Time Value

TIME VALUE OF MONEY
1. If you were scheduled to receive Rs 100,000 five years hence, but you wish to sell your contract note for its present value, which type of compounding would you rather have the purchaser of your contract note to use to find the purchase price, 8 percent compounded: (a) (b) (c) (d) (e) Continuously Quarterly Semi-annually Annually None of the above

2. According to the rule of 69, the doubling period is equal to (a) (b) (c) (d) (e) 0.25 + (69/ Interest rate) 0.35 + (69/ Interest rate) 0.69 + (0.35/ Interest rate) 0.69 + (0.25 / Interest rate) None of the above

3. For a depositor, when the frequency of compounding is increased (a) (b) (c) (d) (e) Additional gains increase Additional gains dwindle Additional gains …show more content…

All trades on NSE are guaranteed by: (a) (b) (c) (d) (e) SEBI NSDL NSCC CDSL None of the above

13. In respect of the sample shares, sensex reflects the movement of: (a) (b) (c) (d) (e) Average total market value of the floating stocks Average market value of the floating stocks times a fixed multiple Average capitalisation of the issued and paid up stocks Average aggregate market value of the subscribed stocks None of the above
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14. The book value of a firm‟s equity is nothing but the book value of its assets minus the book value of its liabilities: a. True b. False

15. Market value of a firm has to be at least equal to its: (a) (b) (c) (d) (e) Book value Cash and bank balance Net asset value Lowest of the above None of the above

16. Intrinsic value of a security is its: (a) (b) (c) (d) (e) Market value Book value Economic value Resale value None of the above

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KEY 1 (c) 12 (c) 2 (b) 13 (a) 3 (c) 14(a) 4 (e) 15(e) 5 (d) 16(c) 6 (d) 7 (c) 8 (e ) 9 (a) 10 (a) 11 (d)

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RISK AND RETURN
1. Variance will always be (a) (b) (c) (d) (e) Positive Negative Variable Very high None of the above

2. A normal distribution is completely characterised by (a) (b) (c) (d) (e) Expected return and standard deviation Required return and variance Expected return and