NISM Chapter 11 7%

Which amongst the following is a measure of risk adjusted returns of mutual fund scheme?

• Beta
• Standard deviation
• Sharpe ratio
• Variance

Which of the following cannot be considered for the purpose of selecting a scheme's benchmark?

• Scheme's past returns
• Scheme's asset allocation pattern
• Investment strategy of the MF scheme
• Mutual fund scheme's investment objective

Once it is finalized, a mutual fund scheme's benchmark cannot be changed at a later date.' State whether the statement is True or False.

• True
• False

Which is the most appropriate measure of evaluating how closely an index fund is tracking its benchmark?

• Asset Under Management (AUM)
• Tracking error
• Total Expense Ratio (TER)
• Treynor ratio

takes into account all dividends generated from the basket of constituents that make up the index in addition to the capital gains.

• Total Return Index
• Price Return Index
• Dividend Return Index

The difference between a scheme's actual return and its optimal return is its Alpha. State whether the statement is True or False?

• True
• False

Sharpe ratio indicates returns.

• Risk-adjusted
• High
• Both of the above
• None of the above

What is the full form of PRI?

• Price reverse Index
• Price risk index
• Price return Index
• Performance risk index

Which of the following drive the choice of benchmark in equity schemes?

• scheme type
• choice of investment universe
• portfolio concentration and underlying exposure
• All of the above

In consultation with the Trustees, which amongst the following decides the benchmark to measure the overall performance of a Mutual Fund scheme?

• Sponsors
• AMC (Asset Management Company)
• RTA (Registrar & Transfer Agency)
• Custodian