Sixth Semester B
Sixth Semester B
Sixth Semester B
I. Select the most appropriate answer from the options provided, ONE mark each.
10x1=10
1. Speculator is a person _______.
a. Who evaluate performance of the company
b. Who uses his own funds only
c. Who is willing to take risk for short term gain
d. None of the above
2. Commercial papers are issued for a maximum period of
a. 7 days
b. 15 days
c. 1 Month
d. 3 Months
3. Risk Arises from various source such as
a. Market Risk
b. Competition Risk
c. International Risk
d. All of the above
4. The statistical tool used to measure the company risk is
a. Mean
b. Standard deviation
c. Mode
d. Co-Variance
5. Which is not the part of fundamental analysis
a. Company analysis
b. Industry analysis
c. Point and figure analysis
d. Economic analysis
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7. The Expected Risk free return of the stock is 15%, The Beta Coefficient value is 1. The
market return for the stock is 21%. Calculate value of the share as per CAPM Approach
8. The Average annual return of the share A is 18% and the Standard Deviation of portfolio is
27 if the standard deviation of market is 12 and correlation coefficient is 0.8 calculate the
value of share as per Treynor’s method.
Section III
III. Answer any THREE of the following, FIVE marks each: 3X5=15
1. Differentiate between Investor and Speculator.
2. Write a detailed note on fundamental analysis.
3. From the following table find the arbitrary portfolio
5. Alpha and Beta co-efficient for five stocks are given below
Stocks Alpha Beta
Craft High Corp 1.0 0.8
Crown Corp 1.35 1.15
Courtesy Corp 1.18 1.25
Cute Corp 1.25 0.95
Cure Corp 1.5 1.4
Rank 5 stocks using Jenson Performance measure
SECTION IV
IV. Answer the following questions. TEN marks each. 2X 10= 20
1. A. What do you mean by Investment? Write a detailed note on Investment process
B. The returns on securities A&B are given below.
A 18 27 1.8
B 14 18 0.9
C 15 8 0.6
Market 13 12 -
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