Download JNTUA MBA 2017 Nov 3rd Sem 14E00312 Investment & Portfolio Managment Question Paper

Download JNTU Anantapur (Jawaharlal Nehru Technological University Anantapuramu) MBA 2017 November Third Semester (3rd Semester/1-2) Regular & Supplementary Examinations 14E00312 Investment & Portfolio Managment Question Paper.

Code: 14E00312

MBA III Semester Regular & Supplementary Examinations November/December 2017
INVESTMENT & PORTFOLIO MANAGEMENT
(For students admitted in 2014, 2015 & 2016 only)
Time: 3 hours Max. Marks: 60
PART ? A
(Answer the following: (05 X 10 = 50 Marks)

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1 Discuss the characteristics of investors, speculators and gamblers. Explain the impact of each on the
investment process.
OR
2 Explain the investment environment in India with classification of financial markets and financial
instruments.

3 How does technical analysis differ from fundamental analysis? Explain
OR
4 A technical analyst explains that the stock market acts like a barometer rather than a thermometer-
Elaborate.

5 Determine portfolio risk involve with the help of following information.
S.No Scrip Name Weight of scrip (%) Standard deviation (%)
Correlation between
I & J
1 I 30 45 - 0.90
2 J 70 10

OR
6 (a) If the expected returns of two stocks are same, but the standard deviations of the returns differ, which
security is to be preferred.
(b) If an investor desires diversification, should he/she seek investments that have a high positive
correlation?

7 What are the active and passive bond valuation strategies? Explain
OR
8 Explain the following:
(a) Dividend discount model.
(b) Book value per share & market value per share.

9 Explain the following:
(a) Sharpe?s single index model.
(b) Capital asset pricing model.
OR
10 Define Markowitz diversification. Explain the statistical method used by Markowitz to reduce the risks.

PART ? B
(Compulsory question, 01 X 10 = 10 Marks)
11 Case Study:
Give the following information:
Economic condition Prob Return on stock ? X(%) Return on stock ? Y(%)
High growth 0.30 28 20
Low growth 0.30 25 16
Stagnation 0.25 22 10
Recession 0.15 8 6

Questions:
(a) Calculate expected return and standard deviation. Assume you are the investor. Which stock do you
prefer? Give reasons.
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