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Security Analysis and Portfolio Management

Security review

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Bharath G
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18 views

Security Analysis and Portfolio Management

Security review

Uploaded by

Bharath G
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
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(ALIVE 34626 Reg. No, VI Semester B.Com. Degree Examination, September/October - 2022 COMMERCE Security Analysis & Portfolio Management (CBCS Scheme 2019-20 Freshers-Regulars) Paper : FN 6.4 Time : 3 Hours Maximum Marks : 70 Instructions to Candidates : Answer should be written in English. SECTION -A Answer any FIVE questions. Each question carries 2 marks. (5*2=10) La) Whatare Investments, b) — Whatis call money Market. ©) Whats systematic risk. a d) Whatis Net Asset value. ©) Calculate the expected rate of return if the probability is 0.30 and rate of return is 40, f) Whatis portfolio. 2) Whatare Bonds. SECTION-B Answer any THREE questions. Each question carries 5 marks. (3x5=15) 2. Elucidate the differences between Investment & Speculation. 3. Whitare the assumptions of CAPM? Enumerate the difference between CML & SML. PLO. AMT : 2 34626 4. Aninvestoris considering 2 securities A & B. The details are as under: rN B 1(%) _ | Probability 1(%) | Probability| B34 [03 94 02 146 | 0.5 126 | 03 16.8 0.2 ile 03 ig4_ | 02 a) Which security to be choosen for investment? ‘ b) Whats the return on investor eams ifhe invest 60% of his finds in security X & 40% insecurity Y. 5, Identify the stocks over valued & under valued relating to the expected return, givenR,-6%, R,,- 15% and expected return & Expected beta are furnished below: Stock ERC) SDM) L 14% 1.20 M 15% 0.75 % N 13% 1.50 oO 20% 1.60 P 10% 0.80 is SECTION- ‘ ‘Answer any THREE questions. Each question carries 15 marks. (3x15=45) 6. Explain the investment alteratives available for investors. 7. Explain in detail fundamental analysis? How is it usefull in the selection of securities. 8. Consider the following information for mutual funds. L.M & Nand the market index. [Funds Mean’ Standard Beta] returns (%) | - deviation % IL 24 22 18 IM 16 Tapas 12. IN 12 13 08 [MarketIndex [10 10 1.00 ‘The mean risk free rate was 7%. Calculate the Treynor measure, sharpe measure: and Jensen ‘measure for the four mutual fund and the market Index. (On 9. ECOL 8 34626 ‘The committee of XYZ Ltd., récently used reports used from various security analysis to develop input for single index model. Output derived from single index model considered for full efficient portfolio. Portfolio ER (%) SD (%)| 1 8 3 2 10 6 ie 13 8 4 17 13 5 20 : 18 a) — Ifprevailing risk free rate is 6%, which portfolio is best one. b) Assume that the policy committees would take to earn an expected return 10% with standard deviation of 4% is this possible. c) _ Ifstandard deviation of 12% were acceptable, what would be the expected portfolio return,

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