Questions

Q:

What is hedging?

Answer

Hedging is a tool to minimize the risks. It is thus like an 'insurance' where one pays a premium but gets an assured amount in case of some uncertain event to the extent of the loss actually suffered on an equally opposite position for which the hedge was done. Thus, hedger is different from arbitrageur and speculators, as the intention here is not to maximize the profit but to minimize the loss.


E.g. In Capital Markets, suppose an investor has an equity portfolio of Rs. 2 lacs and the portfolio consists of all the major stocks of NIFTY. He thinks the market will improve in the long run but might go on a downside in the shortrun. NIFTY today stands at 4300. To minimize the risk of downfall, he enters into an option contract by buying NIFTY-PUT of strike 4300 at a premium of, say, Rs. 100. Thus, the actual amount paid is Rs. 5,000(lot size of NIFTY is 50). Also, the number of NIFTY-PUTs to be bought will vary on the beta of the portfolio so as to completely hedge the positon. 

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Subject: Finance

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Q:

Someone who loans money is called

A) Lender B) Borrower
C) Investee D) Investor
 
Answer & Explanation Answer: A) Lender

Explanation:

Someone who receives money in exchange for a promise to pay it back later is called a borrower1, and the person making the loan is the lender.

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Q:

What is Primary Key in DBMS?

Answer

A primary key is a special relational database table column or combination of columns designated to uniquely identify all table records. That is, A primary key is a column or set of columns in a table that uniquely identifies tuples (rows) in that table.


A primary key, also called a Primary Keyword.



Main Features Primary key are ::


It must contain a unique value for each row of data.


It cannot contain null values.

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Q:

The part of the Himalayas between Tista and Dihang rivers is known as _________ Himalayas.

A) Nepal B) Kashmir
C) Assam D) Jammu
 
Answer & Explanation Answer: C) Assam

Explanation:
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Filed Under: Indian Geography
Exam Prep: Bank Exams

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Q:

The peripheral nervous system consists of

A) Nerves from eyes to CNS B) Nerves from ears to CNS
C) Nerves from skin to CNS D) All of the above
 
Answer & Explanation Answer: D) All of the above

Explanation:
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Filed Under: Biology
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Q:

Which is a density independent factor in controlling a population?

A) Food shortage B) Disease
C) Floods D) All of the above
 
Answer & Explanation Answer: C) Floods

Explanation:

Any factor limiting the size of a population whose effect is not dependent on the number of individuals in the population, then such factor is called Density Independent Factor. It is things that the organisms have no control over.

 

Here in the given options, food shortage and disease are factors that are dependent on the number of population but Floods have no dependency.

 

Some examples of density independent factors are :: Earth quake, fires, volcanic eruptions, floods, and  all natural calamities.

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Filed Under: General Science
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Q:

For a thirsty person, drinking water serves to reduce

A) an instinct B) the set point
C) basal metabolic rate D) a drive
 
Answer & Explanation Answer: D) a drive

Explanation:

For a thirsty person, drinking water serves to reduce a drive.

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Q:

What does it mean if a micrograph is false colored?

Answer

If a micrograph is false-colored, it means that the computer has created the colour for the object since we know that the electron microscopes sees only black and white colours.

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Subject: Physics Exam Prep: AIEEE , Bank Exams , CAT , GATE
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