Chapter 1 NISM VA

Which of the following is a financial goal?

When a need can be expressed in terms of the sum of money required and the time frame in which it would be needed, we call it a

Goal value =

Essential component of financial goal:

Which Among The Following Investment Avenues Does Not Offer Income On A Regular Basis?

Which Amongst The Following Asset Categories Can Also Be Purchased For Consumption Purposes Apart From Investment?

The Purchasing Power Of Currency Changes On Account Of Which Of The Following?

What Is Real Rate Of Return?

When Interest Rate In The Economy Increases, The Price Of Existing Bonds ____.

Which Of The Following Represent The Characteristics Of Real Estate?

—— Represenys Growth Oriented Asset.

—— Represenys Income Oriented Asset.

——- Provide Fixed Return In Form Of Coupon/Interst.

Debt Securities Are Subject To —— Risks.

____ Provide Highest Return If Invested For Long Run

Which Of The Following Has Highest Volatality?

Equity Investment Are Subject To —— Risk.

Which Of The Following Has Highest Liquidity Risk?

Investors Need To Have A Long Investment Horizon For Holding ——– With Volatile Returns.

———- Is The Process Of Deciding How To Distribute The Investor’s Savings Among The Various Asset Classes With Different Characteristics For Investment Purposes.

——– Means Having A Combination Of Investments In A Portfolio In Such A Way That A Fall In The Value On One Or Few Will Be Made Up By Other Investments That Are Doing Well.

Asset Allocation Linked To Financial Goals Is The Most Appropriate Form Of Asset Allocation Strategy.

Asset Allocation Vary Wiyh Stage Of Life At Which Investor Is.

An Investor With Growth And Wealth Creation In Long Term As Primary Objective Should Invest In ——.

An Investor With Regular Income Generation As Primary Objective Should Invest In ——.

Asset Allocation That Builds Purely On The Needs And Preferences Of The Individual Over The Long Term Is Called—–.

——– Strategy Can Be Defined As Active Management Portfolio Strategy That Rebalance The Percentage Of Asset Held In Various Categories In Order To Take Advantage Of Market Pricing.

—— Strategy Is Need Based And —— Strategy Is View Based.

——– Strategy Involves Active Asset Allocation And —— Strategy Involves Passive Asset Allocation.

——— Is the action of bringing a portfolio of investments that have deviated away from the targeted asset allocation back into its original allocation and to ensure that the allocation is aligned to the investor’s needs.

—– Is deviation of actual return from expected return.

—– Risk arises from the decline in value of security cash flows due to falling purchasing power of money,

Inflation Risk Is Highest In

—– Refers to the probability that borrowers will not be able to meet their commitment on paying interest and principal as scheduled.

—- Is an alpha numeric symbol that expresses the credit rating agencies assessment of the ability and intention of the borrower to meet the obligation arising from the debt.

—- Refers to the ease with which an investment can be bought and sold in the market.

Liquidity risk is highest in case of

—- Arises from the probability that income flows received from an investment may not be able to earn the same interest as the original interest rate.

If interest rate rises reinvestment risk —-

If interest rate falls reinvestment risk —-

—- Risk arises from the factors that affect the operation of business.

—- Risk incurred due to changes in the exchange rate of domestic currency relative to foreign currency.

—- Refers to the risk that bond prices will fall in response to rising interest rate and rise in response to declining interest rate.

Bond prices and interest rate have inverse relationship.

Interest rate increases bond price decline.

Interest Rate Decreases Bond Price Increases.

An investor purchases equity shares of a sugar producing company. The returns from his investment do not face

Investment in a government security issued at a fixed interest rate is subject to

An investor is choosing between two investment propositions a and b. The return from both over the last one year is the same at 12%. But a has a standard deviation of 5% and b has a standard deviation of 10%. Which of the two has a higher risk?

Risk Capacity Means

Risk Attitude Means

Risk Tolerance Means

In which of the following investor cashflow is unknown?

Which of the following is a fixed income scheme?

Which of the following are ways of investing in real estate?

Which of the following are ways of investing in commodity?

The returns on investment without factoring inflation is known as—

—— Is a general rise in prices of goods and services over a period of time.

—— Is the periodic rate of return on an investment after adjustment for inflation.

Real Rate=

Which of the following behavioural biasness can be understood from the statement below: “Most people rely on examples or experiences that come to mind immediately while analysing any data, information, or options to choose from.”

Which of the following behavioural biasness can be understood from the statement below: “Tendency to look for additional information that confirms to their already held beliefs or views”

Which of the following behavioural biasness at times prevents one from exploring better opportunities, as well as from a meaningful diversification. herd

—- Theory assumes that losses and gains are valued differently, and thus individuals make decisions based on perceived gains instead of perceived losses.

—- Which is the tendency for individuals to mimic the actions (rational or irrational) of a larger group

The impact of recent events on decision making can be very strong. This applies equally to positive and negative experiences. Which behavioural biasness it represent?

It leads one to believe that one is far better than others at something, whereas the reality may be quite different. . Which behavioural biasness it represent?