Kongu Engineering College, Perundurai, Erode

– 638 052.
M.B.A. Degree Examination
Third Semester
14MBE08 Security Analysis and Portfolio Mangement
(Regulation 2014)
Time: Three Hours Maximum: 100
marks

PART- A (10 x 2 = 20 Marks)

Answer All the Questions

1. What do you mean by Investment?

2. Define the term Speculation
3. Write short note on Sensex.
4. List out the benefits of listing of Securities?
5. Define Market Risk?
6. List out the different forecasting techniques.
7. Write a short note on Oscillators.
8. What are the importances of Charts?
9. What is the need for Portfolio Revision?
10. How portfolio revision does is conducting?

PART- B (5 x 13 = 65 Marks)
Answer All the Questions

11. (a) Discuss the Various Sources of Investment alternatives.

Or
(b) Explain the Security Market and its functions in India.
12. (a) What are the functions of stock exchanges? How are they
managed?

Or
(b) i)Give an account of the recent trends in the primary market?
7 Marks
ii) Write short notes on Stock market indices. 8
Marks

13.(a) Why is industry analysis important? Why should it follow the

economic analysis?
Or
(b) What are methods adopted to analyze the financial statements of a
company?
14.(a) How does technical analysis differ from the fundamental analysis?
Or
(b) Write short notes on following technical tools.
 i)Chart pattern and trends 5 Marks
ii)Market breath and width 3 Marks
iii) MACD 5 Marks

15. (a) Define the various forms of the market efficiency. What do they
have in common?
Or
(b) Explain the various methods of portfolio performance evaluation with an example.

PART-C
1*15-15 Marks
16.Case Study (Compulsory)
. The following table gives an analyst’s expected return on two stocks for particular market
returns:

Market Return Aggressive Stock Defensive Stock

6% 2% 8%

20 30 16

a) What are the betas of the two stocks? 4 Marks

b) What is the expected return on each stock if the market return is equally likely to be
6% or 20%? 4 Marks
c) If the risk-free rate is 7 % and the market return is equally likely to be 6 % or 20%
what is the SML? 4 Marks
d) What are the alphas of the two stocks? 4 Marks