Question 1

Section A (1 Mark)

A review of portfolio should be done when

Options :

A : One witnesses a change in micro level factors

B : One witnesses a change in macro level factors

C : One witnesses new products floating in the market

D : All of the above

Answer: D

Question 2

Section B (2 Mark)

A bond has the following terms:

If you expect the bond to be called at the end of the year, what would be the maximum price you should pay for the bond if comparable yields are 7 percent?

Options :

A : 1012.35

B : 1024.39

C : 1028.04

D : 1016.19

Answer: C

Question 3

Section C (4 Mark)

To create a common size income statement ____________ all items on the income statement by ____________.

Options :

A : multiply; net income

B : multiply; total revenue

C : divide; net income

D : divide; total revenue

Answer: D

Question 4

Section B (2 Mark)

Mansi needs Rs. 25,000/-, 5 years from now. She would like to make equal payments at the Begin of each year from now onwards into an account that yields annual ROI @ 7 % per annum. What should be her annual payments?

Options :

A : 6023.43

B : 4050.23

C : 4093.43

D : 4062.87

Answer: D

Question 5

Section A (1 Mark)

Conflict of interest should be discussed in ________

Options :

A : Need Analysis

B : Analysis of Financial issues

C : Terms of Engagement

D : All of the above

Answer: C