INVESTMENT ADVISER LEVEL 2  SET 19
Quizsummary
0 of 25 questions completed
Questions:
 1
 2
 3
 4
 5
 6
 7
 8
 9
 10
 11
 12
 13
 14
 15
 16
 17
 18
 19
 20
 21
 22
 23
 24
 25
Information
Dear Candidate,
1. This is a Mock Examination of NISMSeriesXVIII: Financial Education Certification Examination.
2. This mock test has 50 questions of 1 marks each. Please note that the actual examination for NISM Series XVIII: Financial Education Certification Examination has 50 questions of 1 mark each.
3. There is no negative marking.
4. The passing score for the examination is 60%
5. This mock examination is only to give the candidates an experience of NISM testing system.
6. Please note that passing this mock test would not make you eligible for claiming a certificate for NISMSeriesXVIII: Financial Education Certification Examination.
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 25 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
 Not categorized 0%
 1
 2
 3
 4
 5
 6
 7
 8
 9
 10
 11
 12
 13
 14
 15
 16
 17
 18
 19
 20
 21
 22
 23
 24
 25
 Answered
 Review

Question 1 of 25
1. Question
The objective of asset allocation is risk management

Question 2 of 25
2. Question
closing price for a futures contract shall be calculated on the basis of _____________

Question 3 of 25
3. Question
Which of the following statements about active investment strategies is incorrect?

Question 4 of 25
4. Question
The Income of arbitrage funds is a Function of

Question 5 of 25
5. Question
Selling a PUT OPTION means

Question 6 of 25
6. Question
An active ________ promotes the growth of the primary market and capital formation.

Question 7 of 25
7. Question
When a bonds YTM equals its coupon rate , the bonds price is less than per value

Question 8 of 25
8. Question
____________ gives the information about the ratio of trading volume of put to call options

Question 9 of 25
9. Question
M1 + saving deposits with Post office savings banks =

Question 10 of 25
10. Question
The Current market price of a share is Rs 100. Its face value is Rs 10. A 100% Dividend would mean a dividend yield of
_______ 
Question 11 of 25
11. Question
Which authority was set up with the primary responsibility of promoting old age income security by establishing,
developing and regulating pension funds? 
Question 12 of 25
12. Question
On May 31 ,2012, the spot USD/INR rate was 43.50. The US interest rate was 3 percent, while the Indian interest rate was
6 percent. Find out the fair value of USD/INR Futures. The time to expiration was 90/360 = 0.25. 
Question 13 of 25
13. Question
Buying a PUT OPTION means

Question 14 of 25
14. Question
An NRI returning to India and becoming a Resident Indian has to do which of the
following with respect to holdings in demat account? 
Question 15 of 25
15. Question
An award made by the Insurance Ombudsman will only be binding on the insurer if the

Question 16 of 25
16. Question
State which of these statements is true?

Question 17 of 25
17. Question
______________is the risk that an investment’ value will change as a result of a change in interest rates.

Question 18 of 25
18. Question
Case Study:
Mr. Nitin had invested in Equity and Debt schemes of a MF in the ratio 20:80. Standard deviation of Equity and Debt are 22% and 6%
respectively. The correlation between debt and equity is negative and equal to 0.60. Equity returns 15% and Debt Returs 8%
Q18) What is the portfolio standard deviation? 
Question 19 of 25
19. Question
Case Study:
Mr. Nitin had invested in Equity and Debt schemes of a MF in the ratio 20:80. Standard deviation of Equity and Debt are 22% and 6%
respectively. The correlation between debt and equity is negative and equal to 0.60. Equity returns 15% and Debt Returs 8%
Q19) Calculate the returns of the portfolio? 
Question 20 of 25
20. Question
Case Study:
Mr. Nitin had invested in Equity and Debt schemes of a MF in the ratio 20:80. Standard deviation of Equity and Debt are 22% and 6%
respectively. The correlation between debt and equity is negative and equal to 0.60. Equity returns 15% and Debt Returs 8%
Q20) Which among the following best describes Mr.Nitin? 
Question 21 of 25
21. Question
Mr. Nitin had invested in Equity and Debt schemes of a MF in the ratio 20:80. Standard deviation of Equity and Debt are 22% and 6%
respectively. The correlation between debt and equity is negative and equal to 0.60. Equity returns 15% and Debt Returs 8%
Q21) If the weighted average standard deviation of the portfolio is 7. 24%, what should be the allocation in Debt? 
Question 22 of 25
22. Question
Case Study:
Mrs. X is of age 42 years and will retire at 60. She wants to buy a house by availing a loan to the extent of Rs. 30 Lac from a housing finance
company for a term of 15 years at 10% p.a. on reducing monthly balance basis. You compute the following:
Q22) Equated Monthly Instalment (EMI) comes to_________ 
Question 23 of 25
23. Question
Case Study:
Mrs. X is of age 42 years and will retire at 60. She wants to buy a house by availing a loan to the extent of Rs. 30 Lac from a housing finance
company for a term of 15 years at 10% p.a. on reducing monthly balance basis. You compute the following:
Q23) If she cannot afford to pay EMI in excess of Rs. 30,000 p.m., what increase in payback period will she have to accept? 
Question 24 of 25
24. Question
Case Study:
Mrs. X is of age 42 years and will retire at 60. She wants to buy a house by availing a loan to the extent of Rs. 30 Lac from a housing finance
company for a term of 15 years at 10% p.a. on reducing monthly balance basis. You compute the following:
Q24) If she is ready to extend the term by another 3 years then what would be the EMI? 
Question 25 of 25
25. Question
Case Study:
Mrs. X is of age 42 years and will retire at 60. She wants to buy a house by availing a loan to the extent of Rs. 30 Lac from a housing finance
company for a term of 15 years at 10% p.a. on reducing monthly balance basis. You compute the following:
Q25) Assume EMI starts in the month of April. What is the Principal amount she would have paid in the first Financial year?