NISM-Series-XV - Research Analyst Certification Exam - 37
NISM-Series-XV - Research Analyst Certification Exam - 37
Q 1. Which of the following is NOT an example of a "connected person" as per the regulations?
a) An immediate relative of a connected person.
b) A holding company.
c) A customer of the company.
d) An official of a stock exchange.
e) A member of the Board of Directors of a public financial institution.
Q 2. How is the Principal-Protected Note (PPN) structured?
a) Only invested in debt instruments
b) Only invest in equity instruments
c) Combination of debt and derivative structures
d) Guaranteed fixed returns
e) No exposure to market fluctuations
Q 3. What is the Du Pont Analysis used for in the context of ROE?
a) It calculates the company's Net Profit Margin.
b) It assesses the efficiency of asset turnover.
c) It evaluates the company's liquidity position.
d) It decomposes ROE into three steps, considering operating efficiency, asset turnover, and financial leverage.
e) It computes EBIT as a percentage of capital employed.
Q 4. What action may the Board take if an applicant is required to furnish further information or clarification under Regulation 5?
a) Automatically reject the application.
b) Extend the deadline for submission.
c) Consider the application without additional information.
d) Request personal representation from the applicant.
e) Impose a fine on the applicant.
Q 5. What is the primary focus of the Product Method in measuring National Income?
a) Calculating the monetary value of the final goods and services
b) Aggregating flow of goods and services
c) Measuring aggregate income of individuals
d) Dividing the working population into categories
e) Computing the sum of the outputs of various sectors
Q 6. What is the minimum and maximum period for which a rights issue is open for subscription?
a) Minimum: 7 days, Maximum: 15 days
b) Minimum: 15 days, Maximum: 30 days
c) Minimum: 30 days, Maximum: 45 days
d) Minimum: 60 days, Maximum: 90 days
e) Minimum: 90 days, Maximum: 120 days
Q 7. According to Regulation 20(2), what must a research analyst or research entity do if they employ a rating system in their research reports?
a) Ignore the rating system
b) Occasionally define the meaning of the rating
c) Clearly define the meaning of each rating, including time horizon and benchmarks
d) Provide a vague definition of the rating system
e) Use different meanings for the same rating
Q 8. What is an example of a secular trend caused by technological advancement mentioned?
a) Decrease in per capita consumption of beer in Japan
b) Implementation of GST in the logistics industry
c) Exploration of shale gas through horizontal drilling technology
d) Gradual change in cultural preferences
e) Change in the category of goods due to income level changes
Q 9. What are the two streams of cash flow generated by any asset?
a) Monthly earnings and annual dividends
b) Periodic earnings and a final inflow on sale
c) Quarterly profit and bond redemption
d) Rental income and coupon payments
e) None of the above
Q 10. what is one of the key focus areas for Research Analysts in understanding the economy?
a) Political ideologies
b) Fluctuations in stock prices
c) Changes in macro-economic factors
d) Social media trends
e) Company-specific financial statements
Q 11. Which BCG matrix category represents business segments with a large market share in a rapidly growing market, generating increasing cash for the business?
a) Stars
b) Cash Cows
c) Question Marks
d) Dogs
e) Market Growth
Q 12. In which businesses is the Net Asset Value (NAV) approach commonly used?
a) Technology firms
b) Retail businesses
c) Real Estate, Shipping, Aviation, etc.
d) Financial sector
e) Manufacturing industries
Q 13. What is the advantage to investors in convertible debentures?
a) Investors receive a fixed maturity payment once the debentures are converted
b) Investors benefit only from the coupon income in the initial stage
c) Investors have no advantage as their stakes get diluted
d) Investors do not benefit from appreciation in the value of shares
e) Investors earn coupon income initially and may benefit from appreciation in the value of shares once converted
Q 14. What is the specific purpose mentioned for the cess levied for the assessment year 2020-21?
a) Infrastructure development
b) Defense expenditure
c) Health and education
d) Environmental protection
e) Poverty alleviation
Q 15. What does Liquidity Risk imply for an investor?
a) Higher intrinsic value
b) Easy selling of investment
c) Potential loss in value when selling
d) Lower transaction costs
e) No impact on realizable value
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