Security Analysis and Portfolio Management Question Paper June 2025, Dibrugarh University B.Com 6th Sem Hons CBCS Pattern

Security Analysis and Portfolio Management 2025 (May)
Dibrugarh University BCOM 6^th SEM CBCS Pattern

COMMERCE (Discipline Specific Elective)

(For Honours and Non-Honours)

Paper: DSE 601 (GR-I)

Full Marks: 80 Pass Marks: 32 Time: 3 hours

The figures in the margin indicate full marks for the questions.

1. (a) State whether the following statements are True or False: (1*4 = 4)

(i) Dow theory advocates that stock behaviour is 10% psychological and 90% logical.

(ii) When two securities are held in the portfolio, it is essential to study the covariance between two.

(iii) As per the assumptions of APT theory, the investors have different beliefs and expectations.

(iv) Differential return method of portfolio performance evaluation was developed by Michael Jensen.

(b) Fill in the blanks with appropriate word(s): (1*4 = 4)

(i) In the __________ stage of industry life cycle, new innovations and technological developments take place.

(ii) Markowitz theory is based on __________.

(iii) CAPM focuses attention only on __________ risk.

(iv) Reward to volatility ratio developed by __________.

2. Write short notes on: (4*4 = 16)

(a) Financial derivatives

(b) Effects of combining securities

(c) Multiple factor model

(d) Return per unit of risk

3. (a) What is investment management? What are the factors to be kept in mind while deciding an investment? (4+10=14)

OR

(b) Critically examine the Elliott wave theory on stock market prediction. (14)

4. (a) What statistical techniques would you use to calculate risk? Why? (14)

OR

(b) Explain the following: (7*2 = 14)

(i) Market and non-market risk and return

(ii) Portfolio characteristics line

5. (a) Describe the basic concept of CAPM. How would you evaluate a security with the help of CAPM theory? (7+7=14)

OR

(b) What are the advantages of CAPM? From the following information, determine the securities that are over-priced and those that are under-priced in terms of SML: (6+8=14)

Security	β	Actual Return
X	0.50	0.13
Y	1.13	0.26
Z	0.35	0.12
Nifty Index	1.00	0.13
T-bills	0	0.08

Note: Return on SML can be estimated with the help of the formula R_i = R_f + β_i(R_m - R_f)

6. (a) Distinguish between Treynor and Sharpe indices of portfolio performance. What do you recommend and Why? (7+7=14)

OR

(b) Explain the expert Jensen index of portfolio performance. (14)

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