Practice Test

Q1) Normally stock markets are measure by the __________. Show Answer

Q2) A stock market index is a measure of the relative value of ___________. Show Answer

Q3) An index is a __________ representation of the value of the group of stock.

Show Answer

Q4) An index is a benchmark of stock market. Show Answer

Q5) Total return index calculation does not consider the dividend receipts. Show Answer

Q6) Which of the following is not a major index in India? Show Answer

Q7) Higher liquidity is a disadvantage as it increases cost for buyer and seller. Show Answer

Q8) Systematic risk is normally controllable. Show Answer

Q9) Unsystematic risk can be reduced by __________. Show Answer

Q10) High turnover ratio indicates ___________ transaction costs. Show Answer

Q11) Is the basis of fundamental analyses? Show Answer

Q12) Higher EPS show less profitability of the company. Show Answer

Q13) Dividend yield and dividend payout ratio means the same. Show Answer

Q14) ROE refers to __________. Show Answer

Q15) The study of trends in share price in order to predict future share price movement is called analysis Show Answer

Q16) In emerging markets turnover ratio is __________. Show Answer

Q17) Index movement help in judging market sentiments. Show Answer

Q18) Which of the following is not a sectoral index? Show Answer

Q19) Technical analysis used for __________ term trading. Show Answer

Q20) It is difficult to anticipate stock market movements, especially for the short term. Show Answer

Q21) NIFTY portfolio is an example of a ________ portfolio. Show Answer

Q22) A stock which is typically traded in the market with high volumes is called as ___________ Show Answer

Q23) __________ Give indication of market trends. Show Answer

Q24) A group of stocks that represent the market or its segment are picked to create an__________. Show Answer

Q25) The overall behaviour of the stock markets is measured by the movements in the __________. Show Answer

Q26) If stock rises more than index it is called as stock is __________. Show Answer

Q27) The market movements are predicted using indices as forecasting tools. Such forecast is based on historical data. Show Answer

Q28) Analysis of historical data shows that the indices do not reflect the economic trend of a country. Show Answer

Q29) The stock prices movements are affected by many factors. This could include __________. Show Answer

Q30) A higher market capitalisation means a ________ weightage for the company in the index. Show Answer

Q31) Free-float capitalization method takes into consideration only those shares issued by the company that are readily available for trading in the stock markets. Show Answer

Q32) The total returns index takes care of the price movements as well as the ________ receipts. Show Answer

Q33) Base for both the Price index close and Total Return index close is the same. Show Answer

Q34) Impact cost is a __________ method of measuring market liquidity. Show Answer

Q35) Impact cost is jointly computed for buy and sell orders. Show Answer

Q36) The risk arises out of getting __________ returns as compared to the expected returns. Show Answer

Q37) The systematic risks of the various securities are _________ due to their relationships with the markets. Show Answer

Q38) The statistical tool to measure volatility or variability of returns from the expected value is the __________. Show Answer

Q39) Market capitalisation or market cap measures the ________ of a business enterprise. Show Answer

Q40) Calculate the market capitalization of a company having 1,00,00,000 shares with market value of 50 Rs. Show Answer

Q41) Calculate the market capitalization of a company having 2,00,000 shares with market value of 50 Rs. Show Answer

Q42) Calculate the market capitalization of a company having 1,00,000 shares with market value of 100 Rs. Show Answer

Q43) A high turnover ratio is used as an indicator of _________transaction cost. Show Answer

Q44) A characteristic of a large and inactive market is a ________ market capitalisation ratio and a _________ turnover ratio. Show Answer

Q45) The financial data of a company like its earnings, income, dividend, etc., are taken into consideration in ___________ analysis. Show Answer

Q46) Fundamental Analysis measures the _________ soundness of a company. Show Answer

Q47) The different reasons for performing fundamental analysis are ___________. Show Answer

Q48) Which of the following is/are uses of indices? Show Answer

Q49) If portfolio gains less than index, portfolio is said to be __________. Show Answer

Q50) Calculate the market capitalization of a company having market value per share Rs 483 and outstanding share 24000 shares Show Answer

Q51) Promote shareholding is included in calculating free-float market capitalization. Show Answer

Q52) Which of following are excluded from free-Float? Show Answer

Q53) Equity held by employee welfare trusts are excluded from free-float category. Show Answer

Q54) Which of the following is a sectoral index? Show Answer

Q55) __________ risk affects the entire market as a whole as a result they cannot be controlled only by way of diversification. Show Answer

Q56) The stock market capitalization refers to the market cup of all the listed companies on that stock market Show Answer

Q57) Fundamental analysis considers the following of a company except Show Answer

Q58) (PLE) price to earnings ratio is calculated by dividing the ___________ per share by the EPS. Show Answer

Q59) Bork value is calculated as total assets less __________ of the company. Show Answer

Q60) Trends are measured by __________ in technical analysis Show Answer

Q61) The upper line in stock chart is called as __________. Show Answer

Q62) The lower line in stock chart is called as __________. Show Answer

Q63) Returns for an investor in the equity market comes from dividend and ________. Show Answer

Q64) _______ risk can be diversified away. Show Answer

Q65) Which of the following are the most liquid stocks? Show Answer

Q66) If an index increases by 2%, it means the total value of the group of stocks in that index has also risen by _____%. Show Answer

Q67) Normally, equity markets and hence, indices, move up in the _________ term, Show Answer

Q68) ________ is considered a primary indicator of the country’s economic strength and development. Show Answer

Q69) The stock prices movements are affected by many factors. This could include __________. Show Answer

Q70) A company with 10,00,00,000 shares outstanding and with a market price of Rs. 580/- per share would have a market capitalisation of Rs. ____________. Show Answer

Q71) An investor in index stocks should benchmark his investments against the Total Returns Index instead of the price index to determine the actual returns. Show Answer

Q72) Lack of liquidity translates to ________ cost for buyers and sellers in the market. Show Answer

Q73) There is a _______ correlation between the index and the value of its group of stocks. Show Answer

Q74) An investor can compare his individual stocks or portfolio with index movements, as indices act as ___________ to measure performance. Show Answer

Q75) NASDAQ Composite Index is examples of market capitalisation weighted index. Show Answer

Q76) In free float market capitalization methodology the market capitalisation of the company is multiplied by the ______________. Show Answer

Q77) Government shareholding is not included in the free-float. Show Answer

Q78) Individual stock always follow index. Show Answer

Q79) If portfolio gains more than index, portfolio is said to be __________. Show Answer

Q80) Investors who do not know which stock to invest in can invest in index fund or index ETFs. Show Answer

Q81) Forecasting on the basis of market movement and index movement is based on __________ data. Show Answer

Q82) BSE SENSEX comprises __________ stock. Show Answer

Q83) Market capitalization means ______________________. Show Answer

Q84) Calculate market capitalization of the a company having face value Rs 10, market value Rs 120
And number of outstanding shares, 5000 shares
Show Answer

Q85) Calculate market value per share of company having market capitalization of Rs 2400000 and number of outstanding shares, 8000 shares. Show Answer

Q86) How many outstanding share a company have if its market price per share is Rs 60 and market capitalization is 300 crores. Show Answer

Q87) Share that usually does not come into the open market for trading are called __________ holdings. Show Answer

Q88) __________ is a very practical method of measuring market liquidity. Show Answer

Q89) Calculate ideal price of stock,
Best buy price 248
Best sell price 252
Show Answer

Q90) __________ is a measure of degree to which the different portfolio is affected by the systematic risk. Show Answer

Q91) The statistical tool measure volatility is __________. Show Answer

Q92) If market cup is Rs 60,00,00,00,000 and the GDP of that country is 40,00,00,00,000 then the market cap ratio will be __________ %. Show Answer

Q93) Fundamental analysis is performed for following reasons except Show Answer

Q94) EPS (Earning per share) is an indicator of __________ of a company Show Answer

Q95) If a company is trading at P/E of 20 its EPS is Rs 12 calculate its market price per share. Show Answer

Q96) A company trading at Rs 504 per share having EPS of Rs 32 per share calculated its P/E ratio Show Answer

Q97) A stock chart is a __________ and __________ chart. Show Answer

Q98) Beta is measures of __________. Show Answer

Q99) __________ chart are advanced forms of bar charts. Show Answer

Q100) Technical analysis is primarily on theory of __________. Show Answer

Q101) Market price of a company is Rs. 230. Profit after tax is Rs. 240 crs. Number of shares issued by the company is 10 crs. Calculate Price to Earnings ratio. Show Answer

Q102) Share capital of a company is Rs. 100 crs. Face value is Rs. 10. Dividend distributed is Rs. 100 crs. Market price is Rs. 215. What is the dividend yield of the company? Show Answer

Q103) Total Debt to Capitalization should ideally not go beyond ____. Show Answer

Q104) Beta is a measure of _____ risk. Show Answer

Q105) Calculate the market capitalization of a company having 1,00,000 shares with market value of 50 Rs. Show Answer

Q106) Calculate the market capitalization of a company having 5,00,000 share with market value of 200 Show Answer

Q107) Market capitalization of a stock is impacted by Show Answer