Download JNTUH (Jawaharlal Nehru Technological University Hyderabad) MBA (Master of Business Administration) 3rd Semester (Third Semester) R15 2018 Jan 723AH Security Analysis And Portfolio Management Previous Question Paper
Code No: 723AH
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA III Semester Examination, January-2018
SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
Time: 3hours Max.Marks:75
Note: This question paper contains two parts A and B.
Part A is compulsory which carries 25 marks. Answer all questions in Part A.
Part B consists of 5 Units. Answer any one full question from each unit.
Each question carries 10 marks and may have a, b, c as sub questions.
PART - A 5 ? 5 Marks = 25
1.a) Explain the common errors in investment management. [5]
b) What are the forms in which G-Secs are offered? [5]
c) Write a note candle stick charts and put/call ratio. [5]
d) Explain (i) Expectations Theory (ii) Liquidity Preference Theory (iii) Preferred
Habitat Theory in bond prices. [5]
e) Explain the significance of price to book value ratio. [5]
PART - B 5 ?10 Marks = 50
2. Discuss wide array of investment avenues with examples. Explain the attributes that
one should consider while evaluating an investment. [10]
OR
3. What are the principles tasks of SEBI? Discuss the key initiatives taken by SEBI? [10]
4. Describe the two commonly ways of decomposing ROE into its underlying
determinants. Explain the non-financial company factors that you will consider
in fundamental analysis. [10]
OR
5. A firm, Unknown Ltd, is manufacturing wide range of chemicals, and intending to
come out with an IPO for 1 crore shares. It is projecting an earning of Rs 3 per share
with the revenue of Rs 65 crore. You have been able to identify 4 firms in the same line
and of approximately the same size. Following information is available in respect of
these firms. [10]
Projected Rs Per Share
EPS BOOK VALUE REVENUE CURRENT PRICE
Firm 1 7.00 30 100 200
Firm 2 6.00 60 125 240
Firm 3 5.50 100 110 280
Firm 4 8.00 80 130 316
At what price can the firm issue its shares? Assume that market gives thrice as much
importance to earning per share than either to book value or revenue.
R15
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Code No: 723AH
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA III Semester Examination, January-2018
SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
Time: 3hours Max.Marks:75
Note: This question paper contains two parts A and B.
Part A is compulsory which carries 25 marks. Answer all questions in Part A.
Part B consists of 5 Units. Answer any one full question from each unit.
Each question carries 10 marks and may have a, b, c as sub questions.
PART - A 5 ? 5 Marks = 25
1.a) Explain the common errors in investment management. [5]
b) What are the forms in which G-Secs are offered? [5]
c) Write a note candle stick charts and put/call ratio. [5]
d) Explain (i) Expectations Theory (ii) Liquidity Preference Theory (iii) Preferred
Habitat Theory in bond prices. [5]
e) Explain the significance of price to book value ratio. [5]
PART - B 5 ?10 Marks = 50
2. Discuss wide array of investment avenues with examples. Explain the attributes that
one should consider while evaluating an investment. [10]
OR
3. What are the principles tasks of SEBI? Discuss the key initiatives taken by SEBI? [10]
4. Describe the two commonly ways of decomposing ROE into its underlying
determinants. Explain the non-financial company factors that you will consider
in fundamental analysis. [10]
OR
5. A firm, Unknown Ltd, is manufacturing wide range of chemicals, and intending to
come out with an IPO for 1 crore shares. It is projecting an earning of Rs 3 per share
with the revenue of Rs 65 crore. You have been able to identify 4 firms in the same line
and of approximately the same size. Following information is available in respect of
these firms. [10]
Projected Rs Per Share
EPS BOOK VALUE REVENUE CURRENT PRICE
Firm 1 7.00 30 100 200
Firm 2 6.00 60 125 240
Firm 3 5.50 100 110 280
Firm 4 8.00 80 130 316
At what price can the firm issue its shares? Assume that market gives thrice as much
importance to earning per share than either to book value or revenue.
R15
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6. An insurance company has an obligation to pay Rs.2,15,900 after 10 years. The market
interest rate is 8 %, So the present value of the obligation is Rs.1,00,000. The insurance
company?s manager wants to fund the obligation with a mix of six years zero coupon
bonds and perceptualities paying annual coupons. In what proportions should he buy
these debt instruments? [10]
OR
7. Discuss various types of corporate bonds. How would you calculate forward interest
rates. [10]
8. The following are the closing prices collected from the securities market. You are
required to Calculate Abnormal Returns. [10]
S.No Date
Torrento
Pharma
Elder
Pharma
BSE-Sensex
1 10-Dec-17 475.7 274.35 21326.42
2 9-Dec-17 464.75 281.3 21255.26
3 6-Dec-17 470.5 281.2 20,898.01
4 5-Dec-17 479.5 272.7 20,854.92
5 4-Dec-17 499.7 298.3 20,708.71
6 3-Dec-17 498.8 324.85 20,957.81
7 2-Dec-17 490 318.2 20,996.53
8 29-Nov-17 487.8 285.7 20791.93
9 28-Nov-17 491.4 289.3 20534.91
10 27-Nov-17 481.3 291.55 20420.26
OR
9. Given below is the extract of financial information Bygone Ltd.,
Rs. In crore
Sales 300.00
Cost of Goods Sold 82.50
Gross Profit 217.50
Administrative, Selling and
Distribution Expenses
150.00
PBIT 67.50
Interest 9.00
PBT 58.50
Taxes (@ 38.5%) 22.52
PAT 35.98
The total assets of the firm are Rs.150 crore. The shareholders equity has been to
finance 80% of the total assets of the firm. Assuming that the cost of equity for Bygone
Ltd., is 16.3% and the cost of debt, which constitutes 20% of the assets financing, is
12% before tax compute the Economic Value Added (EVA) for the firm. [10]
10 What is meant by Capital Asset Pricing Model (CAPM)? Discuss the assumptions and
applications of CAPM with examples. [10]
OR
11. Explain the various portfolio performance evaluation models with formulas. [10]
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This post was last modified on 23 October 2020