Veer Narmad South Gujarat University 2011-3rd Year B.B.A SB-1394 Stock Exchange & Portfolio management ( Sem - 6 ) - Question Paper

SB-1394

Third Year B. B. A. (Sem - VI) Examination March / April - 2011 Stock Exchange & Portfolio Management

Time : 3 Hours] Instruction : 6silq<3i Puunkiufl [qaim SuwiA Hi qsq <KH=fl. Fillup strictly the details of signs on your answer book. Name of the Examination :

[Total Marks : 70 "x Seat No.:

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T. Y. B. B. A. (SEM - VI)

Name of the Subject:

STOCK EXCHANGE & PORTFOLIO MANAGEMENT

-Subject Code No.

1 3 9 4

-Section No. (1,2......): Nil

Explain following terms :

(a)    Contango and Backwardation.

(b)    Insider trading.

(c)    Portfolio and Diversification

(d)    Options and Futures

(e)    Beneficiary of depository and Issuer

(f)    Client Broker and Jobber

(g)    IPO and Seasoned Equity Offering.

2 List the reforms that have taken place in Indian capital 10 market in the last two decades.

OR

2 What is a capital market ? How are financial    10

instruments used to assist the functioning of a capital market ? Explain in brief the features of the different financial instruments.

3 (a) What are the basic differences as well as relationship 7 between new issue market and stock exchange ?

(b) Explain the importance of origination function of New 7 Issue Market.

OR

1

3 (a) Explain methods of underwriting and classification of underwriters.

(b) Explain the settlement cycle of any stock exchange.

What are the benefits of trading on OTCEI ?

Construct a portfolio of two investments X and Y. Calculate risk and return. Which is the best out of the three portfolios ? The following information is given.

	X	Y
Expected Return	11%	20%
Standard Deviation	9%	18%

The coefficient of correlation r = 0.15.

xy

Calculate when

(i)    50% of funds are in X and 50% in Y

(ii)    75% in X and 25% in Y

(iii)    All funds are invested in Y

OR

Enlist basic types of transactions. Explain margin trading with an example.

Explain the contribution of Markowitz in portfolio management.

Write short notes : (any three)

(a)    Features of NSE

(b)    Role of depository in market transfers

(c)    Process of portfolio management

(d)    Mechanism of long call and long put options

(e)    Clearing Procedure.

SB-1394]    2    [ 1800 ]

Attachment: veer-narmad-south-gujarat-university-2011-b-b-a-28117-1.pdf

Earning:   Approval pending.