M.B.A. DEGREE EXAMINATION, NOVEMBER/DECEMBER 2017.
Third Semester
SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
2 90138-A
Time 3 Hours Max. Marks 70
SECTION — A
Answer ALL questions. 2 10 Marks)
1. Meaning of security.
2. What is Trading?
3. Portfolio Manager.
4. Meaning of Bond.
5. What is meant by Equity?
SECTION — B
Answer All FIVE questions (with internal choice).(5 10 50 Marks)
6. Explain the process of investment in detail.
Or
Discuss the alternatives of Investment.
7. Discuss the techniques of measurement of Risk and Return.
Or
Write briefly about Risk Return Trade off.
8. Explain the process of equity valuation.
Or
Write about Risk Management in Bonds.
9. Discuss the tools and techniques of Technical analysis.
Or
What is the meaning of credit rating? Explain how it is done?

10. Explain briefly the arbitrage pricing theory.
Or
What is necessary for efficient market hypothesis? Explain clearly.
SECTION — C
(Compulsory) (10 Marks)
11. Case Study
Mr. Pramod is a conservative investor, he expects 10 percent return on his fixed
deposits in bank and 20 percent from his equity investments. He has been
considering the purchase of equity shares of a company which pays Rs.3 as
dividend in the current year and the dividends are expected to grow at 10% for the
next 3 year. Earnings in the current year are Rs.6 per share and are expected to
grow at 20 percent for the next 7 years. The shares growting at this rate generally
sell at 40 times of earnings. What price Mr. Pramod has to pay for the equity
shares?
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