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Subjt Code: R16MBA304F1
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MBA - III Semester Regular and Supplementary Examinations, November-2018.
Time: 3 hours
INVESTMENT AND PORTFOLIO MANAGEMENT
Max Marks: 60
Question Paper Consists of Part-A and Part-B.
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Answering the question in Part-A is Compulsory & Four Questions should be answered from Part-B
All questions carry equal marks of 12.
PART-A (CASE STUDY)
1 X 12 = 12
- An investor wants you to analyse the following two securities by providing the following information:
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| State of Nature | Probability | Return on ABC Stock | Return on PQR Stock |
|---|---|---|---|
| 1 | 0.1 | 5% | 0% |
| 2 | 0.3 | 10% | 8% |
| 3 | 0.5 | 15% | 18% |
| 4 | 0.1 | 20% | 26% |
- What is standard deviation of return on stock ABC and PQR
- What is the covariance between the returns of securities ABC and PQR
- What is the coefficient of correlation between the returns on securities ABC and PQR
PART-B
4 X 12 = 48
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- (a) Define Investment. Name the factors to be considered in investment decision.
(b) Distinguish between Investment, Speculation, Gambling? - (a) What is fundamental analysis? What are the objectives and beliefs of fundamental analysis?
(b) What is technical analysis? Explain the popular charts used by technical analysts. - (a) The Market price of a Rs 1000 par value bond carrying a coupon rate of 14% and maturing after 5 years is Rs 1050. What is yield to maturity of the bond (YTM)?
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(b) Define bond duration. Discuss in brief the active and passive strategies for managing a bond portfolio. - (a) Discuss the single period and multi period models of equity valuation.
(b) Describe book value liquidation value replacement cost of equity valuation. How useful are they? - (a) Monthly return data (%) is given below for HSBC stock and BSE index for a 12 month period. calculate beta of RIL
Month HSBC return (%) BSE INDEX (%) 1 9.43 7.41 2 0.00 -5.33 3 -4.31 -7.35 4 -18.92 -14.64 5 -6.67 1.58 6 26.57 15.19 7 20.00 5.11 8 2.93 0.76 9 5.25 -0.97 10 21.45 10.44 11 23.13 9.75 12 32.83 15.63 --- Content provided by FirstRanker.com ---
The risk and return of 2 securities A and B is given below:
Security X Security Y Expected return 15% 20% Risk 8% 11%
An investor plans to invest 60% of his funds in security X and 40% in security Y. calculate return and risk of portfolio if coefficient of correlation of returns of two securities is -1. - (a) What is NAV? Explain entry and exit loads of mutual funds? What are open ended schemes?
(b) Explain in detail any three types of measures to evaluate the performance of mutual funds?
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This download link is referred from the post: JNTU Kakinada MBA 4th Sem Last 10 Year Question Papers 2009-2019 -All Regulation- Fourth Semester
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