B.Com In Investment Management SEM I 2017 2018 Nov 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 a part of your answer
2. Q4 Use of calculator is allowed Select the correct alternative.(Any 8) 08
3. Q1 -------- are a tax oriented investment
   • a. Shares
   • b. Bonds
   • d. Fixed deposit
   • a. Individual
   • b. Total
   • c. Both
   • d. None
4. Q3 The value attached to money due to passage of time is known as
   • a. Present Value of Money
   • b. Place Value of Money
   • c. Time Value of Money
   • d. Annuity
5. Q4 --------rate of return doesn’t take taxation into account
   • a. Nominal
   • b. Yield to maturity
   • c. Internal
   • d. Real
6. Q5 CAGR stands for
7. Q6 A -------- a trust whereby provisions can be altered or cancelled dependent on
   • a. Irrevocable
   • b. Revocable
   • c. Charitable
   • d. None
8. Q7 ---------risk is important for investors who have large amount of over-seas investment
   • a. Exchange rate
   • b. Country
   • c. Business
   • d. Economical C0821 C0572 BASIC OF INVESTMENT & WEALTH CREATION
   • Q.P. Code :23032
9. Q8 Risk --------is the level of risk the client is comfortable with
   • a. Appetite
   • b. Capacity
   • c. Tolerance
   • d. Profile
10. Q9 ---------is the rate at which commercial bank lends money to central bank
    • b. Reverse repo 10)--------- debentures are also known as perpetual debentures
    • a. Redeemable
    • b. Irredeemable
    • c. Convertible
    • d. Non-convertible
    • B) State whether the following statements are true or false.(Any 7) 07
11. Q1 Trust is nota separate legal entity
12. Q2 Commercial banks attempts to limit inflation and avoid deflation
13. Q3 Atinternal rate of return of cash inflow is greater than present value of cash outflow
14. Q4 National Saving Certificate is a tax saving scheme
15. Q5 Anon-financial asset has a value based on its tangible characteristics
16. Q6 Atretirement stage investor majorly seeks for riskless investment fetching fixed
17. Q7 investment goals, A stands for annual
18. Q8 In holding period return formula, the tenure of investment is multiplied with the total
19. Q9 Compound interest is calculated on basis of growing principle
20. Q10 Secrecy is a feature of joint stock company Answer the following questions. 15
    • A) What is investment? State the objectives of investments. 08
    • B) Explain the meaning and features of Co-operative society. 07
    • C) What do you mean by leasing? Explain various types of leasing. 08
    • D) Distinguish between Investment and Savings. 07 Answer the following questions. 15
    • A) XYZ &Co. is considering investing in following two project requiring a capital outlay of 08 Rs.2,00,000. Forecast of annual income after tax are as follows C0821 C0572 BASIC OF INVESTMENT & WEALTH CREATION
    • Q.P. Code :23032 Evaluate the projects on the basis net present value taking 14% discounting factor
    • B) I) Arvin wants to invest @ 8% p.a. compound interest, amount as will to 04 Rs.50,000 at the end of three years. How much should he invest?
21. Q2 Shashikant deposit Rs.1,00,000 with a bank which pays 10% interest compounded annually, for a period of three years. How much amount he would get at maturity? 3 marks
    • C) Smart industries is considering a project which costs Rs.1,00,000. The net earnings from the 08 project are as follows: The cost capital is 12%. Calculate internal rate of return (IRR) and give your recommendation
    • D) I) Four equal annual payments of Rs.5,000/- are made into a deposit account that pays 04 8% interest per year. What is the future value of this annuity at the end of 4 years?
22. Q2 A bank promises to give Reema Rs.12,000 after three years at 12% much she should deposit today? 3 marks
23. Q4 Answer the following questions. 15 marks
    • A) The following figures relate to trading activities of Hind Traders for the year ended 30t 08 Salaries 45,900 Provision for 1,20,000 Advertising 14,100 Profit on sale of 36,000 Travelling 6,000 Loss on sale of 12,000 Calculate the following ratios:
    • c. Operating ratio C0821 C0572 BASIC OF INVESTMENT & WEALTH CREATION
    • Q.P. Code :23032
    • B) Ramesh borrowed Rs.40000 from a bank which is to be repaired in 2 years. The loan plus 07 interest is to be repaid in equal half yearly installments. Prepare amortization table. Interest
    • C) Balance Sheet for the year ended March,2017 is as follows. 15 Credit sales is Rs.6,50,000 and credit purchases are Rs.5,15,000 Calculate the following ratios:
    • a. Current ratio
    • c. Proprietary ratio Answer the following questions
    • A) Explain the principles of wealth management 08
    • B) What do you mean by risk profiling of investor? 07 Write short notes(Any 3) 15
    • a. Types of investment risk
    • d. Features of Partnership
    • e. Wealth erosion

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