NISM-Series-XV - Research Analyst Certification Exam - 9

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Q 1. What characterizes Systematic Risk in investments?

a) Can be eliminated through diversification

b) Primarily affects individual securities

c) Results of company-specific factors

d) Unrelated to changes in government policy

e) Limited impact on the economy and markets
 
Q 2. What are the key features of depositary receipts that allow shares to be traded in both local and foreign markets?

a) the one-year lock-in period

b) Compliance with listing requirements

c) Two-way fungibility

d) the ability to issue sponsored DRs

e) the involvement of the custodian bank
 
Q 3. What is the range of GST rates for different categories of goods and services in India, as mentioned in the text?

a) 5% to 18%

b) 10% to 25%

c) 15% to 30%

d) 0% to 28%

e) 20% to 35%
 
Q 4. 1: What is Unsystematic Risk also known as?

a) Predictable risk

b) Systematic risk

c) Market risk

d) Diversifiable risk

e) Probability risk
 
Q 5. How does privately placed security differ from publicly issued security?

a) Privately placed securities cannot be listed on a stock exchange.

b) Privately placed securities have no lock-in period.

c) Publicly issued securities do not require compliance with SEBI regulations.

d) Publicly issued securities have no pricing restrictions.

e) Publicly issued securities are restricted to a maximum of fifty investors.
 
Q 6. What are the opportunities in the context of SWOT analysis?

a) Internal capabilities that exploit external factors

b) External events that create vulnerabilities

c) Strengths that hinder growth

d) External factors that create possibilities for growth

e) Weaknesses that affect market dynamics
 
Q 7. 3: What characterizes the Winner's curse in investment behavior?

a) the tendency to underbid for competitive assets.

b) A commitment to bid competitively for assets.

c) A cautious approach to avoid overpaying for assets.

d) A tendency to overpay for assets won in competitive bids.

e) A strategy of winning competitive bids at any cost.
 
Q 8. What is the primary focus of Category I AIFs according to SEBI categorization?

a) Undertaking leverage and complex investment strategies

b) Investing in start-up or early-stage ventures, social ventures, and SMEs

c) Operating as hedge funds with a wide mandate

d) Exclusively investing in infrastructure projects

e) Engaging in real estate and distressed asset funds
 
Q 9. Why is it mentioned that entrepreneurs are risk-takers in the context of business analysis?

a) To emphasize their psychological ability to bear shocks

b) To highlight their aversion to risks

c) To categorize them as poor business leaders

d) To discredit their business ventures

e) To discourage investors from supporting entrepreneurial endeavors
 
Q 10. 4: What do ratings like 'Outperformer' and 'Underperformer' indicate?

a) Absolute performance of the stock.

b) Relative performance of the stock to the sector or market.

c) Volatility of the stock.

d) Historical performance of the stock.

e) Future potential of the stock.
 
Q 11. What is a distinguishing feature of debt investments in comparison to equity investments?

a) Ownership of the business

b) Participation in management

c) Variable returns

d) Fixed rate of interest

e) Long-term investment horizon
 
Q 12. What is the value of an investment in joint ventures/associates measured in the balance sheet?

a) Fair market value

b) Book value

c) Equity method

d) Historical cost

e) Impairment value
 
Q 13. A company's stock is currently trading at $80. It has earnings per share (EPS) of $5. What is the Price-to-earnings (P/E) ratio?

A. 8

B. 12

C. 16

D. 20

E. 28
 
Q 14. What does a P/BV less than 1 indicate about a company's stock?

a) the stock is overvalued

b) the stock is undervalued

c) the company has high revenue growth

d) the company has negative profits

e) the company is in a phase of high-risk investment
 
Q 15. Why is Gross Profit not easily calculable for many Indian companies according to the provided information?

a) Indian companies do not disclose financial information.

b) Indian companies do not have operating expenses.

c) Indian companies do not have fixed expenses.

d) Indian companies do not disclose direct costs separately, making it challenging to calculate Gross Profit.

e) Gross Profit is not relevant for Indian companies.

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