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. The Capital Asset Pricing Model (CAPM) is used to estimate: The intrinsic value of a stock The expected return of an asset based on its risk The break-even point of a company The credit rating of a bond None 2. Diversification helps to reduce which type of risk? Systematic risk Unsystematic risk Inflation risk Interest rate risk None 3. . Which theory states that investors should maximize return for a given level of risk Arbitrage Pricing Theory Modern Portfolio Theory (MPT) Efficient Market Hypothesis Gordon Growth Model None 4. Beta measures a stock’s sensitivity to: Company-specific risk Market risk Liquidity risk Interest rate fluctuations None 5. The correlation between two perfectly negatively correlated assets is: 0 +1 -1 0.5 None 6. Which type of exchange rate system is determined by supply and demand forces? Fixed exchange rate Floating exchange rate Pegged exchange rate Dual exchange rate None 7. Which instrument is commonly used to hedge currency risk? Forward contract Mutual fund Commercial paper Treasury bond None 8. Purchasing Power Parity (PPP) theory explains the relationship between: Inflation and exchange rates Interest rates and stock prices GDP and unemployment Corporate tax rates and foreign investmen None 9. Which of the following is a measure of a country’s overall economic transactions with the rest of the world? Balance of Payments (BoP) Fiscal Deficit Monetary Policy Inflation Index None 10. Which international financial institution provides short-term loans to countries facing balance of payments problems? World Bank International Monetary Fund (IMF) Asian Development Bank (ADB) Bank for International Settlements (BIS) None 11. Which type of merger occurs between companies in unrelated industries? Horizontal merger Vertical merger Conglomerate merger Market-extension merger None 12. Which financial strategy is used to avoid hostile takeovers? Leveraged Buyou Poison Pill Joint Venture Asset Securitization None 13. In an acquisition, the company being purchased is known as the: Acquirer Target company Holding company Subsidiary None 14. Which of the following is not a reason for corporate restructuring? Reducing operational inefficiencies Expanding into new markets Increasing financial leverage Increasing working capital needs None 15. Which strategy involves selling off a part of a company to focus on core business areas? Divestiture Merger Acquisition Conglomerate Expansion None 16. Which financial derivative provides the right but not the obligation to buy or sell an asset? Future Swaps Options Forward contracts None 17. What is the main advantage of using futures contracts? Customization No counterparty risk Guaranteed profits No margin requirements None 18. Which of the following best describes a "swap" in finance? Exchange of cash flows Buying a put option Selling a bond Merging two companies None 19. Which type of option can only be exercised at expiration? European option American option Asian option Bermudan option None 20. Hedging with derivatives is primarily used to: Reduce financial risk Maximize returns Eliminate all risks Increase market exposure None 21. Which financial market deals with newly issued securities? Primary market Secondary market Money market Forex market None 22. Which of the following is a short-term financial instrument? Debenture Commercial paper Equity share Mutual fund None 23. The stock market is an example of which type of market? Derivative marke Capital market Money market Commodity market None 24. What is the role of SEBI in the financial market? Regulate and protect investor interests Issue government bonds Control exchange rates Provide short-term loans to businesses None 25. Which financial institution is primarily responsible for monetary policy in India? SEBI RBI IRDAI NABARD None 26. Which valuation method discounts future cash flows to present value? Market-based valuation Discounted Cash Flow (DCF) method Asset-based valuation Earnings multiple approach None 27. Which of the following is NOT a key assumption in the Gordon Growth Model? Constant dividend growth rate Constant required rate of return No risk in investment Infinite dividend payments None 28. What is the primary objective of corporate governance? Maximize stock price Ensure transparency and accountability Reduce dividend payouts Increase corporate tax liability None 29. Which committee in corporate governance is responsible for overseeing financial reporting? Nomination Committee Audit Committee Compensation Committee Risk Management Committee None 30. Which financial metric is commonly used to assess a company's valuation? Earnings Per Share (EPS) Return on Investment (ROI Price-to-Earnings (P/E) Ratio Debt-to-Equity Ratio None 31. Which behavioral bias makes investors hold on to losing stocks for too long? Loss Aversio Herd Mentality Overconfidence Bias Framing Bias None 32. The tendency of investors to follow market trends without independent analysis is called: Herding Behavior Anchoring Bias Mental Accounting Confirmation Bias None 33. Overconfidence in one's investment skills can lead to: Lower trading frequency Excessive risk-taking Better investment decisions Reduced market volatility None 34. What does the "Disposition Effect" refer to in behavioral finance? Selling winning stocks too soon and holding losing stocks too long Investing in familiar stocks only Overreacting to market news Ignoring new information None 35. Which of the following is an example of mental accounting? Treating a bonus differently from regular salary income Investing only in index funds Ignoring tax implications of investments Using financial statements for investment decisions None 36. A financial plan includes all of the following EXCEPT: Investment strategy Risk assessment Corporate branding strategy Budgeting and forecasting None 37. Which of the following is a characteristic of an effective financial strategy? Short-term focus only Alignment with corporate goals Avoiding debt at all cos Ignoring market conditions None 38. Scenario analysis in financial planning is used to: Forecast financial performance under different conditions Increase stock prices Minimize dividend payouts Predict employee turnover None 39. Which financial tool is used to analyze the impact of different business decisions? Sensitivity analysis Net Present Value (NPV) Break-even analysis All of the above None 40. What is the primary purpose of financial forecasting? Ensure tax compliance Predict future financial performance Determine employee salaries Manage fixed asset depreciation 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!
