Portfolio revision
[ marks]Portfolio Execution
[ marks]Bonds
[ marks]Risk
[ marks]Technical Analysis
[ marks]Investment
[14 marks]Speculation
[ marks]Fundamental Analysis is in-depth economic analysis. Critically evaluate
[7 marks]Differentiate between Investment, Speculation and Gambling?
[7 marks]What do you mean by Efficient Market Hypothesis, Also Explain the forms of Market efficiency?
[7 marks]Technical Analysis believes that history repeats itself. Share your views in light of the statement using tools of the same.
[7 marks]During the past five years the return of a stock were as follows: Find the Cumulative wealth index, Arithmetic Mean, Geometric Mean Year Return 1 0.07 2 0.03 3 -0.09 4 0.06 5 0.10
[7 marks]Explain Dow Theory and trends associated with the theory in details Page 1 of
[2 marks]07 Calculate the return and risk associated State of the Probability of Return in % economy Occurrence Boom 0.4 25 Normal 0.3 Recession 0.3 -6
[12 marks]Explain in detail Capital Market Theory: CML, SML, Capital Asset Pricing Model
[7 marks]Consider two stocks, Pand Q Expected Return Standard deviation Stock P 16% 25% Stock Q 18% 30% The returns on the two stocks are perfectly negatively correlated. What is the expected return of a portfolio constructed to drive the standard deviation of portfolio return to zero?
[7 marks]Explain in detail Bond Management Strategies, Analysis of Bonds
[7 marks]Aportfolio consists of 3 securities, 1, 2, and 3. The proportions of these securities are: W₁ = 0.3, W₂ = 0.5 and w3 = 0.2. The standard deviations of returns on these securities (in percentage terms) are: ₁ = 6, 02₂ = 9, and o₂ = 10. The correlation coefficients among security returns are P12 = 0.4, P13=0.6, P23= 0.7. What is the standard deviation of portfolio Return?
[7 marks]The returns of two assets under four possible states of nature are given below: State of Probability Return on Return on nature asset 1 asset 1 0.10 5% 0% 2 0.30 10% 8% 3 0.50. 15% 18% 4 0.10 20% 26%
[2 marks]What is the standard deviation of the return on asset 1?
[7 marks]What is the covariance between the returns on assets 1 and 2?
[7 marks]What is the coefficient of correlation between the returns on assets 1 and 2?
[7 marks]What is the standard deviation of the return on asset 2? Page 2 of
[2 marks]