B.Com In Banking & Insurance (BCBI) Sem VI October 2025 October 2025 Security Analysis and Portfolio Management Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 (A) Multiple choice Question (Any 8) 8 marks
   • 1) Debt equity ratio is the better
   • 2. The ideas of selecting securities in a portfolio based on coefficient of correlation of their returns were purported by :
   • a] William Sharpe b] Harry Markowitz Black and Scholes Walter
   • 3. The market risk refer to the variability in the caused by the market up swings and market
   • a] b] profit c] Rate of return d] None of the above is simply a graphical representation of a series of prices over a set time frame
   • a] Table. None of the above
   • 5. An primary trend represents a bull market
   • 6. The graphical version of the CAPM is called market line is used as denominator in Sharpe's Ratio
   • 8. Analysis is a study based on market emotions and share price movements
   • a) Fundamental c) Moral d) All of the above
   • 9. Beta. is type of risk
   • 10. refers to combination of various assets in which investors can invest money. ~,
2. Q1 (B) State whether the following are True or false (any Seven) 7 marks
   • 1. Repayment of debt will always increase return on net worth
   • 2. APT is model a multi factor model
   • 3. Example of profitability ratios includes current ratio and quick ratio
   • 4. Tax planning is one of the important objectives in Investment
   • 5. Strong form covers the least amount of information
   • 6. Stock turnover ratio is a liquidity ratio
   • 7. Treynor’s measure ignores any unsystematic risk that might be present
   • 8. Holding Period Return Annualized Return are one and same
   • 9. Yield to maturity is total return on bonds
   • 10. Risk element is limited or very low in Gambling as compared to Investment Paper Subject Code: 85502 Security Analysis and Management
   • 2. (A) Explain Factors influencing selection of Investment 8
   • (B) Explain the advantages of Portfolio Management. 7
   • 2. C) The rate of return of stock of Page Itd and Sage Itd under different state of economy is given below : Returns of Page | Returns of Sage 15
   • i) Calculate the expected rate of return and standard deviation of return on stock of Page Ltd and Sage Ltd
   • ii) As an investor which company would you prefer for investment
3. Q3 A) Explain different types of charts. 8 marks
4. Q3 B) Explain the efficient market hypothesis in detail. 7 marks
   • 3) C) Following information is available relating to A Ltd. and B Ltd, Equity Share of Rs. 10 each You are required to calculate: 15
   • (i) EPS (ii) P/E Ratio (ili) Dividend Pay-out Ratio (iv) Dividend Yield Ratio (v) Return on Equity (vi) Return on Capital Employed ( vil) Debt-equity ratio
5. Q4 A) The details of three portfolios are given below. Compare these portfolio on performance using Sharpe and Treynor measures and rank the portfolios The Risk Free return is 6 %, 8 marks
6. Q4 B) A Government of India bond of Rs.1,000 each has a coupon rate of 7.5% p.a. and maturity period is 25 years. If the current market price is Rs.1050. Find YTM. (07) Paper Subject Code: 85502 Security Analysis and Portfolio Management
7. Q4 C) Explain various Investment Avenues. 8 marks
8. Q4 D) Distinguish between systematic and Unsystematic risks. 7 marks
9. Q5 A) Returns of TBT Limited are given for five years with market returns. You are required to compute Beta 8 marks
10. Q5 B) Calculate the Operating leverage, financial leverage and Combined leverage from the following data: (07) Output (in units) 60,000 15,000 Give short notes on: (Any three) (15)
    • 1. Types of investors
    • 2. Dow theory
    • 3. Portfolio Evaluation
    • 4. Phases of Portfolio Management
    • 5. Speculation & Gambling

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