Fall 2010

Master of Business Administration- MBA Semester 3

MF0010 – Security Analysis and Portfolio Management - 4 Credits
(Book ID: B1035)
Assignment Set- 1 (60 Marks)

Note: Each question carries 10 Marks. Answer all the questions.

Q. 1 It is very often observed that retail investors enter the market when index is very high and
exit when index is very low (comparatively speaking). Describe qualities of a savvy investor.
Also throw light upon mistakes committed while managing investments.
Q.2 Explain the significance of index in general and stock market index in particular. What is risk
involved in derivative products?
Q.3 What do you understand by industry (give examples)? What is importance of industry life
cycle? Is it possible to asses the intrinsic value of security?
Q. 4 Is there any logic behind technical analysis? Explain meaning and basic tenets of technical
analysis.
Q.5 Explain role played by efficient market in economy. Apply the parameters of efficient
market to Indian stock markets and find out whether they are efficient.
Q. 6 What do you understand by yield? Explain the concept of YTM with the help of example
 Fall 2010

Master of Business Administration- MBA Semester 3

MF0010 – Security Analysis and Portfolio Management - 4 Credits
(Book ID: B1035)
Assignment Set- 2 (60 Marks)

Note: Each question carries 10 Marks. Answer all the questions.

Q. 1 Explain basic steps involved in PM. What is difference between PM and a Mutual Fund?
What are various types of risk associated with PM?
Q. 2 Explain with the help of example how is it possible to reduce risk associated with portfolio
with the help of diversification. Which risk are still bound to persist?
Q.3 With the help of examples explain what is systematic (also called systemic) and
unsystematic risk? All said and done CAPM is not perfect , do you agree?
Q. 4 What do you understand by arbitrage? Make a critical comparison between APT & CAPM.
Q. 5 Diversification is key to good investment. What are pros and cons of foreign investment?
Q. 6 Explain in brief APT with single factor model.