How to Pass an Examination
REVISED SYLLABUS 2008
TEST PAPERS
Final
Group III
QUESTION PAPERS FOR POSTAL STUDENTS ONLY
(FOR JUNE/DECEMBER 2012)
THE INSTITUTE OF COST AND WORKS
ACCOUNTANTS OF INDIA
DIRECTORATE OF STUDIES
© Copyright Reserved by the Institute of Cost and Works Accountants of India
2 Test Papers — Final Group III
PAPER 11
CAPITAL MARKET ANALYSIS & CORPORATE LAWS
TEST PAPER — III/11/CMC/2008/T-1
GROUP – A
Time Allowed : 3 hours Full Marks : 100
(Answer Question No. 1 and any two Questions from the rest)
1. (a) What are the needs for a stock market in the country like India?
(b) Mr. Saxena has invested ` 50,000, 30% of which is invested in Company X, which has an expected return of 15%, and 70% of which is invested in Company
Y, with an expected return of 12%. What is the return Mr. Saxena will get on his portfolio? What is the expected percentage rate of return? (10+10)
2. (a) RIL Ltd. has an excess cash of ` 16,00,000 which it wants to invest in short-term marketable securities. Expenses relating to investment will be ` 40,000. The securities invested will have an annual yield of 8%. The co. seeks your advice as to the period of investment so as to earn a pre-tax income of 4%. Also find the minimum period for the company to break-even its investment expenditure.
Ignore time value of money.
(b) What do you mean by Listing of securities. Explain! (8+7)
3. Write short note on :
(a) Demutualization of stock exchanges
(b) Inter-bank participation certificate
(c) Money laundering
(d) Hedging
(e) Qualified Institutional Buyer (3×5)
4. (a) Derivatives are complex and exotic instruments that Indian investors will have difficulty in understanding, Explain.
Test Papers — Final Group III 3
(b) Mr. Raman can earn a return of 16% per cent by investing in equity shares on his own. Now he is considering a recently announced equity based mutual fund scheme in which initial expenses are 5.5 per cent and annual recurring expenses are 1.5 per cent. How
TEST PAPERS
Final
Group III
QUESTION PAPERS FOR POSTAL STUDENTS ONLY
(FOR JUNE/DECEMBER 2012)
THE INSTITUTE OF COST AND WORKS
ACCOUNTANTS OF INDIA
DIRECTORATE OF STUDIES
© Copyright Reserved by the Institute of Cost and Works Accountants of India
2 Test Papers — Final Group III
PAPER 11
CAPITAL MARKET ANALYSIS & CORPORATE LAWS
TEST PAPER — III/11/CMC/2008/T-1
GROUP – A
Time Allowed : 3 hours Full Marks : 100
(Answer Question No. 1 and any two Questions from the rest)
1. (a) What are the needs for a stock market in the country like India?
(b) Mr. Saxena has invested ` 50,000, 30% of which is invested in Company X, which has an expected return of 15%, and 70% of which is invested in Company
Y, with an expected return of 12%. What is the return Mr. Saxena will get on his portfolio? What is the expected percentage rate of return? (10+10)
2. (a) RIL Ltd. has an excess cash of ` 16,00,000 which it wants to invest in short-term marketable securities. Expenses relating to investment will be ` 40,000. The securities invested will have an annual yield of 8%. The co. seeks your advice as to the period of investment so as to earn a pre-tax income of 4%. Also find the minimum period for the company to break-even its investment expenditure.
Ignore time value of money.
(b) What do you mean by Listing of securities. Explain! (8+7)
3. Write short note on :
(a) Demutualization of stock exchanges
(b) Inter-bank participation certificate
(c) Money laundering
(d) Hedging
(e) Qualified Institutional Buyer (3×5)
4. (a) Derivatives are complex and exotic instruments that Indian investors will have difficulty in understanding, Explain.
Test Papers — Final Group III 3
(b) Mr. Raman can earn a return of 16% per cent by investing in equity shares on his own. Now he is considering a recently announced equity based mutual fund scheme in which initial expenses are 5.5 per cent and annual recurring expenses are 1.5 per cent. How