FinanceInsights has created mock tests for the NISM Research Analyst XV exam. Questions are based on NISM Research Analyst XV Workbook Version - Mar 21.
FinanceInsights has created a bank of about 300 questions.
Every time you take the mock test, 100 random questions from the question bank will be presented. Each question will carry 1 mark each. There will be negative marking of 25%. This bank of questions covers the entire syllabus and can be used to learn the course content.
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1.
_____ measures the sensitivities of a bond's price to a small change in interest rates.
2.
Companies Act requires that a company which wants to raise further capital through an issue of shares must first offer them to the existing shareholders and such an offer of shares is known as _______. (from NISM)
3.
Company deducts tax at source at the rate of 10% on dividends payable exceeding ______.
4.
Once a stock is short listed for Additional Surveillance Measures (ASM), the applicable margin on the security is raised to ___%.
5.
According to famed investor Warren Buffett, a business with a large moat implies--
6.
_____ bias can prevent investors from benefiting from market corrections. (from NISM)
7.
Sharpe's performance measure divides the portfolio's risk premium by the _________.
8.
This is an example of deep cyclical industries--
9.
_____ measures the sensitivity of the price of an option for a small change in price of the underlying asset.
10.
A Ltd's EPS was Rs 10 and its share was trading at Rs 120. B Ltd had the same EPS but its share was trading at Rs 140. A Ltd is expected to grow at 10% per annum while B Ltd is expected to grow at 15% per annum. Calculate the PEG ratio for both companies. Which is a better investment?
11.
To calculate the uncertainty/unpredictability of risk, one should use--
12.
National income of an economy can be measured through --
13.
Depository receipts can have two-way fungibility. What does this mean?
14.
Debentures issued by companies can be either fully convertible or non-convertible. They cannot be partly convertible.
15.
When a business is planning to set up offshore, which analysis would be more suitable?
16.
As per regulations, all records should be maintained by a research analyst for a minimum period of ______ year(s).
17.
Foreign Portfolio Investors (FPIs) are registered abroad and needn't register with SEBI to invest in the Indian stock markets.
18.
Dividend income is tax-free in the hands of the shareholders.
19.
When an Indian company wants to raise foreign currency, it can do so by _______.
20.
What is the formula for EBITDA margin?
21.
_____ regulates the commodities markets in India.
22.
The current account portion of the balance of payments consists of--
23.
The formula to calculate Book value per share is ____________.
24.
As per Employees' Provident Fund (EPF) rules, employees must contribute ___ of their basic pay plus dearness allowance every month.
25.
Calculate the enterprise value based on the given information. Market capitalisation = Rs 10 lakh; Total debt = Rs 3 lakh. Cash = Rs 4 lakh. (from NISM)
26.
Corporate governance takes into account which aspect of the management? (from NISM)
27.
A pooled investment vehicle with the mandate to invest in companies at the early stage of development with the potential of long term growth is called ______.
28.
According to Companies Act, 2013, an offer to subscribe to securities made to less than ___ persons is called private placement of securities.
29.
An investor buys an equity share on 31 Jul 2011 for Rs 150. He receives dividend of Rs 5 on 31 Oct 2011; Rs 6 on 31 Oct 2012; Rs 4 on 31 Octo 2013. The sells the share on 15 Jan 2014 for Rs 165. What is the CAGR of his investment?
30.
Economics concerned with general economic factors such as interest rate, GDP, etc.
31.
Secular trends refer to ____ trends in the economy or industry that create displacement of goods or services consumed or manner in which they are produced.
32.
An industry where rivalry is high, the end result will be ____ pricing power and _____ incomes for the industry participants. (from NISM).
33.
Budgeted excess of government expenditure over revenue is called ________.
34.
Crude oil is termed as ______ commodity.
35.
In case of both REITs and InvITs, the trust has to distribute at least ___ of the distributable surplus cash flow to unitholders.
36.
External bonds denominated in INR are called ________.
37.
Grains and pulses are termed as ______ commodities.
38.
For analysts, which is the authentic source to check facts on a company? (from NISM)
39.
Economics concerned with decision making and allocation of resources by individuals, households and firms.
40.
Under Free Cash Flow to Firm (FCFF) model, the discount rate is taken as --
41.
If a research analyst/ research entity/ its associates or relatives have actual/beneficial ownership of ___ percent or more securites of the subject company at the end of the month immediately preceding the date of publication of the research report / public appearance, the same should be disclosed.
42.
Units of close-ended mutual funds have to be mandatorily listed on the stock exchange.
43.
When a company wants to issue shares without diluting voting rights of existing shareholders, it can issue ____.
44.
A research analyst/research entity shall not publish/distribute research analysis/report or make public appearances regarding a company for which he has acted as manager/co-manager within a period of ____ days immediately following the day of IPO pricing / ____ days immediately following the day of FPO pricing.
45.
Price to earnings ratio of a business is 10, price to book value ratio of this busniess is 5, book value per share is Rs 15 and outstanding number of shares is 10,000; what would be the return on equity of this business? (from NISM)
46.
Calculate the YTM of a bond whose tenure is 10 years, maturity date is 1-Jan-2032, settlement date is 1-Jan-2022, coupon is 8%, Market price is Rs 102, FV is Rs 100 and coupon frequency is semi annual.
47.
Bonds which have embedded call option in them are known as callable bonds. State true or false. (from NISM)
48.
It's not possible to calculate gross profit for Indian companies.
49.
In an IPO, anchor investors can be allotted up to ____ of portion allocated to QIBs.
50.
As per SCRA, the term securities include which of the following? (from NISM)
51.
The formula to calculate P/E ratio is ____________.
52.
A company can recognize assets such as brand names in its financials.
53.
The time span over which price and volume are observed factors in the impact of long term factors that influence prices over a period of time. State whether true or false. (from NISM)
54.
Calculate the current yield for a 10 year 8.24% coupon bond selling for Rs. 103.00 per Rs. 100 par value.
55.
Shweta held 100 shares of XYZ Ltd of Rs 10 face value. The company decided to split one share into five. What will be the new face value and how many shares would Shweta now hold?
56.
An investment with a beta of 1.2 will move ____% when the market moves 10%.
57.
A research analyst who is a body corporate or limited liability partnershp firm should have a networth of at least Rs ______.
58.
Which of the following is a non-cash charge? (from NISM)
59.
Underwriters who make their commitments once the IPO offer price is determined are called ________.
60.
As per Michael Proter's five force model, threat of new entrants is--
61.
What does industry structure in Structure Conduct Performance (SCP) analysis refer to? (from NISM)
62.
Business risk is also known as operating risk, because this risk is caused by factors that affect the operation of the company. State whether True or False. (from NISM)
63.
Which entities undertake to subscribe to the unsubscribed portion of IPOs?
64.
What is the formula for Dividend Payout ratio?
65.
Which ratios can be used to measure the liquidity of a company's equity shares?
66.
If income tax payable by a company is less than ___ of the book profits, it will have to pay ___ of book profits to the government.
67.
As per SEBI regulations, in an IPO, at least ____ of shares should be allocated to retail investors.
68.
A bond is issued at a face value of Rs 100 and coupon of 10% p.a. The interest rates in the market have increased subsequently. This bond is likely to quote at: (from NISM)
69.
If a stock's intrinsic value is higher than the market value, the stock is said to be _____.
70.
A derivative contract made between two parties to exchange cash flows in the future according to a pre-decided formula is called ______.
71.
If a research report contains either a rating or price target for the subject company's securities and the research analyst / research entity has assigned a rating or price target to the securities for at least _____ year(s), such report research should also provide a graph of the daily closing price of such securities for the period assined or for a ____-year period, whichever is shorter.
72.
Capital reserves and revaluation reserves cannot be used to distribute dividends.
73.
Which category of AIFs invest in areas which the government or regulators consider as socially or economically desirable?
74.
PESTLE analysis stands for--
75.
Consider a business with net worth of Rs 1 lakh, debt of Rs 1 lakh. Market capitalization is Rs 5 lakh, cash and cash equivalents are nil and ROCE is 45% per annum. What is the EV to capital employed ratio? What return can an investor expect?
76.
What is the role of a Research Analyst (RA)? (from NISM)
77.
Core working capital is computed as--
78.
Preference shares_____________.
79.
_____ valuation is used to value an asset based on expected future cash flows that can be generated by the asset.
80.
Sell side analysts generally work for money managers like mutual funds, hedge funds, portfolio managers who purchase and sell securities for their own investment accounts or on behalf of their clients. State whether true or false. (from NISM)
81.
A research analyst participating as an underwriter of an IPO shall not publish/distribute a research report/makepublic appearance regarding the company before expiry of _____ days from date of the offering.
82.
A borrower has to pay floating rate interest on his loan. However, the borrower prefers fixed rate. He can use _______ to switch to fixed rate of interest.
83.
Debentures issued by companies are regulated by ________.
84.
Investors open demat account with ---
85.
SEBI regulations stipulate that independent directors should constitute at least ____ of the board if the chairman is an executive director. In all other cases, ____ of the board should be comprised of independent directors.
86.
Auditors of a company should be rotated once in _____ years.
87.
Sponsored depository receipts are delivered by ______.
88.
______ measures the maximum loss one may suffer given a particular level of confidence.
89.
The rate at which RBI lends money to banks is called --
90.
Sell side analysts generally work for money managers like mutual funds, hedge funds, portfolio managers who purchase and sell securities for their own investment accounts or on behalf of their clients. State whether true or false. (from NISM)
91.
Shareholding pattern and changes therein have to be informed by the companies to exchanges periodically. State Whether true or false. (from NISM)
92.
As per SEBI requirement, for applicable companies, the CEO must form part of the promoter group to ensure that promoters maintain responsibility for the company's growth.
93.
A research analyst who is an individual or partnership firm should have net tangible assets of at least Rs _____.
94.
Technological advancements donot impact change in secular trends.
95.
A portfolio has generated a return of 22%. The market benchmark return for the same period is 15%. The beta of the portfolio is 1.5. Treasury bond yield is 6%. Calculate the Jensen Alpha return.
96.
The maximum maturity period of Treasury Bills (T-Bills) is ____.
97.
Depository receipts give investors _______.
98.
Graded Surveillance Measures (GSM) is targeted on securities with ____ market capitalisation or net worth where the valuation is not commensurate with the business fundamentals.
99.
The _____ of an equity share is the discounted value of its future benefits to the investors. (from NISM)
100.
What is the formula for Accounts Payable Turnover?
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