B.Com In Banking & Insurance (BCBI) Sem VI October 2019 October 2019 Security Analysis & Portfolio Management Question Paper - Mumbai University | munotes

Questions asked in this paper

• (2) Figures to the right indicate marks allotted to each question

1. Q1 (a) Choose the most suitable alternative for the following. (Any 8) 8 marks
2. Q1 An activity involving high risk with expecting stagnant returns is known as
3. Q2 The fundamental analysis has been associated with
4. Q3 Financial markets can be classified into Money markets and markets
5. Q4 Current ratio is a ratio
6. Q5 is the objective of Portfolio Management
   • (a) Maximizing return (b) Liquidity (c) Minimizing All of the above
7. Q6 Return on investment is determined by
   • (a) Ratios (b) Net profit (c) Net profit and Capital employed (d) Net worth
8. Q7 Post office operates as a
9. Q8 Life insurance business was nationalized in India
10. Q9 is a speculator who expects rise in price
11. Q10 is discounted value of one or more future cash flows
12. Q1 (b) Give True or False: (Any 7) 7 marks
13. Q1 Time is not very important factor in investment
14. Q2 Investment is based on tips, rumours and inner feelings rather than any scientific analysis
15. Q3 Primary a place where existing securities are traded
16. Q4 Stocks with very high market capitalization are known as penny stocks
17. Q5 The market value of shares is determined by Beta
18. Q6 Portfolio risk cannot be reduced with diversification
19. Q7 Speculative activities are harmful
20. Q8 Brokerage paid on purchase of a security will be added to its cost
21. Q9 Securities with negative alpha should be immediately purchased
22. Q10 Capital markets mainly deal in long-term fund needs
23. Q2 (a) Explain the Characteristics of Investments. 8 marks
    • (b) What is the role of Portfolio Manager? Paper Subject Code: 85502 Security Analysis and Portfolio Management 7
24. Q2 Mr. Velsi recently forecasted four economic situations which he believes are likely to occur with the given probabilities. Based on these situations an analyst made the following forecasts of the returns of stock Ponds and Lakme Calculate the expected return and standard deviation of stocks Ponds and Lakme Advice which stock is good for investment. (15 Marks)
25. Q3 Following information is available relating to Lokesh Limited and Mayur Limited
    • (iv) Return on Equity (v) Current Ratio As an analyst inform the investor which is good in investing. (15 Marks)
26. Q3 (a) Distinguish between Fundamental Analysis and Technical Analysis. 8 marks
    • (b) Explain the Measures of Economic Activities. 7
27. Q4 (a) The details of three portfolios are given below Compare these portfolio using Sharpe and Treynor measures. Risk free return is 8 %. (08 Marks) Paper Subject Code: 85502 Security Analysis and Portfolio Management
28. Q4 (b) A Government of India bond of Rs.1000 each has a coupon rate of 8% p.a. and maturity period is 10 years. If the current market price is Rs. 910. Find YTM. (O07 Marks)
29. Q4 (a) Distinguish between Capital Market Line and Security Market Line. 8 marks
30. Q4 (b) Explain the Assumptions of Random Walk Theory. 7 marks
31. Q5 (a) Returns of Hero Limited and Honda Limited are given for four years with market returns You are required to compute Beta factors and expected returns of Hero Limited and Honda Limited by using CAPM and offer your comments. Rf is 9%. (08 Marks)
32. Q5 (b) Explain semi strong form of Efficient Market Hypothesis. 7 marks
33. Q5 Give short notes on: (Any three) 15 marks
34. Q2 Portfolio Evaluation
35. Q3 Bond Duration

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