Osmania University (OU) 2010 M.Com Accounting and Finance Investment Management - Question Paper

M.Com II Semester May/June2010
Investment Management

Time:3hours
Max.Marks:80

SECTION-A
ans all ques. in 10 lines every.
1.Investment Vs Gambling
2.Capital Market.
3.NSE
4.Efficient Portfolio.
5.Systematic Risk Vs Unsystematic Risk.

SECTION-B
6(a)Explain the reasons for the emerging popularity of investment in stock market.
OR
(b)Breifly define the functions of financial markets.

7(a)Critically examine the latest patterns in primary market in India.
OR
(b)What is capital market? discuss the structure of capital market?

8(a) What is insider training? who is an insider? How does SEBI deal with such practices?
OR
(b)Explain the methods of construction of stock market index.

9(a) elaborate the strenghths and weaknesses of the Markowitz approach?
OR
(b)Given the data beneath on 2 companies and standard deviation as a risk measure of companies. which 1 is better for return and risk estimates.
Company A
result one EXPECTED RETURN-6 PROBABILITY-0.3
result two EXPECTED RETURN-10 PROBABILITY-0.5
result three EXPECTED RETURN-12 PROBABILITY-0.2
Company B
EXP. RETURN-8 PROBABILITY-0.2
EXP. RETURN-14 PROBABILITY-0.5
EXP. RETURN-18 PROBABILITY-0.3

10(a)Explain how portfolio return and risk are estimated under single index model.
OR
(b) The historical data of return kof 2 securities over the past ten years are provided. compute the co-variance of the 2 securities.
years-1 SEC A(RETURN%)-24 SEC.B(RETURN%)-40
YEAR-2 SEC.A-16 SEC.B-44
YEAR-3 SEC.A-14 SEC.B-48
YEAR-4 SEC.A-28 SEC.B-36
YEAR-5 SEC.A-32 SEC.B-30
YEAR-6 SEC.A-30 SEC.B-40
YEAR-7 SEC.A-36 SEC.B-48
YEAR-8 SEC.A-40 SEC.B-50
YEAR-9 SEC.A-32 SEC.B-44
YEAR-10 SEC.A-44 SEC.B-40

Earning:   Approval pending.