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NEW QUESTION 298
Section A (1 Mark)
The subscription paid into PPF account enjoys the tax benefit under
- A. Sec 80C
- B. Sec 80G
- C. Sec 10
- D. Sec 80D
Answer: A
NEW QUESTION 299
Section C (4 Mark)
Read the senario and answer to the question.
Assume Neeraj bought a second hand car in June 2007. Since the insurance premium was due, Neeraj paid it in the old owner's name.Neeraj didn't receive the original policy despite repeated requests. The car later met with an accident causing damages worth Rs. 10000. Neeraj had not transferred the car in his name, as Neeraj did not have the original documents. Can the insurer reject his claim?
- A. No, as Neeraj has paid the insurance premium
- B. Claim will be entertained only to the amount of the insurance premium paid.
- C. The claim will be entertained after Neeraj convert the vehicle in his name
- D. The insurance company is well within its right not accepting the claim from Neeraj
Answer: D
NEW QUESTION 300
Section B (2 Mark)
Vikash has following portfolio with related details given below:
Calculate the portfolio beta?
- A. 1.65
- B. 1.15
- C. 3.45
- D. 1.35
Answer: B
NEW QUESTION 301
Section B (2 Mark)
As a result of a lawsuit, Catherine was awarded $300,000 for compensatory damages and $400,000 for punitive damages. What is the taxable income resulting from this suit?
- A. $700,000
- B. $400,000
- C. $300,000
- D. $0
Answer: B
NEW QUESTION 302
Section A (1 Mark)
The definition of a drawdown is
- A. A year end management fee
- B. A decline in the net asset value of the hedge fund
- C. A withdrawal made while fully invested
- D. A method to limit taxable gains for investors
Answer: B
NEW QUESTION 303
Section B (2 Mark)
A bank has a long term relationship with a particular business customer. However, recently the bank has become concerned because of a potential deterioration in the customer's income. In addition, regulators have expressed concerns about the bank's capital position. The business customer has asked for a renewal of its Rs25 million dollar loan with the bank. Which credit derivative can help this situation?
- A. Loan sale
- B. Credit risk option
- C. Credit linked notes
- D. Loan securitization
Answer: A
NEW QUESTION 304
Section B (2 Mark)
Equity stock of X ltd. is currently selling at Rs. 35/- per share. The dividend expected next year is Rs. 2/- per share and the investor's required return in this stock is 15 % per annum. If the constant Growth Model applies to X ltd. then calculate the Growth Rate.
- A. 10.23%
- B. 9.28%
- C. 12.05%
- D. 11.23%
Answer: B
NEW QUESTION 305
Section A (1 Mark)
The first step of portfolio management is:
- A. To adjust the portfolio as necessary.
- B. To assess market conditions.
- C. To develop strategies and implement them.
- D. To determine objectives, constraints and preferences.
Answer: D
NEW QUESTION 306
Section A (1 Mark)
Under which of the categories of asset you would put Real Estate in:
- A. Income asset
- B. Safe haven asset
- C. Defensive asset
- D. Growth asset
Answer: D
NEW QUESTION 307
Section A (1 Mark)
Conflict of interest should be discussed in ________
- A. All of the above
- B. Analysis of Financial issues
- C. Terms of Engagement
- D. Need Analysis
Answer: C
NEW QUESTION 308
Section B (2 Mark)
Information processing errors consist of
- A. I and II
- B. I and III
- C. I, II and III
- D. III and IV
Answer: C
NEW QUESTION 309
Section B (2 Mark)
Calculate the value at which an office building can be priced from the following information:
A similar building has 8% capitalization rate.
- A. Rs. 23,87,500
- B. Rs. 19,11,000
- C. Rs. 21,10,000
- D. Rs. 22,93,500
Answer: A
NEW QUESTION 310
Section C (4 Mark)
You are considering adding a new product to your firm's existing product line. It should cause a 15 percent increase in your profit margin (i.e., new PM = old PM x 1.15), but it will also require a 50 percent increase in total assets (i.e., new TA = old TA x 1.5). You expect to finance this asset growth entirely by debt. If the following ratios were computed before the change, what will be the new ROE if the new product is added and sales remain constant?
- A. 40%
- B. 20%
- C. 46%
- D. 53%
Answer: B
NEW QUESTION 311
Section A (1 Mark)
Loss of a closely held company cannot be carried and set off unless on the last day of the previous year in which the loss was incurred and as on the last day of the previous year in which such loss is set off, at least:
- A. 49% of the shares are beneficially held by the same persons
- B. 51% of shares are beneficially held by the same persons
- C. 50% of the shares are beneficially held by the same persons
- D. 60% of the shares are beneficially held by the same persons
Answer: B
NEW QUESTION 312
Section A (1 Mark)
Deduction under section 80QQB is allowed to an author of a book of literary or artistic or scientific nature who is resident in India to the extent of:
- A. 100% of royalty income or Rs. 3,00,000 whichever is less
- B. 50% of royalty income or Rs. 3,00,000 whichever is less
- C. 50% of royalty income or Rs. 5,00,000 whichever is less
- D. 100% of royalty income or Rs. 5,00,000 whichever is less
Answer: A
NEW QUESTION 313
Section A (1 Mark)
In case of Credit Assessment, if the lender accepts the application and takes it forward towards acceptance provided it passes through the risk assessment criterion, then the Credit Score Band of the borrower would be:
- A. 501 to 600
- B. 601 to 750
- C. 750 and above
- D. 501 to 700
Answer: B
NEW QUESTION 314
Section A (1 Mark)
The APT is based on the:
- A. Law of accelerating return.
- B. Law of attraction.
- C. Law of averages.
- D. Law of one price.
Answer: D
NEW QUESTION 315
Section A (1 Mark)
Which of the following is an element of an organization's internal-environment?
- A. Retailers
- B. Wholesalers
- C. Employees
- D. Competitors
Answer: C
NEW QUESTION 316
Section B (2 Mark)
A collar with a net outlay of approximately zero is an options strategy that
- A. Combines a put and a call to lock in a price range for a security.
- B. Both A and B.
- C. Uses the gains from sale of a call to purchase a put.
- D. Uses the gains from sale of a put to purchase a call.
Answer: B
NEW QUESTION 317
Section A (1 Mark)
A(n) _____________ is related to the credit option and is usually aimed at lenders able to handle comparatively limited declines in value but wants insurance against serious losses.
- A. credit risk option
- B. credit linked note
- C. credit swap
- D. standby letter of credit
Answer: C
NEW QUESTION 318
Section A (1 Mark)
A retirement planner must have detailed information about the client's current and future assets and liabilities.
Which of the following is of least importance in developing a retirement plan?
- A. Book value of the client's closely held corporation as determined one year ago
- B. A large outstanding income tax liability of the client
- C. A court order requiring the client to pay child support for next 15 years
- D. An outstanding judgment from a law suit against the client
Answer: C
NEW QUESTION 319
Section B (2 Mark)
Total income for assessment year 2012-13 of an individual including long-term capital gain of Rs. 60,000/- is Rs. 1,80,000/-. The tax on total income shall be: [CII-12-13: 852,11-12: 785,10-11:711]
- A. Rs. 6,600/-
- B. Rs. 6,525/-
- C. Rs. 6,798/-
- D. Rs. 4,120/-
Answer: D
NEW QUESTION 320
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