1. Define investment. What are the factors differentiating investment from speculation and gambling? 2.

Investment is well grounded and carefully planned speculation in the light of the given statement differentiate between investment speculation and gambling? 3. Write short notes on the following:- (i) risk return trade off (2) factors of sound investment , (3) holding period rate of return , (4) investment decision process, (5) players and participants in the financial markets, (6) portfolio effect 4. What is a financial system. Discuss its functions. Briefly explain the various components of financial system? 5. Peak discount bond and zero coupon bond. 6. Differentiate between (i) primary and secondary market , (ii) money market and capital market , (iii) systematic and unsystematic risk,, security market line and capital market line. 7. What are the various sources of risk in an investment. Explain and illustrate 8. How do we measure return and risk of an investment. 9. Discuss in brief the impact of taxes and inflation on the strategy. 10. Explain the risk-return relationship formulated by H.M Model (Mean-variance model) . How the efficient portfolio is built as per HM model? 11. Different between standard deviation and beta as measure of risk? 12. What is credit rating? How it is relevant for the investors? Also discuss the process involves in credit rating of debt instrument ?? 13. Name the various credit rating agencies operating in india ?