Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2019 Summer 4th Sem 3549923 Security Analysis And Portfolio Management Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
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:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q. No. Marks
Q.1 Explain the terms
(a) Beta
(b) Systematic investment plan
(c) zero coupon bond
(d) Limit order
(e) PE Ratio
(f) Stop Loss
(g) Support Level
14
Q.2 (a) What is Investment? Discuss various types of investments and also
differentiate between investment and speculation
07
(b) Briefly explain Markowitz portfolio theory with suitable
illustration.
07
OR
(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
Industry Analysis for the same.
07
OR
Q.3 (a) The probability distribution of the rate of return on a stock is given
below:
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
07
FirstRanker.com - FirstRanker's Choice
Page 1 of 3
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
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:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q. No. Marks
Q.1 Explain the terms
(a) Beta
(b) Systematic investment plan
(c) zero coupon bond
(d) Limit order
(e) PE Ratio
(f) Stop Loss
(g) Support Level
14
Q.2 (a) What is Investment? Discuss various types of investments and also
differentiate between investment and speculation
07
(b) Briefly explain Markowitz portfolio theory with suitable
illustration.
07
OR
(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
Industry Analysis for the same.
07
OR
Q.3 (a) The probability distribution of the rate of return on a stock is given
below:
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
07
Page 2 of 3
(b) Following is the information regarding return on stock X
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
07
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.
Kindly answer his following questions from the data above.
Year ABC
Limited
(%)
Market
(%)
1 14 12
2 -4 2
3 16 14
4 32 26
5 10 12
6 27 24
7 3 -2
8 -20 -20
9 -6 -4
10 12 14
(a) Calculate the standard deviation of the Market Return. 07
(b) What is the beta of the stock of ABC Limited?
07
OR
Q.4 (a) What are the benefits and risks involved with investing in equities?
07
(b) Develop Characteristic line for the stock of ABC Limited.
07
FirstRanker.com - FirstRanker's Choice
Page 1 of 3
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
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:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q. No. Marks
Q.1 Explain the terms
(a) Beta
(b) Systematic investment plan
(c) zero coupon bond
(d) Limit order
(e) PE Ratio
(f) Stop Loss
(g) Support Level
14
Q.2 (a) What is Investment? Discuss various types of investments and also
differentiate between investment and speculation
07
(b) Briefly explain Markowitz portfolio theory with suitable
illustration.
07
OR
(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
Industry Analysis for the same.
07
OR
Q.3 (a) The probability distribution of the rate of return on a stock is given
below:
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
07
Page 2 of 3
(b) Following is the information regarding return on stock X
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
07
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.
Kindly answer his following questions from the data above.
Year ABC
Limited
(%)
Market
(%)
1 14 12
2 -4 2
3 16 14
4 32 26
5 10 12
6 27 24
7 3 -2
8 -20 -20
9 -6 -4
10 12 14
(a) Calculate the standard deviation of the Market Return. 07
(b) What is the beta of the stock of ABC Limited?
07
OR
Q.4 (a) What are the benefits and risks involved with investing in equities?
07
(b) Develop Characteristic line for the stock of ABC Limited.
07
Page 3 of 3
Q.5
CASE STUDY:
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.
(a) Find the duration of bond A. 07
(b) Explain various types of bonds and also briefly discuss risks
associated with bond investment.
07
OR
Q.5 (a) Briefly discuss the concept of duration of the bond and properties of
duration
07
(b)
Suggest how bond market in India can be made stronger and more
vibrant.
07
*************
FirstRanker.com - FirstRanker's Choice
This post was last modified on 19 February 2020