CA Final Security Analysis — practice questions
25 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CA Final Security Analysis in the app →Fundamental analysis evaluates a security based on which factor set?The Dow Theory primarily classifies market trends into:An efficient market in the weak form impounds which information?Random Walk Theory implies that future price changes are:Resistance level in technical analysis is best described as:An analyst applies the constant-growth dividend discount model with D1 = Rs 4, expected growth g = 5% and requUsing the constant-growth dividend model, the implied PE multiple equals:Industry analysis tracking the introduction-growth-maturity-decline pattern follows the:In Elliott Wave Theory a complete cycle consists of:A 50-day moving average crossing above the 200-day moving average is conventionally interpreted as:If a market exhibits semi-strong-form efficiency, fundamental analysis based on published financials would on A head-and-shoulders pattern on a price chart is typically read as:If beta of a stock is 1.4, market return is 12% and risk-free rate is 6%, the CAPM expected return is:When evaluating earnings quality, a sustainable rise in operating cash flow accompanying earnings growth is geA share is expected to pay D1 = Rs 5, grow at 6% indefinitely and an investor requires 14% return. If the currTwo-stage growth: D1 = Rs 3, growth 15% for 4 years then 5% perpetually; k = 12%. Approximate intrinsic value If anomaly evidence supports stock-price momentum at 6-12 month horizons, it most directly contradicts the:An analyst computes intrinsic PE as (1 − b)/(k − b·ROE). With retention b = 0.4, k = 12%, ROE = 15%, the intriOn a relative-strength index oscillator (0-100), a sustained reading above 70 is typically interpreted as:If a market is strong-form efficient, which strategy can systematically generate alpha?The Markowitz approach to portfolio construction, while informing equity research, is most often categorized uFiltering rules, technical indicator overlays and continuous price charting are most consistent with which effAn analyst projects D1 Rs 2, g 4% perpetually, k 10%. With market price Rs 30, the implied dividend yield is cIf a stock's actual PE is 25 and the intrinsic PE based on growth fundamentals is 18, the security is best desWhen information arrives sequentially and price adjusts only with a delay, the resulting price pattern most di