Uttar Pradesh Technical University (UPTU) 2009-3rd Sem M.B.A ---Security Analysis and Investment Management - Question Paper
MBA
(III sem)ODD Semester Theory exam
Security Analysis and Investment Management
Printed Pages: 4 MBAFM02(N
(Following Paper ID and Roil No. to be filled in your Answer Book)
Printed Pages: 4 MBAFM02(N
Roll No. 1 1 | 1 1 1 1 1 j |1 M.B.A
PAPER ID; 7126
(SEM III) ODD SEMESTER THEORY EXAMINATION 2009-10 SECURITY ANALYSIS AND INVESTMENT MANAGEMENT
Time : 3 Hours] [Tola! Marks: ]Q0
Note : (I) Attempt all questions.
(2) All questions carry equal marks.
1 Attempt any four parts of the following : 5x4=20
(a) Briefly discuss the trading procedure at the stock exchange.
(b) What is a depository' ? Discuss the procedure for dematerialize action of shares.
(c) What is the importance and procedure of Book building ?
(d) Write the key features of National Stock Exchange.
(e) What are the powers vested with SEBI to promote the development of securities market and protect the interest of investors.
(f) Write short note on Stock index.
Equity shares of XYZ Ltd. are currently traded at 20 Rs. 22.50 per share. The growth rate is expected at 12% and dividend at the end of the current year at Rs. 2.50. Find out the expected rate of return. What is the expected return if it is purchased at Rs. 25 per share ? If an investor requires a return of 18%, what maximum price he should be ready to pay for the share ?
Explain various types of charts used by technical 20 analyst to predict future behaviour of prices and the retevance of fundamental analysis and technical analysis for an individual investor.
An investor finds the following position in respect 20 of two bonds I and II :
|
Face value |
Coupon rate |
Life |
Market price | |
|
Bond I |
Rs. 5,000 |
8.50% |
3 years |
Rs. 9,900 |
|
Bond II |
Rs. 10,000 |
8.75% |
4 years |
Rs. 4,950 |
Given that coupon interest is payable anually and the required rate is 9%. Find out the value of both bonds. Which one is better to invest in 7
Differentiate between : 5+10+5=20
(i) American option and European option
(ii) Futures and options
(iii ) Option in the money and option out of money
The returns of two assets under four 10+5+5=20
possible states of nature are given below :
|
State of nature |
Probability |
Return on asset 1 |
Return on asset 2 |
|
I |
0.2 |
-5% |
10% |
|
2 |
0.3 |
15% |
12% |
|
3 |
0.4 |
18% , |
14% |
|
4 |
0.1 |
22% |
18% |
(!) What is the standard deviation of the return on asset 1 and on asset 2 ?
(2) What is the covariance between the returns on asset 1 and asset 2 ?
(3) What is the coefficient of correlation between the returns on assets 1 and 2 9
OR
4 Explain capital asset pricing model. How does it 20 help in estimating the expected return of a security ?
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Consider the following information for three 20
mutual funds A, B and C and the market :
|
Mean Return (%) |
Standard . Deviation (%) |
Beta | |
|
A |
12 |
18 |
1.1 |
|
B |
10 |
15 |
0.9 |
|
C |
13 |
20 |
1.2 |
|
Market index |
11 |
17 |
1.0 |
The mean risk free rate was 6 percent,.Calculate the Treynor measure, Sharpe measure and Jensen measure for the three mutual funds and the market index.
Discuss in brief the various techniques used for 20 evaluating the performance of existing portfolio.
|
Attachment: |
| Earning: Approval pending. |
