Sample Questions
NISM-Series-19E: Category III Alternative Investment Fund Managers Mock Tests — 5 random MCQs with answers & explanations
← Back to NISM-Series-19E: Category III Alternative Investment Fund Managers Mock TestsThese 5 questions are randomly selected (standard MCQs only, not case-based).
Q1 A price-weighted index consists of 5 stocks with prices Rs. 4, Rs. 6, Rs. 8, Rs. 9, and Rs. 10 (Sum = Rs. 37), giving an initial index divisor of 3.7 (Index Value = 10). If Stock E undergoes a 2-for-1 stock split reducing its price to Rs. 5 (New Sum = Rs. 32), what must be the adjusted divisor to prevent index distortion?
Explanation:
To keep the index level unchanged at 10 after the stock split: Adjusted Divisor = New Price Sum / Target Index Value = 32 / 10 = 3.2.
Marks: 1
Q2 If a company has a very unique business model with no similar listed peers, which valuation might be wrong?
Explanation:
Relative valuation compares a company to others. If there are no similar companies to compare it to, the results will be misleading.
Marks: 1
Q3 Who is responsible for the physical safety of goods or securities received when a commodity contract is settled?
Explanation:
A custodian is like a high-tech vault manager. Their job is to safely store and protect the fund's assets, whether they are digital shares or physical goods.
Marks: 1
Q4 True or False: AIFs are allowed to start brand new "liquidation schemes" after April 25, 2024.
Explanation:
Regulations have updated to stop the launch of new liquidation schemes after this specific date.
Marks: 1
Q5 Is it true that how "investable" an index is depends on how easily the stocks in it can be bought/sold (liquidity) and how much they weigh in the index?
Explanation:
An index is useless if you can't actually buy the stocks in it. "Liquidity" means there are enough buyers and sellers, and "weight" determines how much of each stock you need to buy.,
Marks: 1
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