# Download JNTUK MBA 3rd Sem 2018 Nov R16MBA304F1 Investment And Portfolio Management Question Paper

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Subjt Code: R16MBA304F1
MBA - III Semester Regular and Supplementary Examinations, November-
2018.
INVESTMENT AND PORTFOLIO MANAGEMENT
Time: 3 hours Max Marks: 60
Question Paper Consists of Part-A and Part-B.
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 1? = 12
1. An investor wants you to analyse the following two surities by providing the following
information
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%
(a) What is standard deviation of return on stock ABC and PQR
(b) What is the covariance between the returns of surities ABC and PQR
(c) What is the coefficient of correlation between the returns on surities ABC and PQR
PART-B
4X 12 = 48
2. (a) Define Investment. Name the factors to be considered in investment dision
(b) Distinguish between Investment, Spulation, Gambling?
3. (a) What is fundamental analysis . What are the objtives and believes of fundamental analysis
(b) What is thnical analysis Explain the popular charts used by thnical analysts
4. (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)?
(b) Define bond duration. Discuss in brief the active and passive strategies for managing a bond
portfolio
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"

Subjt Code: R16MBA304F1
MBA - III Semester Regular and Supplementary Examinations, November-
2018.
INVESTMENT AND PORTFOLIO MANAGEMENT
Time: 3 hours Max Marks: 60
Question Paper Consists of Part-A and Part-B.
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 1? = 12
1. An investor wants you to analyse the following two surities by providing the following
information
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%
(a) What is standard deviation of return on stock ABC and PQR
(b) What is the covariance between the returns of surities ABC and PQR
(c) What is the coefficient of correlation between the returns on surities ABC and PQR
PART-B
4X 12 = 48
2. (a) Define Investment. Name the factors to be considered in investment dision
(b) Distinguish between Investment, Spulation, Gambling?
3. (a) What is fundamental analysis . What are the objtives and believes of fundamental analysis
(b) What is thnical analysis Explain the popular charts used by thnical analysts
4. (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)?
(b) Define bond duration. Discuss in brief the active and passive strategies for managing a bond
portfolio
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5. (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?
6. (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 17.47
12 32.83 20.15
The risk and return of 2 surities A and B is given below
Surity X Surity Y
Expted return 15 % 20%
risk 8% 11%
An investor plans to invest 60% of his funds in surity X and 40% in surity Y. calculate
return and risk of portfolio if coefficient of correlation of returns of two surities is -1.
7. (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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