Question 1

Section B (2 Mark)Rajiv's company was just surprised by a new competitor in their field. Rajiv wants to plan a way for his business to retake the lead. For this purpose, Rajiv offered a plan to compete in the market. Which one of the following parts of the strategic landscape has been described?

Options :

A : Strategy initiation

B : Strategy formulation

C : Strategy implementation

D : Strategy assessment

Answer: B

Question 2

Section B (2 Mark)The following parameters are available for two mutual funds:Calculate Treynor's performance index for Fund A & Fund B respectively

Options :

A : 8, 1.66

B : 10, 3.33

C : 9, 2.50

D : 18, 4.25

Answer: B

Question 3

Section A (1 Mark)The premise of behavioral finance is that

Options :

A : Conventional financial theory ignores how real people make decisions and that people make a difference.

B : Conventional financial theory considers how emotional people make decisions but the market is driven by rational utility maximizing investors.

C : Conventional financial theory should ignore how the average person makes decisions because the market is driven by investors that are much more sophisticated than the average person.

D : B and C

Answer: A

Question 4

Section B (2 Mark)Ramesh living in Kolkata is a trustee for Brijesh living in Mumbai, Ramesh remits trust funds to Brijesh by bills drawn by a person of high creditworthiness in favor of the trustee as such and payable at Mumbai. The bills later got dishonored. Is Ramesh bound to make good the loss?

Options :

A : Yes

B : No

Answer: B

Question 5

Section C (4 Mark)Read the senario and answer to the question.Assume the following additional facts:The Shankers have purchased a homeowner's policy (comprehensive) covering 100% of the replacement cost of their residence. This policy has a Rs. 500 deductible. Also, they have purchased a disability income policy with a 30-day elimination period and an any-occupation definition of disability.What actions should the Shankers consider in order to improve the quality of the insurance program described above?

Options :

A : (I) only

B : (I) and (IV) only

C : (I) and (III) only

D : (II) and (IV) only

Answer: B

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