Andhra University 2007 B.B.A MANAGEMENT OF INFORMATION SYSTEMS - Question Paper

ANDHRA UNIVERSITY
SCHOOL OF DISTANCE EDUCATION
MASTER OF BUSINESS ADMINISTRATION
III YEAR ASSIGNMENT ques. PAPER 2007 – 2008
(Applicable to Admitted Batches from 1998 to 2005)

: SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

Assignment No. 1

ans all ques. five x five = 25 Marks

1. (a) discuss the primary and subsidiary objectives of investment.

(b) “The investment process involves a series of activities starting from
the policy formulation”. explain.

2. (a) provide an account of the latest patterns in the primary market ?

(b) elaborate the factors to be considered by the investors in selecting a
public problem ?

3. (a) elaborate the regulations relating to pricing of public problem of shares ?

(b) discuss the procedure for the buyback of shares.

4. (a) How do you analyse the competitiveness of an industry ?

(b) discuss the technique of industry analysis.

5. Use the Sharpe Index Model to choose the best combination of securities for a
portfolio. The risk free rate is 5% and market standard deviation is 20%
Security S1 S2 S3 S4 S5
Risk (Beta) 1.5 1.2 1.3 1.4 0.85
Return 12% 15% 10% 16% 8%
fault 20% 15% 12% 24% 22%

Assignment No. 2

ans all ques. five x five = 25 Marks

1. (a) explain the regulatory framework for mutual funds in India.

(b) How are mutual funds regulated by SEBI ?

(c) How does the RBI regulate mutual funds ?

2. (a) discuss the investor’s protection measures taken by the regulatory
authorities in the primary market.

(b) How can the investors protection be made effective ?

3. (a) explain how secondary markets are regulated by SEBI.

(b) discuss ESOS/ESOP

4. (a) calculate the asset beta when the company has an equity beta of 1:2 and
a debt equity ratio of 1:2. The tax rate for the company is 40 per cent.

(b) calculate the equity beta of a security when the asset beta is 2.4. The
debt equity ratio is 4:1 and the tax rate is 45 per cent.

5. (a) How do you analyse industry risk ?

(b) How is the performance of an industry to be assessed for
investment purposes.

Earning:   Approval pending.