Q.1 Which of the following statements about the Time Value of Money (TVM) is correct? A) The value of money increases over time without any interest. B) The value of money decreases over time due to inflation. C) TVM implies that a dollar received today is worth less than a dollar received tomorrow. D) TVM assumes that the interest rate remains constant regardless of time or risk factors.
Q.2 Which of the following is a characteristic of preferred stock?
A) It has voting rights in the company's general meetings. B) It generally offers higher returns than common stock. C) It has a fixed dividend, which is paid out before common stock dividends. D) It guarantees repayment of the principal amount at maturity.
Q.3 NIFTY 50 is calculated using:
A) Using the price-weighted method B) Using the equal-weighted method C) Using the free-float market capitalization-weighted method D) Using the total market capitalization-weighted method
Q.4 The Capital Asset Pricing Model (CAPM) helps in determining:
A) The intrinsic value of a stock based on future cash flows. B) The expected return of an asset given its risk relative to the market. C) The fair value of a bond based on current market interest rates. D) The appropriate capital structure of a firm based on its cost of capital.
Q.5 In the Black-Scholes option pricing model, which of the following factors would increase the price of a call option? A) An increase in the strike price B) A decrease in the underlying asset price C) A decrease in the volatility of the underlying asset D) An increase in the time to expiration
Q.6 Which of the following closely relates to the Modigliani-Miller Theorem?
A) The irrelevance of dividend policy B) The relationship between capital structure and firm value C) The impact of taxes on corporate capital structure D) The effect of interest rates on investment decisions
Q7) What is the expected size of the upcoming Swiggy IPO
A) 4750 Cr B) 3750 Cr C) 4560 Cr D) 3450 Cr Q.8) In 2023, which country became the first in the world to introduce a Central Bank Digital Currency (CBDC) for retail transactions at a national level? A) China B) Bahamas C) India D) Sweden
Q9) Which of the following statements best describes the concept of arbitrage pricing theory (APT)? A) Asset prices reflect all available information instantaneously. B) Asset returns can be predicted using a single factor. C) Asset returns are influenced by multiple systematic risk factors. D) Market anomalies are always corrected by rational investors.
Q10) In a dynamic pricing model, what does the term "convexity" refer to in relation to bond pricing? A) The sensitivity of a bond's duration to changes in interest rates B) The relationship between yield and the price of a bond C) The risk of default relative to changes in interest rates D) The inflation-adjusted return of the bond over time
Q.11) What is the likely range of the beta of an FMCG (Fast-Moving Consumer Goods) company? A) 0.0 to 0.5 B) 0.5 to 1.0 C) 1.0 to 1.5 D) 1.5 to 2.0
Q.12) Which of the following could lead to an inversion in the yield curve: A) Short-term interest rates rise above long-term rates due to higher inflation expectations. B) Long-term interest rates remain higher than short-term rates due to stable inflation expectations. C) Central banks cut interest rates, leading to increased demand for long-term bonds. D) A rise in the fiscal deficit increases long-term interest rates above short-term rates. CRICKET Q.1) The first official international cricket match was held in 1844 between which two nations? A) England and Australia B) India and England C) United States and Canada D) South Africa and England
Q.2) Which cricketer boasts by some distance the best batting average of all time at 99.94? A) Sachin Tendulkar B) Brian Lara C) Ricky Ponting D) Sir Donald Bradman
Q.3) Who was awarded the Man of the Match in the iconic 2021 Lord's Test between India and England, where Virat Kohli famously said, "For 60 overs they should feel hell out there"? A) KL Rahul B) Jasprit Bumrah C) Mohammed Siraj D) Rohit Sharma
Q4) After how many years did Sri Lanka beat India in an ODI series A) 22 years B) 8 years C) 7 years D) 16 years
Q5) India's famous victory at the Eden Gardens Test in 2001 against Australia is remembered for the heroic partnership between VVS Laxman and Rahul Dravid. What was unique about the Indian team's victory in this match? A) It was the first time India chased more than 400 runs in the 4th innings B) India won the match after being asked to follow on C) It was the first Test match victory for India at Eden Gardens D) India played the match with only 10 players due to an injury
Numericals (Finance) Q1) Suppose that the current stock price is $52 and the risk-free rate is 5%. You have found a quote for a 1 year put option with an exercise price of $50. The put price is $1.50. Estimate the price of the call option for the same duration. (Hint: Use put-call parity to solve)
A) $5.88 B) $2.88 C) $4.38 D) None of the above
Q2) During 2024, Shubhayu & Co. reported net income of $4,350,000 and had 2,000,000 shares of common stock outstanding for the entire year. Preferred stock of $5,000,000 (dividend @ 7% per annum) is convertible into common stock. Calculate basic Earnings per share (EPS).
A) $2.175 B) $2.35 C) $2 D) None of the above
Q3) XYZ company performed well in the year 2023, as a result its stock price increased by 25% compared to the last year. However, in 2024, due to market downturn, its stock price only appreciated by 5%. What was the year on year return (YoY) over these two years?
A) 15.00%. B) 14.56% C) 14.13% D) 15.13%
Q4) An exchange traded fund (ETF) is quoted at a bid-ask spread of 0.15%. ETF commissions are 0.10% of the trade value. Management fees are 0.08% per year. Calculate the cost of holding the ETF for 1 year.
