NISM-Series-XV - Research Analyst Certification Exam- 26

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Q 1. What are Trailing earnings based on?

a) Future projections

b) Historical earnings

c) Fair value

d) Market capitalization

e) Face value of common equity
 
Q 2. How is the cost of raw materials calculated for companies following the periodic inventory accounting system?

a) Open stock of raw materials minus closing stock of raw materials

b) Purchases plus opening stock of raw materials minus closing stock of raw materials

c) Changes in inventory of WIP and finished goods

d) Employee cost minus staff welfare expenditure

e) Finance charges plus amortisation
 
Q 3. What is the regulatory basis for the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015?

a) Companies Act, 2013.

b) Securities Contracts (Regulation) Act, 1956.

c) SEBI Act, 1992.

d) Reserve Bank of India Act.

e) Insider Trading Act, 2010.
 
Q 4. What is the purpose of Inflation-Protected Securities like Inflation Indexed Bonds (IIB)?

a) To maximize returns during high inflation periods

b) To eliminate market risk

c) To provide fixed coupon income

d) To protect against credit risk

e) To deliver positive real returns during high inflation periods
 
Q 5. What does a higher ROCE indicate about a company's performance?

a) It suggests poor quality of business.

b) It indicates poor liquidity.

c) It reflects efficient capital allocation and high returns.

d) It implies low profitability.

e) It measures short-term cash flow.
 
Q 6. Which schedule of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008, specifies the criteria for determining if the applicant and individuals connected with the applicant are fit and proper persons?

a) Schedule I

b) Schedule II

c) Schedule III

d) Schedule IV

e) Schedule V
 
Q 7. How is National Savings computed, considering the three constituents of an economy?

a) By summing personal savings only

b) By summing corporate savings only

c) By summing public savings only

d) By summing personal, corporate, and public savings

e) By summing expenses of individuals, corporates, and government
 
Q 8. How is the entitlement to bonus shares determined for existing shareholders?

a) Based on the company's profit margin

b) Proportional to the market value of existing shares

c) Fixed numbers for all shareholders

d) Based on the number of shares held by the shareholders

e) Random allocation by the company
 
Q 9. What disclosure is required according to Regulation 21(1) if a research analyst or research entity makes a public appearance?

a) Disclosure of personal opinions unrelated to the subject company

b) Disclosure of market conditions

c) Disclosure of registration status and details of financial interest in the subject company

d) Disclosure of the analyst's favorite stocks

e) No disclosure is required for public appearances
 
Q 10. What can be a result of a change in income levels?

a) A decrease in per capita consumption of beer

b) An increase in the demand for purchase of new commercial vehicles

c) A decline in the long-term average price of hydrocarbons

d) A change in the consumption pattern of goods and services

e) A sudden change in cultural preferences
 
Q 11. What is the primary consideration for lenders when offering collateral?

a) Recovering money from liquidation of business/assets

b) Ensuring the business remains profitable

c) Assessing the market value of collateral

d) Avoiding business liquidation

e) None of the above
 
Q 12. What is NOT mentioned as a focus area for understanding the economy by Research Analysts?

a) National income

b) Unemployment rate

c) Stock market trends

d) Foreign Portfolio Investors (FPIs)

e) Savings and investment patterns
 
Q 13. What type of business segments in the BCG matrix are in a fast-growing market but have low market share, requiring the right strategies and investments to increase market share and cash generation?

a) Stars

b) Cash Cows

c) Question Marks

d) Dogs

e) Market Growth
 
Q 14. In which industry is the Price/Embedded Value ratio commonly used?

a) Technology

b) Retail

c) Real Estate

d) Life insurance

e) Manufacturing
 
Q 15. In what way do convertible debentures benefit investors beyond coupon income?

a) Investors receive a fixed maturity payment in addition to coupon income

b) Investors gain from the appreciation of the value of shares once the debentures are converted

c) Investors receive higher coupon rates than traditional debt instruments

d) Investors have a say in the management of the company

e) Investors receive preferential treatment in case of winding up of the company
 
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