NISM-Series-XV - Research Analyst Certification Exam - 40
NISM-Series-XV - Research Analyst Certification Exam - 40
Q 1. What does the Book Value represent in the Price-to-Book Value Ratio?
a) Net worth per share
b) Current market price per share
c) Earnings per share
d) Dividends per share
e) Market capitalization
Q 2. What does Adjusted Profit After Tax calculation involve, and why is it necessary?
a) Adjusted Profit After Tax is calculated by eliminating depreciation and amortization.
b) Adjusted Profit After Tax is calculated by adding Exceptional Items without considering their tax impact.
c) Adjusted Profit After Tax is calculated by adjusting for the impact of Exceptional Items and considering their tax impact.
d) Adjusted Profit After Tax is the same as Net Profit.
e) Adjusted Profit After Tax is calculated by including capital expenditures.
Q 3. How is the demarcation of various departments as inside areas implemented under the "Chinese Wall" policy?
a) By openly communicating confidential information.
b) By physically segregating employees in public areas.
c) By implementing the need-to-know criteria.
d) By obtaining permission from the Ministry of Finance.
e) By notifying the stock exchange.
Q 4. What is the dual role of a fundamental research analyst in investment activity?
a) Analysis and trading
b) Short-term analysis and long-term planning
c) Research and speculation
d) Research and analysis
e) Evaluation and forecasting
Q 5. In the given example, what is the primary reason for HighLevCo having a higher ROE compared to LowLevCo?
a) Higher asset turnover ratio
b) Higher profit margin
c) Lower leverage
d) Higher efficiency
e) Higher liquidity
Q 6. What is the minimum outstanding amount required for a creditor to initiate insolvency proceedings against a company under the IBC?
a) Rs. 50,000.
b) Rs. 75,000.
c) Rs. 1,00,000.
d) Rs. 1,25,000.
e) Rs. 1,50,000.
Q 7. What challenges arise when implementing fiscal or monetary measures to address economic issues?
a) Certain outcomes are guaranteed in all economies
b) the same policy action may have different outcomes in different economies
c) Unintended consequences are impossible
d) Monetary measures are more effective than fiscal measures
e) Inflation is the only economic issue that can be addressed using the site measures
Q 8. What is the purpose of shared consolidation from the company's perspective?
a) To increase shareholders' ownership
b) To provide economic benefits to shareholders
c) To reduce the face value of shares
d) To influence the psychology of investors
e) To improve the company's Profit and Loss account
Q 9. What is the purpose of Graded Surveillance Measures (GSM) implemented by SEBI and stock exchanges?
a) To encourage speculative trading
b) To impose restrictions on large-cap stocks
c) To facilitate unscrupulous trade practices
d) To enhance market integrity and protect investor interest
e) To promote insider trading
Q 10. What does Michael Porter's Five Force Model analyze an industry based on?
a) Three horizontal and two vertical forces
b) Four verticals and one horizontal force
c) Two horizontal and three vertical forces
d) Five horizontal forces
e) Five vertical forces
Q 11. What is the discounted rate used in the FCFF model?
a) Weighted Average Cost of Capital (WACC)
b) Cost of Equity
c) Risk-free rate
d) Cost of Debt
e) None of the above
Q 12. What technology is recommended for use by RAs during interviews and client communication?
a) Typewriters for documenting interviews
b) Fax machines for secure communication
c) Video conferencing tools for virtual meetings
d) Recording devices for interviews with client consent
e) Social media platforms for client communication
Q 13. What can guide analysts in identifying Key Performance Indicators (KPIs) for industries?
a) Historical stock prices
b) Companies' annual reports and management discussions
c) Regulatory compliance reports
d) Social media trends
e) Market sentiment analysis
Q 14. What should trigger investigations in the context of ROCE and ROE in business valuation?
a) Wide variation between PE and EV
b) High book value
c) Significant fluctuations in market capitalization
d) Any wide variation between ROCE and ROE
e) Low earning power
Q 15. What is a common underlying asset linked to Commodity Linked Debentures (CLDs)?
a) Agricultural commodities
b) Precious metals like Gold and Silver
c) Cryptocurrencies
d) Energy commodities
e) Industrial metals