LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
M.Com. DEGREE EXAMINATION – COMMERCE
THIRD SEMESTER – April 2009
CO 3802 - SECURITY ANALYSIS & PORTFOLIO MANAGEMENT
Date & Time: 16/04/2009 / 1:00 - 4:00
Dept. No.
KP 48
Max. : 100 Marks
SECTION – A
Answer ALL questions:
( 10 x 2 = 20 )
1. What is meant by portfolio management?
2. Write a short note on “options and futures”.
3. What do you understand by risk?
4. How to measure a risk?
5. Identify the factors on which the profit potential of an industry depends upon.
6. Distinguish between Technical Analysis and Fundamental Analysis.
7. What is Capital Asset Pricing Model?
8. In what way stock split affect the share price movement?
9. Why Strong form of market hypothesis is not popular as Weak form hypothesis?
10. The investor is seeking an efficient portfolio in the correlation of 0.7 between the portfolio
and the market and the S.D is 2.5. Market S.D is 1.4%. Market rate of return is 16%. The
risk free rate of return is 8%. What is the required rate of return?
SECTION – B
Answer any five questions:
( 5 x 8 = 40 )
11. Compare and contrast between speculation and investment.
12. Briefly explain the functions of a secondary market.
13. List out and explain the classification of risks involved in the investment process.
14. The market price of an equity share is Rs.100. Following information is available in
respect of dividends, market price and the expected market condition after one year.
Market condition
Probability
Market price (Rs.)
Dividend (Rs.)
Good
0.25
115
9
Normal
0.50
107
5
Bad
0.25
97
3
Find out the expected return and variability of returns of the equity share.
15. Discuss the basic concepts underlying Chart Analysis.
16. Give a brief summary of tests conducted and their results under semi strong form of
efficient market hypothesis.
17. What do you mean by Weak Form Market? Bring out its assumptions.
18. Mittal owns a portfolio of two securities with the following expected returns, standard
deviation and weights:
Security
Expected
Standard
Weight
Return
Deviation
X
15%
18%
0.30
Y
20%
23%
0.70
What is maximum and minimum portfolio standard deviation for varying levels of correlation
between two securities?
SECTION – C
Answer any TWO questions:
( 2 x 20 = 40 )
19. Discuss in detail the various alternative methods of investment available.
20. Explain in detail the various segments of macro economic variables of fundamental analysis
of portfolio.
21. Write note on
(a) Fiscal policy
(b) Systematic Risk
(c) Risk exposure in company analysis
(d) Support level and resistance level in Chart Techniques
(e) Institutional investors
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