1I Sessional examination II Sessional examination

MBA III Semester MBA III Semester

Security Analysis and Investment Management Security Analysis and Investment Management

Max. Marks:30 Time 1:30 hr Max. Marks:30 Time 1:30 hr

Note: Attempt all questions. All questions carry equal marks. Note: Attempt all questions. All questions carry equal marks.

1. Determine the present value of the bond with a face value of RS 1000 1. Determine the present value of the bond with a face value of RS 1000
coupon rate of Rs 90, a maturity period of 5 years for the expected yield coupon rate of Rs 90, a maturity period of 5 years for the expected yield
to maturity of 8 %. to maturity of 8 %.
OR OR
Define bond valuation theorems Define bond valuation theorems

2. Define various forms of the market efficiency? 2. Define various forms of the market efficiency?
OR OR
Diagrammatically explain the gain or loss of a call buyer and writer. Diagrammatically explain the gain or loss of a call buyer and writer.

3. What is simple diversification? Will it reduce total risk or unsystematic 3. What is simple diversification? Will it reduce total risk or unsystematic
risk? risk?
OR OR
Define Capital Asset Pricing Model Define Capital Asset Pricing Model
 II Sessional examination II Sessional Examination
MBA III semester MBA III semester
Management of Working Capital Management of Working Capital
Max. Marks: 30 Time: 1 :30 hr Max. Marks: 30 Time: 1:30hr

Note: Attempt all questions. All questions carry equal marks. Note: Attempt all questions. All questions carry equal marks.

1 What are collection policies? How they can be evaluated 1 What are collection policies? How they can be evaluated
OR OR

Define economic order quantity. How it can be computed? Define economic order quantity. How it can be computed?

2. What is inventory reorder point? How it is determined? 2. What is inventory reorder point? How it is determined?
OR OR

What is factoring? Give a brief account of the major functions of a factor? What is factoring? Give a brief account of the major functions of a factor?

3. Explain any any three : 3. Explain any any three :

a) Certificate of deposits a) Certificate of deposits

b) Credit Terms b) Credit Terms

c) Costs associated with the extension of credit c) Costs associated with the extension of credit

d) A ltd. produces a product which has a monthly demand of 2ooo units.
The product requires a component X which is purchased at Rs 10. For
every finished product one unit of product is required. The ordering
cost is 60 Rs per order and the holding cost is 5 % per annum.
Calculate EOQ.
d) A ltd. produces a product which has a monthly demand of 2ooo units.
The product requires a component X which is purchased at Rs 10. For
every finished product one unit of product is required. The ordering
cost is 60 Rs per order and the holding cost is 5 % per annum.
Calculate EOQ.