The Institute of Cost and Works Accountants of India 2010 CWA Final Group III - Revalidation Test - Capital ket Analysis and corporate laws -11 - Question Paper

Year 2010: The Institute of Cost and Works Accountants - CWA Final Group III: Capital Market Analysis and corporate laws paper-11: 2010 University ques. paper

REVISED SYLLABUS 2008

REVALIDATION TEST PAPER Final Group III

THE INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA

DIRECTORATE OF STUDIES

Copyright Reserved by the Institute of Cost and Works Accountants of India

CAPITAL MARKET ANALYSIS & CORPORATE LAWS

REVALIDATION TEST PAPER-RV/11/CMC/2010 SECTION I-CAPITAL MARKET ANALYSIS

(Answer Question 1 and any TWO from the remaining)

1(a) Define i) Systematic Risk

ii)    Expected Return

iii)    Capital Market Line

iv)    Future Contract

v)    Option

vi)Secondary    Market

vii)    Buy back of Shares    2*7

(b)Fill up the blanks with appropriate answers:

i)    The expected Return as per CAPM is-------------------------,when Rm=22%,Rf=9%,p=0.6%

ii)    The Security Market Line shows the linear relationship between the expected returns and

iii )---------------------- (Economic; Fundamental; Technical)analysis is based on past

performance of Prices and trading volume of Stocks

iv)    The Fixed Price at which the Option Holder can buy/sell the underlying asset is called the---

v)    Mr X agrees to exchange 100kgm Basmati rice three months later at Rs80 perKgm.This is an example of------------------(Forward Contract/Future Contract)

vi)    SEBI stands for--------------------------------------------------1*6

2(a) Explain Briefly the operation of Indian Stock Market.What are principal weaknesses of Indian Stock MARKET?    10

(b) Distinguish

i)    Forward Contract and Future Contract

ii)    Primary Market and Secondary Market    2*5

3a) The rate of Return of equity shares of Wipro Ltd for past 6 years are given below:

YEAR 2003 2004 2005 2006 2007 2008 RATE OF RETURN(%) 12 18 -6 20 22 24

Calculate the average rate of return, standard deviation and variance.    10

(b)Write in brief on i)Bought Out Deal

ii)Book Building    5*2

4(a) Explain in detail the role of Foreign Institutional Institutions in Indian Capital markets? Are they creating imbalance in the market by providing excess liquidity into the

system?    10

(b) . Suppose you invest in four securities. Company ABC has on expected return of 20 percent, Company BCD has on expected return of 10 percent, Company CDE has on expected return of 12 percent, and Company DEF has an expected return of 9 percent. You have invested Rs. 40,000. What is the expected rate of return on your portfolio? (Assumption Invested Equally)    10

SECTION II-CORPORATE LAWS

(Answer Question 1 and any TWO from the remaining)

1.Define the following under the RTI Act 2004

i)    Competent Authority under the RTI Act 2004

ii)    Record under the RTI Act 2004

iii)Appropriate    Government under the RTI Act 2004

iv)    Cartel under the Competition Act 2002

v)    Consumer under the Competition Act 2002    2*5

5(a) Can a company buy its own shares?If so,under what circumstances.

(b)No Dividend can be paid by a company except out of Profits-Comments    10+5

6(a).State in brief the salient Features of Corporate Governance .

(b) A Good Corporate Governance should have certain basic principles-Enumerate them.

5+10

7(a) Distinction between

(i)    Memorandum & Articles of Association

(ii)    Public Co & Private Co

(iii)    Fixed Charge & Floating Charge    5*3

3

Attachment: the-institute-of-cost-and-works-accountants-of-india-2010--6768-1.pdf

Earning:   Approval pending.