Security Analysis and Portfoilio Management — Summer 2022

07 What do you mean by Efficient Market Hypothesis, Also Explain the forms of Market

efficiency.

XYZ Limited’s past five years, the returns of a stock were as follows:

Year 1 2 3 4 Return 10% 15% 20% 18% 12% Compute Arithmetic mean, geometric mean, variance and Standard deviation for the XYZ Limited. Q.3

Explain Dow Theory and trends associated with the theory in details.07

What is the meaning of Capital Asset Pricing Model and also state its Major Assumptions.

The following information is available on a bond: Face value: Rs 100 & Current market price: Rs 110 Coupon rate: 12 percent payable annually Years to maturity: What is the duration of the bond?07

“The Arbitrage Pricing Theory can be used to identify mispriced securities” – Explain the statement in detail. Page 1 of

Consider the following information for three mutual funds, P, Q, and R, and the

07 market. The mean risk-free rate was 6 percent. Particulars Mean return (%) Standard deviation (%) Beta P 12 18 1.1 Q 10 15 0.9 R 13 20 1.2 Market Index 11 17 1 Calculate the Treynor measure & Sharpe measure from above data07

What are the Industry and Economic Factors to be considered while forecasting security return?

Suppose the following historical returns have been earned for the stock market and the

07 stock of company Rajesh Ltd. Period Return on Market Return on Mahesh Ltd. 1 6% 15% 2 5% 8% 3 9% 8% 4 14% 19% 5 10% 15% Calculate Beta for Mahesh Ltd.07

What you mean by Portfolio Management? Explain the process of Portfolio management The returns of two assets under four possible states of nature are given below: Q.5 State of Probability Return on asset A Return on asset B nature 1 0.1 5% 0% 2 0.3 10% 8% 3 0.5 15% 18% 4 0.1 20% 26%07

Calculate Mean and Standard Deviation of Return on Stock A07