Instructions

1- Each Question carries 1 Marks each

2- There is a negative marks of 0.25 for every wrong answer, there is no marks
if you dont answer the question
3- Be careful while marking your answers
4- Time Limit is 45 Minutes
5- All the best
6- You can navigate amongst the questions in the quiz

1- You are looking to buy a car which has an on road price of 7.5 Lacs, which is
20% more than the ex-showroom price. The bank is willing to fund you 80%
of the ex- showroom price. The finance is available to you for a tenure of 5
years with a step down option of interest rates. The Interest rates are 10.75%
pa for the first 2 years and then 10.5% for the next 2 years and 9% for the
last year. If you pay an EMI at the end of each month, what is the total
interest that you have paid for the entire tenure of the loan?
146108
128916
140264
None of the these
I dont want to attempt the question

2- Rank the 3 Funds based on the Sharpe Ratio (TREYNOR,alpha)

Fund A B C
Returns from Fund 12% 14% 16%
Returns from Index 10% 10% 10%
Risk free Rate 6% 6% 6%
Beta 1.2 1.75 1.9
Standard Deviation 6% 8% 13%

B, C, A
A, B, C
All three have the same Sharpe Ratio
None of these
I dont want to attempt the question

3- Last Year a firm gave a dividend of 10/- and it is expected to have a super
normal growth of 18% for the coming 3 years. After that the growth is
expected to be at 15% for the coming 4 years and after that it is expected to
grow at 5% forever. The Systematic risk of the stock is around 1.5 and the
market expected returns are around 12% and the T Bill Yields are expected to
be 6% for the coming years. In accordance to you what is the Intrinsic Value
of the stock, if you consider the Dividend Discount model and CAPM.
 188.24
173.44
219.82
None of these
I dont want to attempt this question

4- You had invested 10 Lacs in a Mutual Fund on 14 th November 2008, The

Mutual Fund had an NAV of 12.56 then. (This was not a New Fund Offer).You
chose the dividend reinvestment option that time. On 19 th May 2010, the fund
declared a dividend of 15% that was reinvested at 14.75. On 24 th October
2012, the fund declared a dividend of 20% that was reinvested at 16.36.
Again on 8th May 2015 the fund declared a dividend of 20% that was
reinvested at 15.45.
You repurchased all units on 3rd April 2017 at an NAV of 23.64. What is your
return from the investment as CAGR?

12.21%
16.28%
14.25%
None of these
I dont want to attempt this question

5- There is a bond with face value of 1000 and 5 years to maturity. If the coupon
rate of the bond is 8% and the yields alter by 200 basis points thanks to
quantitative easing by the Federal Reserve and correspondingly the RBI also
resorts to the same stance. What is the current market price of this bond
1084.25
924.18
1025.55
None of these
I dont want to attempt this question

6- Calculate the Beta in the following case

Returns 12% 14% 16% -8% -10% 10% 12%

from
Market
Returns 8% 18% 22% -4% -6% -5% 10%
from
Stock

0.8253
0.7382
Information Insufficient
None of the above
I dont want to attempt the question
7- If you wish to have the following cash flows accruing to you at the end of
each year and your required rate of return is 10% pa. What is the amount
that you need to invest today
Cash flows at the
End of Year 1 150000
End of Year 2 175000
End of Year 3 200000
End of Year 4 - 250000
End of Year 5 - 300000
788284
729019
771350
None of these
I dont want to attempt this question
8- A company does a sales of 1, 00,000 units of a product and each is sold at
22/- per unit. There is a variable cost of 4/- per unit and a fixed cost of
500000. If the sales and price both increases by 20% and the variable cost
decreases by 20% and fixed costs remain the same. What is the Increase or
decrease in EBIT

Increase by 7, 92,000
No effect on EBIT
Information Insufficient
None of these
I dont want to answer this question

9- How is the Market Capitalization of a company determined, assume no

promoter holding

Number of Issued Shares * Market Price

Number of Issued Shares * Average of Last Day Price
Number of Issued Shares * Closing Price of Last Day of the month
Number of Issued Shares * Closing Price of Last Friday of the month

10-You decide to forgo gong to a movie every month, the outing would roughly
cost you around 5000/- per year. If invest this money at the beginning of each
year for the next 50 years. How much would you have with you assume that
you are 20 years and the expected returns are around 12% pa for the next 50
years

13440102
12000091
1206663
1351463
I dont want to attempt the question