Portfolio Management Services (PMS) Distributors Free Demo Test 5

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1 / 10

1. Risks due to sector-specific/company-specific factors are referred to as ________ .

a) Systematic risks

b) Unsystematic risks

c) Speculative risks

d) Total risks

2 / 10

Identify the FALSE statement. Dealing in securities shall be deemed to be manipulative or fraudulent if it involves _______.

a) Entering into a trade in securities without the intention of performing it

b) Selling or pledging of securities in physical or dematerialized form

c) Inducing a person from dealing in securities for artificially inflating or depressing the prices in securities

d) Inducing any person to subscribe to an issue of shares

3 / 10

3. For a person to be qualified as a NRI, he must have stayed outside India for more than days in a previous financial year.

a) 150

b) 182

c) 365

d) 280

4 / 10

4. Which of the following is considered to be an investment objective?

a) Current income

b) Capital preservation

c) Capital appreciation

d) All of the above

5 / 10

5. The first step in the investment process is the development of _________.

a) Financial statement

b) Statement of cash needs

c) Objective statement

d) Investment Policy Statement

6 / 10

6. __________ marked the beginning of PMS when SEBI issued SEBI (Portfolio Managers) Regulations.

a) January 1999

b) January 2010

c) January 1993

d) January 2020

7 / 10

7. Except for the one that provides only the __________, every portfolio manager shall appoint a custodian in respect of securities managed or administered by it.

a) advisory services

b) Non-discretionary services

c) discretionary services

d) None of the above

8 / 10

Which of the following entities is NOT eligible to invest in PMS?

a) Association of person

b) Partnership Firms

c) Proprietorship firms

d) None of the above

9 / 10

If there is uncertainty concerning the future payment, the investor would require a return more than the nominal required rate of return. The additional component is called ________.

a) Alpha

b) Risk-free rate of return

c) Risk premium

d) Both Alpha and Risk-free rate of return

10 / 10

10. Portfolio performance measure of “Information Ratio” _____________.

a) calculates average differential return per unit of the variability of differential return

b) evaluates portfolio performance based on return per unit of risk

c) adjusts portfolio risk to match benchmark risk

d) compares portfolio returns to expected returns under CAPM

Your score is

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Portfolio Management Services (PMS) Distributors Free Demo Test 5

Explanation:

Identify the FALSE statement. Dealing in securities shall be deemed to be manipulative or fraudulent if it involves _______.

Explanation:

Explanation:

Explanation:

Explanation:

Explanation:

Explanation:

Which of the following entities is NOT eligible to invest in PMS?

Explanation:

If there is uncertainty concerning the future payment, the investor would require a return more than the nominal required rate of return. The additional component is called ________.

Explanation:

Explanation:

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