B.Com In Investment Management SEM V 2022 2023 Dec 2023 INV. MGT RISK MANAGEMENT Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 Clearing and settlement of stock exchanges are done on T+1 basis
2. Q2 Margin requirement helps to reduce risk in trading
3. Q3 Unsystematic risk relates to the risk of changes in environment of economic, political,
4. Q4 American option can be exercised only on expiration date
5. Q5 Issuer of the bond have more risk than issue of equity
6. Q6 Credit default swaps plays a role of insurer to cover credit risk
7. Q7 Value at risk refers to maximum loss on a given asset over a given period of time at a
8. Q8 BIS is world’s oldest international financial organization
9. Q9 Beta is widely used measure to calculate market safety
10. Q10 Cross hedging refers to hedging position by taking offsetting positions in another good with similar price movement
    • b) Match the Columns: (Any 7) 7
11. Q7 COSO Components g) Ratio of change in value of delta to change in value of underlying
12. Q10 Depository of Q-2) a) Explain the process of Enterprise Risk Management. (8)
    • b) What are responsibilities of risk manager in an organization? 7
    • c) Write in detail major types of Derivatives. 8
    • d) State elements of all Basel norms introduced by BIS. Q-3) a) Describe various risk involved in financial market. (8) 7
    • b) What mechanism RBI has suggested to review loan? 7
    • c) What all factors are included in ERM Matrix? 8
    • d) Describe in detail Financial Crisis of 2007-08. Q-4) a) In April 2018 Mr. Sauresh purchased a June call option on stock of Reliance Ltd. At an exercise price of 1280. If the prices of shares of Reliance Itd. In the month of June are as follows than State following instruments are In the Money, At the Money or Out of the Money. (8) 7
    • b) Mr. Rajan bought 2 000shares of XYZ Ltd. On 1* March 2018, at Rs. 100 per share. To hedge risk he shorted 2000 shares in futures market @Rs. 120 per share On the expiry date i.e. at 31‘ March 2018 the closing price is Rs. 125 per share Calculate the gain or loss to vishal based on his position on March 2018. (7)
    • c) Write details of well known credit rating agencies of India. 8
    • d) What are the basic terms utilized in Option trading? Q-5) a) Explain the Terms: (2 marks each) (8) 7
    • b) Elaborate main objectives of Loan Review Mechanism. 7
    • c) Write Short Notes: (Any 3) 15
13. Q1 Basis risk
14. Q3 OPEC oil price shock of 1973
15. Q5 Importance of Market Index

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