Portfolio Managers Cert. Free Demo Test 7 -

Skip to content

Menu

Home
Certifications
Study Material
Blogs

Buy Premium Portal in just Rs. 599/-

Take Free Demo Test

Test Your Knowledge with Free Mock Exams
Master NISM with Expert-Curated Resources
Boost Your Confidence with Real-Time Practice

Buy Premium Portal in just Rs. 599/-

Get access of Unlimited Free Mock Tests
Get Real-Time Experience of NISM Exams
Stay Ahead with Comprehensive Exam Prep Tools

Menu

Home
Certifications
Study Material
Blogs

TRY DEMO TESTS

Portfolio Managers Cert. Free Demo Test 7

/10

Portfolio Managers Cert. Free Demo Test 7

1 / 10

1.

A Portfolio Manager might not give certain information to SEBI, ____________.

a) The details of portfolio managed

b) The names of investors whose portfolio's they manage

c) Changes in registration certification

d) The networth of client's whose portfolio's they manage

Explanation:

SEBI can ask portfolio manager to disclose any information as and when required including the following: –

(a) Particulars regarding the management of a portfolio;

(b) Any change in the information or particular previously furnished, which have a bearing on the certificate granted to him;

(c) The names of the clients whose portfolio it has managed;

(d) Particulars relating to the networth requirement of the portfolio manager as specified in regulation 9 of PortfolioManagers Regulation 2020

2 / 10

2.

__________ is a way of counting days in the global Fixed Income markets.

a) Actual/Actual

b) Actual/360

c) Actual/360

d) All of the above

Explanation:

In the money market the day count convention followed is actual/365, which means that the actual number of days in a month is taken for number of days (numerator) whereas the number of days in a year is taken as 365 days.

Hence, in the case of T-Bills, which are essentially money market instruments, money market convention is followed. In some countries, participants use actual/actual, some countries use actual/360 while some use 30/actual.

3 / 10

3.

An investor put Rs. 100 lakhs in an equity investment portfolio. The manager invested Rs. 75 lakhs in stocks, and Rs. 25 lakhs are in liquid funds. The equity part earned Rs. 7.5 lakhs, and the liquid fund had a 4% return. What is the ROI after considering the cash component?

a) 9.50%

b) 10%

c) 10.50%

d) 8.50%

Explanation:

To calculate the overall Return on Investment (ROI), we need to consider the returns from both the equity investment portfolio and the liquid funds, taking into account their respective proportions in the total investment.

1. Returns from the equity investment portfolio: ROI from equities = (Returns from equities / Investment in equities) * 100 = (7.5 lakhs / 75 lakhs) * 100 = 10%

2. Returns from the liquid funds: Returns from liquid funds = Investment in liquid funds * Return rate = 25 lakhs * 0.04 = 1 lakh

Now, let’s calculate the overall ROI considering both the equity and liquid fund components:

Total returns = Returns from equities + Returns from liquid funds = 7.5 lakhs + 1 lakh = 8.5 lakhs

Total investment = Investment in equities + Investment in liquid funds = 75 lakhs + 25 lakhs = 100 lakhs

Overall ROI = (Total returns / Total investment) * 100 = (8.5 lakhs / 100 lakhs) * 100 = 8.5%

The answer is: 8.50%

4 / 10

4. _______________ represent ownership in a company that gives its holders the right to share in its profits and vote on the company’s matters.

a) Bonds

b) Equity Shares

c) Commercial Papers

d) All the above

Explanation:

Equity shares represent ownership in a company, entitling their holders to participate in the company’s profits and granting them the right to vote on the company’s affairs. Unlike bonds or commercial papers, equity shares signify ownership in the underlying company.

5 / 10

5.

Identify the correct statement regarding ‘Open Interest’.

a) Open Interest is the number of successful trades during a particular day

b) Open Interest is the number of derivative contracts that are not settled by the end of a particular day

c) Open Interest is the interest quoted shown by traders on a public screen

d) Open Interest is the number of derivative contracts which are booked by traders

Explanation:

Open interest is commonly associated with the futures and options markets. Open interest is the total number of outstanding derivative contracts that have not been settled.

Open interest is a measure of market activity. However, it is to be noted that it is not trading volume. Open interest is a measure of the flow of money into a futures or options market. Increasing open interest represents new or additional money coming into the market while decreasing open interest indicates money flowing out of the market.

6 / 10

6.

If a Portfolio Manager thinks the stock market is too expensive and might soon go down, what should he do?

a) Assign more weight to equity till the time market corrects

b) He should adopt a wait and watch strategy

c) Rebalancing should be done depending on the investor psychology

d) Reduce weight in equity before the market corrects

Explanation:

When market conditions favour one asset class over other, the portfolio manager may temporarily shift money from one asset class to another to exploit discrepancy in market with a view to earn returns.

So, if a portfolio manager believes that the stock market is overvalued and is up for a correction, then he may reduce the proportion of the portfolio that is allocated to equities and increase the proportion allocated to debt.

7 / 10

7.

______ is a deal made on a structured exchange to purchase or sell a set quantity of a commodity on a future date at a predetermined price.

a) Futures contract

b) Forward contract

c) Options contract

d) Swap contract

Explanation:

A futures contract is an agreement made through an organized exchange to buy or sell a fixed amount of a commodity on a future date at an agreed-upon price. This financial instrument helps manage price risk and allows for speculation on future price movements.

8 / 10

8.

Determination of NAV should be done regularly.

a) Indian Rupee

b) Dollar

c) Both of the above

d) None of the above

Explanation:

The determination of Net Asset Value (NAV) should be done in Indian Rupee. NAV is a key metric in evaluating the value of a mutual fund’s assets minus its liabilities, and it is typically expressed in the fund’s local currency, which, in this case, is the Indian Rupee.

9 / 10

9.

Examples of Category I AIFs include _________.

a) Private Equity Funds

b) Social Venture Fund

c) A and B

d) Hedge Fund

Explanation:

Category I Alternative Investment Funds (AIFs) primarily invest in start-ups, early-stage ventures, SMEs, real estate, or other alternative asset classes. Social Venture Funds specifically focus on investments that generate both financial returns and positive social or environmental impact.

10 / 10

10. Investment Managers can charge an Incentive Fee which is a share in ___ earned by the Fund, in excess of the Hurdle Rate set in the PPM.

a) Average units

b) Liquidity

c) Additional return

d) Loss

Explanation:

Investment managers can charge an Incentive Fee, which is a share in additional return earned by the Fund, in excess of the Hurdle Rate set in the Private Placement Memorandum (PPM).

Your score is

0%

Co-partner of NISMExams.in

Nismtest.in is a dedicated platform tailored to help individuals prepare for certification exams offered by NISM.

Facebook Instagram Youtube

Supplementary Short Notes
Explained Video Lectures
LIVE Interactive Session
Premium Mock Test Portal
Our Testimonials
NISM Job Vacancies
Blogs
NISM Registration
Download NISM Workbook

Mutual Fund Distributors Mock Test
Mutual Fund Foundation Mock Test
Research Analyst Mock Test
Equity Derivatives Mock Test
Currency Derivatives Mock Test
Common Derivatives Mock Test
Interest Rate Derivatives Mock Test
Commodity Derivatives Mock Test
Securities Market Foundation Mock Test

Depository Operations Mock Test
SORM Mock Test
Portfolio Management Services Mock Test
Portfolio Managers Mock Test
Merchant Banking Mock Test
Investment Advisor Level-1 Mock Test
Investment Advisor Level-2 Mock Test
RTA (Corporate) Mock Test
RTA (Mutual Fund) Mock Test

NISM Series VIII – Equity Derivatives Mock Test
NISM Series V A: Mutual Fund Distributors Mock Test
NISM Series I: Currency Derivatives Mock Test
NISM Series VII – Securities Operations and Risk Management Mock Test
NISM-Series-X-A: Investment Adviser (Level 1) Mock Test
NISM-Series-X-B: Investment Adviser (Level 2) Mock Test
NISM Series-III-A: Securities Intermediaries Compliance (Non Fund) Mock Test
NISM Series VI – Depository Operations Certification Mock Test
NISM-Series-XV – Research Analyst Certification Mock Test
NISM Series IV – Interest Rate Derivatives Certification Mock Test
NISM Series XIII : Common Derivative Certification Mock Test
NISM-Series-V-B: Mutual Fund Foundation Certification Mock Test
NISM Series V C : Mutual Fund Distributors (Level 2) Mock Test
NISM-Series-IX: Merchant Banking Certification Mock Test
NISM Series XVII – Retirement Adviser Mock Test
NISM Series II A – Registrars to an Issue and Share Transfer Agents (Corp) Mock Test
NISM Series II B – Registrar and Transfer Agents (MF) Certification Mock Test
NISM Series XII – Securities Market Foundation Mock Test
NISM Series XVI – Commodity Derivatives Certification Mock Test
NISM Series V A (Hindi) : Mutual Fund Exam in Hindi
NISM-Series-XXI -A: Portfolio Management (PMS) Mock Test
NISM-Series-XXI -B: Portfolio Managers Cert. Mock Test
NISM-Series-XXII : Fixed Income Securities Mock Test
Principles of Insurance – IC 01 Licentiate Exam
Practice of Life Insurance – IC 02 Licentiate Exam
Practice of General Insurance – IC 11 Exam
Regulation of Insurance Business – IC 14 Exam
Life Insurance Underwriting – IC 22 Exam
Application of Life Insurance – IC 23 Exam
Life Insurance Finance – IC 26 Associateship Exam
Health Insurance – IC 27 Associateship Exam
General Insurance Underwriting – IC 45 Associateship Exam
General Insurance Accounts Prep – IC 46 Associateship Exam
Fire and Consequential Loss Insurance – IC 57 Exam
Marine Insurance – IC 67 Exam
Engineering Insurance – IC 77 Exam
Motor Insurance – IC 72 Exam
Miscellaneous Insurance – IC 78 Exam
Group Insurance – IC 83 Exam
Reinsurance – IC 85 Exam
Risk Management – IC 86 Exam
Marketing and Public Relations – IC 88 Exam
Human Resource Management – IC 90 Exam
Insurance Agents Exam – IC 38

Derivatives NISM
NISM equity derivatives certificate
NISM equity derivatives certification
NISM free certificate
NISM exam apply online
NISM finance courses
online NISM certification
NISM certification equity derivatives
NISM finance certification
NISM exam application
equity and derivatives exam
mutual fund exam preparation
NISM exam apply
NISM analyst certification
NISM certification for mutual fund distributors
NISM investment banking
NISM registration for mutual fund
NISM currency exam
NISM va exam preparation
financial education certification examination
NISM va syllabus
NISM mock test series 6
NISM risk management certification
equity research analyst NISM
equity derivatives NISM syllabus
securities operations and risk management certification examination
pms NISM exam
NISM certification research analyst
NISM securities operations and risk management
NISM exam
NISM certification
NISM registration
NISM examination
NISM courses
NISM certification courses
NISM exam syllabus
NISM research analyst
NISM derivatives exam
NISM 8
NISM exam dates
NISM equity derivatives
NISM exam material
NISM vi
NISM research
NISM risk management
research analyst certification NISM
NISM certification for equity research analyst
NISM depository
NISM portfolio management exam
NISM compliance exam
NISM depository operations
NISM equity research
NCFM certification exam dumps
best NCFM certification
NISM level 1 syllabus
certification for research analyst
best platform for mock test

Copyright © 2024 NISMTest.in. | All rights reserved

Privacy Policy | Terms of Use

Scroll to Top