1.Bond Duration is measured by ___________.

a) Modigliani Duration
b) Macaulay Duration
c) Peter Duration
d) None of these

2.category AIF allows you to invest into hedging and trading strategies involving derivative positions.

a) None of these
b) CAT II
c) CAT III
d) CAT I

3.Industries rise and fall and very closely follow the general economic activity in comparison to other
activities.

a) Financial
b) Consumer Staples
c) Cyclical
d) Defensive

4.The details of the deemed dividend if defined under _______________ of the IT act of 1961.

a) Section 5 (25)
b) Section 5 (23)
c) Section 5 (24)
d) Section 5 (22)

5.Discretionary PMS allows fund manager to invest only in

a) Un-listed Securities
b) All of these
c) Listed Securities
d) Derivative

6.Not ordinary resident is a citizen who is deemed to reside in India under the _________of ITA.

a) Section 2(1A)
b) Section 2(1B)
c) Section 6(1C)
d) Section 6(1A)

7.of Investor bridges the gap between Standard finance and behavioral finance.

a) Market Behavior Analysis

b) Income Analysis
c) Trade Analysis
d) Psychographic Analysis
8.The Options that gives the BUYER a right to BUY is called the

a) PUT options
b) Call Option
c) Short Options
d) Long Options

9.are part of the acquisition costs or the sales realization.

a) Brokerage & Transaction Costs

b) Transfer Agent Fee
c) Depositors Fee
d) Investment Management & Advisory Fee

10.Major limitations of forward contracts are

a) Liquidity Risks
b) Liquidity & Counter party risks
c) Counter party risks
d) None of these

11.Timing is more important that Time in the market to make wealth.

a) TRUE
b) FALSE

12.Courier Expenses, Telephone charges and Postal expenses are covered under

a) Portfolio Manager cannot charge them to Investors

b) Investment Management & Advisory Fee
c) Incidental Charges
d) Professional fee

13.Future value of the investment is influenced by

a) Rate of return
b) Rate of return & time period
c) Time period
d) None of these

14.The current Yield is the coupon payment as a percentage of the

a) Current Value
b) Future value & Face value
c) Face Value
d) Future Value
15.Risk arises from the fact that income flows received from an investment at the coupon rate may
not be able to earn the same interest rate.

a) Credit Risk
b) Re-investment Risk
c) Default Risks
d) None of these

16.Which of the following is an example of trading rules and indicators?

a) Bollinger-Band Analysis
b) Trend-line analysis
c) All of these
d) Moving averages

17.Present Value of the Bond can be determined using the

a) None of these
b) Discounted Cash Flow method (DCF)
c) Valuation Multiple method
d) LBO Method

18.The counterparty risk in a futures contract is mitigated primarily through _____________.

a) the limits on positions and trading volumes

b) settlement on gross basis between two parties
c) collateralization by one of the parties to the contract
d) the functions of the clearing corporation

19.The determination of Income taxable under the head ''Business Income'' depends upon the
various factors such as:

a) Full Value of the Consideration

b) Costs of Acquisition
c) Period Of Holding
d) None of these

20.Which of the following is the function of Secondary market?

a) Provide liquidity for securities issued

b) Provide information about public companies
c) All of these
d) Provide a platform making public issues

21.Current categorization principle of mutual fund scheme is based out of

a) Expense Ratio
b) Risk-Reward Ratio
c) Market Capitalization
d) All of these
22.At the peak of business cycle, inflation increases as supply overtakes Demand.

a) TRUE
b) FALSE

23.The costs of affidavits, notary charges, postal stamps and courier charges are classified under:

a) None of these
b) Brokerage & Transaction Costs
c) Investment Management Fee
d) Registrar and Transfer Agent fees

24.The full form of FATCA is _________________.

a) Foreign Accounting and Trade Computation Act

b) None of these
c) Foreign Accounting and Trade Compliance Act
d) Foreign Account Tax Compliance Act

25.Future Value of an investment is influenced by ______________.

a) Time period & Rate of Return

b) Rate of Return
c) Time Period
d) None of the above

26.Michael Porter is a _______ force model.

a) 6
b) 5
c) 4
d) 3

27.The National Exchange in which commodity derivative are currently traded in India is:

a) BSE
b) NYSE
c) NCDEX
d) NSE

28.In case of NO CATCH UP, If the value of a portfolio increases from Rs 100 to Rs 120 during a year
when the fees structure included a hurdle rate of 8% (i.e. hurdle rate was at Rs 108), then the profit
share will be applicable only on

a) INR 20
b) None of these
c) INR 12
d) INR 28
29.In India, the Central government issues ________.

a) Treasury Bills & Dated Securities

b) Treasury Bills
c) Certificate of Deposits (CDs)
d) Dated Securities

30.Under the typical assumption that a stock’s dividend will grow at a constant rate, what will be the
intrinsic value of the stock if D1 = Rs. 3, k = 9%, g = 6%?
a) Rs. 100
b) Rs. 110
c) Rs. 105
d) Rs. 95

31.An ______________________ is a broad outlay of the type of securities and permissible instruments to
be invested in by the portfolio manager for the customer, taking into account factors specific to
clients and securities.

a) investment objectives
b) investment statement
c) investment profile
d) investment approach

32.The following entity is not eligible to invest into PMS:

a) Partnership Firms
b) Proprietorship firms
c) Association of person
d) None of these

33.It is mandatory for an Indian financial investment to obtain ____________ from all investors to
comply with IT rules.

a) FATCA and CRS Self Declarations

b) CRS Self Declarations
c) Net worth Details
d) FATCA

34.Kumar invested Rs. 2 Cr in a PMS and receives Rs. 8 Cr at the end of 10th year. Calculate his
actual returns in CAGR basis.

a) 16.65%
b) None of these
c) 14.87%
d) 300%
35.__________________needs to be designated who shall be responsible for ensuring compliance of the
provisions of the PMLA 2002.

a) Compliance Officer
b) Chief Executive Officer
c) Legal Officer
d) Principal Officer

36.Investment Account of the Investor has to be externally audited ____________.

a) Fortnightly
b) Annually
c) Monthly
d) Quarterly

37.Forward contract is an agreement made directly between ________ parties to buy or sell an asset
on a specific date in the future.

a) 3
b) 2
c) None of these
d) 4

38.Tactical Asset Allocation is all about Time in the market.

a) TRUE
b) FALSE

39.The following is/are the benefits of investing through mutual funds:

a) Risk reduction through diversification

b) All of these
c) Professional Investment Management
d) Convenience of making transactions and record keeping

40.Under PMLA 2001, Cash transaction of value more than _____________ or its equivalent in foreign
currency shall be recorded.

a) 15 L
b) 25 L
c) 20 L
d) 10 L

41.The Cost of Equity is measured by __________.

a) LBO method
b) CAPM Model
c) DCF Model
d) DCF model and LBO Method
42.Let us take an example of a PMS portfolio with a rate of return of 12%, while the benchmark rate
of return is 5%. The tracking error of the portfolio's return is 6%. Then the Information Ratio is
___________.

a) None of these
b) -1.167
c) 0.167
d) 1.167

43.PMS Distributors comes under Insider trading Act 2015.

a) TRUE
b) FALSE

44.Shares offered to existing shareholders in proportion to their existing holding in the share capital
of the company are termed as ________.

a) IPO
b) Bonus Issues
c) Rights Issues
d) FPO

45._____________was inserted in the Income Tax Act, 1961 to provide a Safe Harbor to Overseas funds
availing fund management services from India and India Based Managers.

a) Section II5 B
b) Section 9A
c) None of these
d) Section 6B

46.The SEBI (Mutual Funds) Regulations came into force in which year?

a) 1996
b) 2000
c) 1964
d) 1998

47.The full form of PIS in NRI documentation is called

a) Professional Investment Service

b) Personal Information Service
c) Portfolio Investment Scheme
d) Portfolio Information Services
48.____________________ represent ownership in a company that entitles its holders to participate in its
profits and the right to vote on the company's affairs.

a) All of these
b) Bonds
c) Equity Shares
d) Commercial Papers

49.Economic MOAT is a typical example of __________.

a) Threat of Susbtitutes
b) Industry Rivalry
c) Bargaining Power of Suppliers
d) Barriers to Entry

50.Arbitrage opportunities can exist between _____________.

a) Two futures prices

b) Spot and futures prices
c) All of these
d) Futures and options prices

51.The following entities can invest in PMS:

a) Non-resident Indians (as per the RBI guidelines)

b) Individuals
c) All of these
d) Hindu Undivided Family

52.The risk of default on obligations arising out of trading is controlled by the exchange by
________.

a) Blocking high value trades

b) Imposing margins
c) Imposing circuit filters
d) Restricting types of investors

53.The full form of UBO is ____________.

a) Ultimate Beneficial Owner

b) Ultimate Business Owner
c) Uniform Business Ownership
d) Unique Business Objective
54.____________________is the calculations that computes period by period returns on an
investment and removes the effects of an external cash flows.

a) XIRR
b) MWRR
c) IRR
d) TWRR

55.Commission received from business, forms part of income from _______________.

a) Business and profession

b) Salary
c) Other sources
d) Capital Gains

56.The dividend is taxable in the hands of investor beyond __________.

a) 10 Lakhs
b) 1 Lakh
c) 5 Lakhs
d) Any Amount

57.The condition of paying STT at time of acquisition shall only apply for transaction of
acquisition of equity shares in specified negative lists.

a) FALSE
b) TRUE

58.The agreement between the portfolio manager and the client should include the
following:

a) investment approach, areas of investment and restrictions, if any, imposed by the

client with regard to the investment in a particular company or industry
b) All of these
c) the investment objectives and the services to be provided
d) period of the contract and provision of early termination, if any

59.___________ was set by the Government of India on 18 November, 2004 as the central
national agency responsible for receiving, processing, analyzing and disseminating
information relating to suspect financial transactions.
a) FIU – IND
b) Special Court
c) CBI
d) RAW
60.The CBDT POEM guideline apply to a foreign company whose gross turn over (TO) or
receipts during the period exceeds ________.

a) INR 100 Cr
b) INR 150 Cr
c) INR 200 Cr
d) INR 50 Cr

61.______________ risk arises from the fact that income flows received from an investment at
the coupon rate may not be able to earn the same interest.

a) Credit risk
b) Re-investment
c) Default risk
d) None of these

62.Under Prohibition of Money Laundering ACT, any amount of cash transaction should be
reported.

a) FALSE
b) TRUE

63.The full form of DCF method is _________.

a) Discounted Cash Flow

b) Distributed Cash Flow
c) Dividend Cash Forecast
d) Derived Cash Flow

64.Investor receives dividend of INR 10 during the investment period. His PMS value has
increased from 200 to 320 during the 4 years of holding period. What is the return that the
client has received?

a) None of these
b) 15.83%
c) 13%
d) 80%

65.The __________ is often considered to be used for the basic minimum performance
required to consider performance fee calculation.

a) Hurdle Rate
b) All of these
c) Bench mark rate
d) Rs. 5 LIBOR rate
66.In ________ mode, the firm attempts to use its strength to affect the competitive forces in
the industry.

a) Differentiation
b) Costs leadership
c) Defensive
d) Aggressive

67._____________is applied for Valuing business which is capital inclusive likes steel and
cement.

a) P/E Ratio
b) DCF
c) Replacement Loss method
d) P/B Ratio

68.Let us take an example of two investment portfolios P and S, with the rate of return of
13% and 19%, while during the same period, the benchmark rate of return is 6%. On the
other hand, the tracking error for portfolio P and S is 5% and 14%. Determine which
portfolio is the better investment given the risk associated.
a) None of them is better
b) Both are equally better
c) S
d) P

69.PIS account is maintained and managed by __________.

a) Trading Account
b) None of these
c) Broking account
d) Banks

70.Price of a BOND and the Interest rate have inverse relationship:

a) FALSE
b) TRUE

71.The method to compute performance fee based on highest NAV at which fees has been
paid historically?

a) Catch Up Method
b) None of these
c) No Catch-up method
d) High Watermark Method
72.____________________ is the central, national agency responsible for receiving, processing,
analyzing and disseminating information relating to suspect financial transactions to
enforcement agencies.

a) SEBI
b) RBI
c) CBI
d) FIU-IND

73.PMS Distributor comes under Prohibition of Fraudulent & Unfair Trade Practices, 2003.

a) FALSE
b) TRUE

74.As per Section 2(28B) of the Income-tax Act, 1961, 'interest on securities' means:

a) Interest on any security of the Central Government or a State Government

b) Both the options
c) Interest on debentures/other securities for money issued by or on the behalf
of a local authority or a company or a corporation, established by a Central or
State or Provincial Act.

75.Horizontal Force in Michael Porter Model are _________, _________, _____________.

a) Bargaining Power of BUYER, Industry Competitiveness, Threat of New Entrant

b) Bargaining Power of Supplier, Threat of Substitute and Bargaining Power of BUYER
c) Threat of Substitutes, Industry Competitiveness and Bargaining Power of BUYER
d) Threat of Substitutes, Industry Competitiveness and Competition from New Entrants

76.______________ is the risk premium which the companies are paying to raise the debt or
the investor are charging for bearing the default risks.

a) Leverage Spread
b) Capital Spread
c) Debt Spread
d) Credit Spread

77.Which of the following is a step in the portfolio management process?

a) Construct the portfolio.

b) Develop a policy statement.
c) Study current financial and economic conditions.
d) All of these
78.The most common form of calculating MWRR is:

a) XIRR & IRR

b) XIRR
c) IRR
d) CAGR

79.A foreign portfolio investor can invest in which of the following securities?

a) All of these
b) Rupee denominated credit enhanced bonds
c) Domestic Mutual Fund Schemes
d) Derivatives traded on a recognized stock exchange

80.The required ____________ goes up when uncertainty goes up.

a) Risk Premium
b) Nominal Rate of Return
c) Credit Spread
d) Leverage

81.The measurement of Risk due to Uncertainty is ______________.

a) Beta
b) Standard Deviation
c) Value at risk
d) All of these

82.Real Estate Industry is a typical case of _______________.

a) Deep Cyclical Industry

b) None of these
c) Cyclical Industry
d) Defensive Industry

83.The process of realigning the weightage of a portfolio of assets is called ___________.

a) Portfolio rebalancing
b) Asset Allocation
c) None of these
d) Risk Profiling
84.As per ________________ of the PMS regulations, the quantum and manner of payment of
fees shall be mentioned in the agreement between Portfolio Manager and its clients.

a) Regulations 25
b) Regulations 22
c) Regulation 24
d) Regulations 27

85.The portfolio generated a return of 17.3% while during the same period the
corresponding benchmark delivered 12.13%. The standard deviation of the fund is 0.35.
The fund has a tracking error of 0.20. Calculate the Information Ratio.

a) -14.77
b) 14.77
c) -25.85
d) 25.85

86._____________ portfolio manager manages the funds in accordance with the directions of
the client.

a) Non-discretionary
b) All of these
c) Discretionary
d) Advisory

87.Except for the one that provides only the ____________, every portfolio manager shall
appoint a custodian in respect of securities managed or administered by it.

a) None of these
b) Non-discretionary services
c) Discretionary services
d) Advisory services

88.A Principal Officer is appointed by___________________.

a) Registrar
b) Bankers to the Issues
c) Investor
d) Portfolio Manager
89.Under relative valuation techniques, value of a stock is estimated based upon its current
price relative to variables considered to be significant in valuation, such as ______________.

a) All of these
b) Book value
c) Earnings
d) Cash flow

90.The types of securities purchased by the fund, depends on _____________.

a) Decisions of SEBI about the fund

b) Decisions of the fund advisors
c) Decisions of RBI about the fund
d) The Investment object of the fund

91.In case of CATCH UP, If the value of a portfolio increases from Rs 100 to Rs 120 during a
year when the fees structure included a hurdle rate of 8% (i.e. hurdle rate was at Rs 108),
then the profit share will be applicable only on _________

a) INR 12
b) INR 20
c) INR 28
d) None of these

92.The full form of GIPS is:

a) Global Institute of Portfolio Studies

b) Global Investment Performance Standards
c) None of these
d) Global Indices and Performance Standards

93.Financial assets are generically classified into which two broad categories?

a) Equity & Gold

b) Debt & Equity
c) Real estate & Gold
d) Bonds & Deposits

94.Which of the following is essential for the public issue of a debt security?

a) The debt instruments must be credit rated

b) The debt instruments should have a minimum coupon specified.
c) The debt issuer must stand as guarantor for the payment of principal and interest.
d) The debt issue size should be greater than Rs. 5000 Crs
95.The Portfolio Manager shall maintain separate client wise accounts including details of
______________.

a) Disinvestment
b) None of these
c) Disinvestment & Details of Expenses
d) Details of Expenses

96.Top-Down approach to fundamental analysis involves study of __________, ___________ &

_______ in the order.

a) Company, Industry & Economy

b) Industry, Company & Economy
c) Economy, Industry & Company
d) Economy, Company & Industry

97.Entry Load is mandatory in PMS.

a) FALSE
b) TRUE

98.___________ industries rise and fall and very closely follow the general economic activity
in comparison to other industries.

a) Cyclical
b) Financial
c) Consumer staples
d) Defensive

99.The measure of performance which divides the portfolio's risk premium by the
portfolio's beta is the _____________.

a) Treynor measure
b) Jensen measure
c) Sharpe measure
d) Fame measure

100.The Finance Bill 2021 has proposed to introduce definition of the term ''Liable to tax''
by inserting new laws 29A in ___________ of ITA.

a) Section 1
b) Section 2
c) Section 3
d) Section 4
101.Offer for sale (OFS) is a method of share sale for ______.

a) Start-ups
b) Unlisted Shares
c) Listed Shares
d) All of these

102.The minimum investment required for PMS investment is:

a) Rs. 5 Lacs
b) Rs. 25 Lacs
c) Rs. 50 lacs
d) Rs. 100 Lacs

103._________ represents the ownership of a company that entitles its holders to enjoy
profit and right to vote.

a) Bond
b) Equity Shares
c) All of these
d) Commercial Papers

104.If the Annualized standard deviation of the portfolio is 6.5%, Annualized Rate of return
of the portfolio s is 10.50% and the risk-free return is 5.5%, Calculate the Sharpe Ratio.

a) 0.6351
b) 0.8296
c) None of these
d) 0.7692

105.The full form of NIM is:

a) Net Interest Mark-up

b) Net Interest Margin
c) Net Indicative Margin
d) None of these

106.The first step in the investment process is the development of _____________.

a) Objective statement
b) Statement of cash needs
c) Investment Policy statement
d) Financial statement
107.In ________, the preference will be on investment that generates dividend, interests and
rental income over growth.

a) Consolidation Phase
b) Earning Phase
c) Accumulation Phase
d) Gifting Phase

108.Except for the one that provides only the __________, every portfolio manager shall
appoint a custodian in respect of securities managed or administered by it.

a) None of these
b) Non-discretionary services
c) advisory services
d) discretionary services

109.For a person to be qualified as a NRI, he must have stayed outside India for more than
_______ days in the previous financial year.

a) 280
b) 150
c) 365
d) 182

110.___________ is defined by sustained rise in the price of commodity.

a) Deflations
b) Shrinkflation
c) Stagflation
d) Inflation

111.Portfolio Management Service are of which of the following types?

a) Non-Discretionary Service
b) All of these
c) Discretionary Service
d) Advisory Service

112.Following investors can invest through mutual fund scheme:

a) Individual
b) NRI
c) All of these
d) Non-Individual
113.The regulator has made it mandatory for PMS distributor to be compliant with which of
the following exam?

a) NISM XIA – B
b) NISM XXI – A
c) NISM XIX – A
d) NISM V-A

114.Forward contract is an agreement made directly between two parties to buy or sell an
asset on a specific date in the __________

a) None of these
b) Present
c) Futures
d) Past

115.The measurement of Risk due to volatiity is _______.

a) Value at risk
b) All of these
c) Standard Deviation
d) Beta

116._________________ is not related to Commodity Derivative Trades in India.

a) MCX
b) CCIL
c) NCDEX
d) ICEX

117.If there is an uncertainty with respect to the future payment, the investor would
require return more than the nominal required rate of return. The additional component is
called ________.

a) None of these
b) Alpha
c) Risk premium
d) Risk free rate of return

118.The objective of the SEBI (Prohibition of Insider Trading) Regulations is to prohibit

insider from:

a) Communicating
b) All of these
c) Counselling
d) Dealing
119.The features that allow the bond holder to redeem the bond before maturity is called
_________.

a) Put ability (put Options)

b) Callability (Call Options)
c) Convertibility
d) Redemption

120.Investor can have multiple Distributor for managing his PMS portfolios.

a) TRUE
b) FALSE

121.The settlement price for determining daily mark-to-market margins for a futures
contract is ___________.

a) the average of the high, low and closing prices

b) the last traded price
c) the average of the last 60 minutes of trading
d) the weighted average price of last 30 minutes of trading

122.The approach to performance fee calculation by using the last highest NAV / fund value
considered is called _________.

a) Benchmarking
b) Lighthouse
c) Watermark
d) Milestone

123.A ___________ is a trust that pools the savings of a number of investors who share a
common financial goal.

a) Depository
b) Mutual Fund
c) Bank
d) Custodian

124.___________portfolio manager manages the funds in accordance with the directions of

the client.

a) Advisory
b) All of these
c) Discretionary
d) Non-discretionary
125.Cost of Equity is often measured using the __________.

a) Capital Asset Pricing Model

b) Cash and Performance model
c) Jensen Alpha & Capital Asset Pricing Model
d) Jensen Alpha

126.Suppose, an investor receives dividend of INR 5 during the investment period. His PMS
value has increased from 100 to 150 during the 3 years of holding period. What is the
return that the client has received?

a) 17.75%
b) 15.73%
c) 18.17%
d) 055.00%

127.Loan can be availed against a mutual fund scheme.

a) TRUE
b) FALSE

128.The association of Commercial Banks, Financial Institutions and Primary Dealers

operating as a voluntary market body for the bond, money and derivatives markets is
called __________.

a) SEBI
b) None of these
c) FIMMDA
d) AMFI

129.A material financial relationship is where the one person is a recipient of any kind of
payment in the way of loan from a designated person during the immediately preceding 12
months, equivalent to at least __________ of the annual income of such designated person.

a) 45%
b) 25%
c) 15%
d) 50%

130.No upfront fees shall be charged either directly and in directly to the client as per
_____________.

a) Regulations 22(11) of PMS regulations 2020

b) Regulations 22(11) of PMS regulations 1993
c) Regulations 22(11) of PMS regulations 1993 & 2020
d) Section 6(2A) of PMS regulations 2020
131.In a Nifty 50 futures contract, the underlying is _______.

a) the average price of the stocks of the Nifty 50 index

b) the top traded stocks of the Nifty 50 index
c) the value of the Nifty 50 index
d) All of these

132.The registration fee for setting up PMS business is:

a) 10 Lakhs
b) 5 Crore
c) 1 Lakh
d) 50 Lakh

133.To calculate the Value of Equity, FCFE is DISCOUNTED using the ____________.

a) Risk free Rate of Return

b) Cost of Equity
c) Cost of Interest
d) None of these

134.Exit Load is Mandatory in PMS.

a) TRUE
b) FALSE

135.__________ are used by traders to protect a open position from the risks of adverse
future price movements.

a) Arbitrage
b) None of these
c) Hedging
d) Speculations

136.Under relative Valuation techniques, value of a stock is estimated based upon its
current price relative to variables considered to be significant in valuation, such as ________.

a) Cash Flow
b) Book Value
c) Earnings
d) All of these

137.As per the Don'ts of PMS Services, a speculative transaction is one where __________.

a) there is no sufficient fund is available to settle the transaction.

b) Transaction is done without physical delivery of security
c) an investment which is based on an OPTION based on a future price movement
d) Contrarian position against market has been taken
138.The main purpose behind derivative trading is/are ____________.

Hedging

a) All of these
b) Speculation
c) Arbitrage

139.The maximum Exit load that can be charged in Year 1 is __________.

a) 2%
b) Any Amount
c) 3%
d) 1%

140.Every portfolio manager shall furnish to SEBI a net worth certificate issued by a
chartered accountant every ________________.

a) Yearly
b) Half Yearly
c) Quarterly
d) As and when required by SEBI

141.Sharpe ratio's performance measure divides the portfolio's risk premium by the
___________.

a) Slope of the fund's characteristic line

b) Variance of the rate of return
c) Standard deviation of the rate of return
d) Risk free rate

142.Regulatory RISKS is lower in start-ups and new business than the older and matured
business.

a) TRUE
b) FALSE

143.The risks of default on obligation arising out of trading is controlled by exchange by:

a) Blocking High Value Trades

b) Imposing Circuit filters
c) Imposing Margins
d) Restricting Types of investors
144.Some companies offer employees, a small stake in the share capital of the company, as
an incentive to participate in making the business successful and that is called
______________.

a) ESOPS
b) Incentives
c) Bonus Issues
d) None of these

145.The most common form of measuring Investment return as per the new GIPS
guidelines is:

a) MWRR
b) TWRR
c) None of these
d) MWRR & TWRR

146.What is the characteristic of a Straight Arrow Investor?

a) Well Balanced Investor

b) Confident and Careful
c) Anxious and Careful
d) Anxious and Impetuous

147.___________ arrangements are the one where investment managers pay a higher
commission to the brokerage firm.

a) Hard Dollar
b) Extra Dollar
c) Soft Dollar
d) Arbitrage

148.Which of the following is the function of the secondary markets?

a) Provide a platform for making public issues

b) Provide information about public companies
c) All of these
d) Provide liquidity for securities issued

149.GIPS Is a registered trademark owned by:

a) NISM
b) CFA Institute
c) FPSB
d) SEBI
150.Government securities carry practically no risk of ________ and, hence are called risk-
free or gilt-edged instruments.

a) Tradability
b) Liquidity
c) Negotiability
d) Default

151.The early stage of Industrial analysis is:

a) Introduction Stage
b) Growth Stage
c) Maturity Stage
d) Decline Stage

152.The interest rate used for discounting the cash flow in the Bond pricing is called _________.

a) Coupon Rate
b) None of these
c) Yield to Maturity (YTM)
d) LIBOR

153.__________is the highest rated bond / fixed income instrument.

a) CRISIL BB
b) CRISIL AAA
c) CRISIL D
d) CRISIL AA

154.The full form of UPSI is __________.

a) Uncensored Price Sensitive Information

b) Uncensored Price Service Information
c) Unpublished Portfolio Service & Information
d) Unpublished Price Sensitive Information

155.Vertical forces in Michael Porter Model are:

a) Bargaining Power of Buyer & Bargaining Power of Supplier

b) Threat of Substitutes, Industry Competitiveness and Competition from New Entrants
c) None of these
d) Threat of Substitutes, Industry Competitiveness and Bargaining Power of BUYER

156.The current yield is the Coupon payment as a percentage of the bond's __________.

a) Present value of the future Costs

b) Current Market Price (CMP)
c) Face Value
d) Principal Value
157.Bottom-up approach to fundamental analysis involves study of __________, ___________ & _______
in the order.

a) Company, Industry & Economy

b) Economy, Industry & Company
c) Industry, Company & Economy
d) Economy, Company & Industry

158.________was inserted in the Income Tax Act, 1961 to provide a 'safe harbor' to overseas funds
availing fund management services from India based.

a) Section 42
b) Section 12
c) Section 11
d) Section 9A

159.Total Expenses charged to the fund excusing brokerage for a PMS is set at __________.

a) 50%
b) 25bps
c) 50bps
d) 100bps

160.Which of the following Ratio is required to measure the total risk (market risks) of the portfolio?

a) Sortino Ratio
b) Sharpe Ratio
c) None of these
d) Treynor Ratio

161.The client’s expectation from Equity investment can be measured by which of the following?

a) None of these
b) Treynor Ratio
c) Jensen Alpha
d) Information ratio

162.SEBI was formed under special act of __________.

a) Parliament
b) President of India
c) Bidhan sabha
d) Contract and Securities Act 1956

163.The term Securities has been defined under:

a) All of these
b) Securities & Contract act 1956
c) Portfolio Managers Regulations 2020
d) SEBI Act 1993

164.Which of the following is essential for the public issues of a debt securities?
 a) The debt instrument must be credit rated
b) The Debt issue size should be more than Rs.5000 Crs
c) The debt issuer must stand as a guarantor for the payment of principal and interest
d) The debt instrument should have a minimum Coupon specified

165.The __________________ is deducted from the FCFF & FCFE calculations.

a) Amortization of Capital Expenses

b) Loss of Sales of Asset
c) Gains from Sales of Asset
d) None of these

166.In order to measure Risk Adjusted Return, the _____________ measures the return of the Portfolio
during downside volatility.

a) Sortino Ratio
b) Treynor Ratio
c) Sharpe Ratio
d) None of these

167.The Domestic Companies and Mutual Funds were liable to pay Dividend Distribution Tax (DDT)
on the dividend up to _________ Assessment Year.

a) 2021-2022
b) 2020-2021
c) 2018-2019
d) 2019-2020

168.The full form of IPS in PMS client on boarding is ________________.

a) Indian Police service

b) Investment Performance statement
c) Investment Policy statement
d) Investment Process statement

169.The coupon Yield is the coupon payment as a percentage of the ____________.

a) Future Value
b) Future value & Face Value
c) Current Value
d) Face Value

170.Which of the following is considered to be an investment objective?

a) Capital appreciation
b) Capital preservation
c) Current income
d) All of these
171.Government securities carry practically no risks of ________ and hence are called Risk free or gilt-
edged instruments.

a) Tradability
b) Negotiability
c) Liquidity
d) Default

172.In addition to Initial margin, a premium margin is charged to trading members trading in
__________.

a) Futures
b) Options
c) Swap
d) Forward

173.In case of NRI, ______________ in original have to be submitted to the designated branch where
the investor holds the PIS.

a) Contract Note
b) None of these
c) Credit Note
d) P-Note

174.The full form of TWRR is _____________.

a) Time weighted risk adjusted Return

b) None of these
c) Time Weighted Rate of Return
d) Total Weighted Rate of Return

175.NRIs can have trading accounts linked to:

a) NRO Accounts
b) NRE Accounts
c) None Accounts
d) NRE &NRO accounts

176.Record of transactions to be maintained under the Prevention of Money Laundering Act

includes Cash transactions of the value of more than ____________.

a) Rs. 20 lakhs
b) Rs. 10 lakhs
c) Rs. 25 lakhs
d) Rs. 1 crore

177.Preference shares ranks above the equity shares with respect to the ____________.

a) Payment of Dividends
b) Payment of Dividends & Distribution of Company's Asset
c) Voting right
d) Distribution of Company's Asset
178.Which of the following personnel is mandatory for Portfolio Manager?

a) All of these
b) Sales and Business Head
c) Compliance Officer
d) Operations Manager

179.Holder can sell the Bonds back to the issuer before maturity at a pre-determined costs on
specified dates in which type of Bond?

a) None of these
b) CALLABLE BOND
c) PUT OPTION BOND
d) PUT OPTION BOND & CALLABLE BOND

180.Sortino Ratio measures the volatility during the _________.

a) Lateral Market
b) Downside Market
c) Upside Market
d) Across the market

181.Forward contract are _________ contracts.

a) Bilateral
b) Tri-partite
c) Unilateral
d) None of these

182.Client Onboarding Process starts with:

a) Opening up an Demat account

b) Reading the Disclosure Documents
c) Opening up a Bank Account
d) Filling up the PMS application Form

183.Sponsors recruit the fund manager of a fund.

a) True
b) False

184.The full form of CRS is ____________.

a) Common Reporting Standard

b) None of these
c) Client Relationship Service
d) Customer Relationship Summary
185.In case of LOW PRIORITY GOAL, __________ kind of investment approach is preferred.

a) Very Aggressive
b) Conservative
c) Balanced & Conservative
d) Balanced

186.The full form of HPR in PMS performance measurement approach is ____________.

a) Holding Performance Review

b) Handling Period Return
c) None of these
d) Holding period Return

187.Trustee Companies functions through its ________________.

a) Investors
b) Sponsors
c) Promoters
d) Board of Directors

188.Every transfer of Capital Asset does not give rise to taxable capital gains because______________.

a) Treated as transfer under Section 47 of ITA

b) NA treated as transfer under section 45 of ITA
c) Tax exempted under section 54 to 54GB

189.Which of the following is a common Derivative product?

a) Past
b) Present
c) Futures
d) None of these

190.In case of poorly diversified portfolio, the ratios based on Treynor ratio would be higher than
that of Sharpe Ratio.

a) True
b) False

191.Which of the following measure is included in the fund factsheet?

a) Tracking Error
b) All of these
c) Sharpe Ratio
d) Treynor Ratio
192.Application for obtaining the certificate of registration from SEBI to be made in _________.

a) Form A
b) Form C
c) All of these
d) Form B

193.The types of securities purchased by the fund, depends on:

a) decisions of RBI about the fund

b) the investment objectives of the fund
c) Decisions of the fund advisors
d) decisions of SEBI about the fund

194.Which of the following is the requirement for granting the certificate of registration under
Portfolio Managers Regulations 2020?

a) the applicant has appointed a compliance officer

b) the applicant has the necessary infrastructure like adequate office space, equipment and the
manpower to effectively discharge the activities of a portfolio manager
c) All of these
d) the applicant is a body corporate

195.Infosys will need to issue __________ to list at the NASDAQ.

a) Right Issue
b) IPO
c) Global Depository Receipts
d) Bonus Issues

196.The full form of CAPM is ____________.

a) Cost Adjusted Performance Measurement

b) Complete Accounting and Performance Measure
c) None of these
d) Capital Asset Pricing Model

197.When portfolio performance is measured against the respective benchmark, the approach is
called ___________.

a) Jensen Alpha
b) Sortino Ratio
c) Information Ratio
d) Sharpe Ratio
198.What is the YTM of a 10% coupon bond of face Value of Rs. 1000 and which is currently trading
at Rs. 1000 and which has a balanced maturity of 3 years.

a) 10.15%
b) 10.30%
c) 9.75%
d) 10%

199.Code of Conduct for the Portfolio Manager is illustrated in the Regulations _______ of the PMS
2020 regulations.

Regulation 21

None of these

Regulations 22

Regulations 15

200. Which of the following is true in case of OTC market?

a) Regulated by RBI
b) Does not require margin
c) Provides standardized products