Name:

Enrolment No:
Odd Semester End Term Examination, December 2023
Faculty of Engineering, SIT
Department of Data Science & Engineering
B.Tech. Data Science & Engineering
Course Code: DS4154 Course: Financial Market Analytics [PE3] Semester: VII
Time: 3 hrs. Max. Marks: 80
Instructions: All questions are compulsory.
Missing data, if any, may be assumed suitably.
Calculator is allowed.
SECTION A
S.No. Marks CO
What is the primary function of the money market?
A. Raising long-term capital.
Q A1 B. Facilitating the buying and selling of short-term financial instruments. 2 CO1
C. Providing loans for real estate purchases.
D. Regulating the stock market.
What is the primary purpose of economic analysis?
A. To maximize profits.
Q A2 B. To study human behaviour. 2 CO2
C. To make informed decisions about resource allocation.
D. To predict stock market trends.
What is the primary concept behind the "Efficient Market Hypothesis" in
relation to technical analysis?
A. Markets are perfectly efficient, and it's impossible to beat them.
Q A3 2 CO3
B. Technical analysis is superior to fundamental analysis.
C. All stock prices will eventually reach their intrinsic value.
D. Markets are irrational and can be easily predicted using historical data.
What is equity valuation?
A. The process of assessing the value of a company's debt.
Q A4 B. The process of assessing the value of a company's assets. 2 CO4
C. The process of assessing the value of a company's ownership shares (equity).
D. The process of assessing the value of a company's liabilities.
CAPM accounts for:
Q A5 2 CO5
A. Unsystematic risk B. Systematic risk C. Both A and B D. None of the above
SECTION B
Apply Moving average analysis to predict the stock price on the 13th day based on
the price of a company’s shares at the last 12 trading sessions with periodicity is 4,
Q B1 Day 1 2 3 4 5 6 7 8 9 10 11 12 6 CO2
Stock
30.5 30.6 30.4 29.7 28.1 29.3 30.3 30.9 31.1 32.2 32 31.5
Price
Q B2 Explain weak, strong, and semi-strong efficient market hypotheses with example.? 8 CO3
1
 Explain and apply the dividend discount models to find intrinsic value of a stock that
Q B3 pays $2.00 in dividends every year if the required rate of return on similar 8 CO4
investments in the market is 6%?
According to the mean-variance theory of Markowitz and the CAPM model, is it
Q B4 possible that rational people would ever want to include a short position in a stock 8 CO5
that has an expected positive return in their portfolios? Explain
SECTION C
Q C1 Explain Relative strength analysis with example.? 10 CO2
Explain earnings multiplier approach.? If share price of a company is now trading at
Q C2 $100 per share, and its per-share earnings is $10 than what is earnings multiplier of 10 CO4
the company.?
SECTION D
Q D1 Write short notes on implications for investment analysis.? 10 CO3
Q D2 Explain arbitrage pricing theory with example.? 10 CO5