AIMA Online Exam Solution 2021
For solution Call at +91-9911899400 (What’s App Available)
Question 1: In a typical stock market cycle which are the types of trends?
a)Trends upward and downward
b)Sideway trend
c)Both A and B
d)None of these
Question 2: An options contract allows the investor:
a)To earn a profit while restricting the downside risk
b)To use the options for speculation
c)Either to honour or walk away from the contract
d)All of these
Question 3: Most investors are risk averse which means:
a)they will assume more risk only if they are compensated by higher expected return.
b)they will always invest in the investment with the lowest possible risk.
c)they actively seek to minimize their risks.
d)they avoid the stock market due to the high degree of risk.
Question 4: Market capitalization means –
a)market value of debentures
b)market value of equity
c)value of firm
d)owners` funds
Question 5: The possibility of reduction of risk through the construction of a portfolio depends on the valueof:
a)Variance between the two assets
b)Standard deviation between the two assets
c)Correlation coefficient between the two assets
d)None of these
Question 6:Efficient market hypothesis assumes that
a)Investors are rational
b)Investors are indifferent
c)Firms are indifferent
d)None of these
Question 7: Technically, investments include –
a)only financial assets.
b)only marketable assets.
c)financial and real assets that are marketable or non-marketable.
d)only financial and real assets that are marketable.
Question 8: Candle stick charts indicate:
a)in black if the closing price is lower than the opening price
b)in white if the closing price is lower than the opening price
c)in black if the opening price is lower than the closing price
d)None of these
Question 9:-
Who identified five forces that determine the intrinsic long-run profit attractiveness of a marketor market segment?
a)Harry Potter
b)Michael Porter
c)Peter John
d)None of these
Question 10: The possibility of reduction of risk through the construction of a portfolio depends on thevalue of:
a)Variance between the two assets
b)Standard deviation between the two assets
c)Correlation coefficient between the two assets
d)None of these
Question 11: An agreement to buy or sell a specified quantity of an asset at a certain future date or acertain price is known as:
a)Forward contract
b)Spot deal
c)Options
d)All the above
Question 12: In general, the ex-ante risk-return trade-off:
a)remain constant
b)slopes downward
c)slopes upward
d)is impossible to determine
Question 13: To calculate market capitalization, free Float index considers:
a)Total capital
b)Actual number of shares available
c)Long term debt
d)None of these
Question 14: The process of stock index construction includes:
a)Selecting a set of scrips to be used
b)Fixing starting date
c)Calculating market capitalization
d)All of these
Question 15: Which of the following measures the efficiency of credit management?
a)Average payment period
b)Average collection period
c)Sales efficiency
d)None of these
Question 16:-
In futures market what seeks to safeguard against potential losses on the outstanding position?
a)Initial margin
b)Hedge
c)Swap
d)All the above
Question 17: The underlying assumptions of Technical analysis are that:
a)Prices move in predictable patterns
b)Market value is determined by market news
c)Investors are rational
d)None of these
Question 18: The weak form model is also termed as:
a)Efficient market model
b)Random walk model
c)SML model
d)None of these
Question 19: If interest rates rise, the price of preferred stock
a)is not affected
b)rises
c)falls
d)may rise or fall
Question 20: The future earnings are likely to withstand an economic downturn, is situation of
a)Defensive Companies and Stocks
b)Cyclical Companies and stocks
c)Growth companies and stock
d)None of the above
Case Study
An investor is considering investment in two stocks A and B listed on National Stock Exchange of India Limited (NSE) for last 7-8 years. The financial statistics about market and stocks of these companies available on web show average return on stock of A, B and Nifty as 0.15, 0.25 and 0.06 respectively. The variance of return on stock of A, B and Nifty is 6.3, 5.86 and 2.25. Beta coefficient of stock of A and B is 0.71 and 0.685.Correlation coefficient is 0.424 and Coefficient of determination is 0.18. What is –
Question 21:-
Systematic Risk for Stock A
a)2.341
b)1.234
c)1.134
d)2.413
Question 22: Unsystematic Risk for Stock B
a)5.204
b)4.408
c)6.304
d)4.804
Question 23:Total Risk for Stock A
a)6.3
b)3.6
c)7.2
d)5.6
Question 24: Total Risk for Stock B
a)6.85
b)5.68
c)5.86
d)6.58
Question 25: Portfolio Risk, if investor plans to allocate equal amount of money on stock A and B
a)3.8576
b)3.5876
c)3.5887
d)5.3876