Section A (1 Mark)
_______________ is concerned with capturing, storing, extracting, integrating, processing, interpreting, distributing, using and reporting customer-related data to enhance both customer and company value.

A. Strategic

B. Operational

C. Analytical

D. Collaborative

Section A (1 Mark)
Which of the following is classified as passive income in US?

A. Bonus income

B. Gain on the sale of real estate

C. Interest income

D. Income from a limited partnership

Section B (2 Mark)
The expected returns and standard deviations of stock A and B are:



Manish buys Rs.20000 stock A and sells short Rs.10000 of stock B, using all the proceeds to buy more of stock A. The correlation between the two securities is 0.25. What are the expected return and the standard deviation of Manish’s portfolio?

A. 17%, 15.4%

B. 15.4%, 14%

C. 13%, 12%

D. 11%, 10%

Section A (1 Mark)
In US which of the following does not count as an itemized deduction on income tax?

A. The cost of utilities like water and gas

B. Theft losses

C. Gambling losses

D. None of the Above

Section A (1 Mark)
Loss of a closely held company cannot be carried and set off unless on the last day of the previous year in which the loss was incurred and as on the last day of the previous year in which such loss is set off, at least:

A. 51% of shares are beneficially held by the same persons

B. 50% of the shares are beneficially held by the same persons

C. 49% of the shares are beneficially held by the same persons

D. 60% of the shares are beneficially held by the same persons

Section C (4 Mark)
Suppose an investor Mr. Kishan Raj is holding ABC Ltd. currently trading at Rs. 4758. He decides to establish a collar by writing a Call of strike price Rs. 5000 for Rs. 39 while simultaneously purchasing a Rs. 4700 strike price Put for Rs. 27.
What would be the Net Payoff of the Strategy?

• If Nifty closes at 4948
• If Nifty closes at 4858

A. 54 and -46

B. 202 and 112

C. 112 and 104

D. -46 and 4

Section B (2 Mark)
____________ are good examples of the limits to arbitrage because they show that the law of one price is violated.

A. II, III and IV

B. I, III, and IV

C. I, III, and V

D. II, IV and V

Section C (4 Mark)
Read the senario and answer to the question.
Calculate the income from house property for Vinay. Municipal rental value 75000, Fair Rental value is 80000, Standard rent is 1,10,000. Municipal taxes paid for full house are Rs. 10,000 during the year. Interest paid by Vinay on borrowed money during the year is Rs. 101070.

A. Rs. 108000

B. Rs. 96,000

C. Rs. –28,970

D. Rs. –32,470

Section A (1 Mark)
In terms of the risk/return relationship

A. Only factor risk commands a risk premium in market equilibrium.

B. Only systematic risk is related to expected returns.

C. Only nonsystematic risk is related to expected returns.

D. A and B.

Section B (2 Mark)
Which of the following statements is/are correct with respect to Mental Accounting?

A. I and II

B. II and III

C. I and III

D. All of the Above

Section A (1 Mark)
For any given stock, which of the following must be true?

A. Market value > book value > par value

B. Book value > market value > par value

C. Par value > market value > book value or Par value = book value < market value

D. None of the above

Section A (1 Mark)
A company, other than an Indian Company would be a resident in India for the previous year if during that year its control and management is situated:

A. Wholly in India

B. Wholly or partly in India

C. Partly in India

D. Wholly outside India