0810 FM (CFA550) - Question Paper Financial Markets...

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1 Question Paper Financial Markets (CFA550): October 2008 Answer all 73 questions. Marks are indicated against each question. Total Marks : 100 1. Mr. Aman is planning to invest in New Fund Offer (NFO) of a scheme introduced by Shah mutual fund. Hence, he wants to be aware of the rights available him as a unit holder. Which of the following is not the right available to him? (a) If the refund is delayed, in case of under subscription of NFO, he is entitled to receive, along with application money, interest at the rate of 15% p.a. for the period of delay (b) He has a right to receive a statement about the investments held by the fund in every three months (c) He has a right to receive information about the ‘Net Asset Value’ of the scheme at intervals not exceeding one week (d) He has a right to receive refund in case of under subscription of NFO, within a period of six weeks from the date of closure of subscription (e) He has a right to receive shares/units certificates allotted to him within a period of six weeks from the date of closure of the subscription. (1 Mark) <Answer> 2. The objective of Mr. Mukesh, a regular investor in mutual fund schemes, is to obtain regular income as well as capital appreciation. If he is willing to take risk to a certain extent, which of the following mutual fund schemes is more suitable to him for investment? (a) Birla India opportunities fund (b) Principal income fund (c) LIC Dhanraksha balanced fund (d) BoB growth fund (e) Fidelity equity fund. (1 mark) <Answer> 3. Which of the following is not usually guaranteed by mutual funds? (a) Diversified investment portfolio (b) Professional stock selection and asset management (c) Reduction in unsystematic risk (d) Tax benefits (e) Assured returns. (1 mark) <Answer> 4. Mr. Dutta, a pension fund manager, has allocated 20% of the corpus to callable bonds. In falling interest rate scenario, Mr. Dutta would be more concerned with (a) Operational risk (b) Political risk (c) Market risk (d) Reinvestment risk (e) Liquidity risk. (1 mark) <Answer> 5. Which of the following players perform the role of intermediary in the capital market, provide corporate advisory services and also play a major role in the issue of securities? (a) Underwriters (b) Investment bankers (c) Primary dealers (d) Forex dealers (e) Satellite dealers. (1 mark) <Answer> 6. There is a rumor that the public issue of Matador Electronics Ltd. would be a hot issue in the market. Based on that rumor, Mr. Souvick invests all his savings in this public issue. Mr. Souvick may be categorized as a(n) (a) Investor (b) Speculator (c) Gambler (d) Hedger (e) Arbitrageur. (1 mark) <Answer>
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2 7. Which of the following statements is/are not the feature(s) of corporate debentures? I.
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This note was uploaded on 07/20/2010 for the course ICFAI CFA taught by Professor Cfa during the Fall '09 term at Indian School of Business.

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0810 FM (CFA550) - Question Paper Financial Markets...

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