B.Com In Financial Management SEM I 2017 2018 March 2018 BASIC OF INVESTMENT WEALTH CREATION Question Paper - Mumbai University | munotes

Questions asked in this paper

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1. Q3 Working should form part of the answer
2. Q1 A) Select the correct alternative. (Any 8) 1 refers to gain or loss on a security in a particular period 8 marks
3. Q2 Higher the standard deviation, is involved in an investment
   • a. higher d.none 3 the present value of an investment, it’s future value should be multiplied by 4 annual interest rate is the interest rate that is actually on as a result of 5 ____ describe the rate at which an investment would have grown steady rate, which virtually 6A not a party to a trust 7 ___ risk is also 8 ___ isnot acomponent of risk profiling 9 arate at which central bank lends money to commercial banks 10 In zero coupon bond, interest rate attached to the bond is
4. Q1 State whether the following statements are true or false. (Any 7) 1 Atrust is set up through trust deed 7 marks
5. Q2 Deflation is the rate at which the general level of prices of goods and services is rising Risk and return has indirect relationship The primary investment goal of an aggressive investor is capital protection 5 Financial assets are easier it sell than non-financial assets, because these assets trade on exchanges 6 At 36-45 years of age, investor seeks for a balanced portfolio between debt and equity 7 In SMART investment T stands for target
6. Q8 In HPR formula, the tenure of investment is multiplied with the total gain 9 Value from compound interest is greater than that from simple interest 10 One share one vote feature of joint stock company 321 F.Y.B.COM. INVESTMENT MANAGEMENT) (CHOICE BASE) SEMESTER I/ C0572 BASIC OF INVESTMENT & WEALTH CREATIC
   • Q.P. Code : 30075
7. Q2 Answer the following questions. 15 marks
   • A) Explain the meaning and features of Joint Stock Company 8
   • B) What is investment? What are SMART investment goals? 7
   • C) Distinguish between Investment and Speculation 8
   • D) What do you mean by loan? Explain the various types of loans provided by banks 7
8. Q3 Answer the following questions 15 marks
   • A) Mr. has Rs.50,000 for investment to be made on 1st Jan 2002. His estimated cash flow from the given 8 two alternatives are as follows: Advice him whether which project.is viable-on basis of NPV, considering interest rate of 11%Q
   • B) i) Find future value of annuity where three equal yearly payments of Rs.2000 are deposited into an 4 account that yields 7% compound interest
   • ii) Find the present value of Rs.50,000 to be received at the end of 4 years at 12% interest compounded 3
   • C) Ace Itd is planning to invest in a project having an initial cost of Rs. 2,00,000. The returns from the same 8 are as follows: The cost of capital is 12%. Calculate IRR and give your suggestion
   • D) What is the present value of a 4 years annuity of Rs. 8,000 at 12% interest 4
   • ii). Calculate the compound value when Rs.10,000 are invested for 3 years at 10% interest compounded 3
9. Q4 Answer the following questions 15 marks
   • A) Kamlesh buys of Rs.8,00,000 on.loan at 12% which is to be repaid in 3 years in equal quarterly 8
   • B). The following figures relate to trading activities of Jay Traders for the year ended 31st March, 2017. 7 321 F.Y.B.COM. INVESTMENT MANAGEMENT) (CHOICE BASE) SEMESTER I/ C0572 BASIC OF INVESTMENT & WEALTH CREATIC
   • Q.P. Code : 30075 Calculate the following ratios:
   • c. Operating ratio
   • C) Balance Sheet for the year ended 31st March, 2017 is as follows. 15 Credit sales is Rs. 8,00,000 and credit purchases are Rs. 6,00,000 Calculate the following ratios:
   • a. Current ratio
   • c. Proprietary ratio
10. Q5 Answer the following questions 15 marks
    • A) Explain the different types of investment risk 8
    • B) What are the different types of asset allocation strategy? 7
    • C) Write short notes (Any 3) 15
    • a. Hire Purchase
    • b. Wealth Erosion
    • d. Types of Investment avenues

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