, while mosaic analysis relies on unreliable sources.
b) Mosaic analysis involves drawing insights from different sources, while insider information is obtained from a single reliable source.
c) Both insider information and mosaic analysis are considered unreliable for investment decisions.
d) Insider information is public knowledge, while mosaic analysis involves non-public information.
e) Mosaic analysis involves only non-material information, while insider information is material non-public information.
Q 7. Why might a company with lower leverage, like LowLevCo, still be considered a better performer?
a) It has higher liquidity.
b) It faces fewer difficulties in recovering money from clients.
c) It demonstrates better efficiency in operations.
d) It has a higher asset turnover ratio.
e) It takes on higher leverage risks.
Q 8. What is the time frame envisioned by the IBC for the completion of every insolvency proceeding?
a) 90 days.
b) 120 days.
c) 150 days.
d) 180 days.
e) 210 days.
Q 9. How is the exchange rate defined?
a) the total trade a country does with all other countries
b) the value of one unit of a currency concerning other currencies/currencies
c) the balance of payment for the country
d) surplus in the capital account
e) the ability of individuals and firms to produce and sell globally
Q 10. What is the impact of share consolidation on the overall ownership level of shareholders?
a) Positive impact
b) Negative impact
c) No impact
d) Fluctuates randomly
e) Depending on market conditions
Q 11. What criteria are considered for putting security under GSM?
a) Market capitalization and dividend history
b) Net fixed assets and trading volume
c) Net worth, net fixed assets, and trading at a negative PE or at 2x the PE of the benchmark index
d) Market capitalization and P/E ratio
e) Profitability and share buyback history
Q 12. Which industries are typically considered attractive by Michael Porter's model?
a) Aviation, telecom, retail
b) Education, FMCG, Healthcare
c) Textile, sugar, power
d) Aviation, IT, power
e) Retail, telecom, FMCG
Q 13. How is the Weighted Average Cost of Capital (WACC) calculated in the FCFF model?
a) Ke Equity / (Equity + Debt)
b) Kd (1 - Tax) Debt / (Equity + Debt)
c) [Ke Equity] + [Kd (1 - Tax) Wd]
d) Ke We
e) None of the above
Q 14. what information should be disclosed beforehand if there is any conflict of interest?
a) the analyst's personal life details
b) Any affiliations with competitors
c) the analyst's academic qualifications
d) Any financial interest, such as holding shares of the subject company
e) the analyst's preferred communication style
Q 15. Why might determining the "unit of pricing" be challenging in the service sector compared to manufacturing industries?
a) Service sector pricing is not influenced by units
b) Manufacturing industries use automated pricing models
c) Service sector pricing is solely based on the quantity of services provided
d) Service sector pricing is more complex, often driven by different considerations
e) Manufacturing industry has standardized pricing for all products
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