Security Analysis and Portfolio Management — Summer 2024

Explain the meaning and significance of security analysis.

Discuss about the efficient market theory and market hypothesis.

Explain the Arbitrage Pricing Theory in detail.

Explain in detail the Dow theory and how is it used to determine the direction of stock market?

Explain the concept of CML line and SML line in detail.

Discuss the important steps in the process of Portfolio Evaluation.

Explain the concept of Efficient Frontier in Markowitz Model.

Mr. Xis thinking of buying one of three stocks: Stock Awith a beta of 0.85, Stock Bwith a beta of 1.25 and Stock Cwith a beta of 1.65. If risk free rate is 4.50% and the expected market return is 12.35%, the expected return of each security can be assume under CAPM. Find the expected return of stock A,B,C.

Find out the expected return of a portfolio if the market standard deviation is 23% and risk free rate is 4%, the market return is 12% and standard deviation of portfolio is 5%. Using capital market line.

Average mean and Geometric mean

Systematic Risk and Unsystematic Risk

Explain the key difference between

What are the basic premises of technical analysis?

Explain the process of estimation of intrinsic value in fundamental analysis in detail.

Explain different type of biases which reflects the psychological predisposition towards investment decision making.

Define the following:

Random walk theory

Event Study

Du-point analysis

Explain Gordon Dividend Discount model in detail along with Multi-stage model in similar line of Gordon.

“Stock Exchanges are act as barometers of the health of the economy.” Explain

Compare the concept of speculation and gambling by giving suitable examples.