2016 (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
1. Attempt Q. Nos. 1 & 2 for
both New and Old Course.
2. Attempt Group A for the New
Course and Group B for the Old Course
1. What do you mean by the
following (Answer in one sentence): 1x8=8
a)
Systematic Risk.
b)
Valuation of securities.
c)
Portfolio.
d)
Market risk.
e)
Volatile Market.
f)
Risk Adjustment.
g)
Return.
h)
Diversification.
2. Write short notes on the
following:
a)
Valuation of Assets.
b)
Portfolio Analysis.
c)
Capital Market line.
d)
Jensen Model.
Group A: (New Course)
3. (a) What do you mean by risk?
What are the different components of systematic risk? How the unsystematic
risks can be managed? 4+4+6=14
Or
(b) What do you mean by
Investment? What are the different
alternatives of investment? What are the factors that you would consider before
making any investment decisions? 4+4+6=14
4. (a) Discuss the various
effects of combining securities with examples. 14
Or
(b) Discuss some of the
disadvantages of Markowitz models. In what way this model is better than other
models? Explain with examples. 4+10=14
5. (a) What do you mean by
‘Capital market line’ and ‘Security market line’? In what way these are
valuable indicators for a better portfolio formulation? Explain. 8+6=14
Also Read:
Or
(b) Discuss the advantages of
CAPM. In what way CAPM is better than factor models? Discuss. 8+6=14
6. Write a detail note on: (any
two) 7x2=14
a)
Market timing.
b)
Limitations of Sharpe Model.
c)
Advantages of Treynor model.
Group B: (Old Course)
1. What do you mean by the
following (Answer in one sentence): 1x8=8
a)
Systematic Risk.
)
Valuation of securities.
c)
Portfolio.
d)
Market risk.
e)
Volatile Market.
f)
Risk Adjustment.
g)
Return.
h)
Diversification.
2. Write short
notes on the following:
a)
Valuation of Assets.
b)
Portfolio Analysis.
c)
Capital Market line.
d)
Jensen Model.
3. (a) Discuss different measures
to analyze the fundamental factors in investment decisions. 11
Or
(b) Discuss the process of
valuation of Assets. How the return of securities can be measured? 4+7=11
4. (a) Write a detailed note on
traditional portfolio analysis. 11
Or
(b) Write a detailed note on
Markowitz model. 11
5. (a) Discuss the major factors
associated with CAPM with examples. 11
Or
(b) Write a detailed note on
Arbitrage pricing theory. 11
6. (a) Discuss the comparative
advantages of Sharpe and Treynor models with example. 11
Or
(b) Discuss the various
components of portfolio investment performance. 11
7. (a) Calculate the fair price a
3 month (91 days) call and put option with exercise price of 130 for a stock
quoting at Rs. 100/-. Assume interest rate of 10% and SD of 0.8. 12
Or
(b) Discuss the meaning of
future. Discuss the differences between future and option. 4+8=12