Download JNTUH (Jawaharlal Nehru Technological University Hyderabad) MBA (Master of Business Administration) 3rd Semester (Third Semester) R15 2018 July 723AH Security Analysis And Portfolio Management Previous Question Paper
Code No: 723AH
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA III Semester Examination, June/July-2018
SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
Time: 3 hours 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) Distinguish between Investment and Speculation. [5]
b) Explain the concept ?Intrinsic Value? and state how is it different from book value.[5]
c) Write a note on bond convexity. [5]
d) Explain the significance of Price to Book Value Ratio. [5]
e) What is meant by Portfolio Revision? [5]
PART - B 5 ? 10 Marks = 50
2. Discuss the various sources of investment information available to an investor, while
investing his surplus fund. [10]
OR
3. Consider the data for a sample of 7 shares for two years, the base year and year ?t?.
SHARE
Price in Base Year
(Rs.)
Price in Year ?t?
(Rs.)
No. of
Outstanding
Shares (in million)
ABC 15 65 76
DEF 14 76 57
MNO 24 43 87
QRS 42 98 120
GHI 35 21 200
UVZ 16 64 135
JML 48 96 127
What is the Price Weighted Index, Equal Weighted Index and Value Weighted Index
for year ?t?? If the value weighted index for year ?t? is given to be 250, what is the price
of all the shares in year ?t?? [10]
4. Describe the procedure for buying and selling of shares and brief on margin trading and
short selling concepts. [10]
OR
5. Describe the industry life cycle. What are its implications for the investor? [10]
R15
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Code No: 723AH
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA III Semester Examination, June/July-2018
SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
Time: 3 hours 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) Distinguish between Investment and Speculation. [5]
b) Explain the concept ?Intrinsic Value? and state how is it different from book value.[5]
c) Write a note on bond convexity. [5]
d) Explain the significance of Price to Book Value Ratio. [5]
e) What is meant by Portfolio Revision? [5]
PART - B 5 ? 10 Marks = 50
2. Discuss the various sources of investment information available to an investor, while
investing his surplus fund. [10]
OR
3. Consider the data for a sample of 7 shares for two years, the base year and year ?t?.
SHARE
Price in Base Year
(Rs.)
Price in Year ?t?
(Rs.)
No. of
Outstanding
Shares (in million)
ABC 15 65 76
DEF 14 76 57
MNO 24 43 87
QRS 42 98 120
GHI 35 21 200
UVZ 16 64 135
JML 48 96 127
What is the Price Weighted Index, Equal Weighted Index and Value Weighted Index
for year ?t?? If the value weighted index for year ?t? is given to be 250, what is the price
of all the shares in year ?t?? [10]
4. Describe the procedure for buying and selling of shares and brief on margin trading and
short selling concepts. [10]
OR
5. Describe the industry life cycle. What are its implications for the investor? [10]
R15
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6. What is a yield curve? A Rs.100 par value bond bears a coupon rate of 14 percent and
matures after five years. Interest is payable semi-annually. Compute the value of the
bond if the required rate of return is 16 percent. [10]
OR
7. How is the volatility of a bond related to its duration? The following information is
available on a bond:
Face Value : Rs.100
Coupon Rate is 12 percent payable annually
Years to maturity is 6
Current Market Price is Rs.110
What is the duration of the bond? Calculate the Yield to Maturity also. [10]
8. Explain the two stage growth model. Determine the intrinsic value of an equity share,
given the following data: Last Dividend (D0) ? Rs.2.00, Growth Rate for Next Five
years ? 15 percent, Growth rate beyond 5 years ? 10 percent, and required rate return is
16 % . [10]
OR
9. What are the key determinants of the price -earnings multiples? The price of a share is
currently Rs.30. The expected EPS for the next year is Rs.2.50. Investors require a rate
of return of 16 percent from this share. What proportion of the price is accounted for by
the present value of growth opportunities (PVGO)? [10]
10. A fund begins with Rs.100 million and reports the following results for three periods:
[10]
Period
1 2 3
Rate of Return 7% 16% 10%
Net Inflow (end of period)
Rs. In million
10 2 0
Compute the arithmetic, time-weighted and rupee-weighted average returns.
OR
11. What is meant by Portfolio Diversification? Discuss the various types of portfolio
diversification with examples. [10]
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This post was last modified on 23 October 2020