WorksheetsQuizathon 2.0 - Level 1
Total questions: 40
Worksheet time: 7mins
If the RBI reduces the repo rate, what happens to bond prices?
Rise
Fall
No change
Depends on fiscal deficit
Which accounting concept ensures expenses are matched with revenues?
Prudence
Matching Principle
Going Concern
Materiality
Which valuation method is most commonly used in IPO pricing?
DCF
Relative Valuation (P/E multiples)
Residual Income
LBO
An investor earns 5% nominal return when inflation is 7%. Real return = ?
-1.87%
2%
-2%
-5%
The yield curve typically slopes upward because:
Investors demand liquidity premium
Short-term risk > Long-term risk
Central bank controls it directly
Bonds are mispriced
In financial statements, goodwill is classified as:
Tangible Asset
Intangible Asset
Current Asset
Liability
Which of these is a hedging instrument?
Forward contract
Equity share
Debenture
Mutual Fund
Which of the following is a contra-asset account?
Depreciation
Trade Payables
Equity Capital
Cash
The Put-Call Parity relationship links:
Put & Call prices with spot and forward
Dividend yield & coupon
Equity & debt valuation
Futures & options premium
A company has P/E = 20, EPS = ₹15. Market price per share = ?
₹300
₹200
₹225
₹250
Which of the following is an off-balance-sheet item?
Operating Lease
Plant & Machinery
Retained Earnings
Cash Reserve
In India, which index represents government bond yields?
SENSEX
NIFTY
NIFTY G-Sec
INDIA VIX
A stock has beta = 0.5. It is expected to be:
More volatile than market
Less volatile than market
Same as market
Uncorrelated with market
Which organization regulates commodity derivatives in India?
RBI
SEBI
FMC
NABARD
The DuPont analysis decomposes ROE into:
Profitability, Leverage, Efficiency
Profitability, Liquidity, Solvency
Earnings, Dividends, Growth
Assets, Liabilities, Equity
A company's interest coverage ratio = 1.2. This indicates:
Strong solvency
Near default risk
No debt
High profitability
WACC is minimized at:
0% Debt
Optimal Debt-Equity mix
100% Debt
100% Equity
If exchange rate goes from ₹80/USD → ₹82/USD, then:
Rupee appreciated
Rupee depreciated
Dollar depreciated
No change
In Altman Z-score, a value below 1.8 means:
Safe zone
Grey zone
Distress zone
Cannot say
The Fisher Effect links:
Nominal rates, real rates, inflation
GDP, inflation, money supply
Risk, return, volatility
Taxes, equity, debt
Which instrument is most exposed to reinvestment risk?
Zero-Coupon Bond
Coupon-Bearing Bond
Futures
Equity
Which Indian company was first listed on NASDAQ?
Infosys
TCS
Wipro
HCL
The Sharpe ratio uses:
Excess return over risk-free / Std. Dev
Excess return / Beta
Return on Assets
Market return / Alpha
If dividend payout ratio increases (other things constant), effect on sustainable growth?
Increases
Decreases
No impact
Depends on leverage
Which type of risk is measured by Value-at-Risk (VaR)?
Credit Risk
Market Risk
Operational Risk
Liquidity Risk
Which yield curve pattern often signals recession?
Upward sloping
Flat
Inverted
Humped
A perpetual bond with coupon ₹100, required return 10%. Price = ?
₹1000
₹1100
₹900
₹1200
The convexity of a bond helps explain:
Duration underestimates price change
Coupon effects
Liquidity premiums
Yield spreads
Which of the following is not a component of CAMELS rating (banks)?
Capital Adequacy
Asset Quality
Management
Marketing Strategy
Which of the following is not diversifiable through portfolio construction?
Industry risk
Market risk
Firm-specific risk
Business risk
In the CAPM equation, the beta (β) measures:
Asset's sensitivity to unsystematic risk
Asset's systematic risk relative to market
Firm's idiosyncratic volatility
Expected excess return
Which of the following is an assumption of the Black-Scholes option pricing model?
Stock returns are normally distributed
Volatility changes with time
Markets are illiquid
Arbitrage is common
The Macaulay Duration of a zero-coupon bond equals:
Half of maturity
Time to maturity
Yield to maturity
Weighted average of coupons
According to APT (Arbitrage Pricing Theory), returns are affected by:
Only market beta
Multiple risk factors like inflation, GDP growth, interest rates
Investor psychology only
Company EPS
A market is in backwardation when:
Futures price < Spot price
Futures price = Spot price
Futures price > Spot price
Spot price = 0
Creating a new company from an existing subsidiary?
Spin-off.
Split-off.
Carve-out.
Joint Venture.
Purchase/sale for short-term price gain?
Speculation
Arbitrage
Hedging
Investing
Gamma in options trading measures?
Sensitivity of delta to price changes.
Time decay.
Interest rate sensitivity.
Volatility sensitivity.
Market depth best explained as?
Ability to sustain large orders.
Total stocks listed.
Trade frequency.
Market capitalization.
What is Equity Financing?
Allows firms to borrow funds without dilution of ownership and control.
Allows firms to borrow funds with high interest rates.
Allows firms to borrow funds in exchange for some ownership and control.
Allows firms to borrow funds without any repayment obligations.
