NISM-Series-XV - Research Analyst Certification Exam - 42
NISM-Series-XV - Research Analyst Certification Exam - 42
Q 1. Which equity component represents the residual interest in a company, belonging to the owners?
a) Share premium
b) Retained earnings
c) General reservation
d) Share capital
e) Minority interest
Q 2. What is IRDAI's mission in regulating the insurance sector?
a) To formulate monetary policies.
b) To regulate the securities market.
c) To ensure orderly growth of the insurance sector and protect policyholders' interests.
d) To administer the Companies Act.
e) To manage foreign exchange.
Q 3. Why is HPR considered a single-period return?
a) It considers only coupon payments.
b) It calculates returns for multiple periods.
c) It annualizes returns for investors.
d) It involves only the purchase price.
e) It accounts for future cash flows.
Q 4. What does a "clean report" from auditors indicate?
a) Auditors disagree with the accounting policy.
b) Auditors are unable to verify any part of the financials.
c) Auditors have reservations about the financial statements.
d) Auditors have no issues with the financial report.
e) Auditors believe there are serious discrepancies.
Q 5. What does "mis-selling" in the context of securities or services mean according to the regulations?
a) Legitimate sale of securities.
b) Transparent disclosure of associated risks.
c) Concealing material facts.
d) Making accurate statements.
e) Ethical and suitable selling of securities.
Q 6. What is the primary thinking behind the behavioral approach to equity investing?
a) Securities prices reflect fair values accurately.
b) Fear and greed of market participants influence securities prices.
c) Optimal choices are always made in investment decisions.
d) Technical analysis is the most reliable approach.
e) Quantitative research is the sole determinant of future earnings.
Q 7. Why might a company prefer share buy-backs over dividends?
a) To attract long-term investors.
b) To increase stock volatility.
c) Favorable tax treatment for investors.
d) To fund growth opportunities.
e) To supplement annual income.
Q 8. When do the provisions of sub-regulations (2) to (4) apply to a research entity, according to Regulation 16(5)?
a) the provisions always apply.
b) the provisions do not apply during market hours.
c) the provisions do not apply during market holidays.
d) the provisions apply unless the research entity has segregated its research activities from all other activities and maintained an arms-length relationship between such activities.
e) the provisions apply only during the earnings season.
Q 9. What is the primary characteristic of cyclical trends?
a) Highly predictable patterns in production and consumption
b) Permanent changes influenced by technology
c) Non-permanent trends that eventually reverse
d) Temporary trends driven by cultural shifts
e) Patterns driven by changes in demography
Q 10. Under what conditions can a company be eligible for a share buyback?
a) Default on payment of interest or principal on debentures
b) Default on payment of dividend declared
c) Lack of profitable investment opportunities
d) Accumulation of excess cash
e) A decrease in leverage
Q 11. What is the requirement for the usage of brand name/trade name/logo by Investment Advisers and Research Analysts according to SEBI guidelines?
a) Displaying the SEBI logo prominently in advertisements
b) Ensuring transparency in usage and prominently displaying specific information
c) Engaging in games, leagues, schemes, competitions
d) Using superlative terms in brand names
e) Excluding the registration number from the display
Q 12. In which scenario would suppliers' bargaining power be high?
a) the industry has many suppliers and few buyers
b) Suppliers do not supply critical inputs to buyers
c) Competitive intensity is high with product differentiation
d) Products/services have a high threat of substitutes
e) Switching costs for customers are low
Q 13. What cautionary advice did Peter Lynch provide regarding high-growth regimes?
a) High growth regimes are sustainable in the long term
b) Investors should be cautious, as high growth regimes may not continue for a very long time
c) High growth regimes justify any PE ratio
d) High growth regimes indicate undervaluation
e) High growth regimes lead to lower PEG ratios
Q 14. What distinguishes Foreign currency bonds from Masala bonds in terms of currency risk?
a) Foreign currency bonds create currency risk for the issuer, while Masala bonds create currency risk for the investor
b) Both Foreign currency bonds and Masala bonds create currency risk for the issuer
c) Both Foreign currency bonds and Masala bonds create currency risk for the investor
d) Foreign currency bonds and Masala bonds do not involve any currency risk
e) Foreign currency bonds and Masala bonds equally share the currency risk
Q 15. In the media industry, what is the unit of pricing for print media?
a) Number of Headcounts
b) Amount of Airtime
c) Number of Site Visitors
d) Quantity of Goods Sold
e) Real Estate Space Occupied