NISM Series XV Mock Test 2 - TheMFCentral

NISM Series XV Mock Test 2

NISM Series XV Exam | Mock Test 2

1 / 50

1. The dividend discount model is used to estimate:

A) Book value

B) Intrinsic value of stock

C) Return on assets

D) Capital structure

2 / 50

2. What does SEBI stand for?

A) Securities and Equities Board of India

B) Securities and Exchange Board of India

C) Stock Exchange Board of India

D) Securities Evaluation Board of India

3 / 50

3. A cyclical industry is one that:

A) Is unaffected by economic cycles

B) Grows exponentially

C) Rises and falls with economic cycles

D) Has stable demand

4 / 50

4. Which type of financial instrument gives voting rights to holders?

A) Preference Shares

B) Bonds

C) Equity Shares

D) Debentures

5 / 50

5. The P/E ratio of a company is calculated as:

A) EPS / Price

B) Price / EPS

C) ROE / EPS

D) Price / Book Value

6 / 50

6. Earnings Per Share (EPS) is calculated as:

A) Net profit / Total revenue

B) Net profit / Number of shares outstanding

C) EBIT / Total shares

D) Net worth / Total assets

7 / 50

7. What does GDP stand for?

A) Gross Developed Product

B) Government Domestic Product

C) Gross Domestic Product

D) General Domestic Performance

8 / 50

8. Which financial statement shows a company's profitability over a period?

A) Balance Sheet

B) Cash Flow Statement

C) Income Statement

D) Trial Balance

9 / 50

9. NAV stands for:

A) Net Average Volume

B) Net Asset Value

C) Notional Allocation Value

D) Net Annual Value

10 / 50

10. Top-down approach in equity research starts with:

A) Company Analysis

B) Peer comparison

C) Macroeconomic Analysis

D) Technical Indicators

11 / 50

11. The issuer of a bond is also known as the:

A) Underwriter

B) Borrower

C) Trustee

D) Depositor

12 / 50

12. Which of the following is a secondary market activity?

A) IPO issuance

B) FPO issuance

C) Buying shares from a stock exchange

D) Private placement

13 / 50

13. Porter’s Five Forces is used in:

A) Technical analysis

B) Industry analysis

C) Time value of money calculations

D) Auditing procedures

14 / 50

14. Which of the following is a characteristic of a primary market?

A) Trades are settled instantly

B) New securities are issued

C) It involves only debt instruments

D) Only government securities are traded

15 / 50

15. Which mutual fund scheme is best suited for conservative investors?

A) Equity Growth Fund

B) Sector Fund

C) Debt Fund

D) ELSS

16 / 50

16. Which of the following best describes the role of a research analyst?

A) Only buys and sells stocks on behalf of clients

B) Prepares research reports and makes investment recommendations

C) Handles accounting for listed companies

D) Audits investment portfolios

17 / 50

17. If risk-free rate = 5%, beta = 1.2, and market return = 12%, expected return using CAPM is:

A) 13.4%

B) 12.4%

C) 15.0%

D) 8.0%

18 / 50

18. Beta measures a stock’s:

A) Total risk

B) Diversifiable risk

C) Systematic risk

D) Credit risk

19 / 50

19. Which of the following is a quantitative metric?

A) Corporate culture

B) Management quality

C) Debt-Equity Ratio

D) Board composition

20 / 50

20. Which of the following typically increases during an economic expansion?

A) Unemployment rate

B) Corporate earnings

C) Inflation-adjusted bond yields

D) Bankruptcy filings

21 / 50

21. Which ratio is used to evaluate a company’s liquidity?

A) Debt-Equity Ratio

B) Interest Coverage Ratio

C) Current Ratio

D) ROCE

22 / 50

22. Which of the following increases the present value of future cash flows?

A) Higher discount rate

B) Lower discount rate

C) Higher inflation

D) Lower terminal value

23 / 50

23. Which of the following is NOT a responsibility of a research analyst?

A) Portfolio Management

B) Company Analysis

C) Sector Analysis

D) Report Writing

24 / 50

24. Which component of ROE reflects the efficiency in using assets?

A) Net Profit Margin

B) Asset Turnover

C) Financial Leverage

D) Retention Ratio

25 / 50

25. Which of the following is NOT a component of GDP?

A) Consumption

B) Investment

C) Imports

D) Inflation

26 / 50

26. Which organization publishes the Consumer Price Index in India?

A) SEBI

B) RBI

C) NSO

D) NITI Aayog

27 / 50

27. Research analysts in India are regulated by:

A) RBI

B) SEBI

C) IRDA

D) NSE

28 / 50

28. Which is not a type of debt instrument?

A) Bond

B) Debenture

C) Treasury Bill

D) Equity Share

29 / 50

29. Research report disclosures are mandated by:

A) RBI

B) SEBI (Research Analyst) Regulations, 2014

C) Companies Act

D) ICAI

30 / 50

30. Which indicator is considered a leading indicator of the economy?

A) GDP

B) Unemployment rate

C) Stock market index

D) Inflation rate

31 / 50

31. Which of the following methods is used in relative valuation?

A) DCF

B) P/E Ratio

C) Dividend Discount

D) Residual Income Model

32 / 50

32. Which of the following is NOT a key financial ratio for company analysis?

A) P/E Ratio

B) Current Ratio

C) Interest Coverage Ratio

D) Fiscal Deficit Ratio

33 / 50

33. Market capitalization is calculated as:

A) Total assets / number of shares

B) Share price × number of shares outstanding

C) Net income × P/E ratio

D) Book value per share × EPS

34 / 50

34. Monetary policy in India is primarily controlled by:

A) Ministry of Finance

B) SEBI

C) RBI

D) NITI Aayog

35 / 50

35. Corporate governance analysis falls under which category?

A) Quantitative

B) Technical

C) Qualitative

D) Fundamental

36 / 50

36. Which is NOT part of the code of conduct under SEBI Research Analyst Regulations?

A) Honesty and integrity

B) Fair presentation of research

C) Front-running trades

D) Professional competence

37 / 50

37. Which ratio measures a company’s ability to pay interest?

A) Quick Ratio

B) Interest Coverage Ratio

C) Current Ratio

D) Gross Margin

38 / 50

38. Which term best describes an investment with fixed maturity and interest payment?

A) Equity

B) Mutual Fund

C) Bond

D) Derivative

39 / 50

39. Which is the central bank in India with the responsibility of administering the monetary policy?

A. State Bank of India

B. Reserve Bank of India

C. Central Bank of India

D. All of the above

40 / 50

40. A company with a high P/B ratio is likely to be:

A) Undervalued

B) Fairly valued

C) Asset-heavy

D) Overvalued or expected to grow

41 / 50

41. Which of the following is part of a bottom-up approach?

A) Studying GDP and inflation

B) Studying sector growth

C) Studying individual companies first

D) Studying currency trends

42 / 50

42. Which metric is most appropriate to value a loss-making company?

A) P/E Ratio

B) EV/EBITDA

C) Price/Book Value

D) Dividend Yield

43 / 50

43. Terminal value in DCF is used to estimate:

A) Intraday value

B) Value after projection period

C) Market capitalization

D) Book value

44 / 50

44. Which of the following is considered unethical for a research analyst?

A) Updating a research report

B) Trading ahead of publishing a recommendation

C) Disclosing conflicts of interest

D) Maintaining research notes

45 / 50

45. Maintaining independence and objectivity is essential to:

A) Portfolio performance

B) Analyst compensation

C) Research credibility

D) Market manipulation

46 / 50

46. Unhealthy practice in the Securities Markets includes which of the following?

A. Disclosure

B. Transparency

C. Insider Trading

D. Surveillance

47 / 50

47. Which method is based on the present value of future earnings?

A) Book Value Method

B) Relative Valuation

C) Discounted Cash Flow (DCF)

D) Technical Valuation

48 / 50

48. Which of the following is a debt instrument?

A) Equity share

B) Preference share

C) Bond

D) Warrant

49 / 50

49. Which authority was set up with the primary responsibility of promoting old age income security by establishing, developing and regulating pension funds?

A. Association of Mutual Funds in India

B. Insurance and Regulatory Development Authority

C. Pension Fund Regulatory Development Authority

D. Securities Exchange Board of India

50 / 50

50. Which of the following is NOT a part of Porter’s Five Forces?

A) Supplier Power

B) Regulatory Pressure

C) Buyer Power

D) Threat of New Entrants

Your score is

The average score is 76%

0%

This NISM Series XV mock test will help you familiarize yourself with the exam format, assess your knowledge, and identify areas that may need further study.

Remember that while mock tests can benefit practice, it’s important to understand the concepts and principles behind each question thoroughly.

Good luck with your preparation for the NISM Series XV (Research Analyst) exam!

Mock Test 1 | Mock Test 2 | Mock Test 3 | Mock Test 4 | Mock Test 5 | Mock Test 6 | Mock Test 7 | Mock Test 8 | Mock Test 9 | Mock Test 10

For the latest and most accurate information, please visit the NISM website at https://certifications.nism.ac.in/nismaol/.