Section B (2 Mark)

Sunil insured the building of his house for a sum of Rs.500000 against fire insurance. One day the house is totally gutted in a devastating fire. The insurance surveyors certified that the building is a total loss with no salvage value and that the insurable value of the building just prior to the loss was Rs.1000000. The insurer will pay to Sunil:

Section A (1 Mark)

During “Teen age years” life stage, typical asset allocation should be

Section C (4 Mark)

Read the senario and answer to the question.

What would be the taxable amount on gratuity received by Jogen, if he would retired from an organization where employees are not covered under Gratuity Act?

Section A (1 Mark)

A bank is considering making a loan to Neelam Pandey. The bank is looking at her credit report from Equifax and also examining the reason Neelam has put on the loan application for needing the loan? What aspect of evaluating a consumer loan application is the bank looking at?

Section A (1 Mark)

A European call option allows the buyer to

Section B (2 Mark)

Total income of an individual including long-term capital gain of Rs. 50,000 is Rs. 1,10,000, the tax on total income shall be:

Section A (1 Mark)

What are the common methods an investors may use to value real estate investments?

Section C (4 Mark)

Zoya Ltd has the following Balance sheet for FY 2005-2006:

The Total Sales for the year was Rs. 6,00,000.

The company president believes the company carries excess inventory. Accordingly he wants the inventory turnover ratio to be 8x and would use the freed up cash to reduce current liabilities. If the company follows the president’s recommendation and sales remain the same, the new quick ratio would be:

Section B (2 Mark)

What is the future value of Rs. 5000 at the end of 5 years at 8% compounded annually?

Section A (1 Mark)

______________represents the corollary effect—the irrational denial of responsibility for failure.

Section A (1 Mark)

Which of the following statements is/are correct with respect to naïve diversification?

Section A (1 Mark)

Which of the following statements least accurately describes a form of risk associated with investing in fixed income securities?

Section B (2 Mark)

Last year, Owen Technologies reported negative net cash flow and negative free cash flow. However, its cash on the balance sheet increased. Which of the following could explain these changes in its cash position?

Section B (2 Mark)

A January month Nifty Futures contract will expire on the last _____ of January

Section A (1 Mark)

Guarantees covering security deposit/earnest money/advance payment/ mobilization advance etc. would come under__________________ category

Section B (2 Mark)

Mr. Rai has received a house under a will on death of his uncle in the financial year 1985-86. His uncle purchased the house on 1-4-1968 for Rs.7 lakh. Mr. Rai has sold this during the financial year 2011-12 for Rs.62 lakh. Calculate the taxable amount of capital gain if the fair market value of house as on 1-4-1981 is Rs.20,00,000/- CII-12-13: 852,11-12: 785,10-11:711]

Section B (2 Mark)

The Elliot Wave Theory ____________.

Section C (4 Mark)

The expected return for the market is 12 percent, with a standard deviation of 20 percent. The expected risk-free rate is 8 percent. Information is available for three mutual funds, all assumed to be efficient, as follows:

Calculate the expected return on each of these portfolios respectively.

Section B (2 Mark)

Interest on UK government securities is exempt from UK income tax if the recipient is not ___ in the UK.

Section A (1 Mark)

What would be the tax liability if tea and snacks are provided in the office after office hours?

Section A (1 Mark)

We try to avoid actions that confirm that we have made mistakes. Which of the following is most likely consistent with this bias?

Section A (1 Mark)

______________are bonds issued by governments that pledge their "full faith and credit," including tax revenues, to repayment in US.

Section A (1 Mark)

All of the following are examples of excise taxes except:

Section C (4 Mark)

Which of the following application of Options Strategy is correct?

Section A (1 Mark)

Technical Analysis of security valuation includes ………..

Section B (2 Mark)

The ____________ provides an unequivocal statement on the expected return-beta relationship for all assets, whereas the _____________ implies that this relationship holds for all but perhaps a small number of securities.

Section B (2 Mark)

If JVM Industries pays dividend of Rs.6 per share which is growing at a 8 percent rate per year and is expected to grow at the same rate in future. Its required rate of return is 16%. Determine its share price.