Security Analysis and Portfolio Management Question Paper May 2015, Dibrugarh University 4th Sem

2015 (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: 32
Time: 3 hours

The figures in the margin indicate full marks for the questions.
1. What do you mean by the following:                  1x8=8
a)      Valuation of assets.
b)      Efficiency frontier.
c)       Market risk.
d)      Risk adjustment.
e)      Future.
f)       Systematic return.  
g)      Diversification
h)      Option.

2. Write short note on:                                  4x4=16
a)      Nature of options.
b)      Arbitrage.
c)       Portfolio Management.
d)       Convertible Securities.

3. (a) What do you mean by unsystematic risk. What are its sources? How can it be managed? Discuss out with examples.                                                                
Or
(b) Discuss different measures to analyze the fundamental and to technical factors in ­­decision.

4. (a) Write a detailed note on fraudulent portfolio analyses.
Or
(b) Write a detailed note on Markowitz model.
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5. (a) Discuss the assumptions of CAPM model. Do you think that it is acceptable in Indian context? Justify you argument with examples.
Or
(b) Discuss the limitation of factors models in what way two factors model is better than one factor model? Justify.

6. Write notes on any two of the following:
a)      Sharpe model.
b)      Treynor’s model.
c)        Jensen model.
d)      Stock selection.

7. (a) Calculate the full price of a 3 months (91 days) call and put options with exercise price of 120 for a stock quoting at Rs. 100. Assume interest rate of 10% and S.D. of 0.8.
Or

(b) Stock PQR is currently priced at Rs. 1010. A put option with exercise price of Rs. 980 is available for Rs. 42. What are the intrinsic value and time value?