IGNOU MBA Question Bank for 2021-22

MS01
1. What are the pre-conditions/ pre-requisites for institutionalizing effective control in an
organisation? What are the options available to the organizations in exercising control?
Explain with suitable examples and experiences from the organization you have been
working with or you are aware of. Briefly describe the organization and the context you are
referring to.

Answer: Please visit DistPub.com

2. What is the relevance of Johari Window Model in developing interpersonal skills? Briefly
explain the stages of relationship development. Explain with your own experience in the
organization/ system you have been working in / familiar with. Briefly discuss the
organization and the situations you are referring to.
3. What is the relevance and utility of the concepts viz; Mission, Objectives, Strategy and
Policies in day-to-day functioning of an organisation. Critically explain as to how these
concepts influence the extent of applicability and level of compliance of these concepts in
the behavioral dynamics of the oragnisation, with the experience you have had in the
organizational situations or the ones you are aware of. Briefly explain the history and
evolutionary road map of the organization you are referring to.
4. Is MBO still relevant in organizational set up in the present day business environment?
Briefly discuss the process involved in it. Does it add any value to organizational functioning
and effectiveness? If yes, how? Explain with examples from your experience in the
organization you have been working in or the ones you are aware of. Briefly describe the
structure of the organization you are referring to.

MS02
Q1. Explain the concept of Human Resource Management focusing on its objectives and
process. How has Human Resource Management evolved over the past and what is its
relevance in the present?
Q2. Explain the concept and process of Human Resource Planning. With the help of real life
job situation, explain the importance of Organizational Socialization for Human Resource
Planning.
Q3. What is competency approach to job analysis? What are its uses and advantages.
Explain various methods of competency approach to job analysis with special focus on
Assessment Centres.
Q4. Explain the foundation and needs of effective Human Resource Management. Critically
analyse the role of training in Human Resource Development with the help of examples.
Q5. How does the Worker's Empowerment contributes to the Industrial Democracy? Explain
various forms of Workers' Participation in Management citing examples.

MS03
1. Do you agree that a thorough understanding of economic and social environment of
business is essential for running enterprises successfully. Briefly discuss the statement citing
examples.
2. Discuss the different viewpoints about the role of Government? Analyse the role of
Government in today’s context.
3. Explain the role and importance of Small Scale Industry (SSI) in a developing economy
and examine its growth.
4. Briefly analyse the impact of regulatory and promotional policy framework on industrial
structure and performance.
5. Collect data on Foreign Direct Investment (FDI) for the past decade and analyse its
implications.
6. Highlight the basic concept of the theory of public finance and explain how do they help in
understanding the fiscal system of an economy.

MS04
1. Explain the purposes of Accounting Information? Which purpose, in your opinion, is most
important and why?
2. The following are the summarized Balance Sheets of ABC Ltd as on 31st December,
2019 and 31st December 2020, respectively:
IMG*
No plant and machinery was sold during the year 2020. Depreciation written off during 2020
was Rs 7,500. Net Profit for the year was Rs. 8,200. dividend paid during 2020 in respect of
previous year was Rs. 6,000 . Capital reserve represented a profit on sale of freehold
premises. You are Required to prepare:
(i) a Statement showing Changes of Working Capital during 2020; and
(ii) A Funds Flow Statement for the same period.
3. Discuss the techniques of Absorption Costing and Marginal Costing using a suitable
example.
4. Explain the different types of Budgets prepared in an Organization of your choice and
discuss the relevance of these budgets to that organisation.
5. Alpha Ltd is considering a capital investment proposal where two alternatives, involving
differing degrees of mechanization, are being considered.
New machinery would cost Rs. 2,78,000 in option 1 and Rs. 8,05,000 in option 2. Both these
investments would have a five year life, however it is anticipated that the scrap values after 5
years would be Rs. 28,000 and Rs. 1,50,000 respectively. Depreciation is provided on a
straight line basis. Annual Cash Inflows, expected to be generated for option 1 is Rs.
1,00,000 and Rs. 2,50,000 for option 2. The cost of capital is 15%.
You are required to calculate the following for each option:
(i) The payback period
(ii) The Accounting rate of return, based on average book value
(iii) The Net Present Value
(iv) The Internal Rate of Return.
As a Manager which option you would prefer, give reasons for your preference.

MS05
1. "Product development and design is basically a research and development activity".
Elaborate the statement with suitable examples.
2. "Job design is the consciously planned structuring of work effort performed by an
individual or a team of persons". Explain the statement.
3. What do you understand by the term "batch production"? Explain the advantages and
disadvantages of batch production.
4. Critically examine the following statement: "Value Engineering is more of human relations,
team building and motivation programme than anything else".
5. "Inventory management for slow moving expensive items should focus more on lead time
reduction than anything else". Critically examine the statement.

MS06
1. (a) Take an example one each from a product and a service offering of your choice and
discuss the marketing function as an exchange process between a firm and its customers/
client leading to customer satisfaction.
(b) Distinguish product marketing from marketing of services. Explain the characteristics of
services that makes them challenging in the process of marketing.
2. (a) Elaborate the concept of a Market Vs the Concept of a segment with suitable
illustration.
(b) Why marketing research is of primary importance for a Manager in the decision making
process? Discuss.
3. (a) Explain the concept of product life cycle (PLC). Discuss the elements of marketing mix
strategies at the different stages of PLC in case of any Industrial product of your choice.
(b) Select any 4 Newspapers (Nation/Regional) advertisements for any specific consumer
goods. Evaluate the advertising appeal in each advertisement and identify which need(s)
product is supposed to satisfy (according to Maslow’s needs of hierarchy).
4. (a) List out the major objectives of pricing policy. Discuss the importance of "Pricing" both
for the sellers and buyers in the exchange process. Explain the nature and use of price
discounts among FMCG category.
(b) What is Sales forecasting? Discuss why sales forecasting is being considered as one of
the grey areas of marketing function of every business.

MS07
1. "Input output devices are used as a medium of communication between the external
environment and the CPU". Elaborate the statement. Also name and explain any two output
devices.
2. Explain "an organization as a socio-technical system".
3. "Information is the processed form of statistical data". What are the things one need to
keep in mind while processing the data?
4. "System analysis is the analysis of the problem that the organization will try to solve with
an information system". Explain the statement.
5. "Data warehouse helps to facilitate strategic decision-making". Explain the statement
highlighting the characteristics of data warehouse.

MS08
1. The total cost, C(x) associated with producing and marketing x units of an item is given by
C (x) = 0.005x3 -0.02x2 -30x +3000
Find (i) Total cost when output is 4 units.
(ii) Average cost of output of 10 units.
(iii) Marginal cost when output is 3 units.
2. "The success of collecting data through a questionnaire depends mainly on how skillfully
and imaginatively the questionnaire has been designed". Explain some important points to
be kept in mind while drafting a questionnaire.
3. In a society of 5000 people, 1200 are above 30 years of age and 3000 are female. Out of
the 1200 who are above 30, 200 are female. Suppose after a person is chosen you are told
that the person is a female. What is the probability that she is above 30?
4. A sample size 25 is picked up at random from a population which is normally distributed
with a mean of 100 and variance of 36. Calculate:-
(a) Pr{ .X=99}
(b) Pr{98= .X=100}
5. "Economic or business oriented time series are made up of various components". What
are those components and also explain the relationship between them.

MS09
1. Explain Equi Marginal Principle. Discuss how a rational decision maker would allocate
resources in such a way that the ratio of marginal returns and marginal costs of various uses
is the same?
2. How does market demand curve calculates the total of the quantities demanded by all
individual consumers in the economy or market area?
3. How can Price Elasticity be estimated for many goods and services? Explain the influence
of Price Elasticity on decision making.
4. Explain the Law of Diminishing Marginal Returns. How does the Marginal Product of the
variable input declines when other inputs are kept constant?
5. Describe the characteristics of a perfectly competitive market. Explain giving an example.
6. Write short notes on any two of the following:-
(a) Constrained Optimisation Technique.
(b) Expert opinion
(c) Breakeven Ouput Level

MS10
Q1. a) Briefly describe the factors which are essential for designing an organization.
b) Briefly explain the difference between effectiveness and efficiency with reference to an
organisation, giving examples.
Q2. Describe different approaches to organizing and analyzing work and their relevance in
the present day context.
Q3. Explain the concept and purpose of organizational diagnosis and discuss and describe
the elements that need to be reviewed for analyzing an organisation.
Q4. Discuss and describe any two methods of organizations diagnosis and their merits and
demerits.
Q5. Explain the role of an OD intervention. Briefly discuss and describe T-Group training as
an OD intervention with an example.

MS11
1. Perform a SWOT analysis on an organization of your choice and try to identify the
challenges and opportunities faced by the organization in the present complex situation
arising out of COVID-19 outbreak.
2. What is a ‘niche’ strategy? How is it different from other strategies? Explain. Illustrate with
the help of examples.
3. List and explain various strategic issues arising when an organization follows integration
as a part of its growth strategy.
4. Using the published information about a company of your choice which has gone through
a major shift. Write a brief case study showing the strategic development and the current
competitive position of the company.
5. Discuss the relationship between the level of operations of a business and its market
share in terms of the macro environment. Illustrate with the help of examples.

MS21
1. Describe and discuss different organizational behaviour models and their relevance. Give
examples.
2. What is power and how is it different from authority and influence? Describe different
sources of power and discuss how power can be used ethically with examples.
3. Briefly describe the factors influencing perception. Discuss the problems encountered in
social perception with examples and the strategies to minimize them.
4. Discuss the relationship between stress and performance. Describe the techniques to
manage stress with relevant examples.
5. Discuss the relevance of having optimism in work place and how it helps the organisation
to have better performance, with relevant examples.

MS22
1. Why is competency mapping assuming greater importance in the functioning and
effectiveness of management/ governance in organisational setups? What are the essential
steps in the direction of institutionalizing competency mapping in an organization? Explain
with examples from your own experiences working in an organizational setup or the ones
you are aware of. Briefly describe the organization you are referring to.
2. Does 360° system of feedback contribute in improving the performance, effectiveness and
efficiency of the organization? What are the objectives and advantages of 360° feedback?
Explain with your organizational experiences or the ones you are aware of. Briefly describe
the organization and its reporting relationships, you are referring to.
3. What is the significance of Knowledge Management in the development processes of an
organization? Briefly discuss different approaches to Knowledge Management. Critically
evaluate the relevance and utility of Knowledge Management in the organisational setup as
has been experienced by you working in an organisation or the ones you are aware of.
Briefly discuss the oragnisation, you are referring to.
4. How does audit complement and play as part of control function in an organisational
setup? What are the relevance of HRD audit in the orgnisations in the present day business
environment. Critically analyse on the basis of your organisational experiences whether well
structured HRD Audit provides and edge to the oragnisation. Briefly describe the
organisation and the context you are referring to.

MS23
1. Explain the role of HR professional in human resource planning process in organizations.
Describe the barriers to Human Resource planning and bring out the requisites for effective
planning.
2. Explain the concept of competency and competency approach to job analysis. Discuss the
major benefits of competency approach to job analysis.
3. Explain the various approaches to role definition. Describe the role description and explain
the uses of role description.
4. What is a career? What are the factors which go into the shaping of a career? Name
atleast two ways that career planning might benefit an individual.
5. Explain the need, purpose and the scope of HR Audit. Describe the similarities and
differences between the HR Audit and Financial Audit.

MS24
Q1. How industrial relations evolved in India? Also explain the constitutional framework of
industrial relations.
Q2. How did employers’ organizations grow India? How trade unions can be managed for
effective industrial relations?
Q3. What are the recent collective bargaining issues in India? How negotiation skills can
ensure effective collective bargaining?
Q4. Why do participative schemes fail in India? How its Design and dynamics contribute
towards its failure?
Q5. Explain the role ethics and values in corporate leadership. How does strategies and
structure influences corporate culture?

MS41
1. Take the latest monetary policy and discuss the important highlights of this policy.
2. You are required to prepare a Cash Budget for the months of May, June and July 2021on
the basis of the information given below :

(a) Income and Expenditure Forecasts

Months Credit Sales Credit Purchases Wages Manu-facturing Expenses

Office Expenses

Selling

Expenses

March 60,000 36,000 9,000 4,000 2,000 4,000

April 62,000 38,000 8,000 3,000 1,500 5,000
May 65,000 33,000 10,000 4,500 2,500 4,500
June 58,000 35,000 8,500 3,500 2,000 3,500
July 56,000 39,000 9,500 4,000 1,000 4,500
August 60,000 34,000 8,000 3,000 1,500 4,500
(b) Cash balance on 1st May, 2021 is Rs 8,000.
(c) Plant costing Rs 16,000 is due for delivery in July, payable 10% on delivery and the
balance after 3 months.
(d) Advance tax of Rs 8,000 each is payable in March and June.
(e) Period of credit allowed
(i) by suppliers – two months, and
(ii) to customers – one month.
(f) Lag in payment of manufacturing – ½ months.
(g) Lag in payment of office and selling expenses – one month

3. As a Finance Manager what are the sources that you would prefer to raise short term
loans from the money market for meeting working capital needs of your business and why?

4. XYZ Ltd. is in the business of manufacturing water filters. The current ratio at the end of
the last year was 3:1 which appeared to be comfortable. However, the cash flow position, is
rather weak and the company finds it difficult to make payments to the suppliers and workers
on time. The composition of working capital as per the last balance sheet is provided here:

(Rs.)
Current Assets:
Inventories 18,00,000
Receivables 12,00,000
Cash and bank balances 1,00,000
Loans and advances 20,00,000
51,00,000
Current Liabilities 17,00,000
Mention specific possibilities of what might be causing cash flow difficulties in this context.
Suggest any better ratios which the company might use to gauge its liquidity in future.

MS41
1. Explain the concept of Cost of Capital. How is the cost of capital for various individual
components of capital computed and aggregated to compute the weighted cost of capital?
2. What do you understand by Economic Appraisal? List out the various factors taken into
consideration while performing a Social Cost Benefit analysis of a project.
3. Explain the various techniques used for measurement of project risk.
4. What are the various instruments through which the firms procure finance? For each of
these instruments discuss when and why they should be used to raise capital. Also explain
non traditional sources of long term financing used by firms.
5. What is dividend? Explain the various dividend theories. Discuss the factors influencing
dividend policy.

MS42
1. Explain the concept of Cost of Capital. How is the cost of capital for various individual
components of capital computed and aggregated to compute the weighted cost of capital?
2. What do you understand by Economic Appraisal? List out the various factors taken into
consideration while performing a Social Cost Benefit analysis of a project.
3. Explain the various techniques used for measurement of project risk.
4. What are the various instruments through which the firms procure finance? For each of
these instruments discuss when and why they should be used to raise capital. Also explain
non traditional sources of long term financing used by firms.
5. What is dividend? Explain the various dividend theories. Discuss the factors influencing
dividend policy.

MS43
1. Discuss the inter linkages between TQM, JIT, Activity Based Costing, with the
Management Control Systems.
2. Select any Organization of your choice and study how the performance of Investment
Centres are measured in that organisation? Give your views on the method that is being
practiced by that organization.
3. You are required to prepare a Flexible Budget for the production at 80 percent and 100
percent activity on the basis of the following information:
Production at 50 % capacity 5,000 units
Raw materials Rs. 80 per unit
Direct labour Rs. 50 per unit
Direct expenses Rs. 15 per unit
Factory expenses Rs. 50,000 (50% fixed)
Administrative expenses Rs. 60,000 (60% variable)
4. As a manager of a Multinational Company what are the difficulties that you may be
confronted with while adopting management control practices across various countries.
5. Study the ‘Christian Medical College and Hospital, Vellore’ Case given in Block 5 of this
course and answer the questions given at the end of the case.

MS51

1. Five candidates are approved for appointment as personal secretaries to five members of
the board of a company. The preferences of each member are given below. How would you
make allocations so that satisfaction level is maximized?
fig*
2. In an engineering workshop, motor breakdown at an average of 5 per day, the number of
breakdown being Poisson distributed. The present unqualified mechanic can repair motors
at an average rate of 6 per day and is paid Rs. 100 per day. A qualified mechanic offers his
services at Rs. 200 per day and is capable of repairing at an average of 8 motors per day.
When a motor is idle, there is downtime cost incurrence at the rate of Rs. 100 per day.
Would it be worthwhile to employ the qualified mechanic in place of the present mechanic?
Justify on cost/ benefit analysis.
3. Determine which course of action Player B will not use in the following game. Obtain the
best strategies for both players and the value of the game.
Fig*
4. "Operations Research is a logical and systematic approach to provide a rational basis for
decision making." Explain the phases and processes of Operations Research Study.
5. Write the short note on the following:-
(a) Binomial Distribution
(b) Cutting plane method for solving Integer Programming
(c) Limitations of Simulation
(d) Objectives of Inventory

MS52
1. "An important dimension of project management includes management of the expenditure
incurred on the project". Explain in the view of the statement, Cost Management as a tool of
Project Management.
2. What is the concept of "Free Float "(Primary slackness) and "Total Float" (Secondary
slackness)? Bring out their significance in project management.
3. "Design a simple reporting format which monitors conversion of purchase indents with
orders. Assuming that no purchase indent shared be delayed more than eight weeks, how
would you incorporate it in the above report.
4. Explain how commissioning is handled in large organizations.
5. Write short note on the following:-
1. Levels of demand forecasting.
2. Network based material management
3. Empowering Project Personnel.
4. Elements of control in projects.

MS53
1. "Productivity is one of the major performance criteria for evaluating a production system".
Explain.
2. What do you mean by the term "Forecast"? Explain the need of forecast in operations
management.
3. Explain facility planning along with its objectives.
4. Compare and contrast "push type of production system with the "pull" type of production
system and justify which one is better?
5. "Computer Integrated Manufacturing (CIM) systems provide an integrated approach to
production processes through efficient information handling for overall improvements in
product quality and productivity. Explain the statement.

MS54
1. "Internal Information is used for day-to-day decision making whereas external information
is crucial for long-term planning". Comment.
2. "Real-time system makes output available quickly enough to control real-life activity".
Explain the statement.
3. "Iso-chronous is a technique which makes use of both synchronous and asynchronous
modes". Do you agree? Give reasons for your answer.
4. "SQL is one of the most important relational data manipulation languages". Explain the
statement. Also, explain query processing.
5. "Computer virus is a major threat to computer security". Justify the statement.

MS61
1. With the help of examples discuss the characteristics that distinguish organizational
buying from individual buying.
2. Define personality. Explain the differences between the „trait theory. and the
„psychoanalytic theory. of personality.
3. What do you understand by the term „Culture.? Explain the need for cross cultural
understanding of consumer behaviour for marketers.
4. What do you understand by reference group influence? Explain the degree of reference
group influence with regard to the purchase of the following products and their respective
brand choice.
(a) Clothes
(b) Membership of health club
(c) Bathing Soap
5. Explain the concept of family life cycle. How do the family life cycle stages affect the
consumption patterns? Give its implications for the marketers of life insurance policies.
6. "Understanding how consumers learn is very important to marketers". Do you agree with
the statement? Justify your answer.

MS62
1. (a) Explain with a suitable example the major differences/ activities performed between
Sales and Marketing function performed in a FMCG Company.
(b) Discuss the sales process that you would adopt in the following situations and why?
(a) IT company selling Banking software
(b) Company selling Buses for State Road Transport
2. (a) What do you understand by selling skills in sales function? Explain with a suitable
example the different kinds of selling skills that a saleman ought to possess.
(b) Discuss the objectives of recruitment and selection functions in any firm that you are
associated or familiar with.
What recruitment sources will you recommend for the following & why?
(i) Missionary Salesman for a Pharma Company
(e) Salesman for promoting Banking products
3. (a) When and why training assumes importance for a Salesman? Discuss. Do you agree
that sales training should be a continued and an on going activity? Elaborate.
What is sales planning? Why territory planning is of strategic importance for sales function?
Briefly explain the approaches to territory design.
4. (a) Explain the need for sales Organisation in a FMCG company of your choice.
(b) Discuss the role and responsibilities of:
(a) Sales Executive of a courier company.
(b) Sales Manager of a Academic Publishing House.

MS63
1. Distinguish between convenience, shopping, and specialty goods giving suitable
examples.
2. How can you use ‘Attribute Analysis’ to generate new product ideas for a toothpaste?
Discuss.
3. Taking the example of a product of your choice, explain how a company’s marketing mix
strategy may vary depending on different stages of its product life cycle.
4. Taking the example of packaged fruit juice, explain the alternative bases available to the
marketers for its positioning. .
5. Explain the factors that can be responsible for the failure of a new product, giving suitable
examples.
6. Discuss the importance of packaging for a marketer of consumer goods.

MS64
1. An organization presently operating in domestic market only wants to go international.
Advise the organization regarding various options available to reach foreign markets.
2. Explain the various product – communication strategies available to an international
marketer, giving suitable examples.
3. "Conducting marketing research across different parts of the globe poses different issues
and challenges". Do you agree with the statement? Discuss with the help of suitable
examples.
4. Explain the contents and significance of the following documents:
(a) Bill of lading
(b) Letter of credit
5. Why is an understanding of different cultures important to an international marketer?
Discuss with the help of suitable examples.
6. What do you understand by the term „political risk.? Discuss the strategies for
management of political risk at the pre-investment stage.

MS65
1. Explain the importance of physical evidence for the following:
(a) A distance education institute
(b) A hospital
2. Why do customers switch service providers? Can you do anything as a marketer to
prevent the customers from switching? Discuss.
3. Explain how important it is for hotels to use ‘promotions’ during these pandemic times.
Identify possible sales promotion schemes they can offer.
4. Explain the Gronroos Model of service quality, taking the example of a restaurant.
5. Explain the product support services that a car manufacturer can provide to its customers
for gaining competitive advantage.
6. How is information search behaviour different in case of services as compared to goods?
Explain giving suitable examples.

MS91
1. Explain the concept, nature and significance of corporate strategy and discuss various
schools of thought on corporate strategy formulation.
2. Identify an organisation (Name and describe the organisation) where good corporate
governance has resulted in the increase in performance of the organisation.
3. Explain the role of Information Technology (IT) in implementation of strategy. How can IT
assist in implementation of strategy and in enhancing the competitiveness of a firm?
4. Explain the concepts of innovation and creativity. How does creativity contribute to the
success of an organisation. Discuss giving examples.
5. What do you understand by corporate philanthropy? Identify an organistion (Name and
describe the organisation) which has undertaken philanthropy aligning social and economic
goals and improving organistion’s long-term business prospects.
6. Write short notes
(a) Market Structures and Sustainable Competitive Advantage
(b) Stable Environment

MS92
1. "The dilemmas of the public enterprise system are the dichotomies of public accountability
and autonomy." Discuss.
2. Briefly discuss the methods of parliamentary control in public enterprises with respect to
the following.
(a) Legislative Questions
(b) Legislative Debates
3. What are the factors that are taken into account to evaluate the performance of public
enterprises?
4. How is Collective Bargaining an important tool of negotiation between workers and
owners in the industrial sector?
5. Explain the important steps involved in disinvestment process. How is preparation for sale
different from valuation of enterprise?
6. Write short notes on any two of the following:-
(a) Capitalism
(b) Growth of Central Public Sector Enterprises
(c) Labour Redundancy

MS93
1. Explain major entrepreneurial competencies. How is information seeking different from
persuasion?
2. Why there is a need for market assessment? Explain the variables which determine
market demand.
3. List the differences between Private and Public Limited Company stipulated under the
Companies Act, 2013.
4. Discuss the promotional tools which are available to an entrepreneur. How is advertising
different from sales promotions?
5. Explain the government initiatives for internationalization of small business.
6. Write short notes on any two of the following:-
(a) Family Business
(b) Special Features of MSMEs
(c) State Financial Corporation

MS95
1. "Analysis of covariance is a combination of the two techniques – analysis of variance and
regression". Explain the statement along with the uses of analysis of covariance.
2. Compare and contrast the various attitude measurement techniques. When will you use
each of them? Discuss briefly.
3. What type of information is there in the "cover and the title page and introductory page of
a report"?
4. "Regression analysis is probably the most widely applied technique amongst the
analytical models of association used in business research". Do you agree? Give reasons to
support your answer.
5. In an agricultural field experiment, three different fertilizers were used on sample plots and
yields were recorded. On the basis of these data, test the hypothesis that there is no
significant difference in yields from three different fertilizers (using The Kruskal-Wallis Test).

Yield (in MT)

Fertilizer A 2.48 3.25 3.94 3.45 3.0 4.0 3.6 3.87
Fertilizer B 2.84 3.1 3.5 2.27 3.88 2.87 3.27 2.8
Fertilizer C 3.4 3.17 2.85 2.46 3.15 2.69 2.88 3.44

MFP-1: Equity Markets

1. Select any Regulator of your choice and study the Structure , Functions and Role of that
regulator in Financial Markets.
2. As a Finance Manager what are the different sources that you will use for raising equity
capital. Explain the reasons for preferring those sources?
3. What would be the grievance redressal mechanism that you will adopt as an investor in
the following situations:
(a) If there is a delay in payment of interest on debentures
(b) In case if dividends are not received by you
(c) If you lose money due to insider trading activities on a script
(d) If the advertisements are misleading
4. Select any company from the Financial Services Sector and perform a Company analysis.
Prepare a report on your findings.
5. Taking a suitable example, explain how rate of return is calculated using the Capital Asset
Pricing Model (CAPM).

MFP2 Equity Derivatives

1. What are derivatives? Briefly explain about the various derivative products and discuss in
detail the mechanism of various SWAP contracts.
2. What are Index and Stock futures? How can index and stock futures be used to hedge an
equity portfolio?
3. What is an ‘Option’? Differentiate between At the money (ATM), In the money (ITM) and
Out of the money (OTM) options. How is the minimum price of an option decided?
4. Discuss the factors used in Call option Pricing. Explain the option strategies used for the
purpose of Hedging and Arbitrage.
5. What is Value at Risk (VAR)? How it is computed? Describe the application of VAR in
deciding margins applicable to exposures taken by investors.

MFP03 Commodity Markets

1. Discuss the significance of Commodity Markets and the different components of
commodity markets ecosystem. What are the basic characteristics that entitle a commodity
for futures trading?
2. Meet a Trader who trades in Commodity Markets and discuss the delivery and settlement
procedure for trades in the Commodity Markets. Write a note on your discussions.
3. What is Exchange Risk Management? Explain the various measures adopted by the
Commodity Exchanges for the purpose of Exchange Risk Management.
4. What is ‘Emissions Trading’? Discuss the use of futures on carbon credits for mitigating
risk of increasing costs in pollution control.
5. What are the different Base Metals? Discuss the factors that impact the prices of Base
Metals with the support of examples.