Author name: Administrator

1170. Owning two securities instead of one will not reduce the risk taken by an investor if the two securities are______________.

perfectly positively correlated with each other
perfectly independent of each other
perfectly negatively correlated with each other
of the same category, eg blue chips
✅ The correct answer is A.
Owning two securities instead of one will not reduce the risk taken by an investor if the two securities are perfectly positively correlated with each other. The term “security” is a fungible, negotiable financial instrument that holds some type of monetary value. It represents an ownership position in a publicly-traded corporation via stock a creditor relationship with a governmental body or a corporation represented by owning that entity’s bond or rights to ownership as represented by an option.

1174. Which function is regarded as the essence of management?

Planning
Organizing
Staffing
Co-ordination
✅ The correct answer is D.
Co-ordination is regarded as the essence of management. In other words, Co-ordination affects Planning, Organising, Staffing, Directing, Communication, Leading, Motivating and Controlling.

1147. Which among the following is a wealth accumulation product?

Bank Loans
Shares
Term Insurance Policy
Savings Bank Account
✅ The correct answer is B.
Shares is a wealth accumulation product. To build a corpus for long-term goals like buying a house, building a retirement kitty or funding a child’s education, investors must choose products that provide enhanced earning power. This can come in the form of diversified equity funds.

1148. If beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work in process equivalent units are 5000, then complete equivalent units in current period are

1800 units
1500 units
1300 units
1500 units
✅ The correct answer is C.
Equivalent units in current period = Beginning work in process equivalent units + Work done in current period equivalent units – Ending work in process equivalent units
= 2500 + 3800 – 5000 = 1300 units

1150. Co-operative societies have _________ management.

Government
Democratic
Autocratic
Private
✅ The correct answer is B.
Co-operative societies have Democratic management. The society is managed by a group known as “Board of Directors”. The members of the board of directors are the elected representatives of the society. The main purpose of a Co-operative Society is to provide service to its members.

1154. Which of the following is NOT true regarding ULIP?

A unit holder can choose between different kinds of funds
Life insurer provides guarantee for unit values
Units may be purchased by payment of a single premium or by regular premium payments
ULIP policy structure is transparent with regards to the insurance expenses component
✅ The correct answer is B.
ULIP is a life insurance product which provides risk cover for the policy holder along with investment options to invest in any number of qualified investments such as stocks, bonds or mutual funds.
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