Calicut University 2007 M.Com Commerce Investment Management - Question Paper
d41286
D 41286 (Pages 2)
Name.... Reg. No.
FOURTH SEMESTER M.Com. DEGREE EXAMINATION, DECEMBER 2007
Elective I: Financial Management M.Com. 4.2INVESTMENT MANAGEMENT (2004 admission onwards)
(PVT/SDE)
Time : Three Hours Maximum : 80 Marks
Part A
Answer all the questions. Each question carries 2 marks.
1. What is meant by efficient portfolio ?
2. What do you understand by dematerialization ?
3. What is on line trading ?
4. What is credit rating ?
5. What is naked option ?
(5 x 2 = 10 marks)
Part B
Answer any four of the following. Each question carries 10 marks.
6. What are mutual funds ? How are they organized ?
7. What are the characteristics of equity shares ? What factors influence the market price of such shares ?
8. Define simple diversification. Will simple diversification reduce total risk ?
9. What is the tax treatment of capital gains earned on the sale of equity shares ?
10. What weighting systems are generally used in the construction of stock market indices ?
11. If the market portfolio has an expected return of 15 per cent and a standard deviation of 20 percent, and the risk-free rate of interest is 8 per cent, what is the slope of the capital market line ? What does this mean to an investor ?
( 4 x 10 = 40 marks)
Turn over
2 D 41286
Part C
Answer any two of the following.
Each question carries 15 marks.
12. Do you believe that an assets unsystematic risk should have no effect on its market price as the CAPM model suggests ? Explain.
13. Compare and contrast the trading practices on NSE and BSE. How are their respective indices constructed ?
14. (a) How is technical analysis of individual scrips done ?
(b) You have a portfolio of the following shares :
|
Share |
Beta |
Investment (in Rs.) |
|
A |
0.80 |
1,00,000 |
|
B |
1.25 |
1,00,000 |
|
C |
1.00 |
75,000 |
|
D |
0.60 |
1,25,000 |
|
4,00,000 |
What is the expected rate of return on your portfolio if risk-free rate of return is 9 per cent and the expected market rate of return is 16 per cent ?
(2 x 15 = 30 marks)
|
Attachment: |
| Earning: Approval pending. |
