Acharya Nagarjuna University (ANU) 2006 M.B.A Business Administration - I - SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT - Question Paper

M.B.A.(Third) DEGREE EXAMINATION, MAY 2006
(A - Financial Management)
PAPER - I - SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

Time: 3 hours Maximum: 75 marks

PART A - (3 X five = 15 marks)
ans any 3 ques.

1. (a) Zero Coupon Bonds.
(b) Yield-to-maturity.
(c) Underwriters
(d) tech. Analysis
(e) Sweat Equity.
(f) Return on equity

PART B - (3 X 15 = 45 marks)
ans any 3 ques. out of the following:

2. What is meant by fundamental analysis? How does fundamental analysis differ from tech. analysis?

3. discuss the Sharper Index Model? How does it differ from Markowitz model?

4. discuss CAPM theory and its validity in the stock market.

5. elaborate the statistical tools used to measure the risk of securities return? discuss.

6. explain the relationship ranging from fundamental analysis and efficient market hypothesis.

7. The Company ABC’s next year dividend per share is expected to be Rs.3.50. The dividend in following years is expected to grow at a rate of 10% per year. If the needed rate of return is 15% per year, what should be its price? The prevailing market price is Rs.75.

PART C - (15 marks)

8. The subsequent info is available.

Stock A Stock B
Expected return 16% 12%
Standard deviation 15% 8%

Coefficient of correlation 0.60.

(a) What is the covariance ranging from stocks A and B?
(b) What is the expected return and risk of a portfolio in which A and B have weights of 0.6 and 0.4?

Earning:   Approval pending.