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. A company has a payable of €100,000 due in 3 months. The spot rate is ₹88/€, and the 3-month forward rate is ₹87/€. What is the total amount to be paid in INR using the forward contract? ₹8,700,000 ₹8,800,000 ₹9,000,000 ₹8,500,000 None 2. A company has a receivable of ¥20,000,000 in 6 months. The spot rate is ₹0.60/¥, and the 6-month forward rate is ₹0.62/¥. What will be the total receipt in INR using the forward contract? ₹12,400,000 ₹12,200,000 ₹12,800,000 ₹13,000,000 None 3. A company has to make a payment of $150,000 in 6 months. The current spot rate is ₹76/USD, and the forward rate is ₹75/USD. What will be the total payment in INR using the forward contract? ₹11,250,000 ₹11,500,000 ₹11,000,000 ₹12,000,000 None 4. If the exchange rate between INR and USD is ₹73/USD, how much INR will you receive if you exchange $10,000? ₹720,000 ₹730,000 ₹740,000 ₹750,000 None 5. A company has a USD receivable of $100,000 in 3 months. The current spot rate is ₹75/USD. The forward rate for 3 months is ₹74/USD. How much will the company receive in INR after 3 months using the forward contract? ₹7,500,000 ₹7,400,000 ₹7,600,000 ₹7,300,000 None 6. An investor purchases a call option on a stock with a strike price of ₹250 and a premium of ₹30. The stock price rises to ₹280. What is the net profit from the call option? ₹50 ₹40 ₹30 ₹20 None 7. An investor buys a put option with a strike price of ₹500 and a premium of ₹40. The stock price falls to ₹450. What is the profit or loss from the put option? ₹50 profit ₹60 profit ₹30 loss ₹40 profit None 8. An investor sells a futures contract for ₹50,000, and the price of the underlying asset decreases to ₹48,000. What is the profit or loss from the futures contract? ₹2,000 profit ₹2,000 loss ₹1,000 profit ₹1,000 loss None 9. A stock has a beta of 0.8. If the market return is 12% and the risk-free rate is 6%, what is the expected return of the stock according to the CAPM? 9.6% 10.4% 10.2% 11% None 10. A futures contract on crude oil has a spot price of ₹5,000 per barrel. The futures price is ₹5,200. An investor buys 10 contracts, and each contract represents 100 barrels. What is the total profit or loss if the spot price rises to ₹5,300? ₹300,000 profit ₹200,000 profit ₹100,000 profit ₹150,000 profit None 11. A project requires an investment of ₹4,000,000. It will generate annual cash flows of ₹1,200,000 for 5 years. The cost of capital is 10%. What is the NPV of the project? ₹1,160,000 ₹1,250,000 ₹1,500,000 ₹1,800,000 None 12. . A company is evaluating two mutually exclusive projects. Project A requires an investment of ₹5,00,000 and generates ₹1,50,000 per year for 5 years. Project B requires an investment of ₹4,50,000 and generates ₹1,60,000 per year for 5 years. The cost of capital is 12%. Which project should the company choose based on NPV? Project A Project B Both projects Neither project None 13. A project has an initial investment of ₹1,000,000 and generates ₹350,000 in cash flows annually for 4 years. The required rate of return is 15%. What is the Payback Period? 3 years 2.5 years 2 years 4 years None 14. A project has a cost of capital of 10%. The initial investment is ₹3,000,000, and the project generates cash flows of ₹1,000,000 annually for 4 years. What is the IRR of the project? 12% 14% 15% 16% None 15. A company has a project with an expected life of 6 years. The project requires an initial investment of ₹6,00,000 and generates ₹1,00,000 annual cash inflows. The company uses a cost of capital of 10%. What is the profitability index (PI)? 1.15 1.25 1.35 1.45 None 16. A portfolio consists of Asset X (expected return = 12%, weight = 30%) and Asset Y (expected return = 8%, weight = 70%). What is the expected return of the portfolio? 9.6% 10% 10.4% 11% None 17. The risk-free rate is 6%, and the market return is 14%. An investor holds a portfolio with a beta of 1.4. What is the expected return of the portfolio using the Capital Asset Pricing Model (CAPM)? 14.8% 15.6% 16% 17% None 18. An investor has a portfolio with an expected return of 16%, a standard deviation of 18%, and a correlation coefficient of 0.9 with the market. The market's standard deviation is 20%. What is the portfolio's beta? 0.85 1.0 1.1 1.2 None 19. A portfolio has an expected return of 18%, and the standard deviation of returns is 22%. The risk-free rate is 4%, and the market return is 12%. What is the Sharpe Ratio of the portfolio? 0.64 0.72 0.68 0.76 None 20. A stock has a beta of 1.2, and the market return is 14%. If the risk-free rate is 5%, what is the expected return of the stock according to CAPM? 16.8% 18% 17.4% 16% None 21. A company has an outstanding foreign currency loan of $200,000. The spot rate is ₹74/USD, and the 3-month forward rate is ₹73/USD. What will be the INR amount to be paid if the company settles the loan using the forward rate? ₹14,600,000 ₹14,400,000 ₹14,200,000 ₹14,800,000 None 22. A company has to pay €150,000 in 6 months. The spot rate is ₹89/€, and the 6-month forward rate is ₹88/€. What is the amount to be paid in INR if the company uses the forward contract? ₹13,200,000 ₹13,500,000 ₹13,000,000 ₹13,300,000 None 23. A company has a receivable of $500,000 in 3 months. The current spot rate is ₹75/USD, and the forward rate is ₹74/USD. What will be the total amount received in INR after 3 months using the forward contract? ₹37,000,000 ₹37,500,000 ₹38,000,000 ₹38,500,000 None 24. A company is expecting to receive ¥10,000,000 in 1 year. The spot rate is ₹0.60/¥, and the 1-year forward rate is ₹0.62/¥. What is the amount the company will receive in INR using the forward contract? ₹6,200,000 ₹6,500,000 ₹6,800,000 ₹7,000,000 None 25. If the exchange rate between INR and GBP is ₹95/GBP, how much INR will you receive if you exchange £25,000? ₹2,300,000 ₹2,350,000 ₹2,400,000 ₹2,500,000 None 26. An investor purchases a call option on a stock with a strike price of ₹350 and a premium of ₹20. The stock price rises to ₹400. What is the net profit from the call option? ₹70 ₹50 ₹30 ₹80 None 27. An investor buys a futures contract on crude oil at ₹5,500 per barrel. The contract size is 100 barrels. What is the total value of the futures contract? ₹500,000 ₹550,000 ₹600,000 ₹650,000 None 28. An investor sells a futures contract for ₹100,000, and the price of the underlying asset increases to ₹102,000. What is the profit or loss from the futures contract? ₹2,000 loss ₹2,000 profit ₹3,000 loss ₹3,000 profit None 29. A stock has a beta of 1.3. The risk-free rate is 7%, and the expected market return is 12%. What is the expected return of the stock using the CAPM model? 14.5% 15.5% 16% 15% None 30. An investor buys a call option on a stock with a strike price of ₹450 and a premium of ₹30. The stock price rises to ₹480. What is the profit or loss from the call option? ₹50 profit ₹40 profit ₹30 profit ₹20 profit None 31. A company has an initial investment of ₹10,00,000. The expected cash flows for 5 years are ₹2,00,000, ₹2,50,000, ₹3,00,000, ₹3,50,000, and ₹4,00,000. The company’s required rate of return is 12%. What is the NPV of the project? ₹1,11,000 ₹1,20,000 ₹1,15,000 ₹1,30,000 None 32. A project requires an investment of ₹5,00,000 and generates annual cash inflows of ₹1,50,000 for 5 years. The required rate of return is 10%. What is the Payback Period? 3 years 4 years 5 years 2.5 years None 33. A company is evaluating a project that requires an initial investment of ₹2,00,000. The project generates ₹60,000 in cash inflows annually for 5 years. What is the IRR of the project? 10% 12% 14% 16% None 34. A project costs ₹5,00,000 and generates ₹1,20,000 in annual cash flows for 6 years. The cost of capital is 8%. What is the profitability index (PI)? 1.10 1.20 1.30 1.40 None 35. A company has an investment opportunity that requires ₹8,00,000 and will generate cash flows of ₹2,00,000 per year for 6 years. The required rate of return is 10%. What is the NPV of the project? ₹1,20,000 ₹1,50,000 ₹2,00,000 ₹1,80,000 None 36. A portfolio consists of Asset A with a weight of 0.6 and an expected return of 10%, and Asset B with a weight of 0.4 and an expected return of 14%. What is the expected return of the portfolio? 12% 12.4% 12.6% 13% None 37. An investor holds a portfolio with an expected return of 18% and a standard deviation of 22%. The risk-free rate is 5%, and the market return is 10%. What is the Sharpe ratio of the portfolio? 0.59 0.72 0.64 0.68 None 38. A stock has a beta of 1.1, and the market’s expected return is 12%. If the risk-free rate is 6%, what is the expected return of the stock according to CAPM? 11.8% 13.4% 14% 13.2% None 39. A portfolio consists of two assets: Asset X with a weight of 0.7 and Asset Y with a weight of 0.3. The standard deviation of Asset X is 20%, and the standard deviation of Asset Y is 10%. If the correlation coefficient between the two assets is 0.5, what is the portfolio’s standard deviation? 14.10% 13.50% 15.25% 16.20% None 40. An investor is holding a portfolio with an expected return of 16% and a risk-free rate of 4%. If the standard deviation of the portfolio is 20%, what is the portfolio's coefficient of variation? 0.60 0.50 0.75 1.00 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. 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