[Dec-16]

[MFM-842/MPIBA-FM-1401A]
MBA & IMBA Degree Examination
V TRIMESTER / XIV TRIMESTER
SECURITY ANALYSIS & PORTFOLIO MANAGEMENT
(MBA: Effective from the admitted batch 2015–16)
(IMBA: Effective from the admitted batch 2012-13)
Time: 3 Hours Max.Marks: 60
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Instructions: All parts of a section must be answered in one place only.
Answer all units choosing one question from each unit.
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SECTION-A
1. Answer any FIVE of the following:
Each answer should not exceed one page. (5x4=20)
a) Investment objectives
b) Markowitz diversification
c) Intrinsic value
d) Breadth of the market
e) Efficient frontier
f) Capital market line (CML)
g) Initial public offer
h) Jensen’s measure of portfolio preference
SECTION-B
Answer the following: (5x8=40)
UNIT-I
2. a) What attributes are relevant for evaluating investment avenues?
How do various investment avenues compare in terms of these
attributes?
OR
b) What do you mean by stock indices? Describe briefly the
consumption of Bombay Stock Exchange Sensitive Index
(Sensex) and the S & P, CNX Nifty Index (Nifty)
 UNIT-II
3. a) Explain the bond price theorem
OR
b) A bond having a face value of `1,000 has a coupon rate of 12.5%.
The bond is redeemable on 31st December, 2015. The selling price
on 31st December, 2013. Find the return earned by X who
purchases and keep it up to maturity
UNIT-III
4. a) Explain the procedure commonly employed by investment analysis
to estimate the intrinsic value of equity shares
OR
b) Consider two situations, a young man ‘X’ in early twenties and
another young man ‘Y’ in late thirties. X and Y earn same amount
of money. Mr. Y has a family, a house, a car and all the
encumbrances related with the marital status. Both of them like to
invest in securities. What would be their constraints and objectives
of investment?
UNIT-IV
5. a) What are the steps taken by SEBI to protect the investors in the
Indian capital market?
OR
b) Century Mutual Fund (CMF), Treasury Bills (T-Bills) and Sensex
have had the following returns over the past five years
Year CMF T-Bills Sensex
2006 8.4% 6.0% 6.0%
2007 -6.0% 10.8% -4.8%
2008 15.6% 8.4% 12.0%
2009 13.2% 7.2% 10.8%
2010 18.0% 9.6% 14.4%

Evaluate the performance of CMF using Jenson’s differential index

and comment on the results
 UNIT-V
6. a) Discuss the Markowitz portfolio theory and the Capital market
theory
OR
b) After a detailed analysis of both the aggregate stock market and the
stock of Excel Company Ltd, an investor has developed the
following figures:
Economic Stock Market Returns of Excel
Probability
conditions returns Company Ltd.
Good 16% 20% 0.45
Fair 12% 13% 0.4
Poor 3% -5% 0.2

The present risk free rate of return is equal to 7% would you

recommend an investment in the stocks of Excel Company Ltd?

[51/V T/216]
[41/XIV T/316]