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Security and portfolio management

Security and portfolio management

Q 1 Analyse the role of Self-regulation in Indian Securities Market. Between the Self-regulation and Legislative regulation, which is more relevant for India and why?

Q 2  Most of the technical indicators make sense when viewed individually but when one examines many technical indicators simultaneously, the interpretation of their collective meaning is often contradictory and confusing Analyse this statement with the help of suitable examples.

Q 3 Compare and contrast the Fundamental Analysis and the Technical Analysis.  Between these  two, which one you consider superior and more realistic in the context of Indian Securities  Market, explain fully.

Q 4 An investor wants to invest some of his surplus money in securities. Discuss, in detail, the various steps that are involved in his investment decision making process.

Q 5 Effective regulation is an essential condition for the orderly growth of securities market. Discuss this statement fully.

Q 6(a) Discuss,  the   price-earnings   ratio  method  as  a  measure  of  future  pricing  of   an      equity share

Q 6 (b)The capital structure of  M/s  Shiva  Ltd. consists  of  equity  share  capital  of  Rs. 10 lakhs  (shares of Rs. 100 each), and Rs. 10 lakhs of 10% debentures.  The company is considering two production levels of 1,00,000 units and 1,20,000 units. The selling price of each unit is Rs.10, and the variable cost is Rs.6 per unit. The fixed cost of the company is Rs. 2,00,000. interest ondebentures is not included in either of the two costs. Applicable tax rate is 50%. You are required (i) to calculate the EPS of the company at both the levels of production, and (ii) to advise the company regarding selection of the appropriate production level.

Q 7 (a) What is Efficient Frontier? Explain the process of tracing the efficient frontier with     the help of an example.

Q 7 (b)Shiva Jyothi is considering an investment in one of the following two securities:

Q 8 Economic forecasting is the heart of economy analysis. Comment and briefly explain the various techniques of economic forecasting.

Q 9 Define Mutual Fund. What role do these funds have in an economy of a country? Discuss the main features of different types of mutual fund schemes those are existing in India. Do they follow uniform investment policy? Give reasons. (Faculty notes)

Q 10 Differentiate between creditorship securities and ownership securities. Discuss, the different types of securities that are included in each of these categories.

Q 11 a)Explain the concept of  Interest Rate Risk with the help of a suitable example and state how can this risk be avoided

Q 11 (b) A company issued a bond with a face value of Rs.5,000 and with a maturity period  of 5 years at par to yield  12%. Interest is paid annually. As a financial analyst you are required to (i)calculate the present value of the bond, and (ii) make your recommendation to buy or not to buy this bond.

Q 12 Explain the role and growth of pension funds in India. Compare and comment on the features of any two pension fund schemes of your choice?

Q 13.The following details are given for X and Y companies stocks and the Bombay sensex1425 for a period of one year. Calculate the systematic and unsystematic risk for the companies stocks. If equal amount of money s allocated for the stocks what would be the portfolio risk?

 

 

Q.16 Vigilent company stock is currently selling at Rs. 25 per share. The stock is expected to pay Re. 1 as dividend per share at the end of the next year. It is reliable estimated that  the stock will be available for as Rs. 29 at the end of one year.

a) if the forecasts about the dividend and price are accurate, is it advisable to buy at the present price?

b) if the investor required 15% return when the dividend remains constant what should be the price at the end fo the first year?

Q.17 fashions Ltd. operates a large ready made garment system in the textile industry. Assume that its common stock can be purchased in the beginning of 1997 at Rs. 40. the dividend per share would be Rs. 2 for the next three years. It is estimated that at the end of 2000 the stock will be sold for Rs. 55. what is the rate of return fashions stock?

Q.18 An investor owns the share of Rise company whose current cash dividend is Rs. 3. the constant growth rate in dividend is 16 per cent per year and the required rate of return is 20 per cent. What is the value of the Rise companys share?

Q.19  Antique Arts company would pay Rs. 2.50 as dividend per share for the next year and expected to grow indefinitely at 12%. What would be the equity value if the investor requires 20% return?

Q.20  Anil has bought the Everest company stock that has paid Rs. 3.00 as dividend per share during the last financial year. He anticipates tow situations either a 5 per cent decline in the dividend or 5% growth in the dividend in the next year. His anticipated return is 20% fix the price  for both  the situations.

Q.21 Determine the  price of Rs. 1,000 zero coupon bond with yield to maturity of 18 per cent and 10 years to maturity b) What is YTM of this bond if its price is  Rs.220?

Q.22 Arvind Considers Rs. 1000 per value bond bearing a coupon rate of 11% that after 5 years. He want a minimum yield to maturity of 15% the bond is currently sold at Rs. 870. should he buy the bond?

Q.23  A bond of Rs. 1000 face value bearing a coupon rate of 12% will mature after 7 years. What is the value of the bond of  if the discount rates are 14% and 12%

Q.24 Anand owns Rs. 1,000 face value bond with five years to maturity. The bond has an annualcoupon of Rs. 75. The bond is currently priced at Rs. 970. Given an appropriate discount rate of 10%n should Anand hold or sell the bond?

Q.25 Prem is considering the purchase of a bond currently selling t Rs. 878.50. the bond has four years to maturity, face value of Rs. 1,000 and 8% coupon raster. The next annual interest payment is due after one years form today. The reburied raze of return is 10%

 

Q.27 Case Assume yourself as portfolio manger. Raj approaches you to select two securities for him form his bundle of choice. He is having some market information too. Everyone in the market is anticipating investor friendly budget to be announced soon. With the given information , choose two securities and reasons out your selection.

Q 28 Suppose you are a Stock Broker and a member of National Stock Exchange (NSE) . Critically comment on the trading system followed by the NSE.

Q 29 What do you understand by `Benchmark Portfolios? Comment on the relevance of  Benchmark Portfolios looking at the prevalent market conditions.

Q 30 Suppose you are a Fund Manager of a mutual fund. How would you go about in creating asuitable portfolio so that the fund is able to achieve its objectives? Take a hypothetical example to explain the concept.

Q 31 How is the analysis of Oscillators or Price Indicators done? Explain giving examples.

Q 32 Investing in leveraged companies is profitable during the boom period and avoiding it during recession is wiser. Elaborate this statement giving suitable examples.

Q 33.  What is technical analysis explain technical analysis assumption ? (Faculty notes)

Q 34  Write short notes  the following

Q 35  Critically evaluate the performance of SEBI

Q 36 Discuss the Markowitz theory of portfolio selection. How does markowitz theory help in planning an investors portfolio?

Q 37 How is a sell signal generated using the following:

(i) Moving average

(ii) Oscillator , and

(iii) Relative strength index.

Q 38 What is meant by an efficient theory ? Describe the three forms of market efficiency.?

Q 39 What is an optimal portfolio? Explain the process of selecting the optimal portfolio.

Q 40 What is capital Assets pricing Model (CAPM)?Explain the CAPM and its assumption and limitation.(Faculty notes)

Q 41 Distinguish between investor and speculator ?

Q 42 . Distinguish between Aggressive stock and Defensive stock?

Q 43. Explain Relative Strength index and its application in buy/sell decision making.?

Q 44. What is the connection between risk and yield?

Q 45. Explain the following

(i) Yield to call

(ii) Realised yield

(iii) Market yield

(iv) Promised yield

Q 46 Describe the Sharpe , trey nor and the Jensen measure of portfolio performance.?

Q 47 Explain Single-Index Model ?

Q 48 Distinguish  between Debt instrument and Equities?

Q 49 What is Arbitrage Pricing Theory (APT)? In what way is it related from capital Assets Pricing Model(CAPM)?

Q 50 What are the types of mutual funds operating in India ? What are the Benefits of Investing in Mutual Funds ?

Q 51 Write short notes on a Portfolio Revision

 

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