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. 

Report Error

View answer Workspace Report Error Discuss

Subject: Finance

1 2636
Q:

Demography is the scientific study of

A) Growth of population B) The well being of populations
C) Birth and death of population D) All of the above
 
Answer & Explanation Answer: D) All of the above

Explanation:

Demography is the scientific study of Birth and death, The well being and the Growth of population. In brief, it is the study of human populations based on their size, composition and distribution across space – and the process through which populations change.

Demography_is_the_scientific_study_of1554269267.jpg image

Report Error

View Answer Report Error Discuss

Filed Under: General Science
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

2 2636
Q:

The place where the river meets the sea is called

A) Delta B) Sediment
C) Tributary D) Estuary
 
Answer & Explanation Answer: D) Estuary

Explanation:

The place where the river meets the sea or ocean is called as Estuary.

Report Error

View Answer Report Error Discuss

Filed Under: General Science
Exam Prep: AIEEE , Bank Exams , CAT , GATE
Job Role: Analyst , Bank Clerk , Bank PO

5 2636
Q:

Negative acceleration is in the opposite direction of:

A) force B) distance
C) velocity D) momentum
 
Answer & Explanation Answer: C) velocity

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Physics
Exam Prep: CAT , Bank Exams , AIEEE

5 2636
Q:

Which state government to install 221-Metre Bronze Statue Of lordRam In Ayodhya?

A) Uttar Pradesh B) Gujarat
C) Uttarakhand D) Himachal Pradesh
 
Answer & Explanation Answer: A) Uttar Pradesh

Explanation:

Uttar Pradesh state government to install 221-Metre Bronze Statue Of lordRam In Ayodhya.

Report Error

View Answer Report Error Discuss

Filed Under: Indian Geography
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

0 2636
Q:

Which of the following atoms has the largest radius?

A) Br B) K
C) Na D) Cl
 
Answer & Explanation Answer: B) K

Explanation:

For neutral atoms, the periodic trends in atomic size can be described like this

Atomic size decreases when going from left to right across a period,
Atomic size increases when going from top to bottom down a group.

 

Let's use these trends to try and figure out which atom would have the largest radius.

If you look at elements that are located in the same group, potassium will have a larger atomic radius when compared with sodium. Likewise, bromine will have a larger atomic radius when compared with chlorine.

Now focus on potassium and bromine. Since potassium is located at the start of period 3, and bromine at the end of the same period, potassium will have a larger atomic radius than bromine, and thus the largest atomic radius of the four given atoms.

Report Error

View Answer Report Error Discuss

Filed Under: Chemistry
Exam Prep: AIEEE , Bank Exams , CAT , GATE
Job Role: Analyst , Bank Clerk , Bank PO , IT Trainer

3 2635
Q:

Missing letters puzzle

Answer

Answer: U


Explanation:   Starting on the left, and moving along the line to the right, letters follow the alphabetic sequence, in steps of 1,2,3 and then 4, before repeating the sequence.


 

Report Error

View answer Workspace Report Error Discuss

7 2635
Q:

The word length of a computer is measured in

A) centimeters B) millimeters
C) bytes D) bits
 
Answer & Explanation Answer: D) bits

Explanation:
Report Error

View Answer Report Error Discuss

3 2635