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

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Code: 12E01306b

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MBA (Finance) III Semester Regular & Supplementary Examinations November/December 2017

INVESTMENT & PORTFOLIO MANAGEMENT

Time: 3 hours Max. Marks: 60

(For students admitted in 2013, 2014, 2015 & 2016 only)

Answer any FIVE questions

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All questions carry equal marks

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.

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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

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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
   

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   B 1.14
   C 0.76
   D 0.44
   E 0.03
   F -0.79

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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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