Download JNTUA MBA 2017 Nov 3rd Sem 12E01306b Investement & Portfolio Management Question Paper

Download JNTU Anantapur (Jawaharlal Nehru Technological University Anantapuramu) MBA 2017 November Third Semester (3rd Semester/1-2) Regular & Supplementary Examinations 12E01306b Investement & Portfolio Management Question Paper.

Code: 12E01306b


MBA (Finance) III Semester Regular & Supplementary Examinations November/December 2017
INVESTMENT & PORTFOLIO MANAGEMENT
(For students admitted in 2013, 2014, 2015 & 2016 only)

Time: 3 hours Max. Marks: 60
Answer any FIVE questions
All questions carry equal marks
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1 Discuss about the current investment setting in India.

2 Write the functions of the new issue market and secondary market. Explain the trading mechanisms in
stock exchanges in India.

3 Differentiate between economic, industry and company analysis models.

4 Explain the merits & demerits of technical analysis as a tool of security analysis.

5 Calculate the expected return and the standard deviation of returns for a stock having the following
probability distribution of returns.
Possible returns (%) -25 -10 0 15 20 30 35
Probability of occurrence 0.05 0.10 0.10 0.15 0.25 0.20 0.15


6 (a) What is risk-free asset and what are its risk-return characteristics?
(b) Calculate the expected return for each of the following stocks, when risk-free rate of return is 0.08 and
you request the market return to be 0.14.
Stock Beta
A 1.72
B 1.14
C 0.76
D 0.44
E 0.03
F -0.79


7 Write a detailed note regarding the dividend discount models of common stock valuation.

8 Define Markowitz diversification. Explain statistical method used by Markowitz to obtain the risk
reducing benefit.

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