sem 3 – MF0010 & SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT winter 2014
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SMU MBA WINTER 2014 Assignments are available. For Booking ,Kindly mail us on kvsude@gmail.com OR call us to +91 9995105420 or S M S your “ Email ID ” us in the following Format “ On +91 9995105420 we will reach back you with in 24H ”
SEM-3 FINANCE Winter 2014
MF0010 & SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
Q1. Financial markets bring the providers and users in direct contact without any intermediary. Financial markets permits the businesses and governments to raise the funds needed by sale of securities. Describe the money market/capital market – features and its composition.
(Money market- features and composition-5 marks, Capital market-features and composition-5 marks) 10 marks
Answer:
Q2. Risk is the likelihood that your investment will either earn money or lose money. Explain the factors that affect risk. Mr. Rahul invests in equity shares of Wipro. Its anticipated returns and associated probabilities are given below:
| Return | -15 | -10 | 5 | 10 | 15 | 20 | 30 |
| Probability | 0.05 | 0.10 | 0.15 | 0.25 | 0.30 | 0.10 | 0.05 |
You are required to calculate the expected ROR and risk in terms of standard deviation.
(Explanation of all the 4 factors that affect risk-4 marks, Calculation of expected ROR and risk in terms of standard deviation-6 marks) 10 marks
Answer:
Q3. Explain the business cycle and leading coincidental & lagging indicators. Analyse the issues in fundamental analysis
(Explanation of business cycle-leading coincidental and lagging indicators-6 marks, Analysis and explanation of the issues in fundamental analysis all the four points-4 marks)10 marks
Answer:
Q4. Discuss the implications of EMH for security analysis and portfolio management.
(Implications for active and passive investment-5 marks, Implications for investors and companies-5 marks)10 marks
Answer:
Q5. Explain about the interest rate risk and the two components in it.
An investor is considering the purchase of a share of XYZ Ltd. If his required rate of return is 10%, the year-end expected dividend is Rs. 5 and year-end price is expected to be Rs. 24, Compute the value of the share.
(Introduction of interest rate risk-2 marks, Explanation of two components of interest rate risk-4 marks, Calculation of value of the share-4 marks) 10 marks
Answer:
Q6. Elucidate the risk and returns of foreign investing. Analyze international listing.
(Explanation of all the points in risks and returns from foreign investing-7 marks, Introduction of international listing-3 marks)10 marks
Answer:
Dear Students,
SMU MBA WINTER 2014 Assignments are available. For Booking ,Kindly mail us on kvsude@gmail.com OR call us to +91 9995105420 or S M S your “ Email ID ” us in the following Format “ On +91 9995105420 we will reach back you with in 24H ”
