Saurastra University 2006 M.B.A Security Analysis & Portfolio Management - Question Paper

M. B. A. (Sem. III) exam
April / May – 2006
Security Analysis & Portfolio Management
(New Course)
Time : three Hours] [Total Marks : 100
1 Consider 2 securities with the subsequent characteristics. 14
Particulars Security M–2 Security K–3
Expected return 24% 8%
Standard Deviation 8% 10%
Coefficient correlation for M–2/K–3 = 0.36
calculate the expected value of the return and standard
deviation of portfolio if it is to comprise M2/ K3 in
(i) 30/70 ratio
(ii) 60/40 ratio.
2 (a) What is tech. Analysis ? discuss it's limitations. 9
(b) Distinguish ranging from Bond and Debenture. 5
OR
2 (a) elaborate the different kinds of risk in portfolio 9
management ? Also explain relationship ranging from them.
(b) What is importance of diversification in portfolio 5
management
3 (a) describe efficient market hypothesis in every of its 9
its 3 forms.
(b) discuss Random Walk Theory. 5
OR
3 (a) discuss connectivity ranging from primary market and 9
secondary market.
(b) Distinguish ranging from capital market line and security 5
market line.
SQ-9196] two [ 100 ]
4 (a) discuss in brief different intermediaries of financial 9
market and in detail discuss "Broker" and various
kinds of broker.
(b) Role of underwriters. 5
OR
4 (a) A bond has a remaining maturity of five years. It pays 9
a coupon of 8% annually for 1st 2 years and
10% for next 3 years and is currently trading at
Rs. 140. If Mr. X expected yield is 10%, compute price
of the bond of maturity if it redeemed at a premium of
Rs. 2. Should Mr. X buy these bonds at Rs. 94 ?
(b) What is the value of zero-coupon bond that has 5
10 years remaining to maturity and has yield to maturity
of 10% and when we know that half of the face is
redeemed after five years.
5 List out different investment choices ? discuss any 5 of 14
them in detail.

Earning:   Approval pending.