NISM-Series-XV - Research Analyst Certification Exam - 34
NISM-Series-XV - Research Analyst Certification Exam - 34
Q 1. What is prohibited regarding the issuance of research reports according to Regulation 18(8)?
a) Issuing reports consistent with analyst views
b) Providing promises or assurances of favorable reviews
c) Issuing reports inconsistent with analyst views
d) Issuing reports without prior approval
e) Providing feedback to clients
Q 2. What method measures national income by calculating the value of all final goods and services produced in the economy during a specified period?
a) Income Method
b) Expenditure Method
c) Product Method
d) Robert Kiyosaki Method
e) Aggregate Method
Q 3. How is eligibility to receive notice of a corporate action determined by a publicly listed company?
a) Random selection of shareholders
b) Shareholders with the highest number of shares
c) Record date or booking closure period
d) Shareholders who attend annual general meetings
e) Shareholders nominated by the board
Q 4. According to Regulation 18(9), what is prohibited regarding the consistency of research reports with the views of individuals employed as research analysts?
a) Consistency is allowed only for positive views
b) Issuing reports consistent with the views is allowed without any restrictions
c) Consistency is allowed only for negative views
d) Issuing inconsistent reports is allowed with prior approval
e) Issuing research reports that are not consistent with analyst views
Q 5. What role does economic analysis play in fundamental analysis?
a) It has no role in fundamental analysis
b) It helps understand the future trajectory of the economy
c) It focuses solely on the execution by the company
d) It tracks metrics such as competition and survival
e) It is irrelevant to understand industry trends
Q 6. What do SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1997, provide in the context of M&A?
a) Guidelines for forming a new company
b) Triggers and requirements for an acquirer
c) Instructions for merging companies
d) Taxation benefits for the acquiring company
e) Opportunities for target companies to acquire other companies
Q 7. What disclaimer should be included in advertisements if specific securities are displayed as examples?
a) "Past performance is not indicative of future results"
b) "Investing involves risks; read the documents carefully"
c) "Illustration only, not recommendatory"
d) "Guaranteed returns on the displayed securities"
e) "SEBI does not endorse the securities displayed"
Q 8. What is value migration NOT involved?
a) Shift in market trends
b) Geographic relocation of companies
c) Cross-industry cooperation
d) Temporary disruption in an industry
e) Long-term advantage for one or more entities at the cost of others
Q 9. Which approach to DCF models is more suitable for mature companies in the defensive industry that pay regular dividends?
a) Gordon's growth model
b) Free cash flow to equity model (FCFe)
c) Dividend discount model (DDM)
d) Present value model
e) Perpetual growth model
Q 10. How do Research Analysts obtain company-specific information?
a) Social media monitoring
b) Government reports
c) Annual reports and financial statements
d) Weather forecasts
e) Market surveys
Q 11. Which factor influences businesses based on the demographic profile of a country, including age, education, health, and social values?
a) Economic Factors
b) Political Factors
c) Technological Factors
d) Socio-Cultural Factors
e) Environmental Factors
Q 12. Why is the Price Book Value Ratio preferred more for valuing companies in the financial sector?
a) It provides fair value for non-financial companies
b) It is less reliable in the financial sector
c) It reflects the fair value of monetary assets in the financial sector
d) It is biased towards capital-intensive units
e) It accounts for human capital and intellectual properties
Q 13. describe the role of investors in the Indian securities market.
a) they have a limited choice of financial products
b) they have no choice but to invest in equity products
c) they can choose from a wide range of financial products based on risk and return
d) they are restricted to investing in derivative products
e) they can only invest in government securities
Q 14. Which metric is crucial for banks as it represents the recovery of loans with a healthy interest rate above the cost of funds?
a) Net Interest Margin
b) Capital Adequacy Ratios
c) Non-Performing Assets (NPA) Ratio
d) Growth Rates in Deposits
e) Cash Reserve Ratio
Q 15. How is the CAGR calculated for an investment held for a certain number of years (n)?
a) (End Value / Beginning Value) ^ n
b) (End Value / Beginning Value) ^ (1/n)
c) (Beginning Value / End Value) ^ n
d) (Beginning Value / End Value) ^ (1/n)
e) (End Value - Beginning Value) / n
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