All the following statements concerning unsystematic risk are correct EXCEPT:

A. It cannot be reduced by diversification.

B. It is that portion of total risk that is unique to the particular firm.

C. It may be affected b changes in consumer preferences and the competence of the firm’s management.

D. Such risk may be independent of factors affecting other industries

P Ltd sets the target to produce 1000 tones of steel during the next six months to recover the cost but there is a possibility that due to strikes and lockouts the targeted output may not be archived. What type of risk is associated with the production process?

A. Pure Risk

B. Speculative Risk

C. Liability Risk

D. All the above

The Indian Taxation System by nature is...........

A. Assertive

B. Regressive

C. Progressive

D. None of the above

Which of the following statement(s) is /are true about financial risk?

A. I and II

B. II and III

C. I and III

D. All of the above

If the slope of the Security Market Line is zero, which of the following is/are true?

A. Only (I) above

B. Only (III) above

C. Both (II) and (III) above

D. All (I), (II) and (III) above.

Hybrid plans are

A. Combination of DB & ESOP plan

B. Combination of DB & DC plan

C. Combination of ESOP and Money purchase plan

D. None of the above

Which of the above mentioned could be reduced after appropriate diversification?

A. Market risk (systematic risk)

B. Unsystematic risk (company specific risk)

C. Political risk

D. Inflation risk

Handing over Warehouse Receipt is an example of ________.

A. Constructive Delivery

B. Actual delivery

C. Intangible delivery

D. None of the above

The length of the insurance industry’s business cycle is shortened because of

A. Regulatory provisions

B. High specialization

C. Easy entry and exit conditions

D. None of these

Which of the following feature differentiates a commodity futures contract from a financial futures contract?

A. Exchange traded product

B. Standardized contract

C. MTM settlement

D. Varying quality of underlying asset

Minimum number of independent directors on the board of asset Management Company is

A. 50%

B. 60%

C. 75%

D. 66.67%

A testator sometimes make two wills one relating to his property in his native country and other relating to his property in some foreign country this type of will is called

A. Duplicate will

B. Sham will

C. Holograph will

D. Concurrent will