B.Com In Investment Management SEM I ATKT INV. MGT BASIC OF INVESTMENT WEALTH CREATION Question Paper - Mumbai University | munotes

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1. Q3 WORKING SHOULD FORM A PART OF YOUR ANSWER
2. Q1 A) Multiple choice questions (Any 8) 8 marks
3. Q1 is calculated only on the principle amount of the loan
   • a. Simple interest
   • b. Compound interest
   • c. Both
   • d. None
4. Q2 is the practice of engaging in risky financial transactions to make profit out of fluctuation in the
   • a. Hedging
   • b. Speculation
   • c. Arbitration
   • d. Swap dealers
5. Q3 Investment recommended to a person aged 55 who is near to retirement
   • a. 50% debt,50% equity
   • b. 70% equity, 30% debt
   • c. 30% equity, 70% debt
   • d. 20% debt, 80% equity
6. Q4 The payoff of a debt witha fixed repayment schedule over a period of time is known as
   • a. Amortization
   • c. Hire purchase
   • d. Budgeting
7. Q5 -HPR means Paper Subject Code: 81501 Basic of Investment & Wealth Creation
   • Q.P. Code : 00200
8. Q7 Liquid ratio =
9. Q8 Risk is undiversifiable risk
   • a. Unsystematic
   • b. Systematic
   • c. Credit
   • d. Business
10. Q9 Assets allocation strategy can be described.as moderately active strategy
    • a. Strategic
    • b. Dynamic
    • c. Tactical
    • d. Insured
11. Q10 Investment style focuses on long term capital growth
    • a. Aggressive
    • b. Conservative
    • c. Moderate
    • d. Cautious
    • B) State whether the following are True or False (Any 7) 7
12. Q1 There is high liquidity in case investment in real estate
13. Q4 CAGR is compound annual growth rate
14. Q5 Compound Interest =
15. Q6 Hire purchase is also known as installment plans
16. Q7 Budgeting is conservative estimate of future sale revenue 9). Market risk arises from inability to convert an investment quickly into cash 10 Strategic asset allocation follows buy and hold strategy Answer the following Questions (08) An Investment of Rs. 40,000 made on April 2015 provides inflows as follow Which alternative would you prefer if the investors expected return is 10%?
    • B) is sole proprietorship? State in brief its advantages and dis-advantages? Paper Subject Code: 81501 Basic of Investment & Wealth Creation 7
    • Q.P. Code : 00200
    • P) needs an investment of Rs. 1, 38,500. The cost of capital is 12%. The net cash inflow are as Calculate the IRR and suggest whether the project should be accepted or not? 8
    • Q) Describe in brief about the important attributes of various asset classes? 7
17. Q3 Answer the following Questions 8 marks
    • A) The balance sheet of MCC Limited as on march 2015 is given below Share capital (Rs. 10 each) 12,00,000 28,60,000
18. Q1 The company has declared 25% dividend
19. Q2 Market price of the share is Rs 50/
20. Q3 Tax rate is 30% Calculate the following ratios
    • c. Liquid ratio
    • B) Explain in brief about refinancing? 7
    • P). Mr Raj is borrowing Rs 7,000 to buy a car. The loan + Interest Is to be repaid in quarterly instalment made at the. end of each quarter during two year interval. Rate of interest is 16% 8
    • Q) Describe in brief the difference between long term and short term debt? Paper Subject Code: 81501 Basic of Investment & Wealth Creation 7
    • Q.P. Code : 00200
21. Q4 Answer the following
    • A) Explain various types of investment risk? 8
    • B) Describe various methods of wealth protection? 7
    • (p) Explain in brief about various assets allocation strategies? 8
    • (Q) Describe in brief about short term, medium term, and long term investment product. 7
22. Q5 A) What is Co-operative society? Explain its merits and demerits. 8 marks
    • B) Explain different types of annuities Short Notes. Attempt any 3 out of 5 (15) 7
    • a. Hire Purchase
    • b. Budgeting and forecasting
    • d. Risk profiling of investor
    • e. Wealth erosion

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