2013
COMMERCE (Speciality)
Course: 404 (Security Analysis and Portfolio Management)
The figures in the margin indicate full marks for the questions
(NEW COURSE)
Full Marks: 70
Pass Marks: 28
Time: 3 hours
1. (a) “Investment is nothing but
risk taking.” Do you agree to the statement? Justify your answer with examples. 14
Or
(b) How would you differentiate
Risk from Uncertainty? Do you think that risk can be avoided? Justify. 6+8=14
2. (a) Discuss the different
fundamental analysis that you would like to do before construction of a
portfolio. 14
Or
(b) Critically examine the
importance of Efficient Market Hypothesis. 14
3. (a) Discuss the need and
significance of diversification in a portfolio construction. 14
Or
(b) The equity of P and Q have
expected returns of 15% and 20% and the standard deviations are 20% and 40%
respectively. The coefficient of correlation of these two securities is 0.36. 7x2=14
(i) What is the expected return and standard deviation of portfolio
consisting of 40% of P and 60% of Q?
(ii) What is the expected return
and standard deviation of portfolio consisting of 60% of P and 40% of Q?
4. (a) Write notes on Sharpe’s
and Treynor’s Performance Evaluation Models. 7+7=14
Or
(b) Discuss Jensen’s Differential
Return model in detail. 14
5. (a) Define Options. Explain
the different types of Options. Discuss the usage of options. 2+6+6=14
Or
(b) What is future contract? Distinguish
between future and forward contract. Explain the different types of margin in
future contract. 2+6+6=14
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