Download BU (Bangalore University) MBA 4th Semester 2017 July Investment Analysis Management Question Paper

Download BU (Bangalore University) MBA (Master of Business Administration) 4th Semester 2017 July Investment Analysis Management Question Paper

IIIIIIII . ? PG - 876
IV Semester M.B.A. Degree Examination, July 2017
(C868)
MANAGEMENT
, 4.2.1 : Investment Analysls and Management
Tnme : 3 Hours Max. Marks : 70
Instruction : Answer at! the Sections.
SECTION - A
Mmrw?wdmmmmmmmmm (5x5=25)
1.
2.
What Is 'lnvestment' ? How is it ditterent from Specu|ation and Gambling 7
Briefly explain Dow theory.
Distinguish between CML and SML as per CAPM.
The estimated factor sensitivities of TEC to the five macro?eoonomtc factors
are given In the table below. The table gives the market risk premium to each
at these tactovs.
7 _ 77 - ?7 Factory Wvlty n?m Premium (99
Confidence Risk 0.25 2.59
Time hon'zon Risk 0.30 ? 0.66
Inflation Risk - 0.45 ? 4.32
Business-cycle Risk 1.60 1.49
Market-timlng Risk , 0.80 3.61
Use the APT model to calcutate the required rate at retum tor TEC using these
estimates. The treasury hilt rate is 4.1 per cent.
P.T.O.

96-070 .2. IIIIIIII
5. Ammm.150peysmdm.mposslbbpdoesa1whmm
mmmwumwwammmmmmm:
WM!
0.2
0.1
0.1
0.3
6. Npteeonlwppose?,ls1o%andmeexpocmedremmm1hemmotpomdlo
151516.113 expected Mums 10er stocks ate Iistad togomer with IheIr
expected betas.
sunk
Mum B
Hm 21m 17.0% 1.3
Adan Palm: 14.5% 0.8
Maruu Udyog m. 15.5% . 1.1
Putvi Monies 18.0% 1.7
Onmbasisofmeseexpacta?onsmmbhsmareovewaluedandw?diare
undewalued 7 Assume assumptions of CAPM hold true.
7. mmmmmaremedamon?ve unJaHunds:
Funds Return ??undlrdocvlotlon
_7 15
JL j:;;_??
C 1?__.,,___?5____._?~
._? _12__ # 6
E 16 _ 9 150
Ymmmnmmnvmmwmkmwmm:
. SharpoMeMOdand
. Traynor'sMemOd
mate rtskltae mauve.

IIIIIIII . .3. ? Pa-m
SECT1ON?B
Answer any thn- questions. Each quesuon carries an mama : (33:10-30)
.8.
9.
10.
11.
12.
Explain In data?. the process for making and managing Investments.
Explaln In detail the concem oi ?E?lcbnt Mamet Hypoihesis'. On what basis
arenadi?erentfocmsofef?dencyln maMarelden??od?
ThomannatocksoiBajalandTVShaveexpocbedmtumsdwesmm
www.mlemmndarddevla?msmMandMJhoexpocted
conela?onoo-emdentbetweenthetwostocks19036. Whailstheexpecled
vamodmnandmmnduddwiauonotapor?o?oomdst?uoumm
Baialandeo?sTVS?(b)40%TVSand60%Baiaj?Undarbomcaseanhat
dmmmmmmmwmmmgmepomwonskmm
low?
Mr. Sumh Is consuming an op?mm pot?ollo. Tho manta! retum mm
saysmatnwoutdbe15.5%1orthenemwoyemwlmmemrkotvanancaof
1296.11? rleree rake of return In 5%. The Wig securities are under
review. Findunmeopumm puuolio.
Company a p r
A 3.72 0.99 9.35
B 0.60 1 .27 5.92
_ c 0.41 0.98 9.79
D ? 1.21 5.39
0.22 _
E 0.45 0.75 4.52
SECTION - C
eunpuhorv Question
Case Study: (1:15:15)
Youhaverocon?ygraduatedasamajmln?nmandnavebeenmradasa
?nancial planner by Hadlant Secun?es. a ?nancial services company. Your
' a1-ywhvutmmnodzon.vwnavebeenaskodwmonIyMean
Investment anama?ves : T-bi?s. stock A. stock 8. stock 0 and maths! Index.

PG - 070 .4. IIIIIIII
The economics 00!! 01 Radiant Seourl?as has 11er the probability
Wmmmmmmmmmwwmmnm
mmmmmmmmmmmmamammy.
You have gathemd tho 1oll0wlng lnformatlon from them :
WmAWW
swam may 1-0111. swam 5100110 3100110 Mum
Economy , mum
. Reoea?on 0.2 5.0% (15.0%) 30.010 (5.0%) (10.0%)
. Normal 0.5 5.0 20.0 5.0 15.0 15.0
. Boom 0.3 5.0 40.0 (15.0) 25.0 30.0
Yourdlomsaverywuousinvestormhasheardalotmia?ngtopor?o?omoory
mdsssetp?chg?wy?eroquestsyoubmwermefolbwmgmm:
a)Whatb?1eoxpededWandhodea?a?mdemloubchB.
cmmmpomono?
b)w1mishmhmobmmmonAmdB?mnonAandC?
c)Whalismeooef?clwtotcomia?onbetweenmere1umsonAandB?
RetumsonAandC?
d) Whatismeexpocbdratumandsmuarddevlauononapomwmvmw
stodcsAandBareequallyweightedNnmimmBmightsmwm
stocksA.BandCareo.4.0.4.and02respadwaly7