Section B (2 Mark)
There are two parties to Power of Attorney, namely, Donor and Donee.

A. Both (i) & (ii) are correct

B. Only i is correct

C. Only ii is correct

D. Both (i) & (ii) are incorrect

Section B (2 Mark)
Which of the following statements is / are correct?

A. I, II and III

B. I,III and IV

C. II, III and IV

D. All of the above

Section A (1 Mark)
……………………is a gift in the form of a single transfer to the same person of several things of which one is and the others are not burdened by an obligation, the done can take nothing by the gift unless he accepts if fully.

A. Simple gift

B. English gift

C. Onerous gift

D. Universal gift

Section C (4 Mark)
In addition to social security benefits of $6,000, Mr. and Mrs. Lopez have adjusted gross income of $36,000, tax-exempt interest of $1,000 and will file a joint return.
Determine the taxable portion of their social security benefits.

A. $3,000

B. $4,500

C. $4,000

D. $7,000

Section C (4 Mark)
Consider a three-month futures contract on gold. The fixed charge is Rs.310 per deposit and the variable storage costs are Rs.52.5 per week. Assume that the storage costs are paid at the time of deposit. Assume further that the spot gold price is Rs.15000 per 10 grams and the risk-free rate is 7% per annum. What would the price of three month gold futures if the delivery unit is one kg? Assume that 3 months are equal to 13 weeks.

A. 15,27,491

B. 16,24,511

C. 17,41,200

D. 15,00,200

Section B (2 Mark)
A stock with a Beta of 0.7 currently priced at Rs 50 is expected to increase in price to Rs 55 by year end and pay Rs 1 as dividend. The expected market return is 15% and the risk free rate is 8%. The stock is:

A. Overpriced, so do not buy it

B. Underpriced, so buy it

C. Properly priced so buy it

D. Properly Priced so do not buy it

Section A (1 Mark)
The way to reduce tax liability by taking full advantage provided by the Act is

A. Tax Evasion

B. Tax Planning

C. Tax Management

D. Tax Avoidance

Section A (1 Mark)
Which of the following is an effective strategy in times of falling interest rates?

A. Use long-term loans to take advantage of current low rates.

B. Use short-term loans to take advantage of lower rates when you refinance the loans.

C. Select short-term savings instruments to take advantage of higher rates when they mature.

D. Select short-term savings instruments to lock-in earnings at current high rates.

Section B (2 Mark)
Which of the following statements is/are correct with respect for Resident Senior Citizen i.e. who is of an age of 60 years and above, but below 80 years?

A. I and II

B. I and IV

C. Only III

D. All of the above

Section A (1 Mark)
If a certain stock has a beta greater than 1.0, it means that

A. The stock's return is more volatile than that of the market portfolio.

B. An investor can eliminate the risk by combining it with another stock that has a negative beta.

C. An investor will earn a higher return on his stock than that on the market portfolio.

D. The stock is less risky than the market portfolio.

Section A (1 Mark)
From the following data calculate the expected rate of return of a portfolio in which A and B has weights equally:

A. 12

B. 17

C. 14

D. 11

Section A (1 Mark)
Which of the following can be the underlying for a commodity derivative contract?

A. Interest Rate

B. Euro-Indian Rupee

C. Gold

D. NIFTY