Download JNTUH (Jawaharlal Nehru Technological University Hyderabad) MBA (Master of Business Administration) 3rd Semester (Third Semester) R17 2019 May 743AF Security Analysis And Portfolio Management Previous Question Paper
Code No: 743AF
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA III Semester Examinations, April/May-2019
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) Distinguish between Investment and speculation. [5]
b) Explain the features of indifference curves. [5]
c) Explain Holding period return and Yield to call. [5]
d) Compare and contrast weak form and strong form of market efficiency. [5]
e) Explain Protective Put and Covered Call. [5]
PART - B 5 ? 10 Marks = 50
2.a) Compare and contrast Capital Market and Money Market.
b) Discuss about securities trading and settlement. [5+5]
OR
3.a) What is Margin trading?
b) Explain the various money market instruments. [5+5]
4. The estimates of the standard deviations and correlation co-efficient for three stocks are
given below
Stock Standard Deviation Correlation with Stock
A B C
A 32 1.00 -0.80 0.40
B 26 -0.80 1.00 0.65
C 18 0.40 0.65 1.00
If a portfolio is constructed with 15% of stock A, 50% of stock B and 35% of stock C,
what is the portfolios standard deviation? [10]
OR
5.a) Explain single Index model.
b) What is efficient frontier? Explain risk free lending and borrowing. [5+5]
6.a) Explain the various types of Bonds.
b) A Reliance industries debenture with a face value of Rs 100 has a coupon rate of 10%
per annum coupon payment being made annually. The maturity date of the instrument
is 7
th
May 2018. The traded price of the bond on 7
th
May 2016 is Rs.110. Compute the
yield to maturity of the bond. [5+5]
OR
7.a) A Rs 100 par value bond bears a coupon rate of 14 percent and matures after five years.
Interest is payable semi-annually. Compute the value of the bond if the required rate of
return is 16%.
b) What is bond volatility and bond convexity? [5+5]
R17
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Code No: 743AF
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA III Semester Examinations, April/May-2019
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) Distinguish between Investment and speculation. [5]
b) Explain the features of indifference curves. [5]
c) Explain Holding period return and Yield to call. [5]
d) Compare and contrast weak form and strong form of market efficiency. [5]
e) Explain Protective Put and Covered Call. [5]
PART - B 5 ? 10 Marks = 50
2.a) Compare and contrast Capital Market and Money Market.
b) Discuss about securities trading and settlement. [5+5]
OR
3.a) What is Margin trading?
b) Explain the various money market instruments. [5+5]
4. The estimates of the standard deviations and correlation co-efficient for three stocks are
given below
Stock Standard Deviation Correlation with Stock
A B C
A 32 1.00 -0.80 0.40
B 26 -0.80 1.00 0.65
C 18 0.40 0.65 1.00
If a portfolio is constructed with 15% of stock A, 50% of stock B and 35% of stock C,
what is the portfolios standard deviation? [10]
OR
5.a) Explain single Index model.
b) What is efficient frontier? Explain risk free lending and borrowing. [5+5]
6.a) Explain the various types of Bonds.
b) A Reliance industries debenture with a face value of Rs 100 has a coupon rate of 10%
per annum coupon payment being made annually. The maturity date of the instrument
is 7
th
May 2018. The traded price of the bond on 7
th
May 2016 is Rs.110. Compute the
yield to maturity of the bond. [5+5]
OR
7.a) A Rs 100 par value bond bears a coupon rate of 14 percent and matures after five years.
Interest is payable semi-annually. Compute the value of the bond if the required rate of
return is 16%.
b) What is bond volatility and bond convexity? [5+5]
R17
8. A company paid dividends amounting to 0.75 per share during the last year. The
company is expected to pay Rs 2. per share during the next year. Investors forecast a
dividend of Rs. 3 per share in the year after that. Thereafter, it is expected that
dividends will grow at 10 percent per year into an indefinite future. Would you buy/sell
the share if the current price of the share is Rs.54? Investor?s required rate of return is
15 percent. [10]
OR
9.a) Describe the key economic variables that an investor must monitor as part of his
Fundamental Analysis.
b) Explain about chart patterns and Relative strength Index (RSI). [5+5]
10.a) The share of Omega Company which is not expected to pay dividend in the near future
is currently selling for Rs 150. The risk-free interest rate is 0.8% per a month. A
3-month futures contract is selling for Rs.152. Develop an arbitrage strategy and show
what your profit will be 6.3 months hence.
b) Distinguish between futures and forwards. [5+5]
OR
11.a) Given the following information:
Portfolio A Portfolio B
Beta 0.9 1.8
Return (%) 12.5 19
S.D (%) 20 26.5
Risk Free rate of return = 6% ; Market Return = 12% .
Calculate (i) Sharpe Ratio (ii) Treynor Ratio.
b) Explain the types of mutual funds in India. [5+5]
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This post was last modified on 23 October 2020