SEBI - Investor Certification Examination
SEBI - Investor Certification Examination
Q 61. What is the primary benefit of rupee cost averaging?
It guarantees high returns
It eliminates all investment risks
It lessens the impact of short-term market fluctuations
It maximizes returns in a rising market
Q 62. How does rupee cost averaging work in a volatile market?
It avoids buying units
It buys more units when prices are high
It buys more units when prices are low and fewer units when prices are high
It buys a fixed number of units regardless of price
Q 63. In rupee cost averaging, what happens when unit prices are low?
You buy fewer units
You stop investing
You buy more units
You invest double the amount
Q 64. What is the average price per unit if you invest ₹24,000 over 12 months and receive 466 units?
₹50.00
₹51.50
₹52.00
₹54.00
Q 65. How many units were bought in February if ₹2,000 was invested and the cost per unit was ₹41.67?
48 units
40 units
50 units
36 units
Q 66. What does rupee cost averaging help investors avoid?
Market highs
Market lows
Trying to time the market
Long-term investments
Q 67. How many units were bought in July when the cost per unit was ₹40.00?
48 units
50 units
42 units
30 units
Q 68. What is the total number of units bought over the twelve months?
400 units
450 units
466 units
550 units
Q 69. What does rupee cost averaging help to average out?
The number of units
The total investment amount
The cost per unit
The investment duration
Q 70. What is a potential advantage of buying more units when prices are low?
Higher average cost per unit
Lower average cost per unit
Fixed returns
Reduced investment amount
Q 71. What is the purpose of rupee cost averaging?
To minimize investment duration
To maximize short-term gains
To reduce the impact of market volatility on investments
To avoid long-term investments
Q 72. How is the average cost per unit calculated in rupee cost averaging?
By dividing the total number of units by the total amount invested
By multiplying the total amount invested by the total number of units
By dividing the total amount invested by the total number of units
By subtracting the total number of units from the total amount invested
Q 73. Why might an investor choose rupee cost averaging over a lump sum investment?
To avoid investing regularly
To minimize long-term gains
To avoid the risk of investing a large amount at the wrong time
To invest only in high-risk assets