NMIMS Global Access

School for Continuing Education (NGA-SCE)

Course: Capital Market & Portfolio Management
Internal Assignment Applicable for December 2023 Examination

Assignment Marks: 30

Instructions:

 All Questions carry equal marks.

 All Questions are compulsory
 All answers to be explained in not more than 1000 words for question 1 and 2 and for question 3
in not more than 500 words for each subsection. Use relevant examples, illustrations as far as
possible.
 All answers to be written individually. Discussion and group work is not advisable.
 Students are free to refer to any books/reference material/website/internet for attempting their
assignments, but are not allowed to copy the matter as it is from the source of reference.

 Students should write the assignment in their own words. Copying of assignments from other
students is not allowed.

 Students should follow the following parameter for answering the assignment questions.

For Theoretical Answer For Numerical Answer

Assessment Parameter Weightage Assessment Parameter Weightage
Introduction 20% Understanding and usage 20%
Concepts and Application 60% of the formula
related to the question Procedure / Steps 60%
Conclusion 20% Correct Answer & 20%
Interpretation

1) Net income = ₹3, 00,000/- preferred dividend = ₹30,000/- during the year. In addition it
also had ₹30, 00,000 total shares outstanding during the year and ₹5, 00,000/- preferred
stock. Calculate ROE of the organization. (10 mark)
 NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Capital Market & Portfolio Management
Internal Assignment Applicable for December 2023 Examination

2) Your collogue is interested to invest in derivative market. But he doesn’t have a good
knowledge about it. He wants some information about different types of derivatives.
Explain him different types of derivatives. (10 mark)

3)
a) Your friend wanted to invest in stock market. But he is confused how much amount to
invest in different stocks. With the help of sharpe ratio, help your friend to prepare
optimum portfolio. (5 mark)
Stock Sharpe Ratio
S1 1.5
S2 2
S3 2.5
Total 6

b) If you have Rs.10, 000/- & decides to invest 40% in mutual fund and rest in shares.
Expected return from mutual fund is 8% & from shares is 12%. How will you calculate
total expected return? (5 mark)

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