Download JNTU-Hyderabad MBA 3rd Sem R15 2019 Dec 723AH Security Analysis And Portfolio Management Question Paper

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JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD

MBA III Semester Examinations, December - 2019

SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

Max.Marks:75

Note: This question paper contains two parts A and B.

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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 capital market and money market. [5]
2. b) Explain the concept of intrinsic value economic analysis. [5]
3. c) What are the types of Bonds? [5]

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4. d) Explain brief note on equity valuation methods. [5]
5. e) Explain briefly about Jenson's model. [5]

PART - B 5 × 10 Marks = 50

1. a) Mr. Shyam decided to buy 500 shares of a Pharma company with the intension of selling out at the end of five years. It is estimated that the company will pay Rs.3.50 per share as a dividends for the first two years and Rs.4.50 per share for the next three years. It is further estimated that, at the end of five year holding period, the shares can be sold for Rs.98. What would Mr. Shyam be willing to pay today for these shares if required rate of return is 12 percent? [10]

2. OR

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3. a) How moving averages are useful is studying trends and trend reversals? b) What is the implication of semi-strong form market? [5+5]
4. The current market price of a share is Rs.64. the volatility of the share is measured as 25 percent. The risk free interest rate is currently 8 percent per annum. There is a call option on the share, expiring in six months, with exercise price of Rs.60. Calculate the price of the call option. [10]

5. OR

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6. a) Explain brief note on optimal portfolio management theories. b) Compare and contrast Sharpe and Treynor measure of Performance evaluation. [5+5]

2. a)

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   2	0.3	3
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   4	1.2	4

   Calculate the return and risk of the portfolio under single index model, if the return on market is 16.4 percent and the standard deviation of return on market Index is 14 percent. [10]

3. OR

4. a) Explain about industry life cycle and brief on Dow theory. b) Distinguish between fundamental analysis and technical analysis. [5+5]

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5. Mr. Raju owns Rs.1000 face value bond with five years to maturity. The bond makes annual interest payments of Rs. 80. the bond is currently priced at Rs. 980. given that the market interest rate is 10 percent, should the investor hold or sell the bond? [10]

6. OR

7. a) “Bond prices vary inversely with changes in market interest rates”. Explain. b) Explain the significance of duration. [5+5]

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