NISM-Series-XV - Research Analyst Certification Exam - 3

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Q 1. what does the quantitative understanding of companies involve?

a) Assessing business models

b) Analyzing management capabilities

c) Understanding why a business is better than its peers

d) Examining balance sheets and profit and loss statements

e) Identifying strengths and weaknesses
 
Q 2. What does the Conduct analysis in SCP Analysis primarily examine?

a) Market concentration

b) Competitive intensity

c) Financial performance

d) Behavior and strategies of industry players

e) Threats from substitute products
 
Q 3. 5: What is the primary advantage of relative valuation in comparison to other valuation methods?

a) It requires fewer computations and assumptions

b) It reflects historical market data

c) It is suitable for all industries

d) It provides an exact value of the asset

e) It is less dependent on market mood
 
Q 4. What are the key points made about companies in the same industry?

a) they have identical financials

b) they share the same approach towards business

c) Styles, product configurations, and financials can vary dramatically

d) they always have similar customer segments

e) their strengths and weaknesses are always the same
 
Q 5. Which of the following is NOT a focus area in Analyzing SCP Analysis?

a) Market concentration

b) Behavior of industry players

c) Competitive intensity

d) Strategies for industry players

e) Threats from substitute products
 
Q 6. 6: What are Trading and Transaction Multiples used for in relative valuations?

a) Calculating book value

b) Estimating future earnings

c) Assessing market mood

d) Comparing financial metrics

e) Reflecting historical market data
 
Q 7. Which index comprises the 40 most representative stocks listed on the Metropolitan Stock Exchange of India Ltd (MSEIL)?

a) NSE’s Nifty 50

b) S&P BSE Sensex

c) MSEI’s SX40

d) Nifty Next 50

e) Nifty 100
 
Q 8. What is a key constraint for the telecommunications industry, limiting the number of subscribers?

a) Regulatory Capital

b) Bench Strength

c) Same Store Sales Growth

d) Market Size

e) Average Revenue per User (ARPU)
 
Q 9. 2: In the example given, what happens to the market price of the old bond when interest rates decrease?

a) It remains unchanged

b) It decreases

c) It increases

d) It becomes unpredictable

e) It aligns with the market rate
 
Q 10. What is the primary advantage of investing in commodities in terms of protecting the real value of investment?

a) High liquidity

b) Diversification benefits

c) Direct relationship with inflation

d) Low storage costs

e) Interchangeability
 
Q 11. What are the unique parameters for evaluating companies in the different sectors mentioned?

a) Market capitalization and revenue growth

b) Average Revenue Per User (ARPU) and same-store sales (SSS)

c) CEO's leadership style and corporate culture

d) Quarterly financial reports and stock performance

e) Total assets and liabilities
 
Q 12. 4: According to Warren Buffet, how should investors decide between stocks and bonds?

a) Based on market trends

b) Based on historical stock prices

c) Based on interest rate movements

d) Compare the Rate of Return on stocks and bonds

e) Randomly choose between stocks and bonds
 
Q 13. what is the main responsibility of Custodians in the securities market?

a) Safeguarding security for large clients

b) Holding funds and securities of institutional clients

c) Conducting buy and sell transactions on stock exchanges

d) Settling transactions and tracking corporate actions

e) Approving sub-brokers for trading activities
 
Q 14. What does a consistent track record of meetings or exceeding guidance indicate about the management team?

a) Lack of competency

b) Lack of integrity

c) Control of the business

d) Weak decision-making process

e) Regulatory compliance issues
 
Q 15. 5: How are free float shares defined in the context of liquidity measurement?

a) Shares held by company promoters.

b) Shares held by institutional investors.

c) Shares available for trading in the open market.

d) Shares held by employees of the company.

e) Shares held by long-term investors.
 
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