Exam Details
| Subject | introduction to investment | |
| Paper | ||
| Exam / Course | b.b.a. | |
| Department | ||
| Organization | loyola college | |
| Position | ||
| Exam Date | November, 2017 | |
| City, State | tamil nadu, chennai |
Question Paper
1
LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034
B.B.A. DEGREE EXAMINATION BUSINESS ADMINISTRATION
FIFTH SEMESTER NOVEMBER 2017
BU 5404 INTRODUCTION TO INVESTMENT
Date15-11-2017 Dept. No. Max. 100 Marks
Time: 09:00-12:00
PART A
Answer ALL the questions (10 x 2 20 Marks)
1. What do you mean by Investment?
2. What are Real assets?
3. State any two features of Equity shares.
4. What NAV refers to?
5. What is Financial risk?
6. Differentiate between SML and CML.
7. Write down the formula for calculating YTM.
8. Define the term Capital Return.
9. Write down the formula for calculating EPS.
10. What are the stages of Industry Life cycle?
PART B
Answer any FOUR questions x 10 40 Marks)
11. Explain the objectives of Investments.
12. Discuss the Tax saving schemes available in the financial market.
13. Explain the different sources of systematic risk.
14. Discuss the characteristics of a Bond.
15. Explain the techniques of Present value of money.
16. What are the assumptions of CAPM model.
17. Mr.Sanjay has purchased 100 shares of Rs.10 each of Reliance Ltd in 2011 at Rs .820 per share. The
Company has declared a dividend of 40% for the year 2016-17. The Market price of the share as at
2016 was Rs.920 and on 31-3-2017 was Rs.1200. Calculate the annual return on the investment for the
year 2016-17.
PART C
Answer any TWO questions x 20 40 Marks)
18. Explain the techniques for Valuing Equity shares based on dividends and earnings.
19. Explain how financial ratios can be used to determine the strength and weakness of a company.
2
20. The following information is available in respect of the return from Security Omega Ltd under different
economic conditions. Find out the Expected return and the risk associated with the security (Standard
deviation).
Economic Condition Return Probability
Good 20% 0.1
Average 16% 0.4
Bad 10% 0.3
Poor 0.2
21. Given the following information
Portfolios A B C D
Beta 1.10 0.8 1.8 1.4
Return 14.5 11.25 19.75 18.5
Standard
deviation
20 17.5 26.3 24.5
Risk free rate of return Market return :12 Calculate Sharpe ratio, Treynor ratio and Jensen ratio.
LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034
B.B.A. DEGREE EXAMINATION BUSINESS ADMINISTRATION
FIFTH SEMESTER NOVEMBER 2017
BU 5404 INTRODUCTION TO INVESTMENT
Date15-11-2017 Dept. No. Max. 100 Marks
Time: 09:00-12:00
PART A
Answer ALL the questions (10 x 2 20 Marks)
1. What do you mean by Investment?
2. What are Real assets?
3. State any two features of Equity shares.
4. What NAV refers to?
5. What is Financial risk?
6. Differentiate between SML and CML.
7. Write down the formula for calculating YTM.
8. Define the term Capital Return.
9. Write down the formula for calculating EPS.
10. What are the stages of Industry Life cycle?
PART B
Answer any FOUR questions x 10 40 Marks)
11. Explain the objectives of Investments.
12. Discuss the Tax saving schemes available in the financial market.
13. Explain the different sources of systematic risk.
14. Discuss the characteristics of a Bond.
15. Explain the techniques of Present value of money.
16. What are the assumptions of CAPM model.
17. Mr.Sanjay has purchased 100 shares of Rs.10 each of Reliance Ltd in 2011 at Rs .820 per share. The
Company has declared a dividend of 40% for the year 2016-17. The Market price of the share as at
2016 was Rs.920 and on 31-3-2017 was Rs.1200. Calculate the annual return on the investment for the
year 2016-17.
PART C
Answer any TWO questions x 20 40 Marks)
18. Explain the techniques for Valuing Equity shares based on dividends and earnings.
19. Explain how financial ratios can be used to determine the strength and weakness of a company.
2
20. The following information is available in respect of the return from Security Omega Ltd under different
economic conditions. Find out the Expected return and the risk associated with the security (Standard
deviation).
Economic Condition Return Probability
Good 20% 0.1
Average 16% 0.4
Bad 10% 0.3
Poor 0.2
21. Given the following information
Portfolios A B C D
Beta 1.10 0.8 1.8 1.4
Return 14.5 11.25 19.75 18.5
Standard
deviation
20 17.5 26.3 24.5
Risk free rate of return Market return :12 Calculate Sharpe ratio, Treynor ratio and Jensen ratio.
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- accounting for decision making
- business & society
- business environment
- business ethics and csr
- business management
- business policy & strategy
- company accounts
- company law & sec. practice
- consumer behaviour
- corporate accounting
- cost accounting
- elements of company law
- elements of operations research
- elements of statistics
- entrepreneurship
- financial accounting
- financial institutions
- financial management
- financial services
- finiancial accounting package using tally
- fundamentals of investments
- human resource management
- indirect tax
- industrial relations
- international business management
- international marketing
- introduction to investment
- introduction to statistics
- labour laws
- legal aspects of business
- logistics & supply chain management
- management accounting
- management information system
- mercantile law
- principles of marketing
- product brand and service management
- production management
- project management
- retail management
- rural marketing
- strategic management
- supply chain management
- working capital management