Section A (1 Mark)
____________ may be responsible for the prevalence of active versus passive investments management.

A. Forecasting errors

B. Overconfidence

C. Mental accounting

D. Conservatism

Section B (2 Mark)
When returns to an investor’s portfolio increase, to what does he believe the change in performance is mainly due (if the investor exhibits self attribution bias)?

A. His investment skill.

B. A combination of investment skill and luck.

C. Luck.

D. None of the above

Section B (2 Mark)
___________, the net profit margin realized by the enterprise from an international transaction entered into with an associated enterprise is computed in relation to cost incurred or sales affected or assets employed or to be employed in the enterprise or having regard to any relevant base.

A. Transactional Net Margin Method

B. Cost-Plus Method

C. Profit Split Method

D. All of the Above

Section B (2 Mark)
Reliance Ltd. has issued a preferred stock that pays Rs.10 per share. The dividend is fixed and the stock has no expiration date. What is the intrinsic value of Reliance Ltd. stock, assuming a discount rate of 14%?

A. Rs. 61.75

B. Rs. 75.75

C. Rs. 71.42

D. Rs. 62.26

Section A (1 Mark)
Correlate, combine, cognize and __________ are the four C’s of CRM Process

A. Connect

B. Customer

C. Consumer

D. None of the given options

Section A (1 Mark)
A general theoretical perspective in social psychology concerned with the issue of social perception. is known as_____________

A. Utility Theory

B. Attribution Theory

C. Prospect Theory

D. None of These

Section C (4 Mark)
Read the senario and answer to the question.
During identification of new business opportunities, one of Harish’s friends Shekhar has offered him a business proposal. In this proposal a partnership firm consisting of two partners, Harish and Shekhar, shall take the franchise of a company which is a reputed brand in the field of pathology lab in which their investment and profit sharing ratio shall be equal.
Franchise rights shall be valid for 5 years and the project requires an upfront investment of Rs. 25 lakh for required infrastructure. The franchisee agreement has an option that the company can take over the franchisee after 5 years by charging depreciation @15% p.a. on straight line basis.
The projected profits from the firm are as follows:



Harish wants to know what IRR he will earn on his investment from this project ? (Please ignore taxes and assuming no additional investment is made during this five year period)

A. 8.20%

B. 5.17%

C. 12.27%

D. 7.82%

Section B (2 Mark)
The breakdown of commodity future returns over the past 30 days for 2 upcoming oil future contracts is given below:



What is the roll return for the period 15th September to 15th October for the contracts maturing in November and February?

A. $0.25 and $0.10

B. $0.20 and $0.15

C. $0.15 and $0.25

D. $0.10 and $0.10

Section C (4 Mark)
Read the senario and answer to the question.
Mr. Bhaitia will continue to invest Rs. 10,000 in his PPF a/c at the beginning of each year till his retirement. Then calculate how much he has to save extra at the end of per month in a scheme to achieve his retirement corpus with a yield of 10%?

A. Rs. 4507

B. Rs. 3714

C. Rs. 3745

D. Rs. 5567

Section A (1 Mark)
Marketing relationships are:

A. Intensely personal, like human relationships

B. Intended to deliver short-term customer satisfaction

C. Intended to deliver long-term customer satisfaction

D. The most important element of the marketing mix

Section B (2 Mark)
Amount of liability of payment of gratuity is calculated at the rate of

A. One month’s wage for each completed year of service

B. 20days wages for each completed year of service

C. Half a month’s wage for each completed year of service

D. 15 day’s wage for each completed year of service

Section A (1 Mark)
The __________the suggested deviation from the rational portfolio asset allocation, the _________ the need to mitigate the investor’s behavioral biases

A. Lower and Greater

B. Higher and Lower

C. Equal and Same

D. None of these