Classical

UGC NET December 2014 - Paper 3

21:  

The variance of rates of return of assets or securities using historical returns can be derived as

 

A.
B.
C.
D.
 
 

Option: B

Explanation :

where R indicates the rate of return of respective year (t), out of total period of holding (n) and R- is the average rate of return.


22:  

Statement I : Corporate values seek to ensure a consistency of conduct across the entire organisation.

Statement II : Corporate values directly relate to organisation's risk management strategies and support reputation and credibility.

A.

(I) and (II) both are incorrect.

B.

(I) and (II) both are correct.

C.

(I) is incorrect and (II) is a correct statement in isolation.

D.

(I) is correct, but (II) is not the right explanation of (I).

 
 

Option: B

Explanation :


23:  

For which of the following sectors, the FDI cap/equity is 100%?

i. Mining including exploration and mining of diamonds

ii. Defence production

iii. Drugs and pharmaceuticals

iv. Insurance

v. Banking

vi. Power (except atomic energy)

 

A.

i, iii, iv and vi

B.

i, iii, iv and v

C.

i, ii and vi

D.

i, iii and vi

 
 

Option: D

Explanation :


24:  

Which one of the following is the correct expression for the Fisher equation, where

n = the annual nominal interest rate

r = the annual real interest rate

P = the expected annual inflation rate

A.

(1 + n) = (1 + r) (1 + P)

B.

(1 + r) = (1 + P) (1 + n)

C.

(1 + P) = (1 + n)(1 + r)

D.

(1 - r)2 = (1 + P)(1 + n)

 
 

Option: A

Explanation :


25:  

Which of the following is not an effective source of recruitment for a middle-level managerial position?

A.

Company website

B.

In-campus interview

C.

'Head hunters'

D.

Newspapers

 
 

Option: D

Explanation :




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