P/E Ratio
[ marks]Zero variance portfolio
[ marks]Support Level
[ marks]Beta
[ marks]Security market line
[ marks]Market risk
[ marks]Define the following
[14 marks]Cumulative wealth index
[ marks]What is ROE? Explain one factor, three factor and five factor ROE.
[7 marks]What is Investment? Differentiate between Investment and Speculation.
[7 marks]Differentiate between fundamental analysis and technical analysis.
[7 marks]The following information is given on a portfolio made of two stocks: Their weights are: w1 = 0.6 , w2 = 0.4. R1 (Return on stock 1)= 15% and R2 (Return on stock 2)= 18%. s1(Standard deviation on stock 1) = 10%, s2 (Standard deviation of stock 2) = 16%. Their correlation coefficient: r12 = 0.5 What is the return and the standard deviation of portfolio return?
[7 marks]Take any Industry in India of your choice and do Industry Analysis for the same.
[7 marks]What is Risk? Explain systematic Risk and unsystematic Risk. Page 1 of
[3 marks]The probability distribution of the rate of return on a stock is given below: Return in State of Probability % the of economy occurrence Boom 0.1 Normal 0.2 Stagnation 0.4 11 Recession 0.3 From the information above find the return and risk of the stock.
[10 marks]What is duration of bond? Mention properties of duration.
[7 marks]Mr Sumant Verma wants to invest in the bond. He has collected the following information about the bond of Laurel Ltd Face value= Rs 1000 Coupon rate=9% p.a YTM=7% Years to maturity=5 years. Find the duration of the bond.
[7 marks]Discuss the benefits and risks associated with investment in bonds.
[7 marks]Calculate characteristic line of ABC Limited based on the information below Year ABC Market Limited (%) (%) Page 2 of
[3 marks]CASE STUDY: Mr Amit Mehra wants to invest in mutual fund. You being a finance expert, he has approached you for your advice. Portfolio Mean Standard Beta return deviation (%) (%) X 20 22 1.5 Y 16 13 1.2 Z 12 12 0.8 Market 10 10 1.00 index The risk free rate of return is 6%. Kindly answer his following questions from the data above.
[ marks]Calculate Treynor and Sharpe Measure for the three mutual fund portfolios and Market index.
[7 marks]Discuss various types of mutual funds.
[7 marks]Calculate Jensen Measure for the three mutual fund portfolios and Market index.
[7 marks]What is mutual fund? Discuss pros and cons of investing in mutual funds. Page 3 of
[3 marks]