BA Marathi And English SEM V 2018 19 May 2018-19 ECONOMICS FINANCIAL ECONOMICS Question Paper - Mumbai University | munotes

Questions asked in this paper

• Please check whether you have got the right question paper

1. Q2 Use of simple calculator is allowed
2. Q1 Attempt any two of the following: 20 marks
   • a) Explain the concept of discounting. Find the present value of Rs.10,000 which Mr. X is supposed to get after 3 years when the market interest rate is 10% compounded semi annually
   • b) Explain the concept of mean variance portfolio analysis
   • c) Explain briefly the Markowitz model and two fund theorem
3. Q2 Attempt any two of the following: 20 marks
   • a) Define the capital market line. If an investor wants to invest money in a security with the standard deviation of 12% when the risk free rate is 6% and market portfolio of risky assets has expected return of 15% and standard deviation of 10%; find the expected rate of return from this security according to the capital market line
   • b) Explain the concept of beta of an asset and the beta of a portfolio
   • c) Discuss the concept of Security Market Line
4. Q3 Attempt any two of the following: 20 marks
   • a) What is financial derivative? Elaborate it with reference to forward contracts and Swaps
   • b) Explain the term of arbitrage. Discuss about Hedgers and Speculators as participants of
   • c) Explain the following option trading strategies: spreads, straddles, strips and straps
5. Q4 Attempt any two of the following: 20 marks
   • a) Discuss about patterns of corporate financing
   • b) Explain the relationship between capital structure and the cost of capital
   • c) Explain the Modigliani-Miller theorem. Discuss about the impact of incorporating tax calculation in analysis on the market value of firm Please check whether you have got the right question paper St AT. SSA x APA

Read from the scan above, so a character or two may differ. The scan is the original.