Section A (1 Mark)
A cognitive heuristic in which people tend to reach conclusions based on the 'framework' within which a situation is presented; e.g. people are more lokely to recommend the use of a new procedure if it is described as having a '50% success rate' than a '50% failure rate'. Which of the following is most likely consistent with this bias?

Section B (2 Mark)

Which of the above statements is/are correct?

Section C (4 Mark)
Suppose Nifty is at 4450 on 27th April. An investor, Mr. A enters a long straddle by buying a May Rs 4500 Nifty Put for Rs. 85 and a May Rs. 4500 Nifty Call for Rs. 122.
What would be the Net Payoff of the Strategy?
* If Nifty closes at 3729
* If Nifty closes at 5214

Section A (1 Mark)
A swap that involves the exchange of one set of interest payments for another set of interest payments is called a(n)

Section C (4 Mark)
You are given the following set of data:
Historical Rate of Return

Determine the arithmetic average rates of return and standard deviation of returns of the NSE over the period given.