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Contents

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Introduction: Concept
of Investment
CONCEPT OF INVESTMENT / B§doñQ>_|Q> H$s AdYmaUm
Q.1. Briefly explain the concept of investment.
B§doñQ>_|Q> H$s AdYmaUm H$m g§{já dU©Z H$s{OE& [2018, 2013]
OR
Explain the term investment. Briefly describe any five characteristics of in-
vestment. B§doñQ>_|Q> eãX H$mo g_PmB`o& B§doñQ>_|Q> Ho$ {H$Ýhr nm±M JwUm| H$m g§{já dU©Z H$s{OE&
NP
[2016] 17

OBJECTIVES OF INVESTMENT/ BÝdoñQ>_o§Q> Ho$ CÔoí`

Q. 2. State the Objectives of Investments./ BÝdoñQ>_oÝQ²>g Ho$ CÔoí` ~VmBEŸ& [2012]
OR
What are the Investment Objectives and constraints thereof? Discuss investment
avenues available to investors. / BÝdoñQ>_oÝQ²>g Ho$ CÔoí` VWm ~mYmE± Š`m h¢? BÝdoñQ>g© Ho$
{cE CncãY BÝdoñQ>_|Q> Ho$ _mÜ`_ H$s MMm© H$s{OEŸ& [2002] 22

INVESTMENT VS. SPECULATION / B§doñQ>_|Q ~Zm‘ >ñnoHw$coeZ

Q.3. How is investment different from speculation?
B§doñQ>_|Q> ñnoHw$coeZ go H¡$go {^ÝZ h¡? [2018]
OR
Discuss the difference between Speculation and Investment with their processes.
BÝdoñQ>_oÝQ> VWm ñnoŠ`ycoeZ Ho$ _Ü` A§Va ~VmVo hþE CZH$s à{H«$`mE§ g_PmB`oŸ& [2014] 26

INVESTMENT VS. GAMBLING / B§doñQ>_|Q> ~Zm‘ Joå~qcJ

Q.4. What is the difference between Investment and Gambling?
B§doñQ>_|Q> VWm Joå~qcJ Ho$ ~rM Š`m A§Va h¡? [2020]
OR
Discuss the factors differentiating between investment and gambling. Use
suitable examples to differentiate between the two.
BÝdoñQ>_oÝQ> VWm Joå~qcJ Ho$ _Ü` A§Va H$aZo dmco \¡$ŠQ>g© H$s MMm© H$s{OEŸ& Cn`wŠV CXmhaU
XoH$a XmoZm| Ho$ ‘ܶ A§Va ~VmBE& [2009] 29
BRILLIANT'S / Investment Analysis and Portfolio Management / 4
 FINANCIAL AND ECONOMIC ASPECTS OF INVESTMENT
BÝdoñQ>_o§Q> Ho$ \$m`Z|{e`c VWm BH$moZm°{_H$ nhcy
Q. 5. Explain in detail the financial and economic aspect of investment with suit-

P
able example. / B§doñQ>_|Q> Ho$ \$m`Z|{e`c VWm BH$moZm°{_H$ nhcy H$m Cn`wŠV CXmhaU g{hV
{dñVma go dU©Z H$s{OE& [2019] 32

TYPES OF INVESTMENT/ BÝdoñQ>_oÝQ> Ho$ àH$ma

Q.6. Explain types of Investment./ BÝdoñQ>_oÝQ> Ho$ àH$ma g_PmB`o& [2016]
OR
What is the meaning of Investment? Discuss the different channels or alterna-
tives available to an investor for making investments. / BÝdoñQ>_oÝQ> H$m AW© Š`m h¡?
BÝdoñQ>_oÝQ²>g H$aZo Ho$ {cE {ZdoeH$ H$mo CncãY {d[^Þ òmoVm| `m {dH$ënm| H$s MMm© H$s{OEŸ& [2011] 34

INVESTMENT PROCESS/ BÝdoñQ>_oÝQ> àmogog

Q.7. What are the steps involved in investment process?
B§doñQ>_|Q> àmogog _| gpå_{cV MaU Š`m h¢? [2020]
NP
OR
What are the steps involved while making investment decision and what in-
vestment avenues one can find in market? / BÝdoñQ>_oÝQ> {S>grOZ boVo g_` H$m¡Zgr
ñQ>oßg AnZm`r OmVr h¢ VWm {H$Z BÝdoñQ>_|Q> EdoÝ`yO H$mo _mH}$Q> _| ImoOm Om gH$Vm h¡? [2017] 46
SELECTING INVESTMENTS IN A GLOBAL MARKET
EH$ ½cmo~c _mH}$Q> _| BÝdoñQ>_o§Q²>g H$m M`Z H$aZm
Q.8. The three important element of investment are "risk, return and timing". Elabo-
rate in the context of International Investing. / B§doñQ>_|Q> Ho$ VrZ _hËdnyU© VËd h¢
'[añH$, [aQ>Z© VWm Q>mBq_J'& A§Vam©îQ´>r` B§dopñQ>§J Ho$ n[aàoú` _| dU©Z H$s{OE& [2020] 53

Review Questions 57

Risk and Return Analysis

CONCEPT OF RISK AND RETURN: SYSTEMATIC RISK AND UNSYSTEMATIC RISK
[añH$ VWm [aQ>Z© H$s AdYmaUm: {gñQ>_o{Q>H$ [añH$ VWm AZ{gñQ>_o{Q>H$ [añH$
Q.9. What do you understand by 'Risk and Return' and its trade off in respect of
investment? How general factors affect 'Risk and Return trade off.' Also ex-
plain systematic risk and unsystematic risk.

BRILLIANT'S / Investment Analysis and Portfolio Management / 5

 '[añH$ VWm [aQ>Z©' Am¡a B§doñQ>_|Q> Ho$ g§~§Y _| BgHo$ Q´>oS> Am°\$ go Amn Š`m g_PVo h¢? '[añH$ VWm
[aQ>Z© Q´>oS> Am°\$' H$mo gm_mÝ` H$maH$ H¡$go à^m{dV H$aVo h¢& {gñQ>_o{Q>H$ [añH$ VWm AZ{gñQ>_o{Q>H$
[añH$ H$mo ^r g_PmB`o& [2018]
OR

P
What is risk and return in respect of investment? How is risk measured and
rated? [2017]
BÝdoñQ>‘|Q> Ho$ g§X^© ‘| [añH$ VWm [aQ>Z© ³¶m h¡? Bgo {H$g àH$ma ‘oOa VWm aoQ> {H$¶m OmVm h¡? 59
MULTI-FACTOR MODEL OF RISK AND RETURN
[añH$ VWm [aQ>Z© H$m _ëQ>r>-\¡$ŠQ>a _m°S>c
Q.10. Discuss Multi-factor Model of Risk and Return.
[añH$ VWm [aQ>Z© Ho$ _ëQ>r-\¡$ŠQ>a _m°S>c H$s MMm© H$s{OEŸ& [2011] 80

EFFICIENT CAPITAL MARKETS / B{\${eEÝQ> H¡${nQ>c _mH}$Q>

Q.11. What do you understand by the term capital market efficiency? Explain the
efficient market theory in its different forms. / H¡${nQ>c _mH}$Q> j‘Vm go Amn Š`m
g_PVo h¢? à^mdembr _mH}$Q> Ï`moar H$mo BgHo$ {d{^ÝZ ê$nm| _| g_PmB`o& [2020]
NP
OR
Write a short note on: Efficient Market Hypothesis.
B{\${eEÝQ> _mH}$Q> hmBnmo{W{gg na g§{já {Q>ßnUr {c{IEŸ& [2013] 82

CONCEPT OF BETA / ~rQ>m H$m H$ÝgoßQ>

Q.12. Write short note on: Concept of Beta. [2017, 2011]
~rQ>m Ho$ H$ÝgoßQ> na g§{já {Q>ßnUr {c{IEŸ&
OR
What is Beta? How is it measured?
~rQ>m Š`m h¡? `h H¡$go _mnm OmVm h¡? [2006, 2004] 86

CAPITAL ASSET PRICING MODEL (CAPM) / H¡${nQ>c AgoQ> àmBqgJ _m°S>c (CAPM)
Q.13. Explain Capital Asset Pricing Model in detail.
H¡${nQ>c AgoQ> àmBqgJ _m°S>c H$m {dñVma go dU©Z H$s{OE& [2020]
OR
Explain the Capital Asset Pricing Model.
H¡${nQ>b AgoQ> àmBqgJ _m°S>b na g§{jßV {Q>ßnUr {b{IE& [2017] 93

SML AND CML / SML Am¡a CML

(Security Market Line and Capital Market Line) / ({gŠ`y[aQ>r _mH}$Q> cmBZ Ed§ H¡${nQ>c _mH}$Q> cmBZ)
Q.14. Write a short note on: "Security Market Line and Capital Market Line.
""{gŠ`y[aQ>r _mH}$Q> bmBZ VWm H¡${nQ>b _mH}$Q> bmBZ"" na g§{já {Q>ßnUr {b{IEŸ& [2014]

BRILLIANT'S / Investment Analysis and Portfolio Management / 6

 OR
Explain "Capital Market Line" and "Security Market Line" with the help of
diagrams. / S>m`J«m_ H$s ghm`Vm go ''H¡${nQ>b _mH}$Q> bmBZ'' VWm ""{gŠ`y[aQ>r _mH}$Q> bmBZ""
H$mo g_PmBEŸ& [2012] 98

P
Solved Practical Questions 78

Review Questions 123

Securities Valuation
MEANING AND SIGNIFICANCE OF SECURITY VALUATION
{gŠ`y[aQ>r d¡ë`yEeZ H$m AW© Am¡a _hËd
Q.15. Discuss EIC (Economic, Industry and Company) analysis. How does it support
to market price of equity shares?
EIC (BH$moZm°{_H$, BÊS>ñQ´>r VWm H§$nZr) EZm{b{gg na MMm© H$s{OEŸ& `h BpŠdQ>r eo`g© H$s
NP
_mH}$Q> àmBg H$mo {H$g àH$ma gnmoQ>© H$aVm h¡? [2017, 2015] 125
MACRO ECONOMIC AND MARKET ANALYSIS
(GLOBAL ASSET ALLOCATION DECISION)
_oH«$mo BH$moZm°{_H$ VWm _mH}$Q> EZm{c{gg (½cmo~c AgoQ> AcmoHo$eZ {S>{gOZ)
Q.16. Discuss in detail how does the key macro-economic variable impact stock
market with suitable examples? / Cn`wŠV CXmhaU Ho$ gmW {dñVma go dU©Z H$s{OE {H$
à_wI _¡H«$mo-BH$moZm°{_H$ do[aE~c ñQ>m°H$ _mH}$Q> na H¡$go à^md S>mcVo h¢? [2019]
OR
Explain the following with examples: Macro-economic Analysis
CXmhaU g{hV {ZåZ{cpIV H$m dU©Z H$s{OE: _¡H«$mo-BH$moZm°{_H$ EZm{c{gg& [2018] 132

Review Questions 137

Valuation of Bonds

BOND FUNDAMENTALS / ~m°ÊS> \$ÊS>m_oÝQ>ëg

Q.17. Define a Bond and also explain the different types in detail.
~m°ÊS> H$mo n[a^m{fV H$s{OE d CZHo$ {d{^ÝZ àH$mam| H$s {dñVma go ì`m»`m H$s{OEŸ& 139

BRILLIANT'S / Investment Analysis and Portfolio Management / 7

 BOND VALUATION MODELS/ ~m°ÊS> d¡ë`yEeZ _m°S>ëg
Q.18. Discuss the bond evaluation. Justify the reasons for the best methods of evalu-
ation. / ~m°ÝS> Bd¡ë`yEeZ H$s MMm© H$s{OE& Bd¡ë`yEeZ H$s loð> {d{Y`m| Ho$ {cE H$maUm| H$m

P
gË`mnZ H$s{OE& [2020]
OR
Discuss the methods of Bond Evaluation. Justify the reasons for the best
methods of evaluation. / ~m°ÊS> Bd¡ë`yEeZ H$s _oWS²>g na MMm© H$s{OEŸ& Bd¡ë`yEeZ H$s
~oñQ> _oWS> Ho$ H$maUm| H$mo OpñQ>\$m` H$s{OEŸ& [2020, 2015] 144

BOND YIELDS/ ~m°ÝS>> `rëS²g

[Holding Period Return (HPR), Current Yield, Yield To Maturity (YTM), Yield To Call,
Realized Yield To Maturity]
Q.19. Write a short note on: Yield To Maturity (YTM).
{Q>ßnUr {c{IE: `rëS> Qy> _¡À`mo[aQ>rŸ (YTM)& [2016]
OR
What is the meaning of ‘Holding Period Yield’? How is it useful in measuring
return?
NP
"hmopëS>¨J nr[a`S> `rëS>" H$m Š`m AW© h¡? `h [aQ>Z© H$mo _mnZo _| {H$g àH$ma Cn`moJr h¡? [2004] 146
DURATION, MODIFIED DURATION, IMMUNIZATION, CONVEXITY
S>²`yaoeZ, _mo{S>\$mBS> S²>`yaoeZ, Bå`yZmBOoeZ, H$m°ÝdopŠgQ>r
Q.20. Explain in detail: Modified duration.
{dñVma go g‘PmBE: ‘mo{S>’$mBS> S²>¶yaoeZ [2016]
OR
What is meant by Duration? Explain the relationship between duration and
price change. / S²>`yaoeZ go Š`m Ame` h¡? S>²`yaoeZ VWm àmBg M|O Ho$ ~rM Ho$ [aboeZ{en
H$mo g_PmBEŸ& [2007] 152

BOND PORTFOLIO MANAGEMENT STRATEGIES / ~m°ÊS> nmoQ>©\$mo{c`mo _¡ZoO_oÝQ> ñQ´>oQ>oOrg

Q.21. Write a short note on: Bond portfolio Management Strategies.
{ZåZ na g§{já {Q>ßnUr {c{IE: ~m°ÊS> nmoQ>©\$mo{c`mo _¡ZoO_oÝQ> ñQ´>oQ>oOrgŸ& [2013] 161

BOND VALUE THEOREM / ~m°ÊS> d¡ë`y Ï`moa_

Q.22. Explain the following with examples: Bond Valuation Theorem
{ZåZ{cpIV H$m CXmhaU g{hV dU©Z H$s{OE: ~m°ÝS> d¡ë`yEeZ Ï`moa_ [2018] 164

VALUATION OF EQUITY/ d¡ë`yEeZ Am°\$ BpŠdQ>r

Q.23. Explain in detail how equity evaluation is done.
{dñVma go dU©Z H$s{OE {H$ Bp³dQ>r Bd¡ë`yEeZ H¡$go {H$`m OmVm h¡? [2018]
OR
BRILLIANT'S / Investment Analysis and Portfolio Management / 8
 What do you mean by valuation of Equity?
BpŠdQ>r Ho$ d¡ë`yEeZ go Amn Š`m g_PVo h¢? [2012] 167
P/E RATIO AND EARNING MULTIPLIER MODELS
P/E aoemo VWm A{ZªJ _pëQ>ßcm`a _m°S>ëg

P
Q.24. Write a short note on: Earning Multiplier Model of Equity Valuation.
A{ZªJ _pëQ>ßbm`a _m°S>b Am°\$ BpŠdQ>r d¡ë`yEeZ na EH$ g§{jßV {Q>ßnUr {b{IEŸ& [2013]
OR
Explain different equity valuation models.
{d{^ÝZ B{ŠdQ>r d¡ë`yEeZ _m°S>ëg g_PmBEŸ& [2012] 173
VALUATION OF PREFERENCE SHARES & WARRANTS AND RIGHT ISSUE
{à\$aoÝg eo`g© Ed§ dmaÝQ>²g H$m d¡ë`yEeZ VWm amB©Q> Bí¶y
Q.25. Explain the following with example: Valuation of Preference.
{ZåZ{cpIV H$mo CXmhaU g{hV g_PmB`o: {à\$a|g H$m d¡ë`yEeZ [2020] 177

Solved Practical Questions 146

Review Questions 200

NP
Security Analysis

SECURITY ANALYSIS / {gŠ`y[aQ>r EZm{c{gg

Q.26. What do you understand by the term ‘Security Analysis’?
"{gŠ`y[aQ>r EZm{c{gg" eãX go Amn ³¶m g‘PVo h¡? [2016] 203

STOCK MARKET ANALYSIS / ñQ>m°H$ _mH}$Q> EZm{c{gg

Q.27. How does stock market analysis capture and affect the game in any stock
market? Elaborate. / {H$gr ñQ>m°H$ _mH}$Q> _| ñQ>m°H$ _mH}$Q> EZm{c{gg Ioc H$mo H¡$go nH$‹S>Vm
VWm à^m{dV H$aVm h¡? dU©Z H$s{OE& [2018] 205

FUNDAMENTAL ANALYSIS / \$ÊS>m_oÝQ>c EZm{c{gg

Q.28. Explain salient features of Industry analysis. Does industry analysis have
some limitations? Explain [2016]
BÊS>ñQ´>r EZm{b{gg H$s ‘w»¶ {deofVmE§ ~VmBE& ³¶m BÊS>ñQ´>r EZm{b{gg H$s Hw$N> gr‘mE§ h¡?
OR
Describe about fundamental analysis and its usage.
’$ÊS>m‘|Q>b EZm{b{gg VWm BgHo$ Cn¶moJ Ho$ ~mao ‘| dU©Z H$s{OE& [2016] 208

BRILLIANT'S / Investment Analysis and Portfolio Management / 9

 TECHNICAL ANALYSIS / Q>opŠZH$c EZm{c{gg
Q.29. What do you mean by technical analysis? How is technical analysis different
from fundamental analysis? Explain. / Q>o{ŠZH$c EZm{c{gg go AmnH$m Š`m Ame` h¡?

P
Q>o{ŠZH$c EZm{c{gg \§$S>m_|Q>c EZm{c{gg go H¡$go {^ÝZ h¡? dU©Z H$s{OE& [2020]
OR
"Technical analysis appears to be highly controversial approach to security
analysis." Elaborate this statement with supporting arguments and from critic's
point of view with suitable examples. / ''Q>o{ŠZH$c EZm{c{gg {gŠ`mo[aQ>r EZm{c{gg
Ho$ {cE AË`{YH$ {damoYm^mgr {d{Y àVrV hmoVr h¡&'' VH$m}§ H$s ghm`Vm go VWm Cn`wŠV CXmhaU
Ho$ gmW AmcmoMZmË_H$ X¥pîQ>H$moU go Bg H$WZ H$m dU©Z H$s{OE& [2019] 224

DOW THEORY / DOW Ï`moar

Q.30. Write a short note on “Dow Theory”.
""Dow Ï`moar'' na g§{já {Q>ßnUr {c{IEŸ& [2012, 2007, 2004]
OR
“Chart patterns are helpful in predicting the stock price movement.” Comment.
NP
''MmQ>© n¡Q>Ýg© ñQ>m°H$ àmBg Ho$ CVma-M‹T>md H$m nydm©Zw_mZ H$aZo _| ghm`H$ hmoVo h¢Ÿ&'' ì`m»`m
H$s{OEŸ& [2008] 232

ELLIOTT WAVE THEORY / ELLIOTT WAVE Ï`moar

Q.31. Write a short note on "Elliot Wave Theory".
"Elliot Wave Ï`moar"" na g§{jßV {Q>ßnUr {b{IEŸ& [2012]
OR
Explain in detail Elliot Wave Theory and how is it used in the Stock Market?
Elliot Wave Ï`moar H$mo {dñVma go g_PmBE Ed§ ñQ>m°H$ _mH}$Q> _| BgH$m Cn`moJ H¡$go {H$`m OmVm h¡?
[2008] 240

EFFICIENT MARKET THEORIES AND TESTING / B{\${eE§Q> _mH}$Q> Ï`moar Ed§ Q>opñQ>¨J
Q.32. Explain the following with examples: Efficient Market Theories and their testing.
{ZåZ{cpIV H$mo CXmhaU g{hV g_PmB`o: E{\${eE§Q> _mH}$Q> Ï`moarO VWm CZH$s Q>opñQ>§J& [2018]
OR
What do you mean by Efficient Market Hypothesis? Discuss efficient market
Hypothesis in all its forms. Market Hypothesis in all its forms. What would
happen if markets were truely efficient?
B{\${eE§Q ‘mH}$Q> hmBnmo{W{gg go Amn ³¶m g‘PVo hmo? g^r àH$ma Ho$ B{’${e¶§Q> ‘mH}$Q>
hmBnmo{W{gg na MMm© H$s{OE& ³¶m hmoJm ¶{X ‘mH}$Q> dmñVd ‘| B{’${e¶§Q> h¡? [2016] 243

Solved Practical Questions 255

Review Questions 258

BRILLIANT'S / Investment Analysis and Portfolio Management / 10

 Portfolio Concepts

P
PORTFOLIO CONCEPTS: PORTFOLIO AND SECURITY RETURN AND DIVERSIFI-
CATION / nmoQ>©\$mo{c`mo AdYmaUmE±: nmoQ>©\$mo{c`mo VWm {gŠ`mo[aQ>r [aQ>Z© VWm S>m`d{g©{\$Ho$eZ
Q.33. What do you understand by portfolio management? Discuss the process of
portfolio management. How is the security return related to portfolio manage-
ment? Explain.nmoQ>©\$mo{c`mo _¡ZoO_|Q> go Amn Š`m g_PVo h¢? nmoQ>©\$mo{c`mo _¡ZoO_|Q> H$s àmogog
[2018]
H$s MMm© H$s{OE& {gŠ`mo[aQ>r [aQ>Z© nmoQ>©\$mo{c`mo _¡ZoO_|Q> go H¡$go g§~§{YV h¡? g_PmB`o&
OR
What is Portfolio Management? Discuss the process of portfolio management.
How do the different models help to design portfolio?
nmoQ>©\$mo{c`mo _¡ZoO_|Q> Š`m h¡? nmoQ>©\$mo{c`mo _¡ZoO_|Q> H$s àmogog H$s MMm© H$s{OE& nmoQ>©\$mo{c`mo
{S>OmBZ _| {d{^ÝZ _m°S>ëg H¡$go ghm`Vm H$aVo h¢? [2017, 2015] 259
NP
MARKOWITZ MODEL / _mH$m}{dQ²>O _m°S>b

Q.34. Elaborate the following: / {ZåZ{cpIV H$m dU©Z H$s{OE:

(a) Assumptions of Markowitz Modern portfolio theory.
_mH$m}{dQ²>O _m°S>Z© nmoQ>©\$mo{c`mo Ï`moar H$s YmaUm& [2019]
(b) Portfolio Diversification based on Markowitz
_mH$m}{dQ²>O na AmYm[aV nmoQ>©\$mo{c`mo S>m`d{g©{\$Ho$eZ& [2019]
OR
Write a note on "Markowitz Model".
""_mH$m}{dQ²>O _m°S>b'' na g§{jßV {Q>ßnUr {b{IEŸ& [2015]
OR
Discuss how diversified portfolio minimize the risks. Also discuss the model
to support your answer. / ~VmBE {H$ {H$g àH$ma S>m`d{g©\$mBS> nmoQ>©\$mo{b`mo [añH$ H$mo H$_
H$aVm h¡Ÿ& AmnHo$ CËVa Ho$ g_W©Z _| _m°S>b ^r ~VmBEŸ& [2014] 269

SHARPE INDEX MODEL / emn© BÝS>oŠg _m°S>b

Q.35. Compare Markowitz Model and Sharpe Model.
‘mH$m}{dQ²>O ‘m°S>b VWm emn© ‘m°S>b H$s VwbZm H$s{OE& [2016]
OR
Write a note on Sharpe’s Performance Measure for Portfolio.
nmoQ>©\$mo{b`mo Ho$ {bE emn© Ho$ na\$m°_]g _oOa na {Q>ßnUr {b{IEŸ& [2011, 2005]
OR

BRILLIANT'S / Investment Analysis and Portfolio Management / 11

 How would you calculate the systematic, unsystematic risk of a security and
the portfolio risk? / {H$gr {gŠ`y[aQ>r VWm nmoQ>©\$mo{b`mo [añH$ H$s {gñQ>_¡{Q>H$ VWm
AZ{gñQ>_¡{Q>H$ [añH$ H$mo Amn {H$g àH$ma kmV H$amoJo? [2010] 277
ARBITRAGE PRICING THEORY

P
Am{~©Q´>oO àmBqgJ Ï`moar
Q.36. Explain the following with example: Arbitrage pricing theory
{ZåZ{cpIV H$mo CXmhaU g{hV g_PmB`o: Am{~©Q´>oO àmBqgJ Ï`moar& [2020]
OR
Mention factor models in Arbitrage pricing theory and explain in detail how
asset selection is made using these models?
Am{~©Q´>oO àmBqgJ Ï`moar _| \¡$ŠQ>a _m°S>ëg H$m CëboI H$s{OE VWm {dñVma go dU©Z H$s{OE {H$ BZ
_m°S>ëg H$m Cn`moJ H$aHo$ AgoQ> H$m M`Z H¡$go {H$`m OmVm h¡? [2019] 283
BASIC PRINCIPLES OF PORTFOLIO INVESTMENT PROCESS
nmoQ>©\$mo{b`mo BÝdoñQ>_|Q> àmogog Ho$ _yb {gÕm§V
Q.37. Explain the basic principles which are applied to all the portfolio decisions.
g^r nmoQ>©\$mo{b`mo {S>grOÝg na bmJy hmoZo dmbo _yb {gÕm§Vm| H$s ì`m»`m H$s{OEŸ&
NP
OR
Discuss the principles employed in setting up the income portfolio.
BÝH$_ nmoQ>©\$mo{b`mo ~ZmZo _| à`moJ {H$E OmZo dmbo {gÕm§Vm| H$s MMm© H$s{OEŸ& 292
PORTFOLIO INVESTMENT PROCESS
nmoQ>©\$moo{b`mo BÝdoñQ>_oÝQ> àmogog
Q.38. Explain "Portfolio Investment Process."
"nmoQ>©\$mo{b`mo BÝdoñQ>_oÝQ> àmogog" H$mo g‘PmBE& [2016, 2010]
OR
What is meant by Portfolio Investment Process? [2009]
nmoQ>©\$mo{b`mo BÝdoñQ>_oÝQ> àmogog go Amn Š`m g_PVo h¢?
OR
Discuss the process employed in setting up the income portfolio.
BÝH$_ nmoQ>©\$mo{b`mo H$mo goQ> H$aZo _| bmJy hmoZo dmbr àmogog H$s ì`m»`m H$s{OEŸ& 296
THE PORTFOLIO OBJECTIVES
nmoQ>©\$mo{b`mo Am°ãOop³Q>ìg
Q.39. What is meant by Portfolio Objectives?
nmoQ>©\$mo{b`mo Ho$ Am°ãOop³Q>ìg go Š`m Ame` h¡?
OR
List and discuss the objectives that determine the portfolio policy that should
be adopted. / CZ CÔoí`m| H$s gyMr ~ZmBE Ed§ ì`m»`m H$s{OE Omo Eogo nmoQ>©\$mo{b`mo H$m {ZYm©aU
H$aVo h¢ {OÝh| AnZmZm Mm{hEŸ& 304

BRILLIANT'S / Investment Analysis and Portfolio Management / 12

 TYPES OF PORTFOLIO / nmoQ>©\$mo{b`mo Ho$ àH$ma
Q.40. Why diversification is important and what form does it take in view of different
needs, age groups and health of investors? / S>m`d{g©{\$Ho$eZ Š`m| _hËdnyU© hmoVm h¡

P
VWm {d{^Þ Amdí`H$VmE§, Am`w dJ© Ed§ ñdmñÏ` H$s Ñ{ï> go BgH$m Š`m AW© hmoVm h¡?
OR
Explain the types of portfolio depending upon the investors’ needs.
BÝdoñQ>g© H$s Amdí`H$VmAm| Ho$ AmYma na nmoQ>©\$mo{b`mo Ho$ àH$mam| H$s ì`m»`m H$s{OEŸ&
OR
Explain how expected return and standard deviation are used to establish the
risk level in an income portfolio?
ì`m»`m H$s{OE {H$ BÝH$_ go gå~Õ {H$gr nmoQ>©\$mo{b`mo _| [añH$ Ho$ ñVa H$m {ZYm©aU H$aZo hoVw
Ano{jV [aQ>Z© Ed§ ñQ>¡ÊS>S>© S>o{dEeZ H$m Cn`moJ {H$g àH$ma {H$`m OmVm h¡? 308

Solved Practical Questions 311

Review Questions 324

NP
Portfolio Evaluation
MEASURES OF RETURNS, FORMULA, PLANS, SHARPE AND TREYNOR
MEASURES AND JENSEN PERFORMANCE INDEX
[aQ>Ýg© H$m _oOg©, \$m°_c
©y m, ßcmÝg, eo`g© Ed§ TREYNOR _oOg© VWm OoÝgoZ na’$m°‘]g BÝS>o³g
Q.41. Explain in detail how portfolio evaluation is done. Explain sharpe measures
of portfolio evaluation. / {dñVma go g‘PmBE {H$ {H$g àH$ma nmoQ>©’$mo{b¶mo Bd¡ë¶yEeZ {H$¶m
OmVm h¡& nmoQ>©’$mo{b¶mo Bd¡ë¶yEeZ Ho$ emn© ‘oOg© H$mo g‘PmBE& [2017]
OR
Explain in detail how portfolio evaluation is done. Explain Treynor measures
of portfolio evaluation. / {dñVma go g‘PmBE {H$ {H$g àH$ma nmoQ>©’$mo{b¶mo Bd¡ë¶yEeZ {H$¶m
Treynor ‘oOg© H$mo g‘PmBE&
OmVm h¡& nmoQ>©’$mo{b¶mo Bd¡ë¶yEeZ Ho$ [2016]
OR
Write a short note on: Portfolio Evaluation Measures.
nmoQ>©\$mo{c`mo Bd¡ë`yEeZ _oOg© na EH$ g§{jßV {Q>ßnUr {c{IEŸ& [2013] 325

PORTFOLIO MANAGEMENT STRATEGIES / nmoQ>©\$mo{c`mo _¡ZoO_oÝQ> ñQ´>oQ>oOrg

Q.42. Explain the following with examples: Portfolio Management Strategies
{ZåZ{cpIV H$mo CXmhaU g{hV g_PmB`o: nmoQ>©\$mo{c`mo _¡ZoO_|Q> ñQ´>oQ>oOrg& [2020]
OR

BRILLIANT'S / Investment Analysis and Portfolio Management / 13

 Discuss and differentiate between equity portfolio management strategies and
bond portfolio management strategies. / Bp³dQ>r nmoQ>©\$mo{c`mo _¡ZoO_|Q> ñQ´>o[Q>Org VWm
~m°ÝS> nmoQ>©\$mo{c`mo _¡ZoO_|Q> ñQ´>oQo>Org Ho$ ~rM A§Va ~VmB`o VWm MMm© H$s{OE& [2018]
OR

P
Explain: 'Bond Portfolio Management Strategies.'
'~m°ÝS> nmoQ>©\$mo{c`mo _¡ZoO_oÝQ> ñQ´>oQ>oOrg' H$mo g‘PmBE& [2017] 336
MUTUAL FUNDS: TYPES, ADVANTAGES, EVALUATION OF MUTUAL FUNDS
å`yMwAc \§$S²>g: àH$ma, cm^, å`yMwAc \§$S> H$m _yë`m§H$Z
Q.43. What do you mean by "mutual funds"? Write various types of mutual fund schemes.
''å`yMwAc \§$S²>g'' go AmnH$m Š`m Ame` h¡? å`wMwAc \§$S> ñH$såg Ho$ {d{^ÝZ àH$ma {cpIE&
OR
What are Mutual funds? What are the advantages of investing in mutual funds?
å`yMwAc \§$S²>g Š`m h¡? å`yMwAc \§$S²>g _| B§doñQ> H$aZo Ho$ cm^ Š`m h¡?
OR
Explain mutual funds? Describe various types of mutual funds.
å`wMwAc \§$S²>g H$m dU©Z H$s{OE& å`yMwAc \§$S²>g Ho$ {d{^ÝZ àH$mam| H$m dU©Z H$s{OE& 342
NP
Q.44. Explain how evaluation of mutual fund is done by the investor for taking in-
vestment decisions? / dU©Z H$s{OE {H$ B§doñQ>_|Q> {ZU©` H$aZo Ho$ {cE B§doñQ>a Ûmam å`yMwAc
\§$S> H$m _yë`m§H$Z H¡$go {H$`m OmVm h¡?
OR
Write a short note on "Evaluation of Mutual Fund".
EH$ g§{já {Q>ßnUr {cpIE ''å`yMwAc \§$S> H$m Bd¡ë`yEeZ''& 348

ASSET MANAGEMENT COMPANY FUNCTIONS / AgoQ> _¡ZoO_|Q> H§$nZr Ho$ H$m¶©

Q.45. What is an Asset Management Company? Write its functions.
EH$ AgoQ> _¡ZoO_|Q> H§$nZr Š`m h¡? BgHo$ H$m`© {cpIE&
OR
Describe various functions of Asset Management Company.
AgoQ> _¡ZoO_|Q> H§$nZr Ho$ {d{^ÝZ H$m`m] H$m dU©Z H$s{OE& 350

Solved Practical Questions 350

Review Questions 360

Appendix 361

T-20 Questions 372



BRILLIANT'S / Investment Analysis and Portfolio Management / 14