Investment Adviser (Level 1) Free Demo Test 4

1 / 10

Harish’s dad gave him something called a “general power of attorney.” What does that mean?

a) He has given Harish the immediate right to make decisions in all matters and take action on his behalf

b) He has disinherited Harish, but Harish has the right to decide who will inherit his father's estate

c) He has given Harish the right to make decision to deal with the renting out of an apartment only

d) He has given Harish the right to appoint himself as the sole beneficiary of estate

2 / 10

In the span of 18 months, the growth option of a plan increased from Rs 10 to Rs 16. What is the Compound Annual Growth Rate (CAGR)?

a) 40%

b) 60%

c) [(16/10)^(12/18)]-1

d) [(16/10)^(18/12)]-1

3 / 10

A technical analyst studies _____________.

a) Share price trends

b) Share trading volumes

c) Both the above

d) Human behaviour

4 / 10

An investor buys shares in a sugar-producing company. The returns from the investment do not face

a) Systematic Risk

b) Interest rate risk

c) Credit risk

d) Business risk

5 / 10

5. What does a portfolio’s beta measure?

a) Credit risk

b) Volatility of investment returns in comparison to a benchmark

c) Rolling returns

d) Returns in comparison to a benchmark

6 / 10

6. Sensex falls by 10% at 2:45 PM. The market will be halted for ____________.

a) Two hours

b) One hour

c) No Halt

d) Half an hour

7 / 10

Mr. Manish initially invested 50% in equity and 50% in debt. Later, he adjusts his asset allocation to 70% equity and 30% debt based on his market view. This is known as:

a) Strategic Asset Allocation

b) Index Asset Allocation

c) Tactical Asset Allocation

d) Optimal Asset Allocation

8 / 10

The Department of Economic Affairs handles all matters related to the disinvestment of the Government of India’s shareholding in Central Public Sector Enterprises. Is this statement True or False?

a) True

b) False

9 / 10

An investor bought mutual fund units at an NAV of Rs. 11. After 450 days, he sold them for Rs. 13.50. What is the compounded rate of return?

a) 22.70%

b) 18.42%

c) 18.07%

d) 23.50%

10 / 10

10.

_______ is the market where issuers raise capital by issuing securities to investors for the first time.

a) Primary Market

b) Secondary Market

c) Money Market

d) Forward Market

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Investment Adviser (Level 1) Free Demo Test 4

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