Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Strategic Financial Management Total Number of Question: 40 Time: 41 Minutes All the best... Kind Regards CMA Madhuri Kashyap Profile: Click Here! Name Phone No Email Area Pin Code 1. The current spot rate of USD/INR is ₹74, and the 3-month forward rate is ₹75. If an Indian company enters into a forward contract to buy USD 100,000, what is the amount payable in INR in 3 months? ₹7,400,000 ₹7,500,000 ₹7,600,000 ₹7,700,000 None 2. A company is holding €100,000 receivable, and the current spot rate is ₹90/€. The 3- month forward rate is ₹91/€. What will be the amount to be received in INR after 3 months using the forward contract? ₹9,100,000 ₹9,000,000 ₹8,900,000 ₹8,800,000 None 3. An Indian exporter has a receivable of USD 200,000 in 6 months. The spot rate is ₹70/USD, and the forward rate is ₹72/USD. What will be the value of the receivable in INR if the company settles using the forward contract? ₹14,000,000 ₹14,400,000 ₹14,800,000 ₹15,000,000 None 4. A company expects to receive ¥10,000,000 in 1 year. The spot rate is ₹0.65/¥, and the forward rate is ₹0.68/¥. What is the amount to be received in INR if the company enters into a forward contract? ₹6,800,000 ₹7,000,000 ₹6,500,000 ₹6,200,000 None 5. A company has a receivable of €200,000, and the spot rate is ₹84/€. The 1-month forward rate is ₹83/€. What will be the INR amount received after 1 month if the company settles using the forward contract? ₹16,600,000 ₹16,800,000 ₹17,000,000 ₹17,200,000 None 6. An investor holds a put option on a stock with a strike price of ₹500 and a premium of ₹25. The stock price falls to ₹450. What is the net profit or loss from the put option? ₹25 profit ₹50 profit ₹75 profit ₹25 loss None 7. An investor buys a futures contract on silver at ₹45,000 per kilogram. The contract size is 100 kilograms. What is the total value of the futures contract? ₹4,500,000 ₹4,400,000 ₹4,300,000 ₹4,200,000 None 8. A trader sells a futures contract on crude oil at ₹5,000 per barrel. The contract size is 500 barrels. What is the total value of the futures contract? ₹2,500,000 ₹2,000,000 ₹2,200,000 ₹2,300,000 None 9. An investor purchases a call option on a stock with a strike price of ₹600. The premium is ₹50, and the stock price rises to ₹650. What is the net profit from the call option? ₹100 profit ₹50 profit ₹200 profit ₹150 profit None 10. A company enters into an interest rate swap where it receives a fixed rate of 8% and pays a floating rate of LIBOR + 2%. If LIBOR is 6%, what is the net cash flow for the company? ₹2% ₹4% ₹6% ₹8% None 11. A project requires an initial investment of ₹3,00,000 and generates cash inflows of ₹90,000 annually for 5 years. What is the Payback Period? 2.5 years 3 years 4 years 5 years None 12. A project has an initial investment of ₹5,00,000 and generates ₹1,50,000 in cash inflows for 5 years. The cost of capital is 10%. What is the NPV of the project? ₹1,20,000 ₹1,50,000 ₹1,10,000 ₹1,30,000 None 13. A company has an initial investment of ₹4,00,000. The expected cash inflows over the next 4 years are ₹1,20,000 annually. The cost of capital is 12%. What is the IRR of the project? 10% 11% 12% 13% None 14. A project has an initial cost of ₹2,50,000 and generates annual cash inflows of ₹80,000 for 4 years. The required rate of return is 14%. What is the NPV of the project? ₹20,000 ₹25,000 ₹30,000 ₹35,000 None 15. A company is evaluating a project requiring an investment of ₹1,00,000. The project generates cash inflows of ₹25,000 annually for 5 years. What is the Profitability Index (PI) of the project? 1.25 1.50 1.10 1.20 None 16. An investor has a portfolio consisting of Asset A with a weight of 0.6 and an expected return of 12%, and Asset B with a weight of 0.4 and an expected return of 8%. What is the expected return of the portfolio? 10% 11% 12% 13% None 17. The correlation coefficient between two assets in a portfolio is 0.7. If the standard deviation of Asset X is 20% and Asset Y is 15%, what is the portfolio standard deviation if the weights of the assets are 0.5 and 0.5? 17.50% 18.30% 16.70% 19.50% None 18. The risk-free rate is 5%, and the expected market return is 15%. A stock has a beta of 1.2. What is the expected return of the stock according to CAPM? 16% 18% 17% 19% None 19. An investor has a portfolio consisting of 50% stocks with an expected return of 12% and 50% bonds with an expected return of 6%. What is the expected return of the portfolio? 10% 11% 12% 13% None 20. An investor holds a portfolio with an expected return of 20% and a standard deviation of 25%. If the risk-free rate is 5%, what is the Sharpe ratio of the portfolio? 0.6 0.8 1.2 0.7 None 21. A company has a receivable of USD 150,000, and the spot rate is ₹78/USD. The 6- month forward rate is ₹79/USD. What will be the amount payable in INR after 6 months if the company settles using the forward contract? ₹11,850,000 ₹12,000,000 ₹11,950,000 ₹12,150,000 None 22. A company has a payable of €50,000. The spot rate is ₹88/€ and the 3-month forward rate is ₹89/€. What will be the amount payable in INR in 3 months using the forward contract? ₹4,400,000 ₹4,500,000 ₹4,600,000 ₹4,700,000 None 23. A company has a receivable of ¥1,200,000. The spot rate is ₹0.58/¥ and the 1-year forward rate is ₹0.60/¥. What will be the amount receivable in INR in 1 year if the company enters into a forward contract? ₹720,000 ₹750,000 ₹760,000 ₹780,000 None 24. A company needs to pay GBP 100,000 in 6 months. The spot rate is ₹102/GBP, and the 6-month forward rate is ₹103/GBP. What will be the amount payable in INR after 6 months using the forward contract? ₹10,300,000 ₹10,200,000 ₹10,500,000 ₹10,100,000 None 25. The current spot rate for USD/INR is ₹75, and the 1-year forward rate is ₹77. If a company enters into a forward contract to buy USD 500,000, what is the amount payable in INR after 1 year? ₹37,000,000 ₹38,500,000 ₹37,500,000 ₹38,000,000 None 26. An investor buys a futures contract on gold at ₹55,000 per 10 grams. The contract size is 1 kilogram (1000 grams). What is the total value of the futures contract? ₹55,000,000 ₹5,500,000 ₹5,500,000,000 ₹550,000 None 27. A trader sells a call option on a stock with a strike price of ₹1,200 and a premium of ₹40. The stock price rises to ₹1,300. What is the net profit or loss from the call option? ₹40 loss ₹100 profit ₹60 profit ₹60 loss None 28. A company enters into a currency swap where it receives USD 100,000 and pays ₹7,500,000. The exchange rate is ₹75/USD. What is the fixed exchange rate of the swap? ₹75/USD ₹76/USD ₹77/USD ₹78/USD None 29. A trader buys a futures contract on crude oil at ₹4,000 per barrel. The contract size is 1,000 barrels. What is the total value of the futures contract? ₹4,000,000 ₹40,000,000 ₹4,500,000 ₹4,200,000 None 30. An investor buys a futures contract on wheat at ₹1,500 per quintal. The contract size is 100 quintals. What is the total value of the futures contract? ₹150,000 ₹1,500,000 ₹1,200,000 ₹1,000,000 None 31. A project has an initial investment of ₹1,50,000 and generates annual cash inflows of ₹60,000 for 4 years. What is the Payback Period of the project? 2.5 years 3 years 3.5 years 4 years None 32. A project has an initial investment of ₹4,00,000 and generates annual cash inflows of ₹1,25,000 for 5 years. The cost of capital is 12%. What is the NPV of the project? ₹50,000 ₹60,000 ₹75,000 ₹70,000 None 33. A company is evaluating a project with an initial investment of ₹8,00,000. The project generates cash inflows of ₹2,00,000 annually for 5 years. The cost of capital is 10%. What is the IRR of the project? 12% 14% 15% 10% None 34. A project requires an investment of ₹5,00,000 and generates cash inflows of ₹1,50,000 for the first 3 years and ₹2,00,000 for the next 2 years. The required rate of return is 10%. What is the NPV of the project? ₹40,000 ₹50,000 ₹60,000 ₹70,000 None 35. A project requires an initial investment of ₹2,00,000 and generates cash inflows of ₹50,000 annually for 6 years. What is the Payback Period of the project? 3.5 years 4 years 5 years 6 years None 36. An investor has a portfolio consisting of 40% Asset X with an expected return of 10% and 60% Asset Y with an expected return of 8%. What is the expected return of the portfolio? 8.8% 9.0% 9.2% 9.5% None 37. The risk-free rate is 6%, and the expected market return is 18%. A stock has a beta of 1.5. What is the expected return of the stock according to the CAPM? 18% 20% 22% 24% None 38. An investor holds a portfolio of stocks with an expected return of 14% and a standard deviation of 20%. If the risk-free rate is 5%, what is the Sharpe ratio of the portfolio? 0.45 0.55 0.55 0.70 None 39. The correlation coefficient between two assets in a portfolio is 0.5. The standard deviation of Asset A is 15% and Asset B is 20%. What is the portfolio's standard deviation if the weights of the assets are 0.6 and 0.4, respectively? 16.5% 17.0% 18.0% 19.0% None 40. An investor has a portfolio consisting of 30% Stock A, 40% Stock B, and 30% Bond C. The expected returns for Stock A, Stock B, and Bond C are 10%, 12%, and 5%, respectively. What is the expected return of the portfolio? 9.5% 10.0% 11.0% 10.5% 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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