Research Analyst Mock Test 1

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Research Analyst

Research Analyst Mock Test 1

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1. Weighted Average Cost of Capital (WACC) = [Ke * We] x [Kd * (1-Tx)”Wd]. Is this statement True or False?

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2. A company has 14 million shares currently trading at Rs 20. The company has assets worth Rs 100 million and liabilities of Rs 30 million. Calculate the Price-to-Book Value ratio.

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3. ______ handles the matters relating to all the Direct and Indirect Taxes through two statutory Boards namely, the Central Board of Direct Taxes (CBDT)and the Central Board of Excise and Customs (CBEC).

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4. A company has sales of Rs 12400, and from this, they have an operating profit of Rs 2400. If the corporate tax is at 35%, calculate the net profit margin of the company. (There is no interest expense)

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5. The main role of FMC is to deal with all matters relating to the promotion and orderly growth of pension markets in India – State True or False?

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6. Which of these financial instruments does not have default risk?

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7. When RBI announces a hike in interest rates, bond prices will generally:

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8. Regulates the money market segment of the securities market and is also the manager of the Indian Government’s borrowing program.

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9. The EBIT of a company is Rs 400000 and the EBIT % is 40% of the business. What is the Net Profit of the company if the Net Profit margin is 10%?

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10. “The Central Board of Direct Taxes (CBDT) and the Central Board of Excise and Customs (CBEC) are controlled by the which comes under the Ministry of Finance.

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11. A warrant is a relative option to buy at a specified exercise price over a specified period of time.

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12. Macroeconomics helps us understand the general state of the economy — Domestic Production, Domestic Consumption, General Price levels, Growth, Quality of life etc. – State True or False?

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13. Investors can earn both rents on their property and return on their capital invested. True or False?

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14. According to SEBI standards of corporate governance, independent directors should constitute at least what percentage of the board if the chairman is an executive director?

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15. In which analysis the performance, the structure, and the conduct of the industry are considered?

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16. A Balance Sheet of a company contains the:

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17. If imports are more than exports, the country will have a:

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18. In a company, if the total liabilities are Rs 8,000 and the total assets are Rs 20,000, calculate the Equity to Asset ratio.

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19. In the process of valuation of a business, the growth rate is calculated by adding the retention rate and the return on equity. True or False?

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20. Corporate actions like Bonus Issues, Stock Split, and Share Consolidation will lead to a change in per-share data. State True or False?

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21. In the Pioneering Stage of a business life cycle,

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22. Most businesses are price takers and not price makers as there is competition in the market. Is this statement True or False?

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23. Sometimes, bottom-up analysts focus purely on the dynamics of business and industry with little or no attention to Economic factors. State True or False?

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24. The Net Profit of a company is Rs 12,00,000 and the Market Capitalization is Rs 60,00,000. Calculate the Earnings Yield.

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25. Mark to Market (MTM) margin is the notional loss that an outstanding trade has during a specified period on account of price movements.

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26. An investor bought 500 shares of a company at Rs 10,000. The face value of these shares is Rs 5. Calculate the dividend yield on the value invested in these shares if the company declares a 100% dividend.

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27. The dividend Payout Ratio is calculated by.

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28. M. Singh purchases MF units at NAV Rs 11. After 400 days, he redeems it at NAV Rs 12.50. What is his compounded annual rate of return?

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29. The current stock price of ABC Software Ltd is Rs 1200. Its Profit After Tax (PAT) is Rs 68,00,000. The number of outstanding shares is 100000. Calculate the P/E Ratio.

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30. Return on Capital Employed can be calculated as:

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31. Buy-side Analysts work for firms that provide investment banking, broking, advisory services for clients – State True or False?

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32. Investors look for businesses with entry barriers.

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33. Department of Financial Services covers Banks, Insurance, and Financial Services provided by various government agencies and private corporations.

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34. Which committee is responsible for reviewing the financial statements of the company and nominating the auditors?

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35. The objective(s) of all the regulators in a financial market is/are.

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36. A company has 200,000 shares. The Price to Book Value ratio of this company is 7, and the Book Value is 5. Calculate the Net Worth of the company.

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37. A foreign investor has invested in the existing financial instruments of a country. This is known as:

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38. The work of a research analyst can be hampered by:

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39. The discounted cash flow model can be used only when three things are known with certainty: Stream of future cash flows, timings of these cash flows, and discount rate. True or False?

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40. Business Risk is an Unsystematic Risk. True or False?

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41. If an investor is not able to sell his investment when desired, or it has to be sold below its intrinsic value, or there are high costs to carrying out transactions, then this risk is called as.

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42. Which of the following statements about the limitation of a quantitative approach to fundamental analysis is correct?

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43. SEBI has been appointed under the Companies Act to register companies in India and to ensure that they comply with the provisions of the law. True or False?

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44. The Debt to Equity Ratio of a company is 2 : 1. The total size of its Balance Sheet is Rs 27,00,000. Calculate the Debt of the company.

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45. FDI leads to job destruction in the economy. State True or False?

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46. Editing a research report includes the following EXCEPT.

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47. The Total Assets of a company are Rs 124000 and the Total Liabilities are Rs 79000. Calculate the Equity to Asset Ratio.

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48. The views mentioned in a research report should be consistent with the views of:

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49. Rahul invests Rs. 75,000 at a rate of 6% p.a. Calculate the future value of his investment after 10 years.

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50. Which of these can be considered ‘Threats’ in the SWOT analysis of a company?

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Case Study – 5

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Investment Advisor Level 2

Case Study – 5

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1. What is the corpus requirement to ensure that he is able to sustain the same standard of living for 15 years after retirement?

Mr. Z, aged 52 years, is working in a leading company. His net savings are Rs. 50,000 p.m. Based on salary growth and other factors, he expects this to rise by 20% p. till his retirement at age 60. This does not include monthly contributions of Rs. 9,000 (Rs.4000 own contribution; Rs.5000 employer contribution) to various funds towards retirement corpus. These are expected to grow by 20% p. till retirement. The retirement corpus by the end of the year will be Rs. 12 lakhs, entirely in debt, which will yield 8 % p. on average. Besides his own residential house and the retirement corpus, his savings and investments will amount to Rs.50 lakhs by the end of the year, 30% of which will be in equity. He has a practice of investing, at the end of each year, his disposable savings into debt and equity in the ratio of 80:20. In the long run, he expects equity to yield 15% and debt to yield 8.5%. At the end of age 55, he expects an outflow of funds amounting to Rs5lakhs, which he hopes to meet out of annual savings. He expects inflation of 10% and post-retirement investment return on his portfolio at 11%. His current expenses are Rs40,000 per month. Assume zero date as the end of age 5Calculations are to be done on annual basis. Ignore taxation and interest income on savings and contributions during the year.

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2. If he re-invests the entire retirement corpus in debt, what percentage of Mr. Z’s portfolio will be in debt when he retires?

Mr. Z, aged 52 years, is working in a leading company. His net savings are Rs. 50,000 p.m. Based on salary growth and other factors, he expects this to rise by 20% p. till his retirement at age 60. This does not include monthly contributions of Rs. 9,000 (Rs.4000 own contribution; Rs.5000 employer contribution) to various funds towards retirement corpus. These are expected to grow by 20% p. till retirement. The retirement corpus by the end of the year will be Rs. 12 lakhs, entirely in debt, which will yield 8 % p. on average. Besides his own residential house and the retirement corpus, his savings and investments will amount to Rs.50 lakhs by the end of the year, 30% of which will be in equity. He has a practice of investing, at the end of each year, his disposable savings into debt and equity in the ratio of 80:20. In the long run, he expects equity to yield 15% and debt to yield 8.5%. At the end of age 55, he expects an outflow of funds amounting to Rs5lakhs, which he hopes to meet out of annual savings. He expects inflation of 10% and post-retirement investment return on his portfolio at 11%. His current expenses are Rs40,000 per month. Assume zero date as the end of age 5Calculations are to be done on annual basis. Ignore taxation and interest income on savings and contributions during the year.

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3. At the end of Age 55, what percentage of Mr. Z’s portfolio will be in debt (excluding retirement corpus)?

Mr. Z, aged 52 years, is working in a leading company. His net savings are Rs. 50,000 p.m. Based on salary growth and other factors, he expects this to rise by 20% p. till his retirement at age 60. This does not include monthly contributions of Rs. 9,000 (Rs.4000 own contribution; Rs.5000 employer contribution) to various funds towards retirement corpus. These are expected to grow by 20% p. till retirement. The retirement corpus by the end of the year will be Rs. 12 lakhs, entirely in debt, which will yield 8 % p. on average. Besides his own residential house and the retirement corpus, his savings and investments will amount to Rs.50 lakhs by the end of the year, 30% of which will be in equity. He has a practice of investing, at the end of each year, his disposable savings into debt and equity in the ratio of 80:20. In the long run, he expects equity to yield 15% and debt to yield 8.5%. At the end of age 55, he expects an outflow of funds amounting to Rs5lakhs, which he hopes to meet out of annual savings. He expects inflation of 10% and post-retirement investment return on his portfolio at 11%. His current expenses are Rs40,000 per month. Assume zero date as the end of age 5Calculations are to be done on annual basis. Ignore taxation and interest income on savings and contributions during the year.

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4. On retirement, how much will Mr. Z have in his retirement corpus?

Case- Mr. Z, aged 52 years, is working in a leading company. His net savings are Rs. 50,000 p.m. Based on salary growth and other factors, he expects this to rise by 20% p. till his retirement at age 60. This does not include monthly contributions of Rs. 9,000 (Rs.4000 own contribution; Rs.5000 employer contribution) to various funds towards retirement corpus. These are expected to grow by 20% p. till retirement. The retirement corpus by the end of the year will be Rs. 12 lakhs, entirely in debt, which will yield 8 % p. on average. Besides his own residential house and the retirement corpus, his savings and investments will amount to Rs.50 lakhs by the end of the year, 30% of which will be in equity. He has a practice of investing, at the end of each year, his disposable savings into debt and equity in the ratio of 80:20. In the long run, he expects equity to yield 15% and debt to yield 8.5%. At the end of age 55, he expects an outflow of funds amounting to Rs5lakhs, which he hopes to meet out of annual savings. He expects inflation of 10% and post-retirement investment return on his portfolio at 11%. His current expenses are Rs40,000 per month. Assume zero date as the end of age 5Calculations are to be done on annual basis. Ignore taxation and interest income on savings and contributions during the year.

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Case Study 4

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Investment Advisor Level 2

Case Study – 4

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1. How would you describe the investment policy Mr. Y is using for the corpus?

Case – Mr. Y, aged 40, has the following goals ahead of him. (1) Son’s post-graduate education: Due in Year Current cost Rs15,00,000 p. to be incurred at the end of each year for 2 years. Likely Inflation 15% p. (2) Daughter’s marriage: Scheduled in end of Year Current cost Rs1,00,00,000. Inflation is assumed to be at 10% p. Mr. Y has provided a corpus of Rs2,00,00,000 towards these two needs. The corpus is invested in a mix of debt and equity yielding 8% p. Ignore taxation.

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2. What is the likely outflow on account of the daughter’s marriage in the year it is planned?

Case – Mr. Y, aged 40, has the following goals ahead of him. (1) Son’s post-graduate education: Due in Year Current cost Rs15,00,000 p. to be incurred at the end of each year for 2 years. Likely Inflation 15% p. (2) Daughter’s marriage: Scheduled in end of Year Current cost Rs1,00,00,000. Inflation is assumed to be at 10% p. Mr. Y has provided a corpus of Rs2,00,00,000 towards these two needs. The corpus is invested in a mix of debt and equity yielding 8% p. Ignore taxation.

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3. How much money will need to be set apart from the corpus at the end of Year 5 to finance the son’s post-graduate education? Assume the amount set apart will earn 6% interest.

Case – Mr. Y, aged 40, has the following goals ahead of him. (1) Son’s post-graduate education: Due in Year Current cost Rs15,00,000 p. to be incurred at the end of each year for 2 years. Likely Inflation 15% p. (2) Daughter’s marriage: Scheduled in end of Year Current cost Rs1,00,00,000. Inflation is assumed to be at 10% p. Mr. Y has provided a corpus of Rs2,00,00,000 towards these two needs. The corpus is invested in a mix of debt and equity yielding 8% p. Ignore taxation.

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4. How much will be left in the corpus after both goals are fulfilled (assume that he does not set apart money in the 6% corpus mentioned in Q1)?

Case – Mr. Y, aged 40, has the following goals ahead of him. (1) Son’s post-graduate education: Due in Year Current cost Rs15,00,000 p. to be incurred at the end of each year for 2 years. Likely Inflation 15% p. (2) Daughter’s marriage: Scheduled in end of Year Current cost Rs1,00,00,000. Inflation is assumed to be at 10% p. Mr. Y has provided a corpus of Rs2,00,00,000 towards these two needs. The corpus is invested in a mix of debt and equity yielding 8% p. Ignore taxation.

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Case Study 3-

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Investment Advisor Level 2

Case Study 3-

Investment Advisor Level 2

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1. Their health Insurance policies cover hospitalization expenses across the world, including Indi They can renew the policy on their own at the end of the year. Which of the following is true?

Case -Mr. and Mrs. Gupta are both Indian Citizens (both 45 years ol who were working with multinational companies in the United States of America for the last 20 years. They have given up their jobs and have returned to India to pursue their own venture in India funded by a Venture fund based in the Silicon Valley. They had a house in the USA which they have given out on rent. They have substantial investments in their retirement investment accounts that are made on a tax deferred basis meaning that investments were made from pre-tax income and the contribution and the income accrued on it is taxed at the time of withdrawal. Both have taken substantial life insurance policies, on their own, in the USA which will payout the sum insured of USD 1 million each if any of them die in the next 15 years. Their employer paid for a health Insurance policy in the USA that continues to be valid till the end of the year but will cease thereafter unless they choose to renew it on their own. They have certain questions regarding their re-location and seek your opinion:

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2. The income accrued on the deferred tax retirement account will be taxed only in the year when such money is withdrawn. Which of the following statements is true?

Case – Mr. and Mrs. Gupta are both Indian Citizens (both 45 years ol who were working with multinational companies in the United States of America for the last 20 years. They have given up their jobs and have returned to India to pursue their own venture in India funded by a Venture fund based in the Silicon Valley. They had a house in the USA which they have given out on rent. They have substantial investments in their retirement investment accounts that are made on a tax deferred basis meaning that investments were made from pre-tax income and the contribution and the income accrued on it is taxed at the time of withdrawal. Both have taken substantial life insurance policies, on their own, in the USA which will payout the sum insured of USD 1 million each if any of them die in the next 15 years. Their employer paid for a health Insurance policy in the USA that continues to be valid till the end of the year but will cease thereafter unless they choose to renew it on their own. They have certain questions regarding their re-location and seek your opinion:

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3. After they become resident in India as per Indian tax laws, they will have to pay tax in India on their rental income from the US property. Is this statement true?

Case – Mr. and Mrs. Gupta are both Indian Citizens (both 45 years ol who were working with multinational companies in the United States of America for the last 20 years. They have given up their jobs and have returned to India to pursue their own venture in India funded by a Venture fund based in the Silicon Valley. They had a house in the USA which they have given out on rent. They have substantial investments in their retirement investment accounts that are made on a tax deferred basis meaning that investments were made from pre-tax income and the contribution and the income accrued on it is taxed at the time of withdrawal. Both have taken substantial life insurance policies, on their own, in the USA which will payout the sum insured of USD 1 million each if any of them die in the next 15 years. Their employer paid for a health Insurance policy in the USA that continues to be valid till the end of the year but will cease thereafter unless they choose to renew it on their own. They have certain questions regarding their re-location and seek your opinion:

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4. Both of them will need to buy Life Insurance policies in India for covering the risk of death. Which of the following is true?

Case – Mr. and Mrs. Gupta are both Indian Citizens (both 45 years ol who were working with multinational companies in the United States of America for the last 20 years. They have given up their jobs and have returned to India to pursue their own venture in India funded by a Venture fund based in the Silicon Valley. They had a house in the USA which they have given out on rent. They have substantial investments in their retirement investment accounts that are made on a tax deferred basis meaning that investments were made from pre-tax income and the contribution and the income accrued on it is taxed at the time of withdrawal. Both have taken substantial life insurance policies, on their own, in the USA which will payout the sum insured of USD 1 million each if any of them die in the next 15 years. Their employer paid for a health Insurance policy in the USA that continues to be valid till the end of the year but will cease thereafter unless they choose to renew it on their own. They have certain questions regarding their re-location and seek your opinion:

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Case Study -2

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Investment Advisor Level 2

Case Study -2

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1. If discounted @ 5% p. and assuming that the adjustment is fully required at the beginning of the year, the inflation adjustment required is:

Case- Mr. Smart (60) has just retired from service. He is entitled to a pension of Rs. 4,80,000/- p. received yearly in advance. The pension adjusts partially with inflation to the extent of 50%. Mr. Smart’s wife (Mrs. Smart-58) is entitled to the pension for her lifetime in case of the demise of Mr. Smart before her. Nobody else is dependent on the couple. The couple stays in their own home. Mr. Smart received Rs. 40 lakhs (after tax) as retirement dues. Their current living expenses are equal to the pension amount. Mr. Smart’s employer will continue to provide a family floater Mediclaim policy for both their life time that is considered adequate for their needs. Inflation is to be assumed at 6% p. Life expectancy is to be assumed to be 87 years for Mr. Smart and 85 years for Mrs. Smart. The couple wants to make provision for expenses on social occasions that arise & leisure travel expenditure to the tune of Rs. 1,00,000 p. (inflation 6% p.) apart from compensating for the inflation adjustment shortfall in the pension income. Assume the expenditure arises at the beginning of the each year.

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2. The fixed income options available to the couple to earn the highest rate of interest from government schemes would be:

Case- Mr. Smart (60) has just retired from service. He is entitled to a pension of Rs. 4,80,000/- p. received yearly in advance. The pension adjusts partially with inflation to the extent of 50%. Mr. Smart’s wife (Mrs. Smart-58) is entitled to the pension for her lifetime in case of the demise of Mr. Smart before her. Nobody else is dependent on the couple. The couple stays in their own home. Mr. Smart received Rs. 40 lakhs (after tax) as retirement dues. Their current living expenses are equal to the pension amount. Mr. Smart’s employer will continue to provide a family floater Mediclaim policy for both their life time that is considered adequate for their needs. Inflation is to be assumed at 6% p. Life expectancy is to be assumed to be 87 years for Mr. Smart and 85 years for Mrs. Smart. The couple wants to make provision for expenses on social occasions that arise & leisure travel expenditure to the tune of Rs. 1,00,000 p. (inflation 6% p.) apart from compensating for the inflation adjustment shortfall in the pension income. Assume the expenditure arises at the beginning of the each year.

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3. The amount required for compensating the difference required for inflation adjustment based on a discounting rate of 5% is higher than the corpus of Rs. 40 lakhs available with them. This means that:

Case – Mr. Smart (60) has just retired from service. He is entitled to a pension of Rs. 4,80,000/- p. received yearly in advance. The pension adjusts partially with inflation to the extent of 50%. Mr. Smart’s wife (Mrs. Smart-58) is entitled to the pension for her lifetime in case of the demise of Mr. Smart before her. Nobody else is dependent on the couple. The couple stays in their own home. Mr. Smart received Rs. 40 lakhs (after tax) as retirement dues. Their current living expenses are equal to the pension amount. Mr. Smart’s employer will continue to provide a family floater Mediclaim policy for both their life time that is considered adequate for their needs. Inflation is to be assumed at 6% p. Life expectancy is to be assumed to be 87 years for Mr. Smart and 85 years for Mrs. Smart. The couple wants to make provision for expenses on social occasions that arise & leisure travel expenditure to the tune of Rs. 1,00,000 p. (inflation 6% p.) apart from compensating for the inflation adjustment shortfall in the pension income. Assume the expenditure arises at the beginning of the each year.

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Case Study- 1

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Investment Advisor Level 2

Case Study- 1

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1. How would you best categorize Mr. C’s risk profile?

Caselet- Mr. C is a 45 year single earning member of his family with a good income. He is saving for different financial goals, some of which are due for funding now. He has a home loan and a car loan that he is servicing.

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2. Mr has to park the funds from fixed deposits that have matured for a short period till it will be used for his daughter’s education. What will you suggest as a suitable investment option?

Caselet- Mr. C is a 45 year single earning member of his family with a good income. He is saving for different financial goals, some of which are due for funding now. He has a home loan and a car loan that he is servicing.

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3. What are the assets that will be most suitable for Mr. C given his situation?

Caselet- Mr. C is a 45 year single earning member of his family with a good income. He is saving for different financial goals, some of which are due for funding now. He has a home loan and a car loan that he is servicing.

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Chapter 19: Comparison of products across categories

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Investment Advisor Level 2

Chapter 19: Comparison of products across categories

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1. What is the minimum investment requirement for Equity Mutual Funds?

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2. What is the purpose of performance data for investment products?

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3. How is the maximum percentage of scheme investment regulated in Equity Mutual Funds?

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4. What is the liquidity feature of Mutual Funds and ULIPs?

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5. How do Portfolio Management Services (PMS) differ from Equity Mutual Funds?

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6. What is the purpose of Unit Linked Insurance Plans (ULIP)?

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7. How do Mutual Funds and ULIPs differ in terms of disclosure?

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8. Difference between direct equity investment and equity funds

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9. Which investment instrument has a guaranteed rate of return and varying rate of returns?

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10. What is the risk associated with Equity Linked Savings Scheme (ELSS)?

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11. Nature and purpose of actively managed equity mutual funds

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12. What determines the returns in Mutual Funds and ULIPs?

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13. Difference in risk between direct equity investment and equity funds

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14. How does the risk differ between Alternative Investment Funds (AIF) Category 3 and Equity Mutual Funds?

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15. Objective of actively managed equity mutual funds regarding returns

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16. What is the nature of Mutual Funds?

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17. What is the liquidity feature of Equity Linked Savings Scheme (ELSS)?

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18. What is the liquidity feature of Fixed Income Tax saving Instruments such as PPF and Tax saving bank FD?

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19. Difference in cost between actively managed mutual funds and index funds

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20. How are the charges regulated in Mutual Funds and ULIPs?

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21. What services do information aggregators provide for performance data comparison?

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22. What is the nature of investments in Equity Mutual Funds?

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23. Which regulatory body mandates the disclosure of performance data for mutual funds?

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24. How are withdrawals taxed in Mutual Funds and ULIPs?

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25. Which parameter is used to compare investment instruments?

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26. Which type of investor are Mutual Funds suitable for?

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27. What are the returns offered by Fixed Income Tax saving Instruments such as PPF and Tax saving bank FD?

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28. What are the fees payable by investors in Equity Mutual Funds?

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29. Level of attention/expertise needed for direct equity investment and equity funds

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30. What are the risk and return characteristics of NPS (National Pension System)?

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Chapter 18: Risk Profiling for Investors

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Investment Advisor Level 2

Chapter 18: Risk Profiling for Investors

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1. According to SEBI Investment Adviser Regulation 16, what information should be obtained for risk profiling?

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2. Which investment is suitable for regular income?

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3. When should a portfolio be rebalanced?

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4. Risk tolerance is the assumed level of risk that a client is willing to accept. What does risk tolerance typically measure?

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5. Which type of asset allocation uses pre-defined models to allocate assets among different asset classes?

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6. Moderate investors understand that they have to take investment risks in order to meet their long-term goals. What is their likely willingness to take risk with their available assets?

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7. What is the distribution of an investor’s portfolio between different asset classes called?

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8. What is the purpose of including different asset categories in a portfolio?

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9. Which type of asset allocation considers the returns required from the portfolio to achieve financial goals and the investor’s risk profile?

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10. What is the primary focus of rebalancing the portfolio?

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11. According to SEBI Investment Adviser Regulation 16, what requirements are there for tools or questionnaires used in risk profiling?

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12. Why might an investor need to change their investments in the portfolio?

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13. What does asset allocation and diversification aim to achieve in a portfolio?

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14. What can a periodic review of investments help identify?

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15. What is the process of dividing the portfolio among different asset classes to protect its overall return from the effect of a fall in one or few assets called?

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16. What is the benefit of diversification in a portfolio?

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17. Which of the following is a parameter for risk profiling?

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18. Which investment is suitable for growth and appreciation in value?

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19. What are model portfolios?

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20. Risk tolerance is typically measured using questionnaires that estimate the ability and willingness to take risks. How are the responses of investors converted into a score to classify their risk preferences?

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21. Which type of asset allocation involves making decisions based on the likely behavior of the market?

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22. What is the purpose of reviewing the relevance of goals in the investment portfolio?

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23. Why would an investor consider rebalancing their portfolio?

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24. Why is periodic review of investments necessary?

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25. What does rebalancing the portfolio involve?

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26. How can rebalancing the portfolio help manage risk?

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27. What is the purpose of constructing an investment portfolio?

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28. Which investment is suitable for capital preservation?

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29. Which type of investor prefers to keep their money in bank accounts or invest in safe income-yielding instruments?

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30. How often should the portfolio of investments be reviewed as part of the financial planning process?

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31. Risk appetite is influenced by various factors. Which of the following factors affects risk appetite according to Table 18.1?

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32. Which investment is suitable for liquidity?

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33. How often is it recommended to review the risk profile of a client?

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34. What is the risk associated with a concentrated portfolio?

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35. A person is offered a chance to play a game in which a coin will be tosseThe person pays Rs. 1,00,000 for one chance to play the game. The person can choose to call “heads” or “tails”. If the coin comes on the person’s choice, he wins Rs. 1,10,000. As per statistical analysis of the above game, the person stands to win Rs. 5,000/- every time he plays the game. What is the net payoff amount?

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36. What factors determine the suitable asset allocation for an individual?

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