Investment Planning India Chapter 4

“—has been vigilant in sensitizing member nations on scenarios of mis-selling of financial products including complex ones unsuitable to the consumer’s risk profile.

Which of the following are component of financial planning?

What makes an goal SMART?

The vehicle of insurance is used to—- the risk

The amount of life insurance cover required depends upon the economic value that can be attached to human life. This is called the ——-

“—— are add-ons to the basic insurance policy to supplement the insurance cover provided.

What do you mean by estate planning?

—– is a “legal declaration of the intention of the testator with respect to his property which he desires to be carried into effect after his death.”

A— is an obligation annexed to the ownership of property and arising out of a confidence reposed in and accepted by the owners or declared and accepted by him for the benefit of another or of another and the owner.

—-refers to the analysis of clients’ current financial situation, identification of their financial goals, and developing and recommending financial strategies to realize such goals.

The financial advisor need not to analyse the client’s current financial position to make financial planning decision of client.

The financial advisor should take into consideration the contingency situation that may arise in future while making financial plan of client.

The financial planning professional prefers to diversify the income stream of client during retirement years to obviate the dependence of client on a single source of income.

The standard deviation of returns for Stock S and Bond B are 20% and 8% respectively. If the correlation between the two stocks is 0.50, a portfolio consisting of 50% invested in Stocks and 50% in Bonds has a standard deviation closest to:

Which one of the following best illustrates a correctly-stated client’s SMART goal?

Regarding Strategic asset allocation, which of the following statement is true?

The slope of the security market line (SML) represents the portion of an asset’s expected return attributable to:

The lowest risk is most likely associated with the following mutual fund type:

To what investment risk may a bond be subject if it is not held to maturity that will not be present if it is held to maturity?

What is most likely not an advantage of an ETF?

A diversified portfolio will most likely result in the reduction of:

What behavioural bias is an individual most likely exhibiting when they have unrealistically positive self-evaluations relative to the people around them?

Which of the following equations correctly identifies the process to determine a company’s liquidity ratio?