NISM Series XV free mock test questions

Business valuation is a critical financial exercise used in multiple scenarios. In which of the following situations would valuation MOST appropriately be required?

A research analyst is studying the fluctuations in production, inventory buildup, and sales slowdown in a steel manufacturing company. Which economic concept will BEST help forecast short-term demand and pricing pressure?

A firm has Return on Capital Employed (ROCE) of 6%, while its average cost of borrowing (debt) stands at 8%. Assuming capital structure remains unchanged, what is the most logical implication on its Return on Equity (ROE)?

Under SEBI guidelines, a rights issue remains open for subscription for a maximum permissible period. What is the correct limit?

An analyst compares two businesses:

* Company P operates in consumer staples

* Company Q operates in luxury automobiles

During an economic slowdown, which company is MOST likely to demonstrate relatively stable demand?

A listed company has a Net Worth of ₹20 lakh and a Market Capitalization of ₹90 lakh. If the Book Value per Share (BVPS) is ₹25, the approximate Price-to-Book Value (P/BV) ratio is:

Under the Securities Contracts (Regulation) Act, 1956, regulators have powers relating to:

Temporary deviations of stock prices from intrinsic or fair values are often influenced by investor emotions such as fear and greed. This statement is:

A company attempting to distinguish itself through superior quality, innovation, and customer experience is primarily trying to:

In PESTLE analysis, factors such as fiscal discipline, public debt management, and stability in government finances are generally categorized under:

The act of purchasing or selling securities mainly to benefit from anticipated short-term price fluctuations rather than long-term fundamentals is BEST described as:

Which of the following would generally NOT be treated as a visual presentation tool in a professional equity research report?

Which participant in an options contract gains the contractual right to sell the underlying asset at a predetermined strike price?

Which of the following would MOST appropriately qualify as an economic variable under PESTLE analysis?

Among the following investment avenues, which is generally associated with the highest uncertainty and probability of capital loss?

Which of the following sections in an equity research report is MOST factual rather than opinion-oriented?

An investor aiming to improve long-term investment outcomes should ideally:

Assuming all other factors remain constant, a stock trading at a lower P/E multiple than industry peers is generally perceived by value investors as:

An analyst notices that a stock’s market price is rising sharply despite no major improvement in earnings, cash flows, or industry outlook. Which explanation is MOST reasonable?

Which of the following scenarios would MOST likely weaken a company’s customer value proposition?

A company reports:

* Net Worth = ₹50 crore

* Market Capitalization = ₹200 crore

* PAT = ₹20 crore

The company’s P/BV ratio and ROE are closest to:

A company reports the following trends over the last financial year:

* Revenue increased by 22%

* EBITDA increased by 35%

* Operating Cash Flow remained largely flat

* Trade receivable days expanded materially from 48 days to 102 days

Which concern should a research analyst MOST reasonably raise?

Two companies operate with similar capital structures and debt levels. However:

* Company P reports Interest Coverage Ratio of 8.5x

* Company Q reports Interest Coverage Ratio of 1.6x

Which conclusion is MOST appropriate from a credit-risk perspective?

A company’s earnings growth remains moderate, but its stock price appreciates sharply because investors increasingly believe the company possesses durable competitive advantages, superior return ratios, and stronger long-term growth visibility. This phenomenon is BEST described as:

An investor acquires shares of a company at ₹600 per share. During the next five years:

* EPS compounds at 18% CAGR

* P/E multiple declines from 35x to 22x

Which inference is MOST reasonable regarding long-term shareholder returns?

An analyst notices that a company’s reported PAT grew by 30%, but operating cash flows declined due to rising inventories and receivables. Which interpretation is MOST appropriate?

A highly leveraged company reports stable revenue growth but a sharp decline in Interest Coverage Ratio from 5x to 1.9x over two years. Which implication is MOST likely?

A company’s stock trades at premium valuation multiples relative to industry peers because investors expect superior capital allocation, sustainable competitive advantages, and high return on capital over long periods. Such valuation premium is MOST likely driven by:

An investor buys a stock at a high valuation multiple. Even though the company subsequently delivers healthy earnings growth, shareholder returns remain muted over time. Which factor MOST likely explains this outcome?( case study)