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2 marks
UNIT I
1. What is investment?
3. What are the two major types of information necessary for security analysis?
6. Mention any four features which are important for choosing specific investment.
UNIT II
4. What is depository?
MBA SYED AP
5 years QB SAPM
UNIT III
5. Define Multiplier?
UNIT IV
4. What do you infer from the moving average theory of technical analysis?
5. What are the three basic types of charts used in technical analysis?
UNIT V
MBA SYED AP
5 years QB SAPM
16 marks
UNIT I
3. Describe the provisions of security contract regulation act relating to the investor protection.
4. Explain the various types of risk? And how do you calculate risk measurement?
UNIT II
1. Who are the key players involved in the new issues market?
2. What is the procedure for buying shares? Explain the stock market indices.
3. What are the money market instruments? Explain initiatives taken by SEBI to reform Indian capital market.
6. What are the objectives and functions of SEBI? Explain the organization of SEBI?
7. Discuss the recent policy initiatives and developments in the capital market in India.
UNIT III
1. “Industry life cycle exhibits the status of the industry and gives the clue to entry and exit for investors” –
Elucidate?
3. Why is industry life cycle important to investors? Explain the different stages of the industry life cycle?
5. Explain the factors influencing the earnings per share (EPS) of a company.
6. Discuss the factors affecting present and future values of stock. Explain the macro economic factors the need
to be analyzed.
MBA SYED AP
5 years QB SAPM
UNIT IV
1. Write short notes on: support and resistance level, Breadth of market, odd lot trading, Oscillators.
4. What is fundamental analysis and technical analysis? Distinguish between the two approaches.
7. Technical analysts believe that investors can use past price changes to predict future price changes. How do
they justify this belief?
8. How would you use ROC to predict the stock price movement? Kindly elucidate with an example.
9. “Chart patterns are helpful in predicting the stock price movement” comment.
10. Explain in detail the Dow Theory and how it might be used to determine the direction of the stock market.
12. Describe the inter linkage between the efficient market hypothesis and the mutual fund performance.
UNIT V
3. Explain how the efficient frontier is determined using the Markowitz approach. What are the characteristics of assets
that lie on the efficient frontier? What are the strengths and weakness of the Markowitz approach?
4. What are the basic assumptions of CAPM? What are the advantages of adopting CAPM model in the portfolio
management?
5. Explain the traditional approach to portfolio construction. Explain the CAPM model.
6. What is the essential difference between the Sharpe’s and Treynor’s model of portfolio performance? Discuss in detail.
7. Discuss the Markowitz portfolio theory and the capital market theory.
MBA SYED AP
5 years QB SAPM
UNIT V
1. From the following out the required rate of return. DPS Rs 0.75 per share.
2. From the following find out the portfolio’s risk and return
Rs Rs
L M
1 0.2 (5) 6
2 0.4 10 (2)
3 0.3 (4) 8
4 0.1 7 (9)
P 0.15 0.30
Q 0.10 0.20
Determine the expected return and risk on the following combination of these two stocks.
% Stock P % Stock Q
a. 70 30
b. 50 50
c. 30 70
d. 10 90
MBA SYED AP
5 years QB SAPM
4. If the risk free returns is 10% and the expected returns on BSE Index is 18% risk measured by standard deviation is
5% how would you construct an efficient portfolio to produce a 16% expected returns? What would be its risk?
5. After a detailed analysis of both the aggregate stock market and the stock of RL. Company Ltd an investor has
developed the following figures:
The present risk free rate of return is equal to 7%. Would you recommend an investment in the stocks of RL Company
Ltd?
Years Return %
L M
2008 12 14
2009 18 12
The price of share now is Rs.450. there is a rumour that the company may issue a bonus share. Investor wants to know:
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5 years QB SAPM
A 18 27 0.8
B 14 18 0.6
C 15 08 0.9
Market 13 12 ----
9. Suppose you are to analyse two portfolios having the following characteristics:
The risk free rate is 0.07. The return on the market portfolio is 0.15. The standard deviation of the market is 0.06.
MBA SYED AP