179. An attempt to make correction by adjusting historical beta to make it closer to an average beta is classified as

by
A) adjusted stock
B) adjusted beta
C) adjusted coefficient
D) adjusted risk
✅ ANSWER: B
An attempt to make correction by adjusting historical beta to make it closer to an average beta is classified as adjusted beta. The Adjusted Beta is an estimate of a security’s future Beta.

176. Which one of the following is true about Planning Commission?

by
A) It is a Ministry
B) It is a Government Department
C) It is an Advisory Body
D) It is an Autonomous Corporation
✅ ANSWER: C
Planning Commission is an Advisory Body. The Planning Commission is a non-constitutional and non-statutory body and is responsible to formulate five years plan for social and economic development in India.

167. According to Black Scholes model, rate which is constant and known is classified as

by
A) short term return rate
B) long term return rate
C) risk free interest rate
D) risky rate of return
✅ ANSWER: C
According to Black Scholes model, rate which is constant and known is classified as risk free interest rate. The risk-free interest rate is the rate of return of a hypothetical investment with no risk of financial loss, over a given period of time.

161. Which of the following options is correct?

by
A) Premium paid by a client for health cover enjoys income tax deduction under section 80C of the Income Tax Act
B) Premium paid towards health cover earns income tax rebate under section 80D of the Income Tax Act
C) Premium paid for a health cover does not qualify for tax benefit under any provision of the Income Tax Act
D) There is no upper limit to sum assured in a health insurance policy
✅ ANSWER: B
Section 80D of the Income Tax Act deals with rebates. Tax Benefits of Health Insurance Under Section 80D. Health insurance premium paid for self, spouse, dependent children or parents qualifies for tax deduction up to Rs.25,000. This limit has been increased from Rs.15,000 from the previous year to Rs.25,000.

197. In Unit Linked policies, the risk cover is a multiple of _________

by
A) Fund Value
B) Accumulations
C) Net Asset Value
D) Premiums
✅ ANSWER: D
In Unit Linked policies, the risk cover is a multiple of Premiums. A unit linked insurance plan (ULIP) is an investment product that provides for insurance payout benefits. ULIP offerings are primarily concentrated in India. The investment vehicle requires a premium payment which is invested in investment products for capital appreciation.