Tybms Sem5 Iapm Nov18

Paper / Subject Code: 46003 / Finance:Investment Analysis & Portfolio Management
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Duration :2.30 Hours Marhs : 75
NB: (1) All questions are compulsory having intenial option. 6P=S
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(2) Figures to the right indicate marks allotted to each question. t \ t*rt -,-ir, f I
(3) Simple calculator allowed.
i. (A) Match the following columns. (Any 8)

k'r<'# (08 Marks)
Column A Column B
1 PPF A Liquidity.ratio
2 NIFTY B Uncertain & high return
a
J U4systematic Risk C William sharpe
4 Standard deviation D Elliot wave theory
5 Net Profit ratio E Technical Analvsis
6 Study of Charts & pattem. F Profitability ratio
1 Dow Theory G Measure of Risk
8 Capital Assets Pricing rnodel', H Controllable
9 Gambling I NSE
10 Current ratio J Highly illiquid
1.(B) Cive Tnre or False: (Any 7) (07 MaLks)

I ) Invesrments are ruade with primary objective of deriving returns.
2) Capital gain refels to increase in value of investments over a period of time.
3)Non - Marl<erable financial assers can be sold in capital market.
4) Public Provident Fund is a savings cum tax saving instrument in India.
5) Treasury Bills are one of the riskiest Money market instruments issued by Central Government.
6) Commercial Paper is a short term unsecured promissory note issued by Corporate and Financial
Institutions.
7) Equiry shareholdeLs does noL cany right of dividend.
8) Secondary Market is a market where existing securities are purchased and sold.
9; Merger and Acquisitions are rnajor functions of lnvestrnent Bankers.
l0) NSDL is the largest central security depository based in Mumbai.
2.(A) Explain the Non- rnarketable Financial Assets. (08 Marlcs)

2. (B) Explain in brief the objectives of Investrnent. (07 Marks)
OR
2. As Portfolio Management Consultant, you are approached by Mr. Wagh, aged 35 with investible funds of
Rs. 10 lakhs. He wants to know from you the following:
(i) What are the investment avenues available to him which will give a suitable return with maximr.un
return?
(ii) What are the various types of risks? (15 Mallis)

3. (A) Calculation of Beta of each of the following two companies with the help of given iufomration.
(08 Marks)
Ilethvi Market
Year Rudra Ltd Ltd return
1 20 r9 20
2 18 16 t7
J l7 13 t4
4 2I 19 2A
5 24 23 24
3. (B) The rate of return of stock Mocktail and Cocktail under different status of economy are given belorv :
Particular Boom Normal Recession

Probability 0.30 0.45 0.25
Return of stock 35 ,55,' 70
Mocktail (%)
Return of stock 70 35,
Cocktail (%)
a) Calculate the expected retum and standard deviation of return on both the stock.
bt llyou could invest in either stock Mocktail or stock Cocktail, but not in both. Which stocl<
would you prefer? (07 Marks)
OR
3. Following is information about shares of Modi T td. and Gandhi Ltd. Under in various economic
conditions. At present both the shares are traded at Rs. 100.
Expected Price of the

shares (Rs.)
Modi
Situation Prohahilifv Ltd. Gandhi Ltd.
Hieh Growth 0.30 r40 150
Low Growth 0.40 110 100
Stagnation 0.20 r20 t20
Recession 0.10 100 80
(i) Which company has rnore risk to invest?

(ii) Mr. Kapil wants to invest Rs. 10,000.
(iii) Will your decision change if probabilities are 0.4,0.4,0.1, 0.1 respectively. (15 Marks)
4 (A) Give a brief on Technical Analysis. (08 Marks)

(B) what are charts? Explain the types of charts. (07 Malks)
OR
4. Following information is available relating to Lokesh Limited and Mayur fimiteO.

Particulars Lokesh Limited Mayirx [,i6i1.4
Equity Share Capital (Rs.10 face Rs.400lakhs Rs.500lakhs
value)
l2o/o P r eference Share s Rs.1601akhs Rs;20o lakhs
Profit after tax Rs.100lakhs Rs,140lakhs
Proposed Dividend Rs.70lakhs Rs.S0lakhs
Market Price Per Share Rs.400 Rs.560
Cur:rent Assets Rs.160lakhs Rs.180lakhs
Cument Liabilities Rs.80lakhs Rs.90lakhs
Calculate :
(i) Earnings per share (ii) P/E Ratio (iii) Dividend Payout Ratio (iv) Retum on Equity Shares (v) Current
Ratio
As an analyst infonl the investor which is good in investing, (15 Markst
5. (A) The Expected return and Beta factors of 3 securities are as follows:
Securities Expected Return (%) Beta
Kotak Ltd. 18 1.6
Ganatra Ltd. 10 0.8
Thakkars Ltd. T2 1.2
If the risk free rate rs 1 oh and market retums are 12 %. Calculate returns for each security under CAPM.
(08 Mark:.;
5. (B) The details of three portfolios are given below.

Portfolio Average Beta Standard
Return on Deviation
Portfolio (%)
Nobeta 18 1.4 ,
0.30
Sezuka 12 0.9 0.35
Sunio t6 1.1 0.40
Market Index 14 1.0 0.25
Compare these portfolio on performance using Sharpe and Treynor measures.

Rish Free return is 8 %. (07 Marks)
OR
5. Give short notes on: (Any Three) (15 Marks)
l. CAPM Model
2. Elloit Wave Theory
3. Hybrid Schemes
4. Secondary market
5. Sensex
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Paper / Subject Code: 46003 / Finance:Investment Analysis & Portfolio Management

Tqen..sf se'">Vf 2s ll,l?

Duration :2.30 Hours Marhs : 75

i. (A) Match the following columns. (Any 8)

1.(B) Cive Tnre or False: (Any 7) (07 MaLks)

2.(A) Explain the Non- rnarketable Financial Assets. (08 Marlcs)

(ii) What are the various types of risks? (15 Mallis)

Particular Boom Normal Recession

Expected Price of the

(i) Which company has rnore risk to invest?

4 (A) Give a brief on Technical Analysis. (08 Marks)

4. Following information is available relating to Lokesh Limited and Mayur fimiteO.

5. (B) The details of three portfolios are given below.

Compare these portfolio on performance using Sharpe and Treynor measures.

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