SECURITY ANALYSIS & PORTFOLIO MGMT MAY08 - M.B.A

Z4525

M.B.A DEGREE EXAMINATION, may/june 2008

BA1727 –SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

Part –a 

1. WHAT ARE the two major types of information necessary for security analysis

2. What are the features of preference shares.

3. What do you mean by underwriting.

4. What is demutualization of stock exchanges

5. What do you understand by fundamental approach to security analysis 

6. Define multiplier

7. Explain the three types of trends in stock prices

8. What do you infer from the moving average theory of technical analysis

9. What is an index fund.

10. What is the difference between SML AND CML.

Part –b

11. A) as an investment advisor what features would you suggest to be included in the investment bunch of a client explain the features briefly.

Or

b) security analysis requires as first step the sources of information on the basis of which analysis is made. What are different types of information used for security analysis

12. A) who are the key players involved in the new issues market.

Or

b)what are the objectives and functions of SEBI

13. A)industry life cycle exhibits the status of the industry and gives the clue to entry and exit for investors. Elucidate.

Or

b) how does ratio analysis reflect the financial health of a company.

14. a) how would you use ROC to predict the stock price movement . kindly elucidate with example.

or

b)chart patterns are helpful in predicting the stock price movement comment.

15). A) the following three portfolios provide the particulars given below .

Portfolio average annual return standard deviation correlation co-efficient

A 18 27 0.8

B 14 18 0.6

C 15 8 0.9

MARKET 13 12 -

RISK free rate of interest 9%

i. rank these portfolios using sharpe’s and treynor’s methods

ii. compare both the indices

Or

b).what are the basic assumptions of CAPM. What are the advantages of adopting CAPM model in the portfolio management.