MS-044: Security Analysis And Portfolio Management last 3 yrs paper
June, 2021
- Explain how investment opportunities should be evaluated on the basis of risk-return trade-off. Explain with example.
- (a) Describe the multiplier approach to share valuation.
(b) A company has an EPS of< 20·67. Its return on equity is 15% and it follows a policy of retaining 60% of its earnings. If the opportunity cost of capital is 18%, what would be the price of the share today?
- Discuss the trading system in stock exchanges. Mention some of the recent reforms in the trading system in India.
- What are the premises of technical analysis? What are the differences between technical and fundamental analysis?
- Define Markowitz diversification and also explain the statistical method used by Markowitz to reduce the risks.
- The following data are available to you as portfolio manager:
In terms of the security market line, which of the securities listed above are underpriced?
- What do you mean by Portfolio Revision? Describe the major constraints in portfolio revision.
- What are the various types of mutual fund schemes available in India? Explain their features.
December, 2020
- As an investment advisor what factors would you suggest while deciding the investment portfolio of a client? Explain briefly.
- (a) Explain the mean-variance approach to estimation of return and risk of a security.
(b) A bond of ` 1,000 was issued five years ago at a coupon rate of 6 per cent. The bond had a maturity period of 10 years as of today; therefore, five more years are left for final repayment at par. The market interest rate currently is 10 per cent. Determine the value of the bond.
- What do you understand by Trading System of Stock Exchanges? Explain the various features of National Exchange for Automated Trading (NEAT) system
- . (a) Elucidate, how is company analysis undertaken in fundamental analysis.
(b) Discuss industry analysis using the relative valuation approach.
- Explain Random Walk Hypothesis. What are the various levels of market efficiency?
- (a) What are the advantages of adopting CAPM model in the portfolio management?
(b) How can securities be evaluated with the help of the CAPM theory?
- Consider the following information for four mutual funds A, B, C and D:
The risk-free rate of return is 10% and face value is ` 100 each. Evaluate the performance of these mutual funds using Sharpe and Treynor ratios. Comment on the evaluation after ranking the funds
- Write short notes on the following:
(a) Systematic vs. Unsystematic risk
(b) Japanese candlesticks
(c) CML
(d) Portfolio revision strategies
June, 2020
- (a) What do you mean by Investment? Discuss the different channels or alternatives available to an investor for making investment.
(b) “The investment process involves a series of activities starting from the policy formulation.” Discuss.
- Describe the various recent initiatives taken by the Securities and Exchange Board of India (SERI) to protect the interest of the investors.
- (a) Distinguish between systematic risk and unsystematic risk. How do you measure these risks?
(b) Face value of a Debenture = Z 1,000
Debenture = 12 per cent
Maturity Period = 5 yearsWhat is the value of the Debenture, if:
(i) Required rate of return is 12 per cent
(ii) Required rate of return is 15 per cent
(iii) Required rate of return is 10 per cent
- (a) Make a comparison between Fundamental Analysis and Technical Analysis. Which one is more helpful to the investors, when they want to invest in capital market?
(b) What are the tools of Technical Analysis? Discuss about the various reversal and continuation price patterns found in Technical Analysis.
- (a) What is Markowitz Diversification? Explain the statistical method used by Markowitz to reduce the risks.
(b) An investor purchases an equity share at a price of Z 100 now. Its expected year end price with relevant probabilities and expected year end dividend are as follows:
Probability Share Price Dividend .20 125 5 .40 120 3 .30 115 2 .10 .105 Nil Find out the expected return and variability of return of equity share.
- What do you mean by Portfolio Revision? When is portfolio revision needed? Critically appraise the various portfolio revision plans.
- Discuss the different types of mutual fund schemes in India. Which one would you like to suggest for better investment?
- Write short notes on the following:
(a) Sharpe’s Single Index
(b) Efficient Frontier
(c) Elliot Wave Theory
(d) Arbitrage Pricing Theory
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- IGNOU Course details and sample paper link
- Sample paper of ignou for exam
- Solved Assignments of IGNOU courses
