NISM-Series-XV - Research Analyst Certification Exam - 7
NISM-Series-XV - Research Analyst Certification Exam - 7
Q 1. What metric is used to track the number of subscribers to telecommunications service providers?
a) Same Store Sales Growth
b) Net Interest Margin
c) Market Share
d) Average Revenue per User (ARPU)
e) Customer Concentration Ratio
Q 2. 1: What is the Interest Rate Risk in bond investments?
a) the risk of defaulting on interest payments
b) the risk of losing the principal amount
c) the risk of interest rates remaining constant
d) the risk of bond prices changing with interest rate fluctuations
e) the risk of market volatility
Q 3. Why are precious metals like gold and silver considered viable investment options?
a) they have short lifespans
b) they are consumed in production
c) they have low storage costs relative to their values
d) they are interchangeable with other goods
e) they are subject to high inflation
Q 4. Why does Warren Buffet suggest that wide diversification is only required when investors do not understand what they are doing?
a) To reduce risk
b) To maximize returns
c) To follow market trends
d) To achieve short-term gains
e) To avoid understanding the business
Q 5. 3: What is the primary risk in bond investments?
a) Market risk
b) Credit risk
c) Business risk
d) Interest rate risk
e) Liquidity risk
Q 6. What is the role of Trading Members in the securities market?
a) Safeguarding security for large clients
b) Holding funds and securities of institutional clients
c) Conducting buy and sell transactions on stock exchanges
d) Settling transactions and tracking corporate actions
e) Approving sub-brokers for trading activities
Q 7. Why is it important for the top management team to have experience in executing the current strategy of the company?
a) To predict quarterly financial reports
b) To assess the CEO's leadership style
c) To understand market trends
d) To analyze customer preferences
e) To ensure competency in executing the current strategy
Q 8. 4: When calculating the stock turnover ratio, what is the relevant time frame commonly used?
a) One month.
b) One week.
c) One quarter.
d) One year.
e) Two years.
Q 9. In the BCG matrix, business segments in a fast-growing market with a low market share are known as _______.
a) Question marks
b) Cash Cows
c) Stars
d) Dogs
e) None of the Above
Q 10. Which aspect of fundamental analysis involves understanding the impact of external economic and industry conditions on a company?
a) Market sizing analysis
b) Economic conditions analysis
c) Financial statement analysis
d) Industry-specific KPI analysis
e) Social responsibility analysis
Q 11. 5: Why is it important to evaluate the company's valuation and intrinsic value in the checklist?
a) It determines short-term stock volatility.
b) It predicts market trends.
c) It reflects the company's marketing strategy.
d) It assesses the attractiveness of the business in terms of its value.
e) It guarantees consistent stock appreciation.
Q 12. How are mid-cap stocks characterized in terms of market cap?
a) Small-cap stocks
b) Large-cap stocks
c) Stocks with high volatility
d) Stocks with low liquidity
e) Companies with a good level of liquidity but medium in terms of market cap size
Q 13. Which line item in the Profit and Loss statement typically includes non-operating income such as income from investments or profit from the sale of assets?
a) Expenses
b) Other income
c) Employee cost
d) Cost of raw materials
e) Finance charges
Q 14. 6: According to the SEBI Act, 1992, what is one of the functions that SEBI can perform under the Securities Contracts (Regulation) Act, 1956?
a) To regulate the banking sector.
b) To regulate the insurance sector.
c) To conduct monetary policy research.
d) To regulate substantial acquisition of shares.
e) To administer the Companies Act.
Q 15. What is the Holding Period Return (HPR)?
a) the return earned on an investment when it is issued.
b) the return earned on an investment during a specific period when it was bought and held by the investor.
c) the return earned only from coupon payments.
d) the return earned on an investment when it is sold on the secondary market.
e) the return earned by re-investing coupon payments at the prevailing interest rate.
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