B.Com In Banking & Insurance (BCBI) Sem VI 2022 2023 Apr 2023 I SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 (A) Multiple Choices Question: (Any Eight) 8 marks
   • 1. Financial markets can be classified into money markets and markets
   • 2. The objective of portfolio is to reduce by diversification
   • 3. As per single index model beta is the slope of
   • a) The security market line b) The capital market line
   • c) characteristic line d) The CAPM
   • 4. investment is determined by
   • a) Net Profit b) Capital employed c) Net worth d) Net profit and capital employed
   • 5. The fundamental analysis is a method of finding out
   • a) Ratio b) Past value of c) Tips d) Future price of security
   • 6. As per capital asset pricing model, beta is a measure of _ risk
   • 7. index is a ratio of return generated by the fund over and above risk-free rate of return, during a given period and systematic risk associated with it
   • 8. assists in the selection of the most efficient by analysing various possible portfolios of the given securities
   • 9. measures the dispersion of data from its expected value
   • a) Slow growth b) Decline c) Rapid growth d) No growth
2. Q1 B. Answer whether the below statements are true or false (Any seven) 7 marks
   • 1. Portfolio means a combination of financial assets and physical assets
   • 2. Investing in equity share is a tax saving investment
   • 3. Portfolio risk cannot be reduced with diversification
   • 4. The single index model is the complex and the most rarely used simplification
   • 5. Buying and selling of securities does not involve transaction cost such as commission and
   • 6. Price level and inflation affect the economy of the country
   • 7. Fundamental analysts believe that price move in short, medium and long- term trend Paper Subject Code: 85605 Security Analysis and Portfolio Management
   • 8. The Elliott wave theory states that major moves take place in five successive steps
   • 9. Efficient market hypothesis assumes that there are a smaller number of buyers and sellers
   • 10. All security factors are determined by CML
3. Q2 (A)From the following available information analyse the two portfolio performance Risk Free rate of return is 10% and Face Value is Rs.100 each Evaluate the performance of these mutual funds using Sharpe Ratio and Treynor’s Ratio Comment on the evaluation after ranking the funds. (10)
4. Q2 (B) Mr. Jitu purchased 100 shares of Tata Motors Ltd. @ Rs. 600 each on 1* January, 2017. He paid a brokerage of Rs. 500. He received dividends from the company in October 2017 of Rs. 500. He sold all his holdings in January 2018 @ Rs.670 each. He had to pay a brokerage of Rs. 875. Calculate the holding period return. (05)
5. Q2 (C) What is the meaning of Portfolio Management? Explain the advantages of Portfolio
6. Q2 (D) Explain the types of investors 5 marks
7. Q3 (A) Following information is available about two stocks which are correctly valued as per CAPM —
   • a) What is the market portfolio expected rate of return and how much is the risk-free rate?
   • b) If you invest 25% in A Ltd. and balance in B Ltd., what is your expected rate of return and
8. Q3 (B) The return of Shiva Ltd. and the market portfolio is given below —
   • 0.30 00 (Zero) 30 You are required to calculate —
   • a) The expected returns of Shiva Ltd. and the market portfolio. 5
   • b) The covariance between the market portfolio and Shiva Ltd. 5
   • c) The Beta for Shiva Ltd. Paper Subject Code: 85605 Security Analysis and Portfolio Management QA) (A) Following is the balance sheet of Arni Ltd. As on March, 2017 (15) Balance Sheet as on 31-03-2017 Provision for Tax 33,800 Income statement for the year ended 31-03-2017 Less : Cost of goods Sold (3,35,400) 5
   • 1. Tax Rate = 30%
   • 2. Face value of Equity share = Rs 10
   • 3. Proposed Dividend = 5%
   • 4. Market Price of Equity share = Rs 35 per share Complete the income statement and calculate the following ratios:
9. Q4 (B) Discuss types of chart pattern in technical analysis 8 marks
10. Q4 (C ) What are the phases of portfolio management 7 marks
11. Q5 (A) How is systematic risk and unsystematic risk of portfolio calculated as per single index
12. Q5 (B) Explain various objectives of portfolio management. 7 marks
13. Q5 (C) Short Notes (Any three). 15 marks
    • 1. Fundamental Analysis
    • 3. Forms of Market Efficiency
    • 4. Financial Leverage
    • 5. its importance

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