NISM-Series-XV - Research Analyst Certification Exam -45
NISM-Series-XV - Research Analyst Certification Exam -45
Q 1. What is the objective of Chapter II of the regulations regarding the prohibition of certain dealings in securities?
a) To encourage false or misleading appearances in the securities market.
b) To facilitate wrongful gain through security trading.
c) To specify instances of fraud related to securities.
d) To create fluctuations in the price of securities.
e) To advance money for securities manipulation.
Q 2. What type of analysis involves converting price and volume data into charts to identify trends and triggers for buying or selling?
a) Fundamental analysis
b) Economic analysis
c) Technical analysis
d) Mosaic analysis
e) Insider analysis
Q 3. According to Warren Buffett, what is the potential issue with a company having a lousy track record but a bright future?
a) The company is unreliable.
b) The future of the business is uncertain.
c) Meticulous projections are needed.
d) It presents a missed opportunity.
e) Bright futures are often illusions.
Q 4. About insider trading or front-running, what does the Code of Conduct prohibit for research analysts or research entities?
a) Encouraging insider trading.
b) Direct involvement in insider trading.
c) Front running of their research report.
d) Front running only during market hours.
e) No specific prohibition on insider trading or front running.
Q 5. What is one positive aspect of globalization mentioned?
a) Increasing divide between the rich and the poor
b) Integration of developing economies with the developed world
c) Competition resulting in the survival of the fittest
d) Limited choices for consumers
e) Negative impact on end consumers
Q 6. What is the primary motive for M&A activities related to synergy?
a) Taxation benefits
b) Increased revenue and market share
c) Geographical or other diversification
d) Efficiencies that result in greater economic benefits
e) Formation of a new company
Q 7. What criteria are considered for removing a stock from ASM after the review period?
a) Dividend payout ratio
b) Employee satisfaction survey results
c) Market capitalization increase
d) Meeting the short-listing criteria on the review date
e) Increase in the number of outstanding shares
Q 8. How can a company in a competition-intensive industry deliver good returns to its shareholders, according to the text?
a) By adopting similar strategies as competitors
b) By focusing on lower prices than competitors
c) By minimizing innovation and product differentiation
d) By aggressively innovating internally and externally
e) By maintaining high switching costs for customers
Q 9. Why might equity be considered more attractive than bonds in the given example?
a) Bonds offer higher post-tax returns
b) Dividends are tax-free in the hands of investors
c) Bonds have the potential for upside
d) Equity has a fixed redemption value
e) Dividends are subject to higher taxes
Q 10. Which industry is mentioned as a case in point for high rivalry, where competitors try to garner market share by offering competitive plans?
a) FMCG industry
b) Healthcare industry
c) Telecom industry in India
d) Education industry
e) Aviation industry
Q 11. What is the significance of the Dividend Yield in assessing equities?
a) Indicates the growth prospects of the company
b) Measures the market's willingness to pay a rupee of earnings
c) Assesses the cheapness or expense of equities
d) Represents the ratio of dividends to earnings
e) Reflects the bond yield
Q 12. In the cricket analogy, what factors are mentioned as influencing the performance of players?
a) Weather conditions and team spirit
b) Pitch conditions, game type, and the opposition team’s bowling strengths
c) Players' individual preferences and hobbies
d) Jersey colors and the location of the match
e) Length of the cricket bat and shoes worn by players
Q 13. What does the Performance analysis in SCP Analysis involve?
a) Industry growth rate
b) Financial performance metrics (RoE, RoIC, WACc)
c) Conduct of businesses
d) Competitive intensity
e) Market concentration
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. What is the major purpose of sector indices created by exchanges?
a) To serve as benchmarks for individual stocks
b) To track the market movement based on market capitalization
c) To indicate real-time market sentiments
d) To enable tracking of specific sectors
e) To compare returns on investments in stock markets
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