Deck 8: Investment and Market Efficiency

Question 1

The broker shall have to furnish SEBI a copy of audited balance sheet and profit and loss account within

A)one month of each accounting year
B)two month of each accounting year
C)three months of each accounting year
D)six month of each accounting year

Answer 1

six month of each accounting year

Question 2

Mutual fund can make investment

A)in any company listed or unlisted
B)in privately place d securities of associated company
C)up to 40 % of the listed or unlisted securities of group of companies
D)Should not exceed 10% of the funds in securities of a single company

Answer 2

Should not exceed 10% of the funds in securities of a single company

Question 3

FII'S are permitted

A)to invest in the listed company only
B)to invest in the listed and unlisted company
C)not to invest in the debentures
D)to invest in the shares of list, unlisted companies and debentures

Answer 3

to invest in the shares of list, unlisted companies and debentures

Question 4

The finance minster in 2000 Feb announced the aggregate investment limit of FII/NRI/OCB IN A company as

A)35 %
B)30%
C)40%
D)35%

Question 5

In the weakly efficient market, the stock price reflects

A)the company financial performance
B)the price of the scrip
C)the demand for the scrip
D)the past price and traded volumes

Question 6

If the markets are efficient, the security price provides

A)Inadequate return for taking up risk
B)normal return for the level of risk taken
C)high return for the level of risk taken
D)B and C

Question 7

According to efficient market theorist the stock price

A)moves in trend
B)each successive change depends on the previous one
C)each successive change does not depend on the previous one
D)price movements crate patterns

Question 8

The stock price in the stock market

A)movers around the support level or resistance level
B)moves between the same support and resistance level
C)move between the changing support and resistance level
D)a and b

Question 9

Technical indicators help

A)to find out the present state of the stock market
B)to estimate the growth of stock market
C)to indicate the economic activity
D)to show the direction of the overall market

Question 10

In a bullish market, a bearish signal is given when

A)advance decline line sloped down
B)BS E sensex is falling
C)fall in the trade volumes
D)A/D lines slopes downward while BSE sensex is raising

Question 11

Oscillators show the share price movement

A)over a reference period
B)below a reference point
C)through a reference point
D)b and c

Question 12

The chartist believe that the charts

A)Spot the current trend for buying and selling
B)indicates the future action to be taken
C)Shows the past historic movements
D)all of the above

Question 13

The market value of the scrip is determined by

A)The dividend declared by the company
B)The present statues of the stock market
C)The number of floating shares
D)The interaction of demand and supply