Download JNTUH (Jawaharlal Nehru Technological University Hyderabad) MBA (Master of Business Administration) 3rd Semester (Third Semester) R15 2018 Dec 723AH Security Analysis And Portfolio Management Previous Question Paper
Code No: 723AH
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA III Semester Examinations, December - 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) Differentiate among investment, speculation and gambling. [5]
b) Describe stages of company life cycle. [5]
c) Discuss advantages of investment in bond market. [5]
d) What is dividend discount model? [5]
e) Differentiate between constant ratio plan and variable ratio plan. [5]
PART - B 5 ? 10 Marks = 50
2. What do you mean by investment? Discuss in detail objectives of investment, what
are various alternatives investment available in India in the era of globalization. [10]
OR
3.a) Discuss in detail the various methods of trading financial instrument in secondary
market.
b) Define margin trading and discuss its pros and cons. [5+5]
4. What is technical analysis? Discuss following technical analysis tools in details
a) Stochastic oscillator
b) moving average
c) relative strength index [10]
OR
5.a) Define Efficient Market Hypothesis (EMH)
b) What is efficient frontier?
c) What are the assumptions of Dow Theory? [10]
6.a) The price of a bond is $920 with a face value of $1000 which is the face value of many
bonds. Assume that the annual coupons are $100, which is a 10% coupon rate, and that
there are 10 years remaining until maturity. Calculate YTM.
b) What is inflation rate risk and interest risk associated with bonds price? [5+5]
OR
7. Write short notes on:
a) Asset-Backed Securities bonds and Corporate Bonds
b) How Bond laddering and diversifications reduces the risk associated with bonds? [10]
R15
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Code No: 723AH
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA III Semester Examinations, December - 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) Differentiate among investment, speculation and gambling. [5]
b) Describe stages of company life cycle. [5]
c) Discuss advantages of investment in bond market. [5]
d) What is dividend discount model? [5]
e) Differentiate between constant ratio plan and variable ratio plan. [5]
PART - B 5 ? 10 Marks = 50
2. What do you mean by investment? Discuss in detail objectives of investment, what
are various alternatives investment available in India in the era of globalization. [10]
OR
3.a) Discuss in detail the various methods of trading financial instrument in secondary
market.
b) Define margin trading and discuss its pros and cons. [5+5]
4. What is technical analysis? Discuss following technical analysis tools in details
a) Stochastic oscillator
b) moving average
c) relative strength index [10]
OR
5.a) Define Efficient Market Hypothesis (EMH)
b) What is efficient frontier?
c) What are the assumptions of Dow Theory? [10]
6.a) The price of a bond is $920 with a face value of $1000 which is the face value of many
bonds. Assume that the annual coupons are $100, which is a 10% coupon rate, and that
there are 10 years remaining until maturity. Calculate YTM.
b) What is inflation rate risk and interest risk associated with bonds price? [5+5]
OR
7. Write short notes on:
a) Asset-Backed Securities bonds and Corporate Bonds
b) How Bond laddering and diversifications reduces the risk associated with bonds? [10]
R15
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8.a) If a stock pays a Rs. 4 dividend this year, and the dividend has been growing 6%
annually, then what will be the intrinsic value of the stock, assuming a required rate
of return of 12%?
b) What are the draw backs using dividend discount model?
c) What is Gordons Model for growth firm? [10]
OR
9.a) How do we calculate price earning ratio and book value ratio? Mention formula also.
b) What is Discounted Cash Flow Valuation Method? [5+5]
10.a) What is the portfolio standard deviation for a two-asset portfolio comprised of the
following two assets if the correlation of their returns is 0.5?
Asset A Asset B
Expected return 10% 20%
Standard deviation of expected returns 5% 20%
Amount invested Rs.40,000 Rs.60,000
b) What is the portfolio return and standard deviation for a two-asset portfolio
comprised of the following two assets if the correlation of their returns is 0.5?
Asset P Asset Q
Expected return 7% 25%
Standard deviation of expected returns 5% 30%
Amount invested Rs.50,000 Rs 50,000
Correlation 0.40 [5+5]
OR
11.a) What are the assumptions of Capital Assets Pricing Model (CAPM)?
b) Following are the information about a stock:
The current yield on a 10-year treasury is 2.5%
The average excess historical annual return for stocks is 7.5%
The beta of the stock is 1.25 (meaning its average weekly return is 1.25x as volatile as
the BSE500 over the last 2 years)
What is the expected return of the security using the CAPM formula? [4+6]
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This post was last modified on 23 October 2020