Section A (1 Mark)
All of the following are examples of capital expenditures except:

A. Purchasing a new police vehicle

B. Constructing a new school

C. Lawn maintenance

D. All of the above are examples of capital expenditures.

Section A (1 Mark)
Under which of the categories of asset you would put Real Estate in:

A. Growth asset

B. Income asset

C. Defensive asset

D. Safe haven asset

Section A (1 Mark)
Which of the following might be used as a factor in an APT factor model?

A. The risk-free rate

B. Expected inflation

C. Unanticipated deviations from expected inflation

D. Loss by fire at a company’s manufacturing plant

Section B (2 Mark)
As per article 12 Double Taxation Avoidance Agreement with Singapore, Royalties and fees for technical services arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.However, such royalties and fees for technical services may also be taxed in the Contracting State in which they arise and according to the laws of that Contracting State, but if the recipient is the beneficial owner of the royalties or fees for technical services, the tax so charged shall not exceed__________ per cent.

A. 10

B. 15

C. 20

D. 12

Section C (4 Mark)
Paridhi has an investment portfolio of Rs.2,00,000; the initial portfolio mix is Rs.1,00,000 in stocks, Rs.60000 bonds and Rs.40000 in bank.
If market goes up by 10% and the value of bonds decreases by 10%, what should Paridhi do under the constant mix policy?

A. She should sell Rs.8000 of stocks, buy bonds worth Rs.7200 and deposit Rs.800 in bank

B. She should sell Rs.7000 of stock and buy bonds worth Rs.3000 and Deposit Rs.2000 in bank.

C. She should buy his portfolio equally

D. She should sell his portfolio equally

Section B (2 Mark)E Which of the following is an inferential data (i.e. data which may not be correctly obtained by simply asking a direct question)?

A. Time Horizon

B. Risk appetite

C. Current Income

D. Future income requirement

Section B (2 Mark)
Calculate the expected rate of return for M/S X Ltd. from the following information:

A. 16.50%

B. 15.50%

C. 14.00%

D. 16.50%

Section A (1 Mark)
Generally speaking, high severity of losses will be accompanied by

A. High frequency of losses

B. Low frequency of losses

C. Equal frequency of losses

D. None of these

Section A (1 Mark)
After originally investing Rs10,000 and selling your investment for Rs 12,000, you reinvest the total amount and tell yourself that you will not be concerned if you lose Rs 2,000 in this new investment. You are likely demonstrating which type of judgment error?

A. Mental accounting

B. House money

C. Regret aversion

D. Sunk cost fallacy

Section C (4 Mark)
Dab Ltd manufactures, markets, and services automated teller machines. The following are selected numbers from the financial statements for 1992 and 1993 (in millions):



The firm had capital expenditures of Rs15 million in 1992 and Rs18 million in 1993. The working capital in 1991 was Rs180 million.
Estimate the cash flows to equity in 1992 and 1993. (in Rs Millions)

A. 45 and (20.5)

B. 43.60 and (21)

C. 76 and 19.55

D. 102 and 301

Section A (1 Mark)
Conflict of interest should be discussed in ________

A. Need Analysis

B. Analysis of Financial issues

C. Terms of Engagement

D. All of the above

Section A (1 Mark)
Which of the following is NOT a dimension of service quality?

A. Empathy

B. Assurance

C. Reliability

D. Competence