Efa- Hunt For The Knowledge Stars

SBI Pharma Fund is categorized as a sectoral fund because it focuses on investing primarily in the pharmaceutical sector. Sectoral funds are mutual funds that invest in a specific sector or industry, allowing investors to gain exposure to a particular sector's potential growth and profitability. In the case of SBI Pharma Fund, it specifically targets companies in the pharmaceutical sector, which includes pharmaceutical manufacturers, biotechnology firms, and healthcare-related companies. By investing in a sectoral fund like SBI Pharma Fund, investors can benefit from the potential growth and performance of the pharmaceutical sector.

The correct answer is "Positive" because a healthy growth in global GDP suggests an increase in economic activity, which typically leads to higher demand for metals. As a result, metal prices are expected to react positively to this news.

The India VIX is a measure of market volatility and is often used as an indicator of future volatility expectations. A higher India VIX futures quote suggests that market participants are expecting higher volatility in the next fortnight. Therefore, the correct answer is "Higher volatility expectations ahead".

The correct answer is "Need based approach". This means that the process of selling insurance through the "Vijaypath" approach is focused on identifying and fulfilling the specific needs of the customer. It involves understanding the customer's requirements and recommending insurance products that best meet those needs. This approach prioritizes customer satisfaction and aims to provide tailored solutions rather than simply focusing on making higher margins or using sales skills.

Given the information provided, it is important for your friend to prioritize buying a term insurance plan. This is because he has recently married and has both parents as dependents. A term insurance plan will provide financial protection to his dependents in case of his untimely demise. It will ensure that his family is financially secure and able to maintain their lifestyle even in his absence.

BRICS is an acronym for Brazil, Russia, India, China, and South Africa. These countries are considered to be emerging economies with significant influence in the global economy. They form a group that collaborates on various economic and political issues, such as trade, investment, and development. South Korea and Singapore are not part of the BRICS group.

Janet Yellen is the correct answer because she is the present Chairman of the US Federal Reserve.

The appreciation of the rupee means that it has become stronger compared to other currencies, including the international currency in which gold is priced. When the rupee appreciates, it takes fewer rupees to buy the same amount of international currency, thus reducing the cost of importing gold. As a result, the price of gold on MCX, which is influenced by the cost of importing gold, will fall.

The correct answer is "Rise" because El Nino is known to disrupt weather patterns and can lead to below-average rainfall in India. This can negatively impact crop production and lead to a decrease in supply of agricultural commodities. As a result, the demand for these commodities may increase, causing their prices to rise.

The conversion of gold reserves to dollars by central banks indicates a lack of confidence in gold as a safe haven asset. This could lead to a decrease in demand for gold, causing its price to decline. Additionally, the stability in the US economy and the US dollar may attract investors away from gold and towards other assets, further contributing to a potential decrease in gold prices. Therefore, the news of central banks converting gold reserves to dollars is likely to have a negative impact on gold prices.

Most of the Structured Products offer capital protection, which means that the investor's initial investment is guaranteed and will be returned to them at the end of the investment period. This provides a level of security and ensures that the investor will not lose their principal amount. Other options such as fixed assets as security, guarantees maximum returns, and buy back by issuer at highest NAV may also be features of some structured products, but capital protection is the most commonly offered benefit.

The FDI inflows in India slowing down in the last fiscal indicates a decrease in foreign investment in the country. This could lead to a decrease in the demand for Indian rupees, causing its value to fall against the US dollar. Therefore, it is expected that the USD-INR exchange rate would rise in response to the slowdown in FDI inflows.

Buying a USDINR Call option would allow the Indian company to hedge their currency risk by giving them the right to buy USD at a predetermined exchange rate (strike price) in the future. This would protect them from any potential depreciation of the Indian Rupee against the US Dollar.

The correct answer is "Bearish". If the RBI keeps the rates unchanged and expresses concerns about higher inflation in the coming months, it indicates that the central bank is not taking any measures to stimulate the economy. This can be seen as a negative signal for banking stocks as it suggests that borrowing costs will remain high and economic growth may be impacted. Consequently, investors may be less inclined to invest in banking stocks, leading to a bearish reaction in the market.

A fall in the market will lead to a decrease in the price of the units being purchased through the fixed committed monthly Equity SIP. As a result, the same amount of money will be able to purchase more units, leading to an increased number of units being purchased.

The correct answer is Term Plan. A Key Man Plan is a type of life insurance policy that is taken out by a business on the life of a key employee or owner. It provides financial protection to the business in the event of the death of the key person. A Term Plan is a type of life insurance that provides coverage for a specific term or period of time. It does not have any cash value and only pays out a death benefit if the insured person dies during the term of the policy. Therefore, a Key Man Plan falls under the category of a Term Plan.

The correct answer is Australia, Singapore, India, Germany, US. This is the correct order of the equity markets in ascending order of their opening timing. Australia opens first, followed by Singapore, India, Germany, and finally the US.

A long strangle is an options strategy where an investor buys both a call option and a put option with the same expiration date but different strike prices. This strategy is used when the investor expects a significant price movement in the underlying asset but is unsure of the direction. In this case, buying the Nifty Call 7000 and buying the Nifty Put 6600 in the same month satisfies the criteria for a long strangle as it involves buying both a call and put option with different strike prices.

The penalty levied on the client for today's shortfall will be 5%. This means that the client will be charged a penalty of 5% of the margin shortfall amount.

The P/E ratio, or price-to-earnings ratio, is calculated by dividing the market price per share by the earnings per share. In this case, the market price per share is Rs 50 and the net profit is 10 cr. To find the earnings per share, we divide the net profit by the number of shares: 10 cr / 1 cr = Rs 10. Then, we divide the market price per share by the earnings per share: Rs 50 / Rs 10 = 5. Therefore, the current P/E ratio is 5.

Long unwinding refers to the closing of existing long positions in a stock or security. In this scenario, Infosys has seen a sharp fall in Open Interest, indicating that traders are closing their long positions. Additionally, the price of Infosys has fallen by 2% after the results, further supporting the interpretation of long unwinding.

The strategy with the highest Return to Risk ratio in this scenario would be to buy deep out of the money put options. This is because the client is willing to risk a small amount but wants the potential for big rewards if the market corrects by 10% post election results. Buying deep out of the money put options allows the client to benefit from a significant market correction, as the value of the put options would increase substantially in this scenario. This strategy offers the potential for high returns relative to the small amount of risk taken.

The correct answer is "Negative, Investible funds drain due to liquidity tightening." This is because when the US Federal Reserve cuts down on quantitative easing and reduces its bond buying program, it leads to a tightening of liquidity. This means that there will be less money available for investment in emerging markets, causing a drain in investible funds.

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A short straddle strategy involves selling both a call option and a put option with the same strike price and expiration date. This strategy is used when the trader expects the market to remain rangebound, meaning that the price will not move significantly in either direction. By selling both options, the trader collects the premiums and profits if the price stays within the range. This strategy is suitable for a market that is expected to have low volatility and limited price movement.

The correct answer is to sell Euro-INR and buy USD-INR in a quantity ratio of 1:1.4 (10 lots Euro for 14 lots USD). This strategy allows the client to take advantage of the expected downward movement of EUR-USD by selling Euros and buying US Dollars. The quantity ratio ensures that the client is properly hedged and can potentially profit from the exchange rate movement.

The dividend yield is calculated by dividing the dividend per share by the market price per share and multiplying by 100. In this case, the dividend per share is 50% of the face value, which is 0.50. The market price per share is Rs 20. Therefore, the dividend yield is (0.50/20) * 100 = 2.50%.

The insured will receive 20 lacs from the insurer towards the critical illness cover. This is because the insured has purchased a critical illness rider of 20 lacs along with the term life policy. Even though the insured falls critically ill before maturity and spends 8 lacs to get cured, the insurer will still provide the full amount of the critical illness cover, which is 20 lacs.

The client has bought 1 lot of Nifty Call at a strike price of 6800 and sold 2 lots of Nifty Call at a strike price of 7000. Since the premium pay off is nil, it means that the client will not make any profit or loss if the price of Nifty is between 6800 and 7000. However, if the price of Nifty goes above 7000, the client will start incurring losses. Therefore, the risk zone for the client is above 7000. Since the answer states "Risk Zone : Above 7200", it is incorrect.

Buying a Nifty Call option allows the client to participate in the bullish market while limiting the risk to the premium paid for the option. This strategy gives the client the right to buy the Nifty index at a predetermined price (strike price) within a specific time period (expiry date). If the market goes up, the client can exercise the option and profit from the price difference. If the market goes against the client's prediction, the maximum loss is limited to the premium paid for the option. This strategy aligns with the client's bullish outlook while managing the risk.

The given correct answer suggests that the Indian markets will open lower today. This is because the statement mentions that there were strong dollar flows from emerging markets, which indicates that investors are moving their money out of emerging markets like India. This outflow of funds can lead to a decrease in demand for Indian stocks, causing the market to open lower.

Insurance bought under the MWP Act has a key feature of no attachment in case of insolvency. This means that in the event of the policyholder facing insolvency, the insurance proceeds cannot be claimed by the creditors. This provides protection to the policyholder and ensures that the insurance benefits are preserved for the intended beneficiaries.

The correct answer is Nifty Options. India VIX is calculated based on the implied volatility of Nifty options. Implied volatility is a measure of the market's expectation of future volatility. By calculating the implied volatility of Nifty options, India VIX provides an indication of the expected volatility in the Indian stock market.

The correct answer is "Rise". This is because when yields fall, the prices of existing debt securities in the portfolio increase. As a result, the value of the portfolio also increases. Therefore, the client can expect their portfolio value to rise in the next year.

The book value of a company is calculated by dividing the total assets by the total number of outstanding shares. In this scenario, the company announces a buy-back offer at a price higher than the current market price. When the company buys back its own shares at a higher price, it reduces the number of outstanding shares in the market. As a result, the total assets of the company remain the same while the number of outstanding shares decreases. This leads to an increase in the book value per share, indicating that the book value will increase post buy-back.

The correct answer is to consider it as Business Income. This is because the client is engaged in F&O trades on an intra-day basis, which is considered as a business activity. Therefore, the income earned from these trades should be treated as business income for tax purposes.

The leverage on capital deployed is 100 times. This is calculated by dividing the strike price (6800) by the premium paid (68). The result is 100, indicating that for every rupee invested, the client has the potential to control 100 rupees worth of the underlying asset.

Rubber tyres reaching a new high would have a negative impact on the stock of Apollo Tyres. This could be due to various reasons such as increased production costs, higher competition, or a decrease in demand for rubber tyres. These factors could potentially affect the profitability and performance of the company, leading to a decrease in the stock price.