M.Com-M.Com Management 2nd Sem Investment Managemen(Osmania University (OU)-2010)

Time:3hours
Max.Marks:80

SECTION-A
Answer all question in 10 lines each.
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 describe the functions of financial markets.

7(a)Critically examine the recent trends in primary market in India.
OR
(b)What is capital market? explain 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) What are the strenghths and weaknesses of the Markowitz approach?
OR
(b)Given the data below on two companies and standard deviation as a risk measure of companies. which one is better for return and risk estimates.
Company A
OUTCOME 1 EXPECTED RETURN-6 PROBABILITY-0.3
OUTCOME 2 EXPECTED RETURN-10 PROBABILITY-0.5
OUTCOME 3 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 two securities over the past ten years are given. Calculate the co-variance of the two 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:  ₹ 0.00/-