Spring-2016
Get solved
assignments at nominal price of Rs.125 each.
Mail us at: subjects4u@gmail.com or contact at
09882243490
Master of
Business Administration - MBA Semester 3
MF0010-Security
Analysis and Portfolio Management
(Book ID: B1754)
Assignment (60 Marks)
Note: Answer
all questions must be written within 300 to 400 words each. Each Question
carries 10 marks 6 X 10=60
Q1. Describe
the investment process.
Each step carries 2 marks for all the 5 steps – 10
Answer. The
Investment process describes the
decisions with regard to what securities to invest in while constructing a port
folio, how extensive the investment should be, and when the investment should
be made. This is a procedure involving the following five steps:
Ø Set investment Policy
Ø Perform Security analysis
Ø Construct a portfolio
Ø Evaluate the performance of Portfolio
Ø Revise the Portfolio.
Q2. Define
primary markets? Define and explain the role of financial intermediaries.
Definition of primary markets - 3
Definition of financial intermediaries - 3
Role of financial intermediaries - 4
Answer. Definition
of primary markets:
In primary market, a borrower offers new securities in
exchange for cash from the investor (buyer). Sales of bonds, treasury bills or
stocks take place in primary markets. The issuers of these securities –
corporates, the government – receive cash from people who buy these securities.
These buyers receive financial claims that previously did not exist. Corporate
or the government directly receives the proceeds from the business transaction
only in primary market.
Q3. Define
technical indicators and its types and Discuss on Candlestick charts?
Definition of technical indicators - 2
Types of technical indicators - 3
Candlestick charts - 5
Answer. Definition
of technical indicators:
Technical analysts also use technical indicators
besides charts to assess prospects for market declines/advances. A technical
indicator is a series of data points that are derived by applying a formula to
the price data of a security. Price data includes any combination of the open,
high, low or close prices over a period of time.
Q4. Briefly
explain Assumptions of Markowitz Model. Explain Efficient Frontier or Efficient
set.
Explain Assumptions of Markowitz Model - 2
Explanation on Efficient Frontier - 8
Answer. Assumptions
of Markowitz Model:
Markowitz’s model identifies the trade-off facing the
investor as one between expected return (mean) and risk (variance). It makes
the following assumptions concerning the investment market and investors’
behaviour in those markets.
• All investors have the same expected single period
investment horizon. At the beginning of the period, the investor allocates his
wealth among various assets, assigning a non-negative weight to each asset.
Q5. Explain
the assumptions of Capital Asset Pricing Model (CAPM). Give a short note on Separation
Theorem, Capital Market Line (CML) and Security Market Line (SML).
Assumptions of CAPM - 4
Separation Theorem - 3
CML and SML - 3
Answer. Assumptions
of CAPM:
Some of these assumptions of CAPM are clearly
unrealistic. But relaxing many of these assumptions would have only minor
influence on the model and would not change its main implications or
conclusions. The primary way to judge a theory is to see how well it explains
and helps predict behaviour. While CAPM does not completely explain the
variation in stock returns, it remains the most widely used method for
calculating the cost of capital.
Q6. Explain
the Structure of Mutual Fund Operations. Explain Types of Mutual Fund.
Structure of Mutual Fund - 6
Types of Mutual Fund -- 4
Answer. Structure
of Mutual Fund:
In India, mutual funds are operated by entities like
sponsors, mutual funds, trustees, asset management companies, custodians,
registrars and transfer agents. Sponsor The sponsor of a mutual fund is similar
to the promoter of a company. The sponsor could be a bank, a financial
institution or a financial services company. For example, the sponsor of
Reliance Mutual Fund is the Anil Dhirubhai Ambani Group (ADAG). The sponsor has
to obtain a license from SEBI for which it has to fulfill conditions relating
to capital, profits,
Spring-2016
Get solved
assignments at nominal price of Rs.125 each.
Mail us at: subjects4u@gmail.com or contact at
09882243490
No comments:
Post a Comment