B.Com In Banking & Insurance (BCBI) Sem VI September 2024 September 2024 Security Analysis and Portfolio Management Question Paper - Mumbai University | munotes

Questions asked in this paper

• 2) Figures to the right indicate full marks

1. Q1 a) Rewrite the whole sentence with correct option: (answer any 8) 8 marks
2. Q1 An activity involving high risk without expecting high returns is known as
   • a) speculation b) investment
   • c) gambling d) any of the above
3. Q2 When profit after tax is 70 lakh and preference dividend is 12 lakh with number of equity shares 25 lakh then EPS is
4. Q3 A measure that compares the behaviour of returns of two securities with each other is
   • a) coefficient of correlation b) variance
   • c)coefficient of variance d) range
5. Q4 If the risk-free rate is 3%, the beta of AMI is 1.2, and the rate of return of is the expected return on AMI as per the market portfolio is 12%, what CAPM will be %
6. Q5 Single index model is based on paring of securities
   • a) Direct b) Quick
   • c) Index d) None of the above
7. Q6 An arbitrage opportunity exists if an investor can construct a investment portfolio that will yield a guaranteed profit
   • a) Small c) Large
   • b) Zero d) negative
8. Q7 Return on Capital employed is a ratio
   • a) unlevered b) levered
   • c) solvency d) liquidity
9. Q8 institution is set by government of India for dealing with all matters relating to
   • c)SEBI d) ICICI
10. Q9 The objective of portfolio is to reduce by diversification
11. Q10 The daily high price is represented on a candlestick chart by the Paper Subject Code: 85502 Security Analysis and Management
12. Q1 b) State whether following statements are true or false: (Answer 7 marks
13. Q1 Returns and risk are inversely proportional to cach other
14. Q2 High financial leverage is the source of unsystematic risk,
15. Q3 Markowitz theory of portfolio management is most concerned with elimination of
16. Q4 Under dividend payout option cash dividends are paid to unit holders of mutual fund
17. Q5 Public provident fund is a source of long time finance
18. Q6 Modern portfolio theory states that the risk can be reduced by diversification
19. Q7 If miss Priya purchased 300 shares of ABC Itd of 70 each by paying brokerage of 500 then Pb (Price at the Beginning) = 21000 8.Risk is less when returns are high and it is more when return is low 9.Technical analysis believes stock market moment is 10% psychological and 90% logical 10.The relationship between stock return and market index structure is called beta
20. Q2 A. Explain concept of Investment and its objectives. 8 marks
    • B. Explain the Role of Portfolio Manager. 7
21. Q2 C. Give below are the likely returns in case of shares of A Ltd. and B Ltd. in the various economic conditions. 15 Marks Economic Conditions Probability Returns of Returns of Which of the companies is risky investment?
22. Q2 Mr. Prakash has Rs 2000 and wants you to recommend one of the above two shares for
23. Q3 A. Differentiate between Fundamental analysis and Technical analysis 8 marks
    • B. Explain the forms of Market Hypothesis Paper Subject Code: Security Analysis and Porttolio Management 7
24. Q3 The following information is available in respect of two listed companies namely Jay Ltd. and Vijay Ltd. 15 Marks You are required to-calculate:
    • b. P/E Ratio
    • d. Return on Total Capital
    • e. Current Ratio
    • f. Quick Ratio
    • g. Also advise which company should be preferred for investing in
25. Q4 A. Explain factors conducive to Investment in India. 8 marks
    • B. What are the different types of Risks. 7
26. Q4 C. From the following data evaluate the performance of the funds & the market using Sharpe’s Treynor’s & Jenson’s Index. For evaluation of portfolio Risk-free rate is 8%
27. Q4 D. A Government of India bond of Rs. 1,000 each has a coupon rate of 7.5%p.a. & maturity period is 25 yrs. If the current market price is Rs. 1,050. Find the YTM of the bond Paper Subject Code: 855U2 Security Analysis and Porttolio Management
28. Q5 A. Calculate Beta and expected returns for Anjeer Ltd Return on government securities is 8%. Return in earlier years is: 8 Marks
29. Q5 B. Calculate the degree of operating leverage, degree of financial leverage and the degree of combined leverage for the following firms and interpret the results: 7 Marks Interest on Borrowed Capital (Rs.) 40,000 80,000
30. Q5 Give short notes on (Any 3)
31. Q2 Assumptions of CAPM Model
32. Q3 Assumptions of Technical Analysis
33. Q4 Portfolio Revision
34. Q5 Investment V/S Speculation,

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