B.Com In Banking & Insurance (BCBI) Sem VI October 2023 October 2023 Security Analysis & Portfolio Management Question Paper - Mumbai University | munotes

Questions asked in this paper

• 2) Figures to the right indicate full marks

1. Q1 (A) State whether following statements are True or False. (Any Eight) 8 marks
   • 1) Time is not very important factor in investment
   • 2) The higher the creditworthiness of the borrower, the lesser is the risk
   • 3) The portfolio once constructed to meet with the objective of maximum return with minimum risk need not be monitored and reviewed regularly
   • 4) The process of changing the mix of securities in a portfolio is called as portfolio revision
   • 5) The book value per share is the net worth of the company divided by the number of
   • 6) Higher industrial growth rate is a unfavourable sign in the stock market
   • 7) Technical analysts believe that history tends to repeat itself
   • 8) Fundamental Analysis is a Short Term Approach
   • 9) The random walk hypothesis argues that stock prices are not random
   • 10) Small cap stocks tend to offer more growth potential than large cap stocks
2. Q1 (B) Match the columns. (Any Seven) 7 marks
   • 3) Beta higher than 1 c) Technical Analysis
   • 6) Current Ratio f) Negative impact on share valuation
   • 7) Operating Leverage g) Difference between Actual Return and
   • 8) Study of chart and patterns h) Aggressive security
   • 9) Preference Share
   • 10) Falling stock Market j) Measure of risk
3. Q2 (a) Explain the investment objectives. 8 marks
4. Q2 (b) What is the meaning of Portfolio Evaluation? Explain the need for Portfolio Paper Subject Code: 85502 Security Analysis and Portfolio Management
5. Q2 (c) Ms. Tanya is considering investment in the shares of any of the below three companies. She has the following expectations of return on the stocks: (15) You are required to:
6. Q3 (a) Following is the Revenue Statement of CIRCLE Ltd. Trading, Profit & Loss Account for the year ended 31“ March, 2023 To Opening Stock 27,150 By Sales 1,63,575 | By Closing Stock 42,000 To Carriage Inward 4,275 By Interest received on Investment | 2,700 To Office Expenses 45000 To Sales Expenses To Loss on Sale of Fixed To Net Profit c/d 45000 Calculate the following ratios: 15 marks
   • b) Operating Ratio
7. Q3 (c) Explain Operating Leverage and Financial Leverage and its uses 8 marks
8. Q3 (d) Distinguish Between Fundamental Analysis and Technical Analysis. 7 marks
9. Q4 a) The details of three portfolios are given below. Compare these portfolios on The risk - free rate of return is 6% Paper Subject Code: 85502 Security Analysis and Portfolio Management 8 marks
10. Q4 b) Calculate yield to maturity (YTM) of bond Life of bond - 10 years If bond ‘B’ gives 16% YTM, which is better to invest? 7 marks
11. Q4 c) Explain the different types of investors. 8 marks
12. Q4 d) Explain Random Walk Theory with criticism against the theory. 7 marks
13. Q5 a) The returns of Bajaj Ltd. and Market Portfolio for last 4 years are as under: % Return of Stock Bajaj Ltd. | % Return on Market Portfolio Calculate Beta of the Bajaj Ltd 8 marks
    • b) The following information is available in respect of two firms, Prakash Ltd. You are required to calculate Operating, Financial and Combined Leverage 7
14. Q5 Write short note. (Any 3) 15 marks
    • a) Support and Resistance
    • d) Advantage of Portfolio Management

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