Test Your NISM-Series-19D: Category I and II Alternative Investment Fund Managers Mock Tests Knowledge in 5 Minutes

1. What is the primary characteristic that distinguishes alternative investments from traditional investments?

A. Predictable returns B. Higher liquidity C. Lower risk D. Illiquidity

2. The additional return required by the investor over and above the normal rate of return, when the investment is risky is called ________. (NISM workbook)

A. Risk premium B. Risk free rate of return C. Alpha D. Both b & c

3. Future value of the investment is influenced by __________. (NISM workbook)

A. Rate of return B. Time period C. Both a & b D. None of the above

4. Which of the following is the function of the secondary markets? (NISM workbook)

A. Provide a platform for making public issues B. Provide liquidity for securities issued C. Provide information about public companies D. All the above

5. Which of the following is a distinguishing feature of primary market? (NISM workbook)

A. It originates securities into the market. B. It helps in intermediation between investors and issuers. C. It enables issuers to raise capital. D. All the above

6. ____________________ represent ownership in a company that entitles its holders to participate in its profits and the right to vote on the company’s affairs. (NISM workbook)

A. Equity Shares B. Bonds C. Commercial Papers D. All the above

7. Financial assets are generically classified into two broad categories __________. (NISM workbook)

A. Primary & Secondary B. Debt & Equity C. Listed & Unlisted D. Domestic & Foreign

8. In India, the Central Government issues ____________. (NISM workbook)

A. Certificate of deposits B. Dated securities C. Both a & b D. Treasury bills

9. Alternative investment is defined as a _________ that does not fall into one of the conventional investment categories. (NISM workbook)

A. financial planning B. mutual fund C. personal property D. financial asset

10. The following is an example of alternative investment. (NISM workbook)

A. Investment in a venture capital fund B. Investment in units of a mutual fund C. Investment in AAA listed bond D. Investment in an exchange traded fund