Welcome to Scribd. Sign in or start your free trial to enjoy unlimited e-books, audiobooks & documents.Find out more
Download
Standard view
Full view
of .
Look up keyword
Like this
2Activity
0 of .
Results for:
No results containing your search query
P. 1
Solved, MF0010 Winter Drive Assignment

Solved, MF0010 Winter Drive Assignment

Ratings:
(0)
|Views: 86|Likes:
Published by Arvind Kumar
Solved, MF0010 Winter Drive Assignment
Solved, MF0010 Winter Drive Assignment

More info:

Published by: Arvind Kumar on Mar 08, 2012
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOCX, PDF, TXT or read online from Scribd
See more
See less

12/03/2012

pdf

text

original

 
Master of Business Administration - Semester IIIMF0010
Security Analysis & Portfolio Management- 4 Credits Assignment Set- 1 (60 Marks)Note: Each Question carries 10 marks. Answer all the questions.Q1. Explain the modes of investment 
Modes of Investment
 There are different types of securities conferring different sets of rights on the investors anddifferent conditions under which these rights can be exercised. The various avenues forinvestment ranging from riskless to high risk investment opportunities consist of both security andnon-security form of investment. As an investor you have a wide variety of investment alternativesavailable
 
to choose
Marketable / Security form of investments:
 
The term ‘Security’ is generally used for those docu
ments evidencing liabilities of the issuer.When you buy a financial instrument say fixed deposit from a bank, you are issued a documentcalled Fixed Deposit Receipt or Certificate. This receipt is a liability to the bank as the bank hasto safe guard the investment; provide interest for using the funds and to return back the investedamount on maturity. This document also outlines the rights of the investor and sets conditionsunder which the investor can exercise his or her rights.Security forms of investment are those instruments which are transferable and traded in anyorganized financial market.
Equity Shares:
 Equity shares represent ownership capital. An equity shareholder enjoys both ownership stake andresidual interest in income & wealth. The issue of equity shares could be in the form of initialpublic offer, rights issue, bonus issue, preferential allotment and private placement.Investors has a choice to select equity shares which are broadly differentiated as blue chip shares,growth shares, income shares, cyclical shares and speculative
 
Bonds/Debentures:
Bonds represent long-term debt instruments. The issuer of a bond promises topay a stipulated payment (interest and principal) to the bond holder. Bond indenture is a contractbetween the issuer and the bond holder, which specifies the detail of the issue such as par valueof the bond, its coupon rate, maturity period, maturity date, call/put options etc.Internationally, a secured corporate debt instrument is called a corporate bond while anunsecured corporate debt instrument is called a corporate debenture. In India, corporate debtinstrument is referred as debentures although they are secured.Government bonds are issued by Central and State Governments. These bonds are called giltedged securities. There are different types of bond
Straight bonds, Zero coupon bonds, Floatingrate bonds, bonds with embedded options, commodity linked bonds etc. These are dealt in detailin the later units.
Money Market Instruments:
Debt instruments which have a maturity of less than one year at thetime of issue are called M.M Instruments. The important money market instruments are:
ForCompleteSolvedSMU Assignment @1500 Rs  Email:mba8182@gmail.comPh:09873669404
Q2. This distribution of returns for share Y and the market portfolio M is given below Returns (%)Probability Y Z0.30 30 -100.40 20 200.30 0 30You are required to calculate the expected return of security Y and the market portfolio, thecovariance between the market portfolio and security Y and beta for the security.Hint:ERp= 17 ; Covariance PM = - 168.0 ; Beta= -0.636Q3. Briefly explain the Dow TheoryQ4. Explain the strategies for overcoming psychological biasesQ5. List the major types of investment risks.Q6. How are the factors identified for APT?

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->