This download link is referred from the post: JNTUH MBA 3rd Sem Last 10 Year Question Papers (2010-2020) All Regulation - (JNTU Hyderabad)
Code No: 723AH
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA III Semester Examination, January-2018
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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.
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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
- 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]
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PART - B
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5×10 Marks = 50
- Discuss wide array of investment avenues with examples. Explain the attributes that one should consider while evaluating an investment. [10]
- What are the principles tasks of SEBI? Discuss the key initiatives taken by SEBI? [10]
- 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]
- 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]
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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. - 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 perpetualities paying annual coupons. In what proportions should he buy these debt instruments? [10]
- Discuss various types of corporate bonds. How would you calculate forward interest rates. [10]
- 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 - Given below is the extract of financial information Bygone Ltd.,
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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] - What is meant by Capital Asset Pricing Model (CAPM)? Discuss the assumptions and applications of CAPM with examples. [10]
- Explain the various portfolio performance evaluation models with formulas. [10]
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This download link is referred from the post: JNTUH MBA 3rd Sem Last 10 Year Question Papers (2010-2020) All Regulation - (JNTU Hyderabad)
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