30.

31.

32.

33.

34.

35.

36.

37.

092/23

“Bird-in-hand Argument” on dividend theory was developed by
A) Modigliani-Miller B) James E. Walter
C) Richardson D) M. Gordon

What is the required rate of return on the shares of A Ltd. if, the return on the market
is 11%, the risk free rate is 6%, and beta coefficient is 0.5 ?

A) 14.5% B) 12% C) 8.5% D) 11%

Which one of the following is a tool for fundamental analysis ?

A) GAP B) FLAG C) PENNANS D) PEG

The long thin lines above or below the body in a Candlestick chart are referred as
A) Cup and handle B) Wicks and tails

C) Head and Shoulders D) Doji Star

State whether the following statements are true or false regarding Random Walk
Theory.
|. Nobody has better knowledge or information.
Il. Stock markets are not efficient.
A) Both | and II are true B) Both | and Il are false
C) Lis true and Il is false D) Lis false and II is true

What are the following assumptions are true regarding Black-sholes Option Model ?

|. The stock underlying the call option provides no dividends during the life time
of option.

ll. The risk free rate of interest is consistent during the life of option.

Ill. The call option can be exercised at any time.

IV. There is no transaction cost.

A) |, land Ill B) Il, Ill and IV

C) I, land IV D) All of the above

State whether the following statements are true or false regarding Random Walk
Theory.

|, The systematic risk can be measure by the ‘beta coefficient’

Il. Higher the value of beta coefficient indicate more stability and less risky.

A) Both | and II are true B) Both | and Il are false

C) Lis true and Il is false D) Lis false and II is true

Which one of the following is a diversifiable risk ?

A) Wrong financial policy B) Tax policy

C) Inflation D) Raw-material availability
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