Comprehension
Mehta is the Director of investments for a mutual fund. He believes that blue-chip stocks and government securities will generally not do as well as corporate bonds in the coming year, but government regulations require that at least one-third of the fund's capital be in blue-chip stocks and another third in government securities.
Question: 1
Under current regulations, what seems to be the best way for Mehta to invest in the mutual fund ?
Under current regulations, what seems to be the best way for Mehta to invest in the mutual fund ?
Updated On: Sep 27, 2024
- Two-thirds government securities, one-third blue chip stocks.
- Two-thirds government securities, one-third corporate bonds.
- One-third government securities, two-thirds corporate bonds.
- One-third each government securities, blue-chip stocks and corporate bonds.
Hide Solution
Verified By Collegedunia
The Correct Option is D
Solution and Explanation
The correct option is (D): One-third each government securities, blue-chip stocks and corporate bonds.
Was this answer helpful?
0
0
Question: 2
If the mutual fund has Rs. 60 crore in assets, then what is the maximum that Mehta could invest in blue-chip stocks?
If the mutual fund has Rs. 60 crore in assets, then what is the maximum that Mehta could invest in blue-chip stocks?
Updated On: Sep 27, 2024
- 20 crore
- 30 crore
- 40 crore
- 50 crore
Hide Solution
Verified By Collegedunia
The Correct Option is A
Solution and Explanation
The correct option is (A): 20 crore
Was this answer helpful?
0
0
Question: 3
If the govemment regulations are changed to require only one-quarter whereas one-third was previously required, Mehta will probably
If the govemment regulations are changed to require only one-quarter whereas one-third was previously required, Mehta will probably
Updated On: Sep 27, 2024
- Increase the fund's holdings of government securities.
- Increase the fund's holdings of corporate bonds.
- Increase the fund's holdings of blue-chip stocks.
- Hold more cash.
Hide Solution
Verified By Collegedunia
The Correct Option is B
Solution and Explanation
The correct option is (B): Increase the fund's holdings of corporate bonds.
Was this answer helpful?
0
0
Question: 4
If the return on government securities suddenly goes up by five percentage points, Mehta will probably
If the return on government securities suddenly goes up by five percentage points, Mehta will probably
Updated On: Sep 27, 2024
- Sell blue-chip stocks to buy govern- ment securities.
- Sell corporate bonds to buy government securities.
- Sell both corporate bonds and blue-chip stocks to buy government securities
- His action cannot be predicted
Hide Solution
Verified By Collegedunia
The Correct Option is D
Solution and Explanation
The correct option is (D): His action cannot be predicted
Was this answer helpful?
0
0
Question: 5
In the middle of the year, the fund is invested equally in corporate bonds, blue-chip stocks and government securities. Due to some rumours about the credibility of the fund, investors have started redemption and withdrawals resulting in cash shortage for the fund. Mehta might do any one of the following EXCEPT
In the middle of the year, the fund is invested equally in corporate bonds, blue-chip stocks and government securities. Due to some rumours about the credibility of the fund, investors have started redemption and withdrawals resulting in cash shortage for the fund. Mehta might do any one of the following EXCEPT
Updated On: Sep 27, 2024
- Sell two times more corporate bonds than blue-chip stocks
- Sell only government securities and blue-chip stocks.
- Sell only corporate bonds and blue-chip stocks.
- Sell only government securities and corporate bonds.
Hide Solution
Verified By Collegedunia
The Correct Option is A
Solution and Explanation
The correct option is (A): Sell two times more corporate bonds than blue-chip stocks
Was this answer helpful?
0
0
Top Questions on Course of Action
- Directions: The question presents a situation and asks you to make a judgment regarding that particular circumstance. Answer the question solely on the basis of the information given.
Illegal adulterated and local alcohol that is largely in supply in the city has become a matter of concern for the citizens and administration. A meeting was called up, which involved local people as well, to discuss the situation. The local people claimed that the administration is not doing enough to deal with the situation. You are representing the administration in the meeting. What should be your reaction to these claims?- NMAT - 2022
- Logical Reasoning
- Course of Action
- ln question below is given a statement followed by three courses of action numbered I, II and Ill. You have to as and then decide which of the given suggested courses of action logically follow(s) for pursuing.
Statement: In one of the wors people died when a bus carrying them collided on to a running train.
Courses of Action: I. The train driver should immediately should be tried in court for negligence on his part. Ill.The railway authority should be asked to man all its level crossings .. - ln question below is given a statement followed by three courses of action numbered I, II and Ill. You have to as and then decide which of the given suggested courses of action logically follow(s) for pursuing.
Statement: Poverty is increase how to tackle it, know absolutely nothing about the poor.
Courses of Action: I. The decision makers should go to the grassroots level to understand the problems of the poor. II. The decision makers should come from the poorer sections of society. Ill. A new set of decision makers should replace the existing one. - ln question below is given a statement followed by three courses of action numbered I, II and Ill. You have to as and then decide which of the given suggested courses of action logically follow(s) for pursuing.
Statement: The condition of a due to incessant rain during the last two months.
Courses of Action: I. The city civic authority should deploy additional traffic personnel to regulate traffic.II.The city civic authority should immediately make arrangements for repairs of the damaged roads. Ill. Motorists should be aler boards about the bad patches of the roads to enable them to plan their journey accordingly - ln question below is given a statement followed by three courses of action numbered I, II and Ill. You have to as and then decide which of the given suggested courses of action logically follow(s) for pursuing. Statement: The exodus from·Courses of Action:
I. Rural postings must be made mandatory. II. There should be fewer trains linking cities to smaller places be launched in rural areas
View More Questions
Questions Asked in MAT exam
- In the following sentence, a part of the sentence is underlined. Beneath each sentence four different ways of phrasing the underlined part are indicated. Choose the best alternative among the four options.
There \(\underline {\text{have}\ \text{been}\ \text{heavy}\ \text{rainfall}}\) yesterday- MAT - 2018
- Sentence Correction
- Who among the following cannot be impeached?
- MAT - 2018
- Politics and Government
- Who is leading the LTTE delegation for the peace process with Sri Lanka?
- MAT - 2018
- International Organizations
- Who was the first UN Secretary General?
- MAT - 2018
- Politics and Government
- Which of the following sources yields the maximum revenue to the Union Government?
- MAT - 2018
- Politics and Government
View More Questions