NISM-Series-XV - Research Analyst Certification Exam - 5
NISM-Series-XV - Research Analyst Certification Exam - 5
Q 1. What is the consequence of high rivalry in an industry, according to the text?
a) Higher pricing power for industry participants
b) Lower income for industry participants
c) Minimal need for innovation in products and services
d) Decreased competition among industry participants
e) Increased profitability for all industry participants
Q 2. 4: What does the Price to Dividend Ratio represent?
a) the market's willingness to pay a rupee of earnings
b) the market's willingness to pay a rupee of dividend
c) the ratio of earnings to dividends
d) the ratio of stock price to earnings
e) the ratio of stock prices to dividends
Q 3. According to Mr. Seth Klarman, what sets the price in capital markets?
a) the most informed buyer
b) the most optimistic investor
c) the most panicked seller
d) market regulators
e) None of the above
Q 4. What is a bundled metric in the airlines and transportation industry, calculated by multiplying the number of passengers with the distance traveled?
a) Passenger Price Index
b) Distance Utilization Rate
c) Cargo Efficiency Index
d) Passenger/cargo km
e) Transportation Capacity Ratio
Q 5. 6: How does a gain in the value of an investment impact the total returns?
a) It has no impact
b) It adds to the returns
c) It reduces the periodic income
d) It increases market volatility
e) It decreases risk in the investment
Q 6. How does Warren Buffett differentiate between price and value when investing?
a) Price is what you get and Value is what you pay
b) Value is what you get and Price is what you pay
c) Price is what you see and Value is what you feel
d) Value is what you see and Price is what you feel
e) None of the above
Q 7. For the automobile and capital goods industry, what is typically considered a unit of pricing?
a) Number of customers
b) Quantity of goods sold
c) Regulatory factors
d) Volume growth
e) Economic indicators
Q 8. 1: What is the formula for calculating the simple return on an investment?
a) (Total Returns - Total Cost) / Total Cost
b) (Total Returns + Total Cost) / Total Cost
c) (Total Returns / Total Cost) - 1
d) (Total Cost / Total Returns) + 1
e) (Total Cost - Total Returns) / Total Returns
Q 9. How do Indian companies raise foreign currency resources through depository receipts?
a) By issuing sponsored depositary receipts
b) By complying with SEBI guidelines for sponsored depositary receipts
c) By trading depositary receipts in OTC markets
d) By converting sponsored depositary receipts into ordinary equity shares
e) By issuing ordinary equity shares through depository receipts
Q 10. Which tax is paid upfront by purchasers of new automobiles and impacts auto sales?
a) Income Tax
b) Value Added Tax (VAT)
c) Road Tax
d) Exercise Duty
e) Security Transaction Tax (STT)
Q 11. 2: Which of the following is an example of systematic risk in equity investment?
a) Business risk
b) Market risk
c) Credit risk
d) Liquidity risk
e) Interest rate risk
Q 12. What distinguishes Rights Shares from Bonus Shares in terms of consideration?
a) Rights shares have a specific price, while bonus shares are without any consideration.
b) Rights shares are offered without any consideration, while bonus shares have a specific price.
c) Both rights and bonus shares have a specific price.
d) Rights shares are always free, while bonus shares involve a specific price.
e) Both rights and bonus shares are always free.
Q 13. What can be an example of an opportunity arising from a technological advancement?
a) A decline in revenue or profit
b) An increase in customer concentration
c) Faster growth opportunities for the electric vehicle segment with new battery technology
d) High fixed costs
e) Strong financial position
Q 14. 4: How does herd mentality impact investment decisions?
a) Encourages independent decision-making.
b) Discourages following others' investment choices.
c) Leads to bubbles and crashes in the market.
d) Promotes a contrarian approach to investing.
e) Ensures individual investors avoid crowd behavior.
Q 15. What characterizes Category III AIFs based on SEBI categorization?
a) Strictly adhering to conventional investment strategies
b) Investing in infrastructure projects and distressed assets
c) Using complex investment strategies, including leverage and derivatives
d) Focusing on social ventures and SMEs
e) Operating as venture capital funds with a narrow mandate