Punjab Technical University 2006-6th Sem B.B.A - , 5TH/ESTER SECURITY ANALYSIS & PORTFOLIO MANAGEMENT - Question Paper

SECURITY ANALYSIS & PORTFOLIO MANAGEMENT
BBA
5th/6th Semester
Time allowed: three Hrs Max Marks: 75
Note: Part A will be compulsory. Part A consists of 15 ques. of two marks every. Part B consists of 12 ques.
Out of which you are needed out of which you are needed to attempt nine ques. of five marks.

Part A

1. Write short notes on the following:
a. Explain why an choice has value.
b. State any 2 characteristics of put and call choice.
c. “Stock choices are for speculators”. Comment.
d. What is economic rationale for the existence of futures market?
e. What is meant by conversion value?
f. State the chief attraction of a warrant.
g. Discuss the essence of tech. Analysis.
h. Define the efficient market hypothesis.
i. What is meant by portfolio risk?
j. Discuss any 2 weakness of MARKOWITZ approach.
k. What is the significance of Beta in portfolio selection?
l. Mention any 2 assumptions used in capital Asset Pricing Model.
m. What do you meant by risk less arbitrage opportunity?
n. Mention 2 advantages of managed portfolios.
o. How do quantity and breadth of market indicate the pattern of the market?

Part B
2. What are the underlying assumptions odds the Black and Schools choice pricing model and why are they ne4eded?
3. Discuss the different factors determining choice price.
4. “Option and futures are zero-sum games”. What do you think is meant by this statement?
5. What factors are important in determining the investment appeal of warrant?
6. Discuss the different kinds of charts used by chartist to predict the prices and quantities for their analysis of individual stocks.
7. Does the Random Work Theory suggest that rice levels are random? discuss.
8. Define the Efficient Market Hypothesis in every of its 3 forms. elaborate its implications?
9. Explain how the efficient frontier is determined using Markowitz approach.
10. Under the CAPM, what is the efficient set called? If there is buying and selling of a risk-free Asset, what happens to the efficient set.
11. What are the advantages and disadvantages of the Arbitrage Pricing Theory over the Capital Asset Pricing Model?
12. Discuss the Main guidelines provided by SEBI for mutual funds?
13. What is meant by mutual funds? discuss its kinds.

Earning:   Approval pending.