Section B (2 Mark)
Calculate the standard deviation on a portfolio from the following data
Section C (4 Mark)
Read the senario and answer to the question.
Sajan and Jennifer want to arrange for the funds to meet marriage expenses of their children. They plan the wedding of Mark after 23 years from now and that of Stephanie after 25 years from now. To accumulate the funds for marriage, you advise to start a monthly Systematic investment Plan (SIP) immediately in Equity scheme of a mutual fund. Such SIP will continue for the next 15 years. You further advise to hold the investment in equity shares till Stephanie’s marriage to meet the wedding expenses. After meeting the expenses of Marks’ marriage, the balance fund in the quity scheme are allowed to appreciate to meet the differential expenses of Stephanie’s marriage. The amount of SIP comes to __________.
Section A (1 Mark)
The __________the suggested deviation from the rational portfolio asset allocation, the _________ the need to mitigate the investor’s behavioral biases
Section B (2 Mark)
An investor is bearish about Tata Motors and sells ten one-month ABC Ltd. Futures contracts at Rs.6,06,000. On the last Thursday of the month, Tata Motors closes at Rs.600. He makes a _________. (assume one lot = 100)
Section C (4 Mark)
To fulfil the Educational Qualification to be registered as an Investment Advisor under the SEBI Investment Advisor Regulations 2013, The applicant must:
Section A (1 Mark)
Which of the following measures is lowest for a currently callable bond?
Section A (1 Mark)
CRM is considered as a:
Section A (1 Mark)
In US Over one-half the money spent by state and local governments goes to just three services. Which of the following is not one of these services?
Section B (2 Mark)
An assessee was allowed deduction of unrealized rent to the extent of Rs. 40,000 in the past although the total unrealized rent was Rs. 60,000. He is able to recover from the tenant Rs.45,000 during the previous year on account of such unrealized rent. He shall be liable to tax to the extent of:
Section C (4 Mark)
Rhona has a daughter Zena five years old. She wants to plan for Zena’s education and has found out that she would be requiring 2,75,000 at her age 18 and another 4,50,000 on her age 25. She also wants to have Rs. 10,00,000 for Zena’s Marriage which she expects at the age of 28. She wants to deposit the entire amount for these expenses today in an account that pays a ROI of 15% per annum compounded annually. What would this amount be?
Section B (2 Mark)
Reliance Ltd. has issued a preferred stock that pays Rs.10 per share. The dividend is fixed and the stock has no expiration date. What is the intrinsic value of Reliance Ltd. stock, assuming a discount rate of 14%?
Section A (1 Mark)
Which of the following statement is/are true?
Section A (1 Mark)
The covariance of market’s returns and stock returns is 0.005. The standard deviation of market’s return is 5%. What is the stock’s beta?
Section B (2 Mark)
Which of the following statements regarding a buy and hold strategy are true?
Section A (1 Mark)
A good customer relationship management program will allow a business to:
Section A (1 Mark)
The effect on a bond portfolio’s value of a decrease in yield would be most accurately estimated by using:
Section B (2 Mark)
If one earns 10% on investment but inflation is 2%, real rate of return is
Section A (1 Mark)
Which of the Following needs to register as an' Investment Adviser' as per SEBI Investment Advisor Regulations 2013.
Section A (1 Mark)
How many states operate lotteries to generate revenue in US?
Section A (1 Mark)
For making a personal financial statement for a client, the optimum cash levels would be
Section A (1 Mark)
All the following real estate investors will acquire an income property except those who invest in
Section A (1 Mark)
CRM as a discipline that depends on people, process, information and __________
Section A (1 Mark)
Which of the following is classified as passive income in US?
Section A (1 Mark)
Following is not a head of income
Section C (4 Mark)
Mr. Sushobhan Adhikari, 56 years old, employee of Mega India Ltd, receives the following salary and perquisites from his employer during the previous year 2007–08.
A rent-free furnished house in Patna (rent of unfurnished house paid by employer- Rs. 84,000, rent of furniture Rs. 18,000, free services of a gardener (salary-Rs. 4,000), free services of cook (salary-Rs. 3,600), free services of watchman (salary-Rs. 900). He owns a small house at Patna.
Mr. Adhikari makes the following payments and investments during the year:
Mr. Adhikari comes to Mr. Gupta, CWM®, in September-2008 for developing a wealth plan to fulfill his financial goals. Mr. Adhikari will retire on 31st December, 2008 after completing 28 years of service. He is expecting a growth of Rs. 1,500 in his basic pay in the last year of his employment. The company is expecting a 5% growth every year in its turnover. His daughter Pallavi has completed her education and his main liability is the amount he may have to spend for her marriage. On his retirement he is expected to receive following amount:
He also has also informed to the planner following his other assets and investments:
He has given his Kolkata Flat on 12,500 p.m. rent. Municipal value of the property is Rs. 1,45,000, fair rent is Rs. 1,60,000 and standard rent is 1,40,000. Municipal tax paid by him are as follows:
In July, 2008 rent is increased from Rs. 11,500 to Rs. 12,500 pm with effect from 01/04/2007. Due to some dispute rent was not received in 2007–08 but all arrears of rent till date are paid on July 1, 2008. Maximum eligible amount of PPF contribution deposited in March, 2008.
His actual expenses before retirement are Rs. 23,500 per month.
Main goals of Mr. Adhikari:
●To provide for his daughter’s marriage
●Ensuring that his family is protected financially in the event of any mishap
●Minimize tax burden
●Establish an investment portfolio that gives high returns over long term
Assumptions:
●Mr. Adhikari needs to provide for himself and his family till he is 75.
●Inflation rate after retirement to be 4%
●Monthly expenses after retirement will be 15% less than before retirement
After detailed discussion, Mr. Gupta, CWM®, has suggested a revision in the portfolio as below to be implemented from October, 2008.
Section A (1 Mark)
With amortized loans, such as a mortgage:
Section A (1 Mark)
The factors contributing to a Credit Score are :
Section B (2 Mark)
The arbitrage pricing theory (APT) and the CAPM both assume all except which of the following?
Section A (1 Mark)
We try to avoid actions that confirm that we have made mistakes. Which of the following is most likely consistent with this bias?
Section A (1 Mark)
The basic competitive factors facing industries include all of the following except:
Section B (2 Mark)
When the income of an individual includes Rs. 20000 as the income of his minor child in terms of section 64(1A), taxable income in this respect will be:
Section B (2 Mark)
If a portfolio manager has a good ability to forecast overall market but a poor ability to select undervalued securities, the following makes sense for him.
Section A (1 Mark)
Mr. Vikas is now 50 years old. He has invested some amount in an annuity which will pay him from the END. of 5th year Rs. 35,000/- p.a. at the end of every year for 10 years. Rate of interest is 7% p.a. Calculate how much he has invested now?
Section A (1 Mark)
______________ is based on a particular (theoretical) lottery game that leads to a random variable with infinite expected value, i.e., infinite expected payoff, but would nevertheless be considered to be worth only a very small amount of money.
Section B (2 Mark)
The following is not a capital receipt
Section A (1 Mark)
If the proposer does not disclose fully all the material facts at the time of Proposal the principle violated
Section A (1 Mark)
If a female dies without leaving any issue them property inherited from her father or mother the property will devolve upon
Section C (4 Mark)
Read the senario and answer to the question.
What will be the taxable amount of Gratuity on his retirement?
Section B (2 Mark)
You purchased one XYZ March 50 call and sold one XYZ March 55 call. Your strategy is known as
Section B (2 Mark)
How much principal is repaid in the 77th payment interval on a RS 147 000 25-year mortgage if the mortgage is amortized over 20 years and the payments are monthly with rate of interest being 7.2% compounded monthly?
Section A (1 Mark)
In “Teenage Years” life stage, one learns about ___________
Section B (2 Mark)
Which of the following two outcomes is an example of Status Quo Bias:
Section C (4 Mark)
The returns of 2 shares are as follows
Calculate the covariance of returns.
Section C (4 Mark)
Roger deposits Rs. 10,00,000 in a bank account on 1st March 2005 and another Rs. 5,00,000 on 1st March 2011. He wants to withdraw all of this money with interest on 1st March 2015. If the account pays ROI of 11% p.a. compounded quarterly what amount can he withdraw from this account?
Section A (1 Mark)
What would be the tax liability if tea and snacks are provided in the office after office hours?
Section B (2 Mark)
Which one of the above statements is/are incorrect?
Section A (1 Mark)
Which of the following is/are the challenges of Private Banking?
Section B (2 Mark)
Which of the following statement is/are correct?
Section A (1 Mark)
A(n)_______________ is a credit-rating agency that keeps records of borrowers' loan payment histories.
Section B (2 Mark)
If the commodity’s futures price declines
