DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, DECEMBER 2017.
Third Semester
INVESTMENT ANALYSIS AND PORTFOLIO
MANAGEMENT
(2013-14 Academic Year and 2014 Calendar year onwards)
Time Three hours Maximum 100 marks
SECTION A — x 8 40 marks)
Answer any FIVE questions.
All questions carry equal marks.
1. What is investment? Is investment different from
Speculation and Gambling?
2. What are the criticisms of variance as a measure of risk?
3. What are the key characteristics of Economic Analysis?
4. Explain the single and two factorial models of portfolio
construction and choice.
5. Security J has a beta of 0.75 while security K has a beta
of 1.45. Calculate the expected return for these securities,
assuming that the risk free rate is 5 per cent and
expected return of the market is 14 percent.
6. Distinguish between the security market line and capital
market line.
7. Write short notes on: portfolio audit.
8. What is superfluous diversification?
Sub. Code
34
DE-3347
2
wk4
SECTION B — × 15 60 marks)
Answer any FOUR questions.
All questions carry equal marks.
9. Explain the factors influencing the evaluation of fixed
income securities.
10. Thangavelu wants to buy Mannar company's stock and
hold on it for five years. He estimates that Rs. 3.44
dividend would be paid by the company continuously for
the next five years. He hopes to sell the shares at Rs. 60
at the end of the fifth year. What is the present price? His
required rate of return is 10%.
11. How do volume and breadth of the market indicate the
trend of the market?
12. Explain Markowitz Portfolio Selection method.
13. Explain the efficient market hypothesis and three forms
of market efficiency.
14. What are the assumptions of Formula plans? Enumerate
its advantages and disadvantages.
15. What is a fair game? Will risk-averter investors/
risk-neutral investors/risk-preferring investors enter into
a fair game?
—————