Section A (1 Mark)
Holistic advisory services which cater to specific client segments such as entrepreneurs,
professionals are known as_______________.
A. Universal Banks
B. Family Office
C. Global Investment Banks
D. Wealth management Specialists
Section A (1 Mark)
CRM is considered as a:
A. A technology
B. A strategy
C. A strategy and technology
D. Customer rental management
Section B (2 Mark)
The current market price of a share of XYZ stock is Rs50. If a call option on this stock has
a strike price of Rs45, the call
A. Is out of the money.
B. Is in the money.
C. Sells for a higher price than if the market price of XYZ stock is Rs. 40.
D. B and C.
Section B (2 Mark)
Which of the following statements are correct with regard to Bailard, Biehl, and Kaiser Five-
Way Model?
A. I and II
B. III and IV
C. I and III
D. All of the Above
Section B (2 Mark)
The feature of the APT that offers the greatest potential advantage over the CAPM is the
______________.
A. use of several factors instead of a single market index to explain the risk-return relationship
B. identification of anticipated changes in production, inflation and term structure as key factors in explaining the risk-return relationship
C. superior measurement of the risk-free rate of return over historical time periods
D. variability of coefficients of sensitivity to the APT factors for a given asset over time
Section C (4 Mark)
A firm has a P/E ratio of 12 and a ROE of 13% and a market to book value of __________.
A. 0.64
B. 0.92
C. 1.08
D. 1.56
Section A (1 Mark)
Customer services are defined as:
A. Building company image
B. Provision of all resources and benefits to customers
C. The provision of labor and other resources
D. Increasing the value that buyer receives for their purchase
Section A (1 Mark)
Which of the following is a challenge of making a consumer loan?
A. Audited financial statements are provided by consumers quarterly
B. Consumers must disclose publicly any changes in their health that would affect the loan
C. Consumers can more easily hide pertinent information
D. Consumers can more easily adjust to financial setbacks than can businesses
Section B (2 Mark)
Mr Dixit is considering purchasing an office building for Rs. 2,500,000. He expects the
potential gross income (PGI) in the first year to be Rs. 450,000; vacancy and collection
losses to be 9 percent of PGI; and operating expenses to be 42 percent of effective gross
income (EGI). What is the (effective) gross income multiplier?
A. 6.3
B. 6.1
C. 6.45
D. 6.8
Section A (1 Mark)
Unabsorbed depreciation can be carried forward for ____________.
A. 8 Years
B. 4 Years
C. Indefinite
D. None
Section A (1 Mark)
A cognitive heuristic in which decisions are made based on an initial 'anchor__________
A. Anchoring and Adjustment Bias
B. Ambiguity Bias
C. Confirmation bias
D. Overconfidence Bias
Section A (1 Mark)
The price that the buyer of a put option pays to acquire the option is called the
A. Strike price
B. Execution price
C. Acquisition price
D. Premium
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