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1. A project of ROBN Ltd. has a Net Present Value (base case NPV) of ₹ 1,50,000. This project has one financial side effect; it expands the firm's borrowing power by 5,00,000. The project lasts indefinitely so it is treated as supporting perpetual debt. If the borrowing rate is 10 per cent and the net tax-shield is 35 per cent, the Adjusted Net Present Value (ANPV) of the project will be

₹ 3,25,000 ₹ 3,10,000 ₹ 2,88,000 None of the above

2. ABON Ltd.'s earning per share is 15 and growth rate of earning is 5%. The earnings growth rate is expected to stay at this level in the near future. If its payout ratio is 50% and costs of capital is 15%, what will be the market price of the share after three years? (Calculation upto two decimal places)

₹ 95-50 ₹ 91-16 ₹ 90-20 None of the above

3. The expected return from a portfolio is 16% and its variance of return (Risk Squared) is 285%. If the investor's tolerance is 60; the Risk penalty will be

5-80% 4-95% 4-90% 4-75%

4. The following particulars relate to a mutual fund scheme:

Sector	Investment in Shares (at cost) (Lakh)	Index on Purchase Date	Index on Valuation Date
IT and ITES	28	1,750	2,950
Infrastructure	15	1,375	2,475

The outstanding number of units is 1.25 lakhs. What will be the Net Asset Value (NAV) per unit?

₹ 59-36 ₹ 55-30 ₹ 54-31 ₹ 53-29

5. If the director of COMTECH Ltd. who has access to inside information is unable to use this information to make Supernormal Profits, it is a sign of

Weak form of Efficient Market hypothesis Semi-strong form of Efficient Market hypothesis Strong form of Efficient Market hypothesis Incompetence of the Director

6. EYAN Ltd. (EL) has a Beta of 0.80 with BSE 300. Each BSE 300 Futures contract is worth 100 units. BINUA anticipates a bearish market for the next three months and has gone short on Shares of 25,000 Shares of EL in the Spot Market. EL shares are traded at 100. 3 months' Future BSE 300 is quoted at 15,500. What are the numbers of BSE 300 Futures contract to be taken by BINUA if she wants to hedge price risk to the extent of 125%?

300 250 240 200

7. Buying and Selling a call and a put option with same strike prices and same expiry date is called

Straddle Box spread Strip Butterfly spread

8. When the trade open on 01.03.2023 the stock price of Rolex Ltd., is 250. It rises to 260. The March 2023, call option on Rolex Ltd. started at 25. It moved to 29. The Delta of call option of Rolex Ltd. would be

0-50 0-40 0-35 Insufficient information

9. The Slope of the Security Market Line (SML) denotes

The Risk Premium required Beta of the Security Market Volatility The influence of the unsystematic

10. Which of the following is/are the benefit(s) of Unified Payment Interface (UPI) to the merchants?

Round the clock availability Single click authentication Safer, secured and innovative In-App Payments (IAP)

11. In Porter's structural analysis, which of the following is not considered as an entry barrier?

Product differentiation Switching costs Capital requirements Low value addition

12. Which one of the following is not a Digital Asset?

Digital Printing Website Stable Coin Fintech

13. The 90-day interest rate is 1.85% in USA and 1.35% in the UK and the current spot exchange rate is $ 1.6/1£. The 90-day forward rate is

$0.62808 $1.592145 $1.607893 $1.342132

14. ZONS Ltd. Shares are traded in the Stock Market. The Standard Deviations of ZONS'S Shares and the Market are 6% and 4% respectively. If the Correlation Co-efficient for the shares with the market is 0.8, what will be Beta Co-efficient of the Company's Shares based on the CAPM?

0.90 1.00 1.20 1.50

15. RTZ Ltd. wishes to earn real rate of 10% from its project. When the inflation recorded is 7%, what is the normal rate the company would earn?

16.60% 17.70% 18.20% None of the above

Dec 23 SFM Paper