Security Analysis and Portfolio Management Question Paper May 2013, Dibrugarh University 4th Sem

2013 (May)
COMMERCE (Speciality)
Course: 404 (Security Analysis and Portfolio Management)
The figures in the margin indicate full marks for the questions
 (NEW COURSE)
Full Marks: 80
Pass Marks: 24
Time: 3 hours
1. Write on each of the following in one sentence:                                1x8=8
1.       State the difference between the followings:
(a)    Investment and expenditure
(b)   Risk and uncertainty
(c)    Concentration of securities and diversification of securities
(d)   Markowitz model and CAP model
(e)   Investor and speculator
(f)     Systematic risk and unsystematic risk
(g)    Treynor’s index and Sharp’s index
(h)   Call option and Put option
2.       Write short notes on the following (any four)
(a)    Convertible securities
(b)   Assumptions of Markowitz model
(c)    Security market line
(d)   Jensen’s measures
(e)   Risk of buying and selling options
3.       (a)   Discuss the various fundamental analyses required for any investment with examples.
Or
(b)   Why the technical analysis important in portfolio development? Explain with examples.

4.       (a)Discuss the effect of combining securities in portfolio. Why is diversification of securities preferred in portfolio construction?
Or
(b)  Simron holds portfolio of two companies A and B with the following details:

Company A
Company B
Security Return
Security Variance
Investment Proportion
Correlation
10
0.0065
0.5
0.5
5
0.0016
05
0.5
                      
Under the Markowitz model, what are the portfolio return and portfolio risk?
Also Read:
SAPM - 404 Question Papers - May' 2013  May' 2014  May' 2015  May' 2016  May' 2017  May' 2018  May' 2019
5.       (a)  Explain the arbitrage pricing theory (APT) and its limitation.
Or
(b) Calculate the equilibrium rate of return for the following three securities:
Securities
Bi1
Bi2
A
B
C
1.2
-0.5
0.75
1
0.75
1.30

6.       (a) Rank the following portfolios on the basis of Sharpe’s index and Treynor’s index:
Portfolio
Return
Standard deviation
Risk-free rate
Beta
A
6.00
15.24
3.0
1.0
B
3.30
4.92
3.0
2.85

(b) Explain the different methods of measurement of portfolio performance.
7. (a) What do you mean by option? what are the silent features of option? Explain.
Or
(b)  What do you mean by futures? Discuss the unique characteristics of future trading.

0/Post a Comment/Comments

Kindly give your valuable feedback to improve this website.

{ads}