Chapter 10: NISM-XV Exam Prep
🧠
Day 51: NISM-XV Mock Exam — Practice Round 2
Advanced questions — financial ratios, valuation, and market mechanics
2 min read
📖 Raising the Bar
Round 1 covered the basics. Round 2 goes deeper — financial ratios, valuation methods, derivatives, and the kind of conceptual questions where knowing the definition isn't enough. You need to understand WHY.
The NISM exam has about 40 straightforward questions and 60 that require genuine understanding. Let's practise the harder ones. 🧠
Round 1 covered the basics. Round 2 goes deeper — financial ratios, valuation methods, derivatives, and the kind of conceptual questions where knowing the definition isn't enough. You need to understand WHY.
The NISM exam has about 40 straightforward questions and 60 that require genuine understanding. Let's practise the harder ones. 🧠
Q8. A company has P/E = 30 and EPS growth rate = 40%. The PEG ratio is:
A) 1.33
B) 0.75 — potentially undervalued even at high P/E!
C) 12.0
D) 1.0 — fairly valued
Q9. Which of the following is the BEST indicator of a company's actual cash generation?
A) Net Profit (PAT)
B) EBITDA
C) Free Cash Flow (FCF)
D) Book Value per Share
Q10. "Front Running" in securities markets means:
A) Being the first broker to open each morning
B) A broker trading for their own account AHEAD of executing a client's order
C) Buying shares before an IPO allotment
D) Short selling without owning the shares
Q11. In options trading, "In The Money" (ITM) Call option means:
A) The option is generating income for the seller
B) Current market price is ABOVE the strike price — exercising would be profitable
C) The option premium is worth more than the stock
D) The option expires in-the-money automatically
Q12. Which component of the Sharpe Ratio measures excess return?
A) Standard Deviation
B) (Portfolio Return − Risk-Free Rate)
C) Beta of the portfolio
D) Correlation coefficient
Q13. A "Golden Cross" in technical analysis occurs when:
A) A stock hits an all-time high price
B) The 50-day SMA crosses ABOVE the 200-day SMA — a bullish signal
C) Trading volume hits a 52-week high
D) RSI crosses above 70 for the first time
Q14. AMFI issues which registration to mutual fund distributors?
A) SEBI Registration Number (SRN)
B) ARN — AMFI Registration Number
C) CIN — Company Identification Number
D) DIN — Distributor Identification Number
🎯 Takeaway:
PEG = P/E / Growth rate (below 1 = potentially cheap). FCF beats Net Profit for measuring real cash. Front running = broker trades before client order — illegal. ITM Call = market price above strike. Tomorrow: More advanced practice plus exam day strategy!
PEG = P/E / Growth rate (below 1 = potentially cheap). FCF beats Net Profit for measuring real cash. Front running = broker trades before client order — illegal. ITM Call = market price above strike. Tomorrow: More advanced practice plus exam day strategy!