Bachelor of Management Studies (B.M.S.) SEM V 2018 19 May 2018-19 S Elective Fiance Investment Analysis Portfolio Management Question Paper - Mumbai University | munotes

Questions asked in this paper

• (2) Figures to the right indicate marks allotted to each question

1. Q1 (A) Match the following. (Any 8) 1.(B) Give True or False: (Any 7) (07 Marks) 8 marks
2. Q1 Small-cap stocks tend to offer more growth potential than large-cap stocks
3. Q2 Systematic risk arises due to the micro- economic factors
4. Q3 Diversification helps to reduce unsystematic risk
5. Q4 Fundamental analysis isa method of evaluating a security
6. Q5 Examples of solvency ratio include current ratio and quick ratio
7. Q6 Price level and inflation affect the economy of the country
8. Q7 The efficient market hypothesis (EMH) states that the financial markets are inefficient
9. Q8 Risk is measured by variability in returns
10. Q9 Arisky asset is one whose return is certain as a Government Security
11. Q10 The higher the risk of a security, the lower would be the return expected from it Distinguish between Equity shares and Preference shares. (08 Marks)
12. Q2 (B) Explain in brief on Money Market Securities. 7 marks
13. Q2 As Portfolio Management Consultant, you are approached by Mr. Thakore, aged 45 with investible funds of Rs. 35 lakhs. He wants to know from you the following:
    • (1) What are the investment avenues available to him which will give a suitable return with minimum risk?
    • (11) What are the various types of risks? 15
14. Q3 (A) Calculation of Beta of each of the following two companies with the help of given information The rate of return of stock A and B under different status of economy are given below : Return of stock A (%) Return of stock B (%)
    • a) Calculate the expected return and standard deviation of return on both the stock
    • b) If you could invest in either stock A or stock B, but not in both. Which stock would you
15. Q3 (P) Given Below are the likely return in case of SKK Ltd. & TKK Ltd. in various economic conditions Calculate the Expected return & standard deviation of both the companies Advice in which stock would you prefer to invest. (08 Marks) Compute Beta factor for Riddhi Ltd. (07 Marks) What are Charts? Explain any three Charting Patterns. (08 Marks)
    • (B) What are the factors affecting investment decision. 7
16. Q4 Following information is available relating to X Limited and Y Limited. 15 marks
    • (i) Earnings per share (11) P/E Ratio Dividend Payout Ratio (iv) Return on Equity (v) Current As an analyst inform the investor which is good in investing The Expected return and Beta factors of 3 securities are as follows: If the risk free rate is 7 % and market returns are 14 %. Calculate returns for each security under CAPM The details of three portfolios are given below Return on Deviation Compare these portfolio on performance using Sharpe and Treynor measures Risk Free return is 8 %. (07 Marks)
17. Q5 Give short notes on: (Any Three) 15 marks
18. Q4 Primary Market

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