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MBAF 104
Security analysis and portfolio management
Max. Marks: 15
Note : Question No. 1 is of short answer type and is compulsory for all the students.
It carries 5 Marks. (Word limits 50-100)
Q. 1.
(i)
(ii)
(iii)
(iv)
(v)
Note: Answer any two questions. Each question carries 5 marks (Word limits 500)
Q. 2.
Risk free return is at 6% and expected return of market portfolio is 18% wit standard
deviation 2.5%.draw CML
Let us take hypothetical value of standard deviation portfolio as 0, 1, 1.5, 2, 2.5, 3, 3.5
and 4.
Q. 3.
What do you mean by listing of shares? Discuss in brief the SEBI requirement for listing
of shares.
Q. 4.
Investors are utility maximizers, do you agree? Explain with the help of suitable
example.
MBAF 104
Security analysis and portfolio management
Max. Marks: 15
Note : Question No. 1 is of short answer type and is compulsory for all the students.
It carries 5 Marks. (Word limits 50-100)
Q. 1.
(i)
Broker is an agent who executes the order of his client, yet he can act many roles.
Explain any two different roles of a broker?
.
(ii)
(iii)
(iv)
.
(v)
Note: Answer any two questions. Each question carries 5 marks (Word limits 500)
Q. 2. Risk free return is at 5% and expected return of market portfolio is 16%. Find out the
expected returns of the securities with a beta of (a) 1.25 (b) .8 and (c) 1?
Q. 3. Current dividend per share is Rs 5, growth expected during the next three years is 15 %
p.a., thereafter, for three years, the dividend are expected to grow at the rate of 10% per annum
and then the dividends are likely to grow at a constant rate of 7 % p.a., If an investor expects a
return of 20% p.a., find out what is the value of these shares for this investor.
Q. 4. Give risk free return 6% and return on market portfolio is 18%.Draw SML. Let us take
hypothetical value of beta as 0, .5, 1, 1.5 and 2.