Question 1

Mr. Shyam has a portfolio consisting of two stocks A & B. Stock A has a standard deviation of 5 % while stock B has a standard deviation of 15%. Stock A comprises 40% of the portfolio and Stock B consists of 60%. If the correlation of returns of A& B is .5, the variance of return on the portfolio is _________.

Options :

A : –0.0035

B : –0.0085

C : 0.0094

D : 0.0103

Answer: D

Question 2

Indicate whether the following statement is True or False. Money launderers often use professional intermediaries to layer their illegal funds. These professional intermediaries include lawyers, company formation agents, accountants and other professionals working in non-financial institutions. A banker is not generally regarded as a professional intermediary because he works in a financial institution.

Options :

A : TRUE

B : FALSE

Answer: B

Question 3

The income received by the approved superannuation fund on the investments made by the fund is

Options :

A : Exempt from income tax

B : Taxed as the concession rate of 10% of the income

C : Tax at the hands of employees concerned based on the share of each employee

D : Taxed under Capital Gains Tax depending upon the nature of investment

Answer: A

Question 4

International Development Association is an agency of _____

Options :

A : IMF

B : World Bank Group

C : United Nations

D : None of the above

Answer: B

Question 5

Saurabh contributes Rs. 10,000 every year starting from the end of the 5th year from today till the end of 12th year in the account that gives a ROI of 7.75% p.a. compounded half yearly. Calculate the Present Value of his contribution today.

Options :

A : 39441

B : 39800

C : 42557

D : 36500

Answer: C

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