(Please write your Enrollment No.before Attempting Questions :..

Gitarattan International Business School,New Delhi

Class Test-I FOR MBA
Batch: 2012-14 Management (Major) Duration: Two Hours Semester-III Subject : Security Analysis and Investment Paper Code : MS 221 Max Marks: 30

Note: Question No one is compulsory. Attempt any other TWO Questions _______________________________________________________________________ _ Q.1 a. What do you understand by term investment as in security analysis? Describe briefly the wide array of investment avenues. As an investment advisor what attributes will you consider while evaluating an investment. b.No investment is risk free .What are the various types of risk. Can the risk be eliminated or minimized? (8+6= 14) Briefly describe the essence of fundamental and technical analysis .Would you advise the investor to use technical analysis as the only basis for investment decisions 8

Q.2

Q.3 a. The equity shares of Zenith Ltd are currently being sold in the secondary market at Rs.90 per share. Market analysts predict a year end dividend of Rs 5.20 per share and a constant dividend growth rate of 7 % is also predicted in the subsequent years. If an investor expects a return of 14% p.a., should he buy the share from the secondary market at its current price? 3 b. A stock analyst recently forecasted four economic scenarios which he believes are likely to occur with the given probabilities. Based on these scenarios the stock analyst made the following forecasts of the returns for securities A and B: Scenario High Growth Low Growth Stagnation Recession Security-A Possible Return 15% 17% 19% 20% Probability 0.50 0.20 0.10 0.20 Security- B Possible Return 12% 20% 22% 34% Probability 0.60 0.20 0.10 0.10

Estimate the expected returns and risk from the securities. As a prudent investor which security will you prefer? 5 Q.4 Write short notes on any four: 1. 2. 3. 4. 5. Differentiate Investment from speculation Efficient Market Hypothesis Elliot Wave Principle Relative strength Index Fibonacci numbers (2*4= 8)

(Please write your Enrollment No.before Attempting Questions :..)

Gitarattan International Business School,New Delhi

Class Test-I FOR MBA
Batch: 2012-14 Management (Minor) Duration: Two Hours Semester-III Subject : Security Analysis and Investment Paper Code : MS 221 Max Marks: 30

Note: Question No one is compulsory. Attempt any other TWO Questions _______________________________________________________________________ _ Q.1 Following data give the market return and company A and company B scripe Company A 24.00 25.00 23.63 23.63 25.00 26.75 27.25 26.00 26.70 27.70 25.60 24.50 which company is more volatile . 14 Q.2 Explain the Elliot five wave theory. How does this theory is applied into the stock market? 8 3 Company B 50.38 48.88 47.75 48.88 51.38 48.50 55.38 54.38 55.28 41.38 48.30 49.50 NSE 857.07 862.46 858.89 861.33 853.78 872.02 859.68 871.91 878.53 807.23 877.72 893.82

Q.3 a. Define Risk. What are the different types of risk influences investment?

b. A stock analyst recently forecasted four economic scenarios which he believes are likely to occur with the given probabilities. Based on these scenarios the stock analyst made the following forecasts of the returns for securities A and B: Scenario High Growth Low Growth Stagnation Recession Security-A Possible Return 14% 16% 17% 28% Probability 0.50 0.20 0.10 0.20 Security- B Possible Return 17% 25% 28% 36% Probability 0.60 0.20 0.10 0.10

Estimate the expected returns and risk from the securities. As a prudent investor which security will you prefer? 5 Q.4 Write short notes on any four: 1. 2. 3. 4. 5. Investment Process Purchasing power Risk Measurement of Risk Beta Components and type of Risk (2*4= 8)