Question 1

A &#8230;&#8230;&#8230;&#8230;&#8230; risk in a mutual fund refers to a situation when the issuer of a stock is unable to make timely payment of interest and principal to the investors.&#10;A)Business&#10;B)Credit&#10;C)Capital&#10;D)Scheme

Accepted Answer

Credit risk refers to the risk that the issuer of a stock or bond will not be able to make the required payments of interest or principal at the scheduled times, potentially leading to losses for investors.

Question 2

&#8230;&#8230;&#8230;&#8230;&#8230;.. risk refers to the investor losing the money invested in mutual funds.&#10;A)Business&#10;B)Credit&#10;C)Capital&#10;D)Scheme

Accepted Answer

Credit&#10;

Question 3

&#8230;&#8230;&#8230;&#8230;&#8230;.. risk refers to a risk that affects the entire country or a particular region or a certain industry.&#10;A)Market&#10;B)Credit&#10;C)Capital&#10;D)Scheme

Accepted Answer

Market risk, also known as systemic risk, affects the entire market or a specific sector, rather than just an individual stock or industry. It can be caused by events such as economic recessions, political turmoil, or natural disasters that impact the overall market performance.

Question 4

&#8230;&#8230;&#8230;&#8230;&#8230;&#8230; risk refers to a risk when there is political changes or change in investment policy of the government.&#10;A)Market&#10;B)Credit&#10;C)Political&#10;D)Scheme

Accepted Answer

Political risk refers to the risk that arises due to changes in a country's political environment or government policies, which can affect investments and business operations.

Question 5

&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;. Ratio determines how the return of the scheme has compensated and investor for the risk he has taken.&#10;A)Treynor&#10;B)Sharpe&#10;C)Sortino&#10;D)Information

Accepted Answer

The answer of &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;. Ratio determines how the return of...

Question 6

The risk of losing money invested in mutual funds is called &#8230;&#8230;&#8230;&#8230;&#10;A)Capital risk&#10;B)scheme risk&#10;C)credit risk&#10;D)market risk

Accepted Answer

The answer of The risk of losing money invested in...

Question 7

&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.. ratio is a measure of the risk-adjusted return of a financial security or asset or portfolio.&#10;A)Treynor&#10;B)Sharpe&#10;C)Sortino&#10;D)Information

Accepted Answer

The answer of &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.. ratio is a measure of the...

Question 8

Returns from non-equity funds are treated as long term capital gains if investments are held for more than &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.&#10;A)4 years&#10;B)2 years&#10;C)3 years&#10;D)5 years

Accepted Answer

Returns from non-equity funds are treated as long-term capital gains if the investments are held for more than 3 years. This classification helps in determining the tax treatment of the gains.

Question 9

NAV is declared everyday by deducting &#8230;&#8230;&#8230;&#8230;&#8230;. expenses&#10;A)Recurring&#10;B)Transaction&#10;C)Exit load&#10;D)Entry load

Accepted Answer

NAV (Net Asset Value) is declared every day by deducting recurring expenses, which include management fees, administrative costs, and other operational expenses associated with the fund. Transaction costs, exit loads, and entry loads are not deducted daily in the calculation of NAV.

Question 10

&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.. ratio is the percentage of total assets that are spent to run a mutual fund&#10;A)Treynor&#10;B)Sharpe&#10;C)Expense&#10;D)Information

Accepted Answer

The Expense ratio is the percentage of total assets that are spent to run a mutual fund, covering management fees, administrative fees, and other operational costs.

Question 11

&#8230;&#8230;&#8230;&#8230;. provides in detail scheme wise information about income and expenditure of mutual fund.&#10;A)Balance Sheet&#10;B)Revenue Statement&#10;C)Cash Flow Statement&#10;D)Fund Flow Statement

Accepted Answer

The answer of &#8230;&#8230;&#8230;&#8230;. provides in detail scheme wise information...

Question 12

The returns earned from mutual funds are taxed under the head &#8230;&#8230;&#8230;&#8230;&#8230;..&#10;A)Income from House Property&#10;B)Salary Income&#10;C)Income from Capital gains&#10;D)Income from other sources

Accepted Answer

The answer of The returns earned from mutual funds are...

Question 13

When a security is not traded on any recognized stock exchange for a period of &#8230;. days prior to the valuation date, the scrip must be treated as a &#34;non-traded &#34;security.&#10;A)30 days&#10;B)40 days&#10;C)45 days&#10;D)60 days

Accepted Answer

The answer of When a security is not traded on...

Question 14

&#8230;&#8230;&#8230;&#8230;.. ratio is the percentage of total assets that are spent to run a mutual fund.&#10;A)expense&#10;B)income&#10;C)Profit&#10;D)Turnover

Accepted Answer

The answer of &#8230;&#8230;&#8230;&#8230;.. ratio is the percentage of total...

Question 15

Equity related schemes are &#8230;&#8230;&#8230;&#8230;.. risky when compared to debt debt schemes.&#10;A)less&#10;B)equally&#10;C)more&#10;D)Cannot say

Accepted Answer

The answer of Equity related schemes are &#8230;&#8230;&#8230;&#8230;.. risky when...

Question 16

The accounting year for mutual funds ends on &#8230;&#8230;&#8230; of each year.&#10;A)31st December&#10;B)31st March&#10;C)30th September&#10;D)1st April

Accepted Answer

The answer of The accounting year for mutual funds ends...

Question 17

&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.. of a mutual fund is the price at which units are bought or sold by investor.&#10;A)CP&#10;B)SP&#10;C)NAV&#10;D)NPV

Accepted Answer

The answer of &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.. of a mutual fund is the...

Question 18

In &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;. Investors buy shares of Companies who have announced bonus issues, and subsequently sell the original holding at a loss once the stock becomes ex-bonus.&#10;A)Dividend stripping&#10;B)Bonus stripping&#10;C)Capital stripping&#10;D)Asset stripping

Accepted Answer

The answer of In &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;. Investors buy shares of Companies...

Question 19

&#8230;&#8230;&#8230;&#8230;&#8230;. is a measure of the volatility of a particular fund in comparison to the market as a whole&#10;A)Beta&#10;B)R-squared&#10;C)Standard deviation&#10;D)Alpha

Accepted Answer

The answer of &#8230;&#8230;&#8230;&#8230;&#8230;. is a measure of the volatility...

Question 20

&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.. measures the dispersion in return.&#10;A)Beta&#10;B)R-squared&#10;C)Standard deviation&#10;D)Alpha

Accepted Answer

The answer of &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.. measures the dispersion in return.&#10;A)Beta&#10;B)R-squared&#10;C)Standard deviation&#10;D)Alpha...

Question 21

CAGR stands for &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#10;A)Calculated Annual Growth Rate&#10;B)Compounded Annual Growth Rate&#10;C)Changed Annual Growth Rate&#10;D)Changed Annual Grown Rate

Accepted Answer

The answer of CAGR stands for &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#10;A)Calculated Annual Growth Rate&#10;B)Compounded...

Question 22

&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230; are simply the annual gains that an investment has earned over a specific period of time.&#10;A)Annualized Return&#10;B)Absolute Return&#10;C)Holding period return&#10;D)None of the above

Accepted Answer

The answer of &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230; are simply the annual gains that...

Question 23

The performance of a scheme is reflected in its &#8230;&#8230;&#8230;&#8230;&#8230;..&#10;A)Net asset value&#10;B)Face Value&#10;C)NPV&#10;D)AMC

Accepted Answer

The answer of The performance of a scheme is reflected...

Question 24

&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;. is a myth about Mutual Fund Investment in India.&#10;A)Small amount is needed to invest in Mutual Funds&#10;B)Higher NAV is better&#10;C)Demat account is compulsory to invest in Mutual funds&#10;D)Big amount is needed to invest in Mutual Funds

Accepted Answer

The answer of &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;. is a myth about Mutual Fund...

Question 25

Abridged version of OD is called &#8230;&#8230;&#8230;&#8230;..&#10;A)OD&#10;B)NFO&#10;C)KIM&#10;D)CD

Accepted Answer

The answer of Abridged version of OD is called &#8230;&#8230;&#8230;&#8230;..&#10;A)OD&#10;B)NFO&#10;C)KIM&#10;D)CD...

Question 26

--------------------- is a supplementary document that contains additional information of the fund.&#10;A)SID&#10;B)SAI&#10;C)KIM&#10;D)OD

Accepted Answer

The answer of --------------------- is a supplementary document that contains...

Question 27

&#8230;&#8230;&#8230;&#8230;&#8230;. approve the contents of the Offer document&#10;A)AMC&#10;B)Trustee&#10;C)Custodian&#10;D)Sponsor

Accepted Answer

The answer of &#8230;&#8230;&#8230;&#8230;&#8230;. approve the contents of the Offer...

Deck 7: Mutual Fund Investment: Understanding Risks, Returns, and Regulations