ABES IT Group of Institutions

MBA-FM02 : Security Analysis and Investment Management

Model Test Paper 2010

Max. Marks: 100 Max. Time : 3:00 hours

Note:

1) Attempt all Questions

2) All Questions carry equal marks

Question 1) Attempt any four parts of the following: (5×4)

a) Open ended and close ended mutual fund

b) Arbitrage Pricing Theory
c) Performance Evaluation
d) Primary Market
e) American option and European option

Question 2) Indian New Issue Marking is developing very fast many new issues are coming in
the market. Before going for public issue what are the pre-requisites? Do you think is this the
right time for collecting the capital through public issue?

Or

In Indian context SEBI as working as a watch dog. What are other powers vested to the SEBI?

Question 3) Consider the following information for three mutual funds, P, Q and R and the
market.

Mean Return SD Beta

P 15% 20% .90
Q 17% 24% 1.10
R 19% 27% 1.20
Market Index 16% 20%
The mean risk-free rate was 10%, Calculate the Treynor, Sharpe performance measure for the
portfolio.

Or
Discuss in brief the various techniques used for evaluating the performance of existing
portfolio.

Question 4) Define CAPM. Explain the benefits and limitations of it.

OR

What is the concept efficient frontier? Explain it significance.

Question 5) Explain the uses of Industry life cycle approach to an industry analyst. Which stage
of it is most appropriate and why?

Or

What are the basic premises of technical analysis? What are the difference between technical
analysis and fundamental analysis?