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

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Code: 14E00312

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MBA III Semester Regular & Supplementary Examinations November/December 2017

INVESTMENT & PORTFOLIO MANAGEMENT

(For students admitted in 2014, 2015 & 2016 only)

Max. Marks: 60

Time: 3 hours

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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

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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

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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
   1	J	30	45	1 & J 0.90
   2		70	10

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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

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8. Explain the following:

   (a) Dividend discount model.

   (b) Book value per share & market value per share.

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9. Explain the following:

   (a) Sharpe's single index model.

   (b) Capital asset pricing model.

   OR

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10. Define Markowitz diversification. Explain the statistical method used by Markowitz to reduce the risks.

PART - B

(Compulsory question, 01 X 10 = 10 Marks)

1. Case Study:

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   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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