Section A (1 Mark)
In Private Equity, the stage where the start-up company may starts generating profits in a quarter or so or be just at the point of breaking even is called_________________

A. Late stage venture capital

B. Early stage venture capital

C. Mezzanine stage

D. Seed capital

Section B (2 Mark)
Major phases of budgeting process are:

A. Assessing Current situation and recommendation of products

B. Recommendation of products and Planning Financial direction

C. Assessing current situation and planning financial direction

D. None of the above

Section A (1 Mark)
The goal of the Dow theory is to

A. Identify breakaway points

B. Identify resistance levels

C. Identify support levels

D. Identify long-term trends

Section B (2 Mark)
Calculate the total maturity amount payable in a policy of Rs. 4,00,000/-, if the term of the policy was 17 years and bonus was Rs. 52 per thousand per annum and a final bonus of Rs. 125/- per thousand was payable.

A. Rs. 745123

B. Rs. 723231

C. Rs. 698235

D. Rs. 803600

Section B (2 Mark)
A taxpayer has taxable income for 2011-12 (after deducting the personal allowance) of £75,200. None of the income is derived from savings or dividends. The income tax liability for the year is:

A. £15,040

B. £23,080

C. £30,080

D. £37,600

Section B (2 Mark)
There are three stocks, A, B, and C. You can either invest in these stocks or short sell them. There are three possible states of nature for economic growth in the upcoming year; economic growth may be strong, moderate, or weak. The returns for the upcoming year on stocks A, B, and C for each of these states of nature are given below:



If you invested in an equally weighted portfolio of stocks A and B, your portfolio return would be ___________ if economic growth were moderate.

A. 3.00%

B. 14.50%

C. 15.50%

D. 16.00%

Section A (1 Mark)
__________ is the symptom of poor listening.

A. Listening Germinates Receptivity

B. Use correct level of language

C. Resist distractions

D. Eradicating details

Section A (1 Mark)
Which of the following is not true with respect to H model of equity valuation?

A. This model is similar to the two-stage model except that a gradual change in the growth rate is assumed rather than a sudden change.

B. The growth rate of earnings starts at a high initial rate and declines over the supernormal growth period linearly.

C. Dividend pay-out is constant over a time period and not affected by the shifting growth rates.

D. None of the above.

Section B (2 Mark)
Akash has only compulsory third party policy for his car. He jumped a red light and collided with another car and then with the boundary wall of a nearby house. Damage to his car was of Rs. 17,000/-, damage to other car was of Rs. 15,000/- and damage to the boundary wall of house was of Rs. 15,000. The insurance policy of Akash will pay:

A. Rs. 17,000

B. Rs. 15,000

C. Rs. 30,000

D. Rs. 47,000

Section A (1 Mark)
Which of the following statement is correct?

A. The doctrine of adhesion states that you can bargain or ask insurer to change the terms of the insurance contract as per your needs.

B. While applying for life insurance, it becomes your duty to disclose your past illnesses to the insurer, according principle of utmost good faith

C. While applying for life insurance, it becomes your duty to disclose your past illnesses to the insurer, according principle of insurable interest

D. While applying for life insurance, it becomes your duty to disclose your past illnesses to the insurer, according principle of subrogation

Section B (2 Mark)
After making an investment, assume that an investor overhears a news report that has negative implications regarding the potential outcome of the investment he has just executed. How likely is he to then seek information, if he exhibits self attribution bias, that could confirm that you’ve made a bad decision?

A. Very unlikely.

B. Unlikely.

C. Likely.

D. Very likely.

Section A (1 Mark)
Supporting customers through the process of selecting, purchasing, and maintaining a product or service is known as:

A. Customer loyalty

B. Customer Satisfaction

C. Customer Retention

D. Customer Services