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Friends, Updating here the recollected questions from June 2016 Exams. Wish you all the very best for your exam.
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Find Correlation coefficient for X and Y values given below :
X= (1,2,3,4,5)
Y= {11,22,34,43,56}
a. 0.8899
b. 0.9989
c. 1.0899
d. 1.0989
Ans - b
Explanation :
Step 1: Find Mean for X and Y
X=15/5=3
Y=166/5=33.2
Step 2: Calculate Standard Deviation for Y inputs:
σx=
√(1/(N-1)*((x1-xm)2+(x2-xm)2+..+(xn-xm)2))
=√(1/(5-1)((11-33.2)2+(22-33.2)2+(34-33.2)2+(43-33.2)2+(56-33.2)2))
=√(1/4((-22.2)2+(-11.2)2+(0.8)2+(9.8)2+(22.8)2))
=√(1/4((492.84)+(125.44)+(0.64)+(96.04)+(519.84)))
=√(308.7)
=17.5699
Step 3: Standard Deviation for X Inputs:
σx=
√(1/(N-1)*((x1-xm)2+(x2-xm)2+..+(xn-xm)2))
=√(1/(5-1)((1-3)2+(2-3)2+(3-3)2+(4-3)2+(5-3)2))
=√(1/4((-2)2+(-1)2+(0)2+(1)2+(2)2))
=√(1/4((4)+(1)+(0)+(1)+(4)))
=√(2.5)
=1.5811
Σ((X - μx) (Y - μy))
=(1-3)(11-33.2)+(2-3)(22-33.2)+(3-3)(34-33.2)+(4-3)(43-33.2)+(5-3)(56-33.2)
=(-2*-22.2) + (-1*-11.2) + (0* 0.8) + (1 *9.8) + (2* 22.8)
=44.4 + 11.2 + 0 + 9.8 + 45.6
=111
Correlation Coefficient = 111/((5-1)*1.5811*17.5699)
Correlation Coefficient (r) = 0.9989
Hence the correlation coefficient between the two given data set is 0.9989
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Cash = Rs 50000/-
Debtors = Rs 100000/-
Inventories = Rs 150000/-
Current liabilities = Rs 100000/-
Total current assets = Rs 300000/-
The quick ratio = ?
a. 1.5:1
b. 2:1
c. 3:1
d. 3:2
Ans - a
Let me Explain
Since Quick ratio = Quick asset / CL
Here Quick asset = CA- Inventory
Now CA= (Cash + Debtor.....etc ) = Rs 300000/-
Here inventories = 150000/-
CL = 100000/-
Hence QR= 150000/100000
i.e 1.5:1
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Current ratio of a unit is 2:1 and quick ratio is 1:1. The level of current assets is Rs 20 lac. Find out the amount of quick asset.
a. Rs 8 lac
b. Rs 10 lac
c. Rs 12 lac
d. Rs 15 lac
Ans - b
Let me Explain
Since CR = CA: CL
CR= CA:CL = 2:1
i.e. 20:CL= 2:1
i.e CL = 10 lac
Now QR= 1:1
Since QR= Quick asset/CL ( here quick asset is CA-Inventory )
Hence QA= CL ~ 10 lac
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Liabilities→
Capital =180
Reserve =20
Term loan = 300
Bank C/C=200
Trade creditors=50
Provision=50
Total liabilities = 800
Asset→
Net fixed Assets =400
Inventories=150
Cash =50
Receivables= 150
Good will=50
Total assets =800
a. Net worth= ?
b. Tangible net worth = ?
c. Net working capital = ?
d. Quick ratio = ?
e. Current ratio =?
f. Outside liability =?
The correct answer is
a. net worth = 200
b. tangible net worth = 150
c. net working capital = 50
d. Quick ratio= 0.66:1
e. Current ratio = 1.17:2
f. OSL = 600
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Given,
Currency with public - Rs. 90000 Crores
Demand deposit with banking system - Rs. 180000 Crores
Time deposits with banking system - Rs. 220000 Crores
Other deposit with RBI - Rs. 260000 Crores
Savings deposit of post office savings banks - Rs. 60000 Crores
All deposit with post office savings bank excluding NSCs - Rs. 50000 Crores
Calculate M2.
a. Rs. 470000 Crores
b. Rs. 550000 Crores
c. Rs. 590000 Crores
d. Rs. 630000 Crores
Ans - c
Solution :
M1 = currency with public + demand deposit with the banking system + other deposits with RBI
M1 = 90000+180000+260000
M1 = 530000
M2 = M1+Savings deposit of post office savings banks
So,
M2 = 530000+60000
M2 = 590000 Crores
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Given,
Currency with public - Rs. 90000 Crores
Demand deposit with banking system - Rs. 180000 Crores
Time deposits with banking system - Rs. 220000 Crores
Other deposit with RBI - Rs. 260000 Crores
Savings deposit of post office savings banks - Rs. 60000 Crores
All deposit with post office savings bank excluding NSCs - Rs. 50000 Crores
Calculate M4.
a. Rs. 750000 Crores
b. Rs. 800000 Crores
c. Rs. 810000 Crores
d. Rs. 870000 Crores
Ans - b
Solution :
M4 = M3+All deposit with post office savings bank excluding NSCs
M3 = M1+Time deposit with banking system
M1 = currency with public + demand deposit with the banking system + other deposits with RBI
M1 = 90000+180000+260000
M1 = 530000
So,
M3 = M1+Time deposit with banking system
M3 = 530000+220000
M3 = 750000 Crores
So,
M4 = M3+All deposit with post office savings bank excluding NSCs
M4 = 750000+50000
M4 = 800000 Crores
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Current yield on an 8% Rs. 100 bond is 7.5%. The price of the bond is ......
a. 104.67
b. 105.67
c. 106.67
d. 107.67
Ans - c
Explanation :
Bond Price = (1/(1+R)^t)((coupon*((1+R)^t-1)/R)+Face Value)
(Here, t = 1
So, price
= (Coupon + Face Value) ÷ (1 + R)
= (8 + 100) ÷ 1.075 = 100.465)
But, since Coupon Interest = Current Yield × Current Market Price
So, Price = 8 ÷ 7.5% = 8000 ÷ 75 = 106.67
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A bond has been issued with a face value of Rs. 1000 at 8% Coupon for 3 years. The required rate of return is 7%. What is the value of the bond?
a. 1062.25
b. 1625.25
c. 1026.25
d. 1052.25
Ans – c
Explanation :
Here,
FV = 1000
Coupon Rate (CR) = 0.08
t = 3 yr
R (YTM) = 0.07
Coupon = FV × CR = 80
Bond Price = (1/(1+R)^t)((coupon*((1+R)^t-1)/R)+Face Value)
So, Value of bond = 1026.25
(Since Coupon rate > YTM, so Bond’s Value > FV)
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What is the price of a 20-year, zero-coupon bond with a 5.1% yield and Rs. 1000 face value?
a. Rs. 359
b. Rs. 369
c. Rs. 379
d. Rs. 389
Ans - b
Solution :
PV = 1000/(1+0.051)^20
= 369
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A bond is issued with a face value of 1000 that pays a Rs. 25 Coupon semi-annually. Find its Coupon rate.
a. 4
b. 5
c. 6
d. 7
Ans - b
Explanation :
Coupon = Face Value × Coupon Rate
25 = 1000 × CR ÷ 2
So, CR = 5%
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Performance Appraisal Methods
Traditional Methods
1. Free Form Essay Method
2. Straight Ranking Method
3. Comparison Method
4. Grading Method
5. Graphic or Linear Rating Scales
6. Forced Choice Description Method
7. Forced Distribution Method
8. Group Appraisal Method
Modern Methods
1. Assessment Centre Workshops
2. Management by Objectives
3. Human Asset Accounting Method
4. Behaviourally Anchored Rating Scales
5. 360 Degree Appraisal Method
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In the assessment center workshops method, in a job related simulated situation, the behavior of the employees is assessed through their performance of different exercises such as ...... (i) group discussions, psychometric tests, (ii) business games, committee meetings, (iii) in-basket exercises
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
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There are 2 methods for performance appraisal. Which of the following are not correct. (i) the traditional methods emphasize on rating the individual personality traits, (ii) the traditional methods lay importance on job achievement, (iii) the modern methods lay emphasize on rating the individual personality traits
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
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Which of the following statement is not correct? (i) performance appraisal and potential appraisal are the same system, (ii) performance appraisal is to know the future performance, (iii) potential appraisal is to understand the potential of the employee to contribute to growth of organization
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
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It is a process by which the management finds how effective it has been in hiring and placing the employees...
a. Interview
b. Reference check
c. Performance appraisal
d. 360 degree appraisal
Ans - c
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Which step comes after when the performance standards are communicated to the employees and the performance appraisal methods.
a. Performance level are compared with benchmark
b. Out comes are than communicated to employees.
c. Measure the performance of employee
d. Initiate corrective action
Ans - c
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The oldest and simple method of performance appraisal where Relative position of each employee is assessed, is called as?
a. Comparison method
b. Straight ranking method
c. Graphic or linear rating method
d. Grading method
Ans - b
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Which is/are not the objective of review by the superior of the reporting authority in performance appraisal? (i) to minimise / reduce the bias or subjectivity, (ii) to eliminate the subjectivity, (iii) to eliminate the bias
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
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