B.Com In Investment Management SEM III 2019 2020 Oct 2020 INV. MGT SAPM Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 a) State whether the following statements re True or false: (any 8) 8 marks
2. Q1 Cebentures are long term investment option with fixed stream of cash flow depending on the quoted rate of interest
3. Q2 Portfolio means a combination of financial assets and physical assets
4. Q3 Higher risk is associated with greater probability of higher return and lower risk with a greater probability of smaller return
5. Q4 Portfolio revision involves changing the existing mix of securities
6. Q5 Bonds are generally the most iiquid during the period right after issuance when the typical bond’ has the highest trading volume
7. Q6 Investing in equity share is a tax saving investment — 7. Type A Investor wish to adopt a diversified portfolio to somewhat protect them for inflation and
8. Q8 Aninvestor is not interested only in the efficient portfolios
9. Q9 Buying and selling securities does not involve transaction costs such as commission and
10. Q10 Occasionally a bond is issued with a small maturity
11. Q1 b) Match the following (any 7) 2.Portfolio 6.Theorem One F)Balance between risk and return 8.Active revision Strategy H) A Bond’s Sensitivity to interest rate changes increases at a Diminishing Rate as its maturity 9.Theorem Four prices and yields move in opposite 7 marks
12. Q10 Risk Return off J) Based on analysis of the fundamental factors and technical factor
13. Q2 a) The rate of return Stock A and B under different status of economy are given below : Return on Stock A ( %) 30.00 50.00 70.00 Return on Stock B(%) | 70.00 50.00 30.00 3 marks
    • i) Calculate the expected return and standard deviation of return on both the stock
    • ii) If you could invest in either Stock A or Stock B, but not in both. Which stock would you
14. Q2 b) You are requirec to calculate Beta for Diamond Ltd. Year Return on Market Return 7 marks
    • c) What do you understand by the term Portfolio Analysis? Explain its components. 8
    • d) What is an investment? What are the objectives 7 Marks)
15. Q3 a) Three mutual funds have the following rates of Return and risk over the last five year Evaluate the portfolio performance using Sharpe and Treynor’s Index which portfolio has performed better. Assume risk free rate of Return as 8% ( 8 Marks)
16. Q3 b) Calculate Jensen Measure and Rank Them. Particular Average Return ( %) Beta Risk Free rate of Return 7 marks
17. Q3 C) What is the meaning of Portfolio Evaluation? Explain Need of portfolio evaluation. 8 marks
    • d). Explain how the effective frontier is determined using Markowitz approach 7
18. Q4 a) You are considering an investment in one of the Bonds: 8 marks
    • i) What is YTM of Each Bond?
    • ii) Which Bond would you recommend for Investment?
    • b) A bond of 1,000 has a coupon rate of 8 % P.a and maturity period 3 years. The bond is currently selling at Rs.910. What is the yield to maturity in Investment of the Bond? ( 7 Marks )
19. Q4 c) Define Bond. Explain its Characteristic? 8 marks
    • d) Discuss Bond Pricing Theorems. 7
20. Q5 a) Explain the Role of Portfolio Managers? 8 marks
    • B) Explain the need of portfolio Revision? 7
21. Q5 Write Short Notes (Any 3 ) 15 marks
22. Q3 Decomposition of Performance
23. Q4 Yield To Maturity
24. Q5 Phases of Portfolio Management

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