AIMA Solved Assignments for FM03
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Subject Code: FM03
Subject Name: SECURITY ANALYSIS & PORTFOLIO MANAGEMENT
Component name: ASSIGNMENT 1
Assignment Start Date: 15/11/2022
Assignment End Date: 15/01/2023
Question 1:- Which of the following is a tax saving investment?
a) Fixed Deposits
b) Shares
c) PPF
d) Post Office Savings
Question 2:- The stage when poor performers start winding up their business
a) Rapid growth
b) Pioneering
c) Maturity
d) Decline
Question 3:- Which of the following is on the horizontal axis of the Security Market Line
a) Standard deviation
b) Beta
c) Expected return
d) Required return
Question 4:- Which analysis provides a simplified picture of price behaviour of a shares
a) Technical
b) Fund flow
c) Ratio
d) Fundamental
Question 5:- Increase in odd lot selling as compared to odd lot buying , is a …..indicator
a) Bullish
b) Bearish
c) both a & b
d) Neutral
Question 6:- Corporate bond indenture agreements often specify each of the following EXCEPT
a) bond call provisions
b) sinking fund requirements
c) restrictions on the corporation’s divided payments
d) assets on which debenture issues are collaterized
Question 7:- Which leverage shows the relationship between the revenue in the account of sales and the taxable income
a) Operating
b) Financial
c) Combined
d) None of the above
Question 8:- This type of risk is avoidable through proper diversification
a) Unsystematic risk
b) Systematic risk
c) Portfolio risk
d) Total risk
Question 9:- …….analysis is a study based on market emotions and share price movement .
a) Fundamental
b) Technical
c) Moral
d) All of the above
Question 10:- All personal investing is designed to achieve certain …..
a) Risk
b) Returns
c) Objective
d) Investment
Question 11:- If interest rates rise, the price of preferred stock
a) is not affected
b) Rises
c) Falls
d) May rise or fall
Question 12:- What is a call?
a) An option to sell stock at a specified price
b) An option to buy stock at a specified price
c) An option to sell stock on a specified date
d) An option to buy stock on a specified date
Question 13:- If you were confident that the price of stock X would drop dramatically within two months, which of the following investment transactions would yield the highest return on your investment?
a) Purchase stock X
b) Sell stock X short
c) Purchase a call on stock X
d) Purchase a put on stock X
Question 14:- The use of financial leverage by a firm may be measured by the
a) ratio of debt to total assets
b) firm’s beta coefficient
c) firm’s retention of earnings
d) ratio of the price of the firm’s stock price to its earnings
Question 15:- A Statistical measure of the Degree to which two variables move together
a) Covariance
b) Coefficient of variation
c) Variance
d) Certainty equivalent
Question 16:- Net income approach assume
a) no change in risk
b) no corporate tax
c) both a & b
d) None of the above
Question 17:- The fundamental analysis is a method of finding out ……
a) Future price of security
b) Value of shares
c) Ratio
d) Tips
Question 18:- Financial risk involves
a) risk of insolvency
b) risk of variation in expected earning
c) both a & b
d) None of the above
Question 19:- If EBIT is less than the financial break even point then
a) Positive EPS
b) Negative EPS
c) no effect on EPS
d) cash of debt increase
Question 20:- The fundamental analysis is a method of finding out
a) Tips
b) Future price of a security
c) Value of shares
d) Ratio
Subject Code: FM03
Subject Name: SECURITY ANALYSIS & PORTFOLIO MANAGEMENT
Component name: ASSIGNMENT 2
Assignment Start Date: 15/11/2022
Assignment End Date: 15/01/2023
Question 1:- Which of the following is a financial investment?
a) Share
b) Car
c) Farm house
d) TV Set
Question 2:- Which analysis provides a simplified picture of price behaviour of a shares
a) Technical
b) Financial
c) Fundamental
d) Any
Question 3:- Which of the following is an example of a depreciable asset?
a) Land
b) Cash
c) Accounts receivables
d) Equipment
Question 4:- Capital structure decision should always aim at having debt component in order to
a) gain control
b) increase EPS
c) balance of capital Structure
d) Gain tax saying
Question 5:- Which measures the systematic or non -systematic risk of a security ?
a) Standard deviation
b) Beta
c) Range
d) Variance
Question 6:- If ROI is more than cost of debt
a) EPS increase
b) Financial risk increase
c) none of the above
d) both a & b
Question 7:- Which theory believes that the investors prefer larger to smaller returns from securities?
a) traditional
b) Sharpe
c) Markowitz
d) modern
Question 8:- The net asset value of a mutual fund investing in stock rises with
a) higher stock prices
b) lower equity values
c) an increased number of shares
d) increased liabilities
Question 9:- The object of portfolio is to reduce ……by diversification.
a) Uncertainty
b) Return
c) Percentage
d) Risk
Question 10:- Market price breaking through the moving average from below is a ……indicator
a) bearish
b) Flat
c) Bullish
d) None of the above
Question 11:- The greater the beta, the security involved
a) Less the unavoidable risk
b) Greater the avoidable risk
c) Less the avoidable risk
d) Greater the unavoidable risk
Question 12:- Triple tops & triple bottom are indicators of …
a) role reversal
b) trend reversal
c) high volumes
d) both a & b
Question 13:- Return of investment is determined by
a) Net profit & capital employed
b) Capital employed
c) Net profit
d) Net worth
Question 14:- Beta is the slope of
a) A characteristic line
b) The security market line
c) The capital market line
d) The CAPM
Question 15:- A ……average of a stock index is the average level of the index over a given interval of time.
a) trend
b) ratio
c) price
d) None of the above
Question 16:- …….analysis is a study based on market emotions and share price movement.
a) technical
b) Moral
c) Fundamental
d) All of the above
Question 17:- Net income approach assume
a) no corporate tax
b) no change in risk
c) both a & b
d) none of the above
Question 18:- Which leverage helps to examine the relationship between EBIT & EPS?
a) Operating
b) Combined
c) Financial
d) None of the above
Question 19:- A measure of risk per unit of expected return
a) Coefficient of variation
b) standard deviation
c) Correlation coefficient
d) Beta
Question 20:- The fundamental analysis approach has been associated with …..
a) Ratios
b) Uncertainties
c) Certainties
d) Balance sheet