Material Content for CAIIB - FINANCIAL MANAGEMENT MODULE - A MODEL QUESTIONS

 

CAIIB - FINANCIAL MANAGEMENT – MODULE - A

MODEL QUESTIONS  -    (SET-II)

 

 

1) Current Price of a share is Rs. 100. The economic state is as follows

Economy        Probability       Price

Growth                0.6                130

 Recession           0.4                  90

       Calculate the expected return for the stock

a)      10%

b)      15%

c)      14%

d)      16%

 

2) What is the N P V of the following at 15%

    C  A  S  H   F  L  O  W  S

  t = 0               t = 1             t = 2

-120,000         -100,000        300,000

a)      19,887

b)      80,000

c)      26,300

c)      40,000                                                                                         

 

3) An investment at 12% compound monthly is equal to annual rate

a)      12.68%

b)      12.26%

c)      12%

d)     12.36%                                                        

 

4) In theory of Sampling  “ the larger the size of the sample the greater the accuracy” is based on

a)      law of Statistical regularity

b)      law of Inertia of large numbers

c)      law of Statistical imperfection

d)      law of large numbers          

 

5)  If P = 0.5

        Q = 0.5

        σ =  0.05

      Find the sample size

  a)  1000

  b)  100,000

  c)   100

  d)   10,000        

 

6)  In finding a sample of good & bad students asking students themselves Whether they are good or bad is a case of bias. Which of the following does the bias fall into

a)  faulty process of selection

b)  faulty work during collection of data

c)  faulty method of analysis

d)  wrong choice of subject    

 

7)  When we want to study some unknown traits of a population , we use

a)  cluster sampling

b)  stratified sampling

c)  judgment sampling

d)  systematic sampling

 

8)  Which of the following is not a restricted random            sample

a)  judgment sampling

b)  stratified sampling

c)  systematic sampling

d)  cluster sampling                                 

 

9)   Which one of the following is not true

a) probability sampling depends upon existence of              detailed    information                                                         i.      about the universe for its existence

b)  probability sampling provides estimates which are essentially unbiased                                                            i.      & have reasonable precision

c)   probability sampling requires a high level of skill and experience for its                                                          i.      use

d)  it is possible to evaluate the relative efficiency of various sample                                                                  i.      designs of various sample is used      

 

 

10)  In Correlation analysis which of the following is true

a)   the correlation may be due to pure chance                   in a small sample

b)  correlation analysis tell us about cause & effect of relationship

c)  correlation analysis does not tell us  about degree of relationship

d)  correlated variables cannot be influenced other variables              

 

11)  From the following data identify the correct alternative

X   10   20  30  40  50

Y    20  35   50  75 90

a)  positive & linear

b)  positive & curvilinear

c)  negative & linear

d)  negative & curvilinear                                                                

 

12) In the following X and Y are independent & dependent variables.

Read the figures and answer.

                 X   1   2   3   4                          

                 Y   5  13  12 25

a) there is no correlation between X & Y

b) there is +ve correlation between X & Y

c) there is –ve correlation between X & Y

d) there partial correlation between X & Y


13) In a study it was noticed that average height of sons of tall fathers is less                                                i.     than that of the fathers and vice versa . This is due to

a)  extension

b)  progression

c)  regression

d)  hypertension                                                                               

 

14)   Co-efficient of determination = r2 = explained variation

       Total variation

       Co-efficient of correlation = r

       while r explains completely the relationship between        the  variables, r2  does  not , because

a)  r2  is less than 1

b)  r2  is always +ve

c)  r2 is always -ve

d) r2  as per formula cannot explain direction       

 

15)  For a normal distribution which of the following is true

a) mode < mean < median

b)  mode > mean > median

c)  mean < median < mode

d) mean = median = mode

 

16)  Under a normal curve mean + 1.96σ is an area. Choose the correct one from the following                

a)  95.45% area

b)  68.27% area

c)   95.00% area

d)   99.73% area            

 

17)  In a normal curve the area between  z = -0.4 & z =       0.6 is

a) 0.1554

b) 0.2257

c) 0.3811

d) 0.4267   

 

18)  In a normal distribution 7% of items are under 35  then what % are between mean and 35

a) 93%

b) 65%

c) 43%

d) 86%

 

19)  In a normal distribution for incomes mean = 750

Std deviation = 50  Population = 10,000

What is z value for income exceeding 650

a)      -2.00

b)      -1.50

c)      -1.25

d)      - 1.75                                                               

 

In an aptitude test administered to 1000 students the average scores was 42 & Std. Dev. = 24. Answer the following questions( 24 to 27)

 

20)  The number of students exceeding 50 marks

a) 370

b) 670

c) 500

d) 250

 

21)  Students lying between 30 & 54 marks

a)   383

b)   463

c)   373

d)   293                           

 

22) Value of scores exceeded by top 100 students

a)  70%

b)  60%

c)  73%

d)   5%                                                               

 

23) No. of students getting scores < 50

a)  600

b)  540

c)  630

d) 660                                                                 

 

24) Seasonal variations do not appear in annual figures  since

a)   they occur infrequently

b) they are cycles which occur repeatedly over    relatively short duration

c)   figures may not be of requisite accuracy 

d) it is difficult to index the figures                                                    

 

25) The fall in demand for automobiles causing closure of       factory is  case of

a)  seasonal variation

b)  cyclical variation

c)  irregular variation

d)  secular  trend                                                             

 

26) In the analysis of time series which of the following adjustments is  not done while drawing up an index for de-seasonalising

a)      calendar variation

b)      population changes

c)      price changes

d)      coding                                                       

 

 Read the following data  and fill in the blank

 Year                  production              moving average for 3 years

1990                                                          10                           

1991                                                          20                                    20

1992                                                          30                                    30     

1993                                                          40                                    40

1994                                                          50                                    __    

1995                                                          75

 

a)      50

b)      55

c)      60

d)     65                                                                            

 

27) A sampling ratio of 0.10 was used in a sample survey when population Size was 50. What is the finite population multiplier .

a)      0.968

b)      0.10

c)      1.10 

d) cannot be calculated from the given data                              

 

28) As the confidence level increases for a confidence interval the width of the interval 

      a) Increases                                                                                  

b)  decreases

c)  remains unchanged

d)  a) or b)      

 

29) Trend equation is Y =  25 + 0.4X, where Y is production figures,

X is 1 year unit. Origin is 1960; shift origin to 1st Jan. 1961.

The trend eqn. will now read as

a)  Y = 12.5 + 0.4X

b) Y =  25    + 0.2X

c) Y =  25     + 0.8X

d)Y  =  12.5  +  0.2X                                               

 

30)  A bond holder of a company has one of the following relationship with It .Identify

a)      shareholder

b)      depositor

c)      creditor

d)      employee

 

31) The relationship between the bond prices and interest rates is one of the Following

a) direct & linear

b) inverse & linear

c) direct and curvilinear

d) no relationship                                                  

 

 

A toy manufacturer produces bicycles(x) & scooters(y).

Read the following data and answer:

Max. availability of machines is 12 hrs and x takes 2 hrs. and y takes 4 hrs

to make.  The total cost of x & y is Rs. 400 & 12000 respectively.

The sale prices of x & y are Rs. 700 & 16000 respectively.

The amount available for daily production is Rs. 28000.

Labour available is for 16 hrs. labour requirement for x & y is 4 & 12 hrs

respectively

Choose the correct option from each of the following ( 32 to 35 )

 

32) production constraint

a)x + 2y ≤ 6

b) 4x + 2y ≤ 12

c)2x + y   ≤ 6

d) 9x = 6y ≤ 12      

 

33) Financial constraint

a)   4x + 120y ≤ 280

b)   4x + 12y   ≤ 28

c)   12y + 4x   ≤ 28

d)120x + 4y ≤280                                                                 

 

34)Labour constraint

a)   12x + 4y ≤ 16

b)   x + 3y     ≤ 4

c)   3y + x     ≤ 4

d)4x+12y≤16                                                                     

 

35)  Profit equation

a)   7x     +   160y

b)   160x +       7y

c)   700x + 1600y

d)  70x   +   160y            

 

 

The trend equation is Y = a + b X

If N = 7, ∑Y = 619, ∑X = 0, ∑XY = 141, ∑X2 = 28

                        Answer the following( 36 to 39)

 

36) Value of a is

a)   66.27

b)   85.55

c)   88.43

d) 74.27                                                                                      

 

37)  Value of b is

a)   2.67

b)   5.04

c)   3.45

d)5.75                                                                                       

 

38)  Equation Y = a + bX is

a)   Y = 66.27 + 2.67X

b)   Y = 85.55 + 3.45X

c)   Y = 88.43 + 5.04X

d)  Y = 85.55 + 5.75X                                                             

 

39)  The monthly trend eqn. is

a)   Y = 5.52 + 0.2225X

b)   Y = 7.37 + 0.2875X

c)   Y = 7.37 + 0.035X

d)  Y = 7.13 + 0.40X       

 

40)    What is sampling for groups with considerable variation within but similar to each other  called ?

a)      cluster

b)      stratified

c)      systematic

d)     random

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