Seat No.: Enrolment No.
GUJARAT TECHNOLOGICAL UNIVERSITY
--- Content provided by FirstRanker.com ---
MBA (PART TIME)- SEMESTER 4- EXAMINATION - SUMMER 2019
Subject Code: 3549923 Date:08/05/2019
Subject Name: Security Analysis and Portfolio Management
Time:10:30 AM To 01:30 PM Total Marks: 70
Instructions:
--- Content provided by FirstRanker.com ---
- Attempt all questions.
- Make suitable assumptions wherever necessary.
- Figures to the right indicate full marks.
Q. No. Marks
Q.1 Explain the terms 14
--- Content provided by FirstRanker.com ---
(a) Beta
(b) Systematic investment plan
(c) Zero coupon bond
(d) Limit order
(e) PE Ratio
--- Content provided by FirstRanker.com ---
(f) Stop Loss
(g) Support Level
Q.2 (a) What is Investment? Discuss various types of investments and also 07 differentiate between investment and speculation
(b) Briefly explain Markowitz portfolio theory with suitable 07 illustration.
OR
--- Content provided by FirstRanker.com ---
(b) What is Risk? Explain sources of Risk 07
Q.3 (a) Differentiate between Fundamental Analysis and Technical Analysis. 07
(b) Take any Industry in India of your choice and do Economic and 07 Industry Analysis for the same.
OR
Q.3 (a) The probability distribution of the rate of return on a stock is given 07 below:
--- Content provided by FirstRanker.com ---
| State of the economy | Probability of occurrence | Return in % |
|---|---|---|
| Boom | 0.6 | 45 |
| Normal | 0.2 | 16 |
| Recession | 0.2 | -20 |
From the information above find the risk (Standard Deviation) of the stock
| Period | Return % |
|---|---|
| 1 | 10 |
| 2 | 16 |
| 3 | 24 |
| 4 | -2 |
| 5 | 12 |
| 6 | 15 |
From the information above find the risk(standard deviation) of the stock
Q.4 CASE STUDY:
Mr. Kartik Mehra is a young software Professional having a very nice salary package. He wants to invest a part of his Savings in stock market and has found stock of ABC Ltd a good choice. He has collected the following data on return of the stock and the market. You being a finance expert, he has approached you for your advice.
--- Content provided by FirstRanker.com ---
| Year | ABC Limited (%) | Market (%) |
|---|---|---|
| 1 | 14 | 12 |
| 2 | -4 | 2 |
| 3 | 16 | 14 |
| 4 | 32 | 26 |
| 5 | 10 | 12 |
| 6 | 20 | 24 |
| 7 | 3 | -2 |
| 8 | -20 | -20 |
| 9 | -6 | -4 |
| 10 | 12 | 14 |
Kindly answer his following questions from the data above.
(a) Calculate the standard deviation of the Market Return. 07
(b) What is the beta of the stock of ABC Limited? 07
OR
Q4 (a) What are the benefits and risks involved with investing in equities? 07
--- Content provided by FirstRanker.com ---
(b) Develop Characteristic line for the stock of ABC Limited. 07
Mr Rahul Singhania is interested in investing in bonds . He feels that though bond investment in India is not as popular as investing in Equities, Indian bonds are good investment choice. For the same he has furnished you the details on Bond A.
| Face value | Rs1,000 |
| Coupon (Interest) payable annually | 12 percent |
| Yield | 15 percent |
| Years to maturity | 5 |
| Redemption value | 1,000 |
From the above information help him in finding answers to the following questions.
--- Content provided by FirstRanker.com ---
(a) Find the duration of bond A. 07
(b) Explain various types of bonds and also briefly discuss risks 07 associated with bond investment.
OR
Q.5 (a) Briefly discuss the concept of duration of the bond and properties of 07 duration
(b) Suggest how bond market in India can be made stronger and more 07 vibrant.
--- Content provided by FirstRanker.com ---
This download link is referred from the post: GTU MBA Last 10 Years 2010-2020 Question Papers || Gujarat Technological University
--- Content provided by FirstRanker.com ---