Wealth Management

Rehan held an investment for 9 months. To annualize the return, the absolute return must be multiplied by:

• 12/9

• 365/9

• 9/12

• 12/365

If a stock’s PE is higher than the industry average, it typically indicates:

• Undervaluation

• Overvaluation

• Strong balance sheet

• Low earnings

Which of the following is a value stock?

• A stock with a PE lower than the industry

• A stock with a high growth rate

• A stock with high beta

• A stock with high P/B ratio

The SI (Sum Insured) in a hospitalization policy is ₹4 lakh. The room rent limit is 1% per day. If the insured stays for 6 days and pays ₹7,000 per day, how much will be borne from his pocket under room rent category?

• 12000

• 18000

• 9000

• 6000

A 9% coupon bond is callable in 3 years. If interest rates fall to 6% at that time, the issuer will most likely:

• Re-issue at the same rate

• Exercise the call option

• Not exercise the call option

• sell the bond in secondary market

A low financial leverage ratio typically implies:

• Higher equity financing

• Higher interest burden

• Increased default risk

• Reduced asset turnover

An investor expecting a price increase in the future would buy

• A Put Option

• A call Option

• A Neutral option

• A Futures Contract

HUF are not eligible to invest in or operate which of the following?

• Life Insurance

• Mutual Fund

• Fixed Deposite

• Post Office MIS

Anu missed 3 consecutive RD Installments (20,21,22). What Happens?

• The Account will be discontinued but may be revived

• Account will be closed and PV will be transferred to account

• Account will get inactive

• Account cannot be revived.

Which among these is a secured loan?

• Personal Loan

• Car Loan

• Credit Card

• Education Loan ( without Collateral)