ABCD

ABC Bank is a regional bank that specializes in commercial real estate lending. Over time, the bank has accumulated a substantial portion of its loan portfolio in loans to property developers and real estate investors. These loans represent a significant share of the bank's total lending activities. In case of real estate downturn, which of the following risk is the bank most likely to be exposed to?

• Liquidity risk

•     Concentration risk

• Market risk

• Operational risk

X is a financial model that establishes a relationship between the expected return of an asset and its risk, particularly in relation to the overall market. Which of the following is a Key Assumption for X?

• Perfect competition exists in financial markets.

• No transaction costs.

• All investors have identical risk preferences.

• Asset returns are normally distributed.

You intend to purchase a 15-year, Rs. 1,000-par-value bond that has a coupon rate of 9%. If your required return is 10%, If the current market price for this bond is Rs. 985, should you purchase this bond?

• Yes, purchase the bond.

• No, do not purchase the bond.

• Undecided

•    Need more information

Mr. A expects an upward-sloping term structure to flatten in the coming months, what is the most likely strategy for Mr. A?

• Don’t trade in bond markets

• Short position in both longer and shorter term bonds.

• Long position in both longer and shorter term bonds.

• Short position in shorter term bonds and long position in longer term bonds.

It is assumed that every government carries a default risk. To reflect this assumption in determining cost of capital, which of the following is most likely to be incorporated?

• Credit Default Swaps

• Central Bank Interest Rates

• Default Spreads

•   10 Year Govt. Bond Yields

Analyze the Information and calculate the  Net Asset Value for the Mutual Fund Cash and Bank Balance - 2,00,000 Debenture and Bonds-3,00,000 Equity Shares- 5,00,000 Government Securities-2,00,000 Expenses - 90,000

Number of Units - 1,00,000

• 1. 11.1

• 9.1

• 12.1

• 12

While Taking A Loan From A Financial Institution, Adani Enterprises Signed An Agreement That They Shall Not Pay Dividend To Its Shareholder More Than 15% Until The Loan Is Repaid, Or Dividend Shall Not Be Declared If The Liquidity Ratio Is Found To Be Less Than 1:1. Identify The Factor Related To Dividend Decision Being Described In The Above Case.

• 1. Access To Capital Market

• 1. Preferences Of Shareholders

• 1. Contractual Constraints

• Legal Constraints

In Options Trading, What Does The Term "Implied Volatility" Refer To, And How Does It Impact Option Prices?

• 1. Historical Price Movements; Directly Correlates With Option Prices

  2.  

• 1. Expected Future Price Movements; Inversely Correlates With Option Prices

• 1. Actual Price Movements; Has No Impact On Option Prices

• Average Price Movements; Directly Proportional To Option Prices

Which Of The Following Factors Is Not Considered In Pricing Options Using The BSM Model?

• 1. Current Stock Price

• 1. Risk Free Rate

• 1. Dividend

• Effective Inflation Rate

What Is The Term For The Simultaneous Buying And Selling Of The Same Security To Create The Appearance Of Active Trading And Manipulate The Stock's Price?

• 1. Flash Trading

• 1. Wash Trading

• 1. Mirror Investing

• Echo Trading