Bangalore University 2008 M.Com Commerce Securities Analysis - exam paper

III Semester M.Com. Degree Examination, December 2008
(2007-08 Scheme) (N.S)
COMMERCE

Paper F.2 : SECURITIES ANALYSIS

Time : three Hours Max. Marks : 80


1.Answer any ten of the subsequent in about 3-4 lines every. every sub ques. carries two marks.
(2x 10=20)
a) Mention 4 avenues for investment.

b) What is a premium bond and what is a discount bond?

c) What is industry life cycle analysis?

d) State the portter model of profit potential of industries.

e) What is random walk hypothesis?

f) provide a list of kinds of futures that are traded on various exchanges.

g) elaborate variable income securities?

h) How do you compute return earned by an equity share?

i) What is non financial company analysis?

j) What is Dow Theory?

k) State the semi-strong and strong form EMH.

l) What is bar-charting?

SECTION-B

ans any 3 of the subsequent in about 1 page every. every ques. carries five marks.
(3x5=15)
2. explain any 1 dividend discount model.

3. define the approach used for bond evaluation.

4. explain in brief any 2 kinds of bonds.

5. Bring out the distinction ranging from investment and speculation.

6. What is weak form efficient market hypothesis? discuss any 1 method of testing the identical.

SECTION-C

ans any 3 of the subsequent in about 3 pages every. every ques. carries 15 marks.
(15x3=45)
7. What is analysis of an economy? explain in detail, bringing out its importance in fundamental analysis.

8. What do you mean by risk in investment? explain different risks. explain risks in debt securities.

9. a) Define: I) choice holder and an choice author.
ii) a call choice and a put choice.
iii) An American choice and an European choice.
iv) 'in the money' and 'out of money'.

b) provide a graphical representation of pay off a call choice and a put choice to the choice holder and choice author.

10. a) How is tech. analysis various from fundamental analysis? explain any 2 of the following:
i) Chart trends.
ii) Relative strength analysis.
iii) Moving avg. analysis.

b) For the subsequent data, obtain the breadth of the market:

Day Advances Declines

one 630 527
two 690 475
three 746 424

11. a) describe futures and forward contracts. Bring out the distinctions ranging from the two.

b) What is 'marketing to market’? presume that spot price of an asset is Rs. 450. 4 period futures contract has a price
Of Rs. 460. subsequent data is available for 4 periods:

Period Price of the asset

one Rs. 465
two Rs. 455
three Rs. 460
four Rs. 465

Write the cash flows to the buyer and seller in case of
i) Forward contract
ii) Futures contract.



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Earning:   Approval pending.