What is an Investment? Discuss the various marketable and non-marketable investments available to investors.
[7 marks]During the past five years, the returns of a stock were as follows: Year 1 2 3 4 Return 0.07 0.03 -0.09 0.06 0.1 Compute the following: Arithmetic mean, Geometric mean, Variance and Standard deviation.
[5 marks]Explain Capital Asset Pricing Model with an example.
[7 marks]07 A Rs 100 par value bond bears a coupon rate of 12 percent and matures after years. Interest is payable semi-annually. Compute the value of the bond if the required rate of return is 16 percent, compounded semi-annually.
[6 marks]07 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?
[6 marks]Define Technical Analysis. What is the difference between technical analysis and fundamental analysis?
[7 marks]What do you mean by Efficient Market Hypothesis, Also Explain the forms of Market Efficiency
[7 marks]Compare and contrast Capital Market Line (CML) and Security Market Line (SML).
[7 marks]Explain, in brief, the EIC Framework and its implications for investors.1
[7 marks]Explain Dow Theory and trends associated with the theory in details.
[7 marks]What is Bond Duration? Explain the rules of Duration.
[7 marks]What is risk? Explain different kind of risk associated with investments in detail.
[7 marks]07 The returns of two assets under four possible states of nature are given below: 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% What is the standard deviation of the return on Asset Aand Asset B?
[ marks]07 Suppose the following historical returns have been earned for the stock market and the stock of company Verma Ltd. Period Return on Market Return on Verma Ltd. 1 -5% -12% 2 4% 6% 3 8% 12% 4 15% 20% 5 9% 6% Calculate Beta for Verma Ltd.
[ marks]Write a note on Sharpe’s Single index model
[7 marks]07 Consider the following information for three mutual funds, P, Q, and R, and the 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
[ marks]Critically Explain Arbitrage Pricing Theory
[7 marks]