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. A company has a receivable of USD 200,000. The spot rate is ₹74/USD and the 6- month forward rate is ₹75/USD. What will be the amount receivable in INR after 6 months using the forward contract? ₹14,800,000 ₹15,000,000 ₹14,500,000 ₹15,200,000 None 2. A company needs to pay €80,000 in 3 months. The spot rate is ₹90/€, and the 3- month forward rate is ₹91/€. What will be the amount payable in INR in 3 months using the forward contract? ₹7,200,000 ₹7,300,000 ₹7,400,000 ₹7,500,000 None 3. A company has a receivable of ¥1,500,000. The spot rate is ₹0.60/¥ and the 6-month forward rate is ₹0.61/¥. What will be the amount receivable in INR in 6 months if the company enters into a forward contract? ₹915,000 ₹900,000 ₹915,500 ₹910,000 None 4. A company needs to pay GBP 120,000 in 1 year. The spot rate is ₹105/GBP, and the 1-year forward rate is ₹106/GBP. What will be the amount payable in INR after 1 year using the forward contract? ₹12,720,000 ₹12,600,000 ₹12,800,000 ₹13,000,000 None 5. A company has a receivable of USD 250,000. The spot rate is ₹76/USD, and the 1- year forward rate is ₹78/USD. What will be the amount receivable in INR after 1 year using the forward contract? ₹19,000,000 ₹19,500,000 ₹20,000,000 ₹20,500,000 None 6. A trader sells a futures contract on crude oil at ₹5,000 per barrel. The contract size is 1,000 barrels. What is the total value of the futures contract? ₹5,000,000 ₹4,500,000 ₹5,500,000 ₹4,000,000 None 7. A company buys a call option with a strike price of ₹1,500 and pays a premium of ₹70. The stock price rises to ₹1,700. What is the net profit or loss from the call option? ₹100 profit ₹70 profit ₹120 profit ₹130 profit None 8. An investor buys a futures contract on gold at ₹54,000 per 10 grams. The contract size is 1 kilogram (1000 grams). What is the total value of the futures contract? ₹54,000,000 ₹5,400,000 ₹5,400,000,000 ₹540,000 None 9. A company enters into an interest rate swap to exchange a fixed rate of 8% for a floating rate of LIBOR + 2%. If the notional amount is ₹50,000,000, what is the fixed amount the company will pay? ₹4,000,000 ₹4,500,000 ₹5,000,000 ₹6,000,000 None 10. A company buys a futures contract on wheat at ₹1,600 per quintal. The contract size is 100 quintals. What is the total value of the futures contract? ₹1,600,000 ₹2,000,000 ₹1,700,000 ₹2,500,000 None 11. A project requires an initial investment of ₹3,00,000 and generates cash inflows of ₹80,000 annually for 4 years. What is the Payback Period of the project? 3.5 years 4 years 3 years 5 years None 12. A project has an initial investment of ₹7,00,000 and generates annual cash inflows of ₹2,00,000 for 5 years. The cost of capital is 10%. What is the NPV of the project ₹90,000 ₹1,00,000 ₹1,10,000 ₹1,20,000 None 13. A project has an initial investment of ₹5,00,000. The project generates cash inflows of ₹1,50,000 for the first 2 years and ₹2,00,000 for the next 3 years. The required rate of return is 12%. What is the IRR of the project? 12% 14% 16% 18% None 14. A project requires an investment of ₹1,00,000 and generates cash inflows of ₹25,000 for 6 years. What is the Payback Period of the project? 4 years 5 years 6 years 7 years None 15. . A company is evaluating a project with an initial investment of ₹4,00,000. The project generates cash inflows of ₹1,00,000 annually for 5 years. The cost of capital is 15%. What is the NPV of the project? ₹50,000 ₹60,000 ₹70,000 ₹80,000 None 16. An investor has a portfolio consisting of 50% Stock A with an expected return of 14% and 50% Stock B with an expected return of 18%. What is the expected return of the portfolio? 16% 15% 16.5% 17% None 17. The risk-free rate is 7%, and the expected market return is 15%. A stock has a beta of 0.9. What is the expected return of the stock according to the CAPM? 13.2% 14% 13% 15% None 18. An investor holds a portfolio with an expected return of 12% and a standard deviation of 18%. If the risk-free rate is 5%, what is the Sharpe ratio of the portfolio? 0.44 0.39 0.33 0.50 None 19. An investor's portfolio consists of 70% Stock A with an expected return of 16% and 30% Stock B with an expected return of 10%. What is the expected return of the portfolio? 12.2% 13.2% 14.2% 15.2% None 20. The correlation coefficient between two assets in a portfolio is -0.3. The standard deviation of Asset A is 15% and Asset B is 25%. What is the portfolio's standard deviation if the weights of the assets are 0.6 and 0.4, respectively? 14.3% 13.2% 15.5% 16.5% None 21. A company has a foreign currency receivable of €100,000. The spot rate is ₹90/€ and the 6-month forward rate is ₹92/€. What will be the amount receivable in INR after 6 months using the forward contract? ₹9,200,000 ₹9,500,000 ₹9,000,000 ₹9,400,000 None 22. A company has a foreign currency payable of ¥2,000,000. The spot rate is ₹0.60/¥ and the 3-month forward rate is ₹0.58/¥. What will be the amount payable in INR in 3 months using the forward contract? ₹1,100,000 ₹1,200,000 ₹1,150,000 ₹1,300,000 None 23. A company needs to pay USD 500,000 in 1 year. The spot rate is ₹75/USD, and the 1-year forward rate is ₹76/USD. What will be the amount payable in INR after 1 year using the forward contract? ₹37,000,000 ₹38,000,000 ₹35,500,000 ₹36,000,000 None 24. A company has a receivable of £200,000. The spot rate is ₹105/£ and the 1-year forward rate is ₹108/£. What will be the amount receivable in INR after 1 year using the forward contract? ₹21,000,000 ₹22,000,000 ₹21,500,000 ₹22,500,000 None 25. A company has a receivable of USD 150,000. The spot rate is ₹74/USD and the 1- month forward rate is ₹75/USD. What will be the amount receivable in INR after 1 month using the forward contract? ₹11,250,000 ₹11,500,000 ₹11,750,000 ₹12,000,000 None 26. A company buys a call option on shares of XYZ Ltd with a strike price of ₹1,200 and pays a premium of ₹100 per share. If the stock price rises to ₹1,350, what is the profit or loss from the option? ₹150 profit ₹250 profit ₹100 profit ₹150 loss None 27. A trader enters into a futures contract on crude oil at ₹6,000 per barrel. The contract size is 500 barrels. What is the total value of the futures contract? ₹3,000,000 ₹3,500,000 ₹3,200,000 None 28. A company buys a futures contract on wheat at ₹1,300 per quintal. The contract size is 200 quintals. What is the total value of the futures contract? ₹260,000 ₹280,000 ₹290,000 ₹320,000 None 29. A company enters into an interest rate swap to pay a fixed rate of 9% and receive a floating rate of LIBOR + 2%. The notional amount is ₹10,000,000. What is the fixed amount the company will pay? ₹800,000 ₹900,000 ₹1,000,000 ₹1,200,000 None 30. A trader buys a put option on XYZ Ltd stock at a strike price of ₹1,500 and pays a premium of ₹75 per share. If the stock price falls to ₹1,400, what is the net profit or loss from the option? ₹100 profit ₹125 profit ₹75 profit ₹100 loss None 31. A project requires an initial investment of ₹10,00,000 and generates annual cash inflows of ₹3,00,000 for 5 years. The cost of capital is 10%. What is the NPV of the project? ₹50,000 ₹60,000 ₹70,000 ₹80,000 None 32. A project requires an investment of ₹2,50,000 and generates cash inflows of ₹60,000 per year for 6 years. What is the Payback Period of the project? 4.5 years 5 years 5.5 years 6 years None 33. A project has an initial investment of ₹6,00,000 and generates annual cash inflows of ₹1,50,000 for 6 years. The cost of capital is 12%. What is the IRR of the project 10% 12% 14% 16% None 34. A project requires an initial investment of ₹5,00,000 and generates cash inflows of ₹1,00,000 annually for 7 years. The required rate of return is 15%. What is the NPV of the project? ₹1,50,000 ₹2,00,000 ₹2,50,000 ₹3,00,000 None 35. A project generates cash inflows of ₹1,00,000 annually for 5 years. The cost of capital is 10%. What is the NPV of the project if the initial investment is ₹3,00,0 ₹1,00,000 ₹50,000 ₹1,50,000 ₹2,00,000 None 36. The risk-free rate is 5%, and the expected market return is 12%. A stock has a beta of 1.5. What is the expected return of the stock according to the CAPM? 14.5% 15% 16.5% 17% None 37. A portfolio has 60% of Asset A and 40% of Asset B. If the expected return of Asset A is 18% and Asset B is 12%, what is the expected return of the portfolio? 16.8% 15.5% 17% 14.5% None 38. The correlation coefficient between two assets in a portfolio is 0.5. The standard deviation of Asset A is 20% and Asset B is 30%. What is the portfolio's standard deviation if the weights of the assets are 0.7 and 0.3, respectively? 23% 24% 25% 26% None 39. The risk-free rate is 4% and the expected market return is 10%. What is the beta of a stock if its expected return is 8%? 0.5 0.75 1 1.25 None 40. An investor has a portfolio with the following assets: 50% of Asset A, 30% of Asset B, and 20% of Asset C. The expected returns of the assets are 12%, 10%, and 8%, respectively. What is the expected return of the portfolio? 10.4% 11% 10% 9.5% 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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