MF0010 & SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
DRIVE Spring 2015
PROGRAM/SEMESTER MBADS (SEM 3/SEM 5)
MBAFLEX/ MBAN2 (SEM 3)
PGDFMN (SEM 1)
SUBJECT CODE & NAME
MF0010 & SECURITY ANALYSIS AND PORTFOLIO
MANAGEMENT
Q.1: Describe the investment process.
ANS:
It is rare to find investors investing their entire savings in a single security. Instead, they tend to invest in a group of securities. Such a group ofsecurities is called a portfolio. Financial experts stress that in order
Q.2: Write about the secondary markets? Explain the role of financial intermediaries.
Introduction of secondary markets
Introduction to financial intermediaries
Role of financial intermediaries
ANS:
Introduction of secondary markets:
Secondary market is the place where original purchases of securities trade those securities. These securities may trade repeatedly in the secondary market, but the original issuers will be unaffected. This
Q.3: Explain the meaning of risk. Describe the factors that affect risk
Meaning of risk
Factors that affect risk
Ans:
Meaning of risk:
Risk is the likelihood that your investment will either earn money or lose money. It is the degree of uncertainty regarding your expected returns from your investments, including the possibility of losing
Q.4: Briefly explain the variables that are analyzed in economy analysis.
Introduction to economic analysis
Explanation on variables
ANS:
Introduction to economic analysis:
Economic analysis is done for two reasons:
A company’s growth prospects are dependent on the economy in which it operates.
Q.5: Explain about technical indicators and How are they used?
Introduction on technical indicators
Explanation on technical indicators
Uses of technical indicators
ANS:
Introduction on technical indicators:
A technical indicator is a series of data points that are derived by applying a formula to the price and/or
Q.6: Explain the assumptions of Capital Asset Pricing Model (CAPM). Give a short note on
Separation Theorem, Capital Market Line (CML) and Security Market Line (SML)
Assumptions of CAPM
Separation Theorem
CML and SML
ANS:
Assumptions of CAPM:
All investors are assumed to follow the mean-variance approach, i.e. the risk-averse investor will ascribe to the methodology of reducing portfolio risk by combining assets with counterbalancing
