Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Strategic Financial Management Total Number of Question: 40 Time: 41 Minutes Please check your email after completion of test for result. All the best... Name Phone No Email Area Pin Code 1. An Indian company exports goods worth $80,000. The spot rate is ₹82/USD, and the forward rate for 3 months is ₹81/USD. If the company hedges using a forward contract, what will be the total INR receipt? ₹6,480,000 ₹6,560,000 ₹6,400,000 ₹6,450,000 None 2. A trader expects the GBP/INR rate to fall from ₹104 to ₹102. He sells GBP 10,000 in the spot market. What will be his profit in INR? ₹20,000 ₹10,000 ₹30,000 ₹25,000 None 3. If the interest rate in the US is 3% and in India is 6%, according to Interest Rate Parity (IRP), will INR appreciate or depreciate? Appreciate Depreciate None 4. A US-based company has an INR payable of ₹5,000,000 due in 6 months. The current INR/USD rate is ₹82. If it hedges using a forward contract at ₹83/USD, what is the total USD payment? $60,241 $61,000 $60,000 $59,500 None 5. A futures contract on crude oil has a spot price of ₹5,500 per barrel and a futures price of ₹5,700 per barrel. If an investor buys 100 barrels, what is the total profit or loss if the spot price at maturity is ₹5,800 per barrel? ₹10,000 profit ₹8,000 loss ₹5,000 profit ₹15,000 profit None 6. An investor writes a call option with a strike price of ₹1,200 and receives a premium of ₹40. If the stock price rises to ₹1,250, what is his net loss per share? ₹10 ₹50 ₹40 ₹30 None 7. A European call option has a strike price of ₹500, a market price of ₹520, and an option premium of ₹15. What is the intrinsic value? ₹20 ₹10 ₹15 ₹5 None 8. An investor buys a futures contract at ₹1,800. If the closing price after a day is ₹1,750, what is the daily settlement amount if each contract is for 100 units? ₹5,000 loss ₹3,000 profit ₹5,000 profit ₹3,000 loss None 9. A company evaluates a project with a cost of ₹600,000 and cash inflows of ₹200,000 per year for 4 years. The required rate of return is 10%. What is the NPV? ₹73,157 ₹85,200 ₹65,430 ₹90,000 None 10. A firm is considering a project requiring an investment of ₹1,000,000 and will generate annual cash flows of ₹250,000 for 5 years. The Payback Period is: 4 years 5 years 3 years 2.5 years None 11. If the Internal Rate of Return (IRR) of a project is greater than the cost of capital, the project should be: Accepted Rejected None 12. A project has a required investment of ₹500,000 and will generate cash inflows of ₹150,000 per year for 5 years. If the discount rate is 10%, what is the profitability index (PI)? 1.3 1.5 1.2 1.4 None 13. A portfolio consists of two stocks: Stock A (60%, return 12%) and Stock B (40%, return 8%). What is the portfolio return? 10.4% 9.6% 11.2% 8.8% None 14. A stock has a beta of 1.5. If the risk-free rate is 5% and the market return is 12%, what is the expected return using CAPM? 15.5% 12% 18.5% 17.5% None 15. A stock’s standard deviation is 20%, and its correlation with the market is 0.8. If the market's standard deviation is 15%, what is its beta? 1.07 1.12 1.05 1.15 None 16. A portfolio has an expected return of 12% and a standard deviation of 10%. The risk-free rate is 5%. What is the Sharpe ratio? 0.7 0.6 0.8 0.9 None 17. A company in India has a receivable of $100,000 in 3 months. The spot rate is ₹81/USD, and the 3-month forward rate is ₹80/USD. If the company uses a forward contract to hedge, what will be its total receipt in INR? ₹8,100,000 ₹8,000,000 ₹8,200,000 ₹7,800,000 None 18. A US investor wants to convert ₹1,000,000 into USD. The spot rate is ₹82/USD. What is the amount in USD after the transaction? $12,195.12 $11,524.39 $12,000.00 $12,500.00 None 19. A company has USD receivables of $500,000, and the spot rate is ₹83/USD. If the Indian Rupee strengthens to ₹81/USD, what is the impact on the company’s receivables in INR? Decrease of ₹1,000,000 Increase of ₹1,000,000 No change Decrease of ₹500,000 None 20. An investor buys a call option on a stock with a strike price of ₹250, and the premium is ₹15. If the stock price rises to ₹280, what is the net profit? ₹35 ₹20 ₹30 ₹50 None 21. A stock has a dividend yield of 3%, and its price is ₹1,000. If an investor buys a call option with a premium of ₹40 and a strike price of ₹1,050, what is the break-even point? ₹1,090 ₹1,050 ₹1,040 ₹1,080 None 22. A European put option has a strike price of ₹1,000 and an option premium of ₹60. The stock price at expiry is ₹950. What is the intrinsic value? ₹50 ₹60 ₹100 ₹80 None 23. A futures contract on silver has a spot price of ₹75,000 per kg and a futures price of ₹76,000 per kg. If an investor buys 10 kg, what is the total profit or loss if the spot price at maturity is ₹77,000 per kg? ₹10,000 profit ₹50,000 profit ₹20,000 profit ₹10,000 loss None 24. A project requires an initial investment of ₹2,500,000 and is expected to generate cash inflows of ₹800,000 per year for 4 years. If the required rate of return is 12%, what is the NPV of the project? ₹1,140,110 ₹1,200,000 ₹1,300,000 ₹1,100,000 None 25. A company evaluates a project with a net cash inflow of ₹200,000 annually for 5 years. The cost of capital is 10%. The initial investment is ₹800,000. What is the Payback Period? 4 years 3 years 2 years 5 years None 26. If the Internal Rate of Return (IRR) of a project is 15% and the cost of capital is 12%, the project should be: Accepted Rejected Revised Deferred None 27. A project costs ₹2,000,000 and generates ₹500,000 in net cash inflows annually for 6 years. The cost of capital is 8%. What is the Profitability Index (PI)? 1.2 1.4 1.3 1.1 None 28. A portfolio consists of two assets: Asset A with a weight of 40% and a return of 10%, and Asset B with a weight of 60% and a return of 6%. What is the expected return of the portfolio? 7.2% 8.4% 7.6% 8% None 29. The market portfolio has an expected return of 12% and a standard deviation of 15%. An investor holds a portfolio with a beta of 1.2. What is the expected return of the portfolio according to the Capital Asset Pricing Model (CAPM)? 15.6% 16.4% 13.6% 14.4% None 30. A portfolio has an expected return of 12%, a standard deviation of 20%, and the correlation coefficient with the market is 0.9. The market's standard deviation is 18%. What is the portfolio’s beta? 1.1 0.9 1.2 1.0 None 31. The risk-free rate is 4%, the market return is 10%, and an investor holds a portfolio with a beta of 1.5. What is the portfolio’s expected return using CAPM 11% 12% 13% 14% None 32. A company is required to pay €200,000 in 3 months. The spot rate is ₹90/€, and the 3-month forward rate is ₹89/€. What is the amount to be paid in INR if the company uses a forward contract to hedge? ₹17,800,000 ₹18,000,000 ₹17,500,000 ₹18,200,000 None 33. A company in India has a payable of $50,000 in 6 months. The spot rate is ₹82/USD, and the 6-month forward rate is ₹80/USD. If the company hedges the payable using a forward contract, what will be the amount paid in INR? ₹4,100,000 ₹4,000,000 ₹4,200,000 ₹4,300,000 None 34. An investor buys a put option on a stock with a strike price of ₹500, and the premium is ₹20. If the stock price falls to ₹450, what is the profit? ₹30 ₹50 ₹20 ₹40 None 35. A futures contract on gold has a spot price of ₹55,000 per ounce and a futures price of ₹56,000 per ounce. If an investor buys 5 contracts (each contract is for 10 ounces), what is the total profit or loss if the spot price rises to ₹57,000 per ounc ₹500,000 profit ₹200,000 profit ₹100,000 profit ₹300,000 profit None 36. A company has an investment opportunity that requires an initial investment of ₹3,000,000 and generates net cash inflows of ₹800,000 annually for 6 years. The cost of capital is 10%. What is the NPV of the project? ₹1,000,000 ₹1,200,000 ₹1,500,000 ₹1,400,000 None 37. A project costs ₹2,500,000 and is expected to generate cash flows of ₹600,000 per year for 5 years. The cost of capital is 12%. What is the Payback Period 4 years 3 years 5 years 4.5 years None 38. A portfolio consists of two assets: Asset X (weight = 40%, return = 15%) and Asset Y (weight = 60%, return = 10%). What is the expected return of the p 11.5% 12% 13% 14% None 39. An investor holds a portfolio of two assets: Asset A with a weight of 50%, expected return of 12%, and Asset B with a weight of 50%, expected return of 8%. What is the portfolio return? 10% 11% 9% 10.5% None 40. An investor has a portfolio with an expected return of 14%, a standard deviation of 18%, and a beta of 1.3. If the risk-free rate is 6% and the market return is 10%, what is the portfolio’s expected return using CAPM? 14% 13.8% 16.2% 15% None 1 out of 4 Great job on taking the INCOC Test! We appreciate your interest in test. Look out for results and future opportunities. Stay Connected !! Your quiz time is about to finish. Few seconds left. Time's upYou cannot switch tabs while taking this quiz!You are not allowed to switch tabs violation has been recorded.you cannot minimize full screen mode!You are not allowed to minimize full screen while taking this quiz, violation has been recorded.Access denied! To begin the quiz, please grant this quiz access to your camera.Time is Up!Time is Up!
