M.Com. DEGREE EXAMINATION, NOVEMBER/DECEMBER 2017.
Third Semester
SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
(Common for M.Com. (Professional and General))
2 30134-A
Time 3 Hours Max. Marks 70
SECTION — A
Answer any FIVE questions. 4 20 Marks)
Each question carries 4 marks.
1. Investment Vs Speculation.
2. Types of Investment.
3. Explain Systematic Risk.
4. Preference Shares.
5. Economic Analysis.
6. Explain Markowitz.
7. Arbitrage pricing theory.
8. Capital Market Line.
SECTION — B
Answer ALL questions. 10 50 Marks)
Each question carries 10 marks.
9. Define Financial Instruments and Explain different types of Financial
Instruments.
Or
Define Investment and explain characteristics of Investments.

10. Calculate the expected return and the standard deviation of returns for a
stock having the following probability distribution of returns:
Possible Returns (in percent) Probability of Occurrence
-25 0.05
-10 0.10
0 0.10
15 0.15
20 0.25
30 0.20
35 0.15
Or
Explain bond pricing theorems.
11. Explain EIC Framework.
Or
Define technical analysis and explain principles of technical analysis and also
explain DOW theory.
12. Explain efficient market and discus EMH theory.
Or
Consider a portfolio of tour securities with the following characteristics:
Security Weighting Bi Residual Variance ei
2
1 0.2 2.0 1.2 320
2 0.3 1.7 0.8 450
3 0.1 -0.8 1.6 270
4 0.4 1.2 1.3 180
Calculate the return and Risk of the portfolio under single index model, if the
return on market index is 16.4 percent and the standard deviation of return
on market index is 14 percent.
13. Explain about Risk-free lending and borrowing.
Or
Explain Capital Market Theory.
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