Examination: MBA- 4th sem.

(SFS) Subject: Portfolio Management Code: FM-404

Note: Attempt any three questions carrying 10 marks each. Time allowed: 105 minutes
1. What are assumptions of Markowitz portfolio construction model. Also explain how portfolio return
and risk can be measured under this model?
2. Write notes on - Efficient frontier with borrowing and lending, feasible portfolio, efficient
portfolio, and Optimal portfolio.
3. What is meaning of rebalancing of portfolio? Name the strategies of portfolio revision.
Explain any one formula plan for portfolio revision.
4. What procedure is used to test the CAPM. Differentiate between SML and CML. How
these concepts help in decision making?
5. The following information is provided regarding the performance of three Mutual Funds A,
B, and C for a period of six months ending December 2018. The risk free rate of interest is
assumed to be 8. Rank the funds with the help of Sharpe Index and give your comments on
it.

Fund name Return of portfolio Risk of portfolio Beta

A 24.38 5.0 0.33
B 24.11 10.01 0.66
C 24.01 4.55 0.69

Examination: MBA- 4th sem. (SFS) Subject: Portfolio Management Code: FM-404
Note: Attempt any three questions carrying 10 marks each. Time allowed: 105 minutes
1. What are assumptions of Markowitz portfolio construction model. Also explain how portfolio return
and risk can be measured under this model?
2. Write notes on - Efficient frontier with borrowing and lending, feasible portfolio, efficient
portfolio, and Optimal portfolio.
3. What is meaning of rebalancing of portfolio? Name the strategies of portfolio revision.
Explain any one formula plan for portfolio revision.
4. What procedure is used to test the CAPM. Differentiate between SML and CML. How
these concepts help in decision making?
5. The following information is provided regarding the performance of three Mutual Funds A,
B, and C for a period of six months ending December 2017. The risk free rate of interest is
assumed to be 8. Rank the funds with the help of Sharpe Index and give your comments on
it.

Fund name Return of portfolio Risk of portfolio Beta

A 24.38 5.0 0.33
B 24.11 10.01 0.66
C 24.01 4.55 0.69