Exam Details
| Subject | investment management (major) | |
| Paper | ||
| Exam / Course | mba | |
| Department | ||
| Organization | TKR Institute Of Management & Science | |
| Position | ||
| Exam Date | June, 2017 | |
| City, State | telangana, hyderabad |
Question Paper
FACULTY OF MANAGEMENT
MBA III Semester Examination, April 2017
Subject: Investment Management
Elective I Finance
Course No. 3.4.1
Time: 3 Hours Max. Marks: 80
Note: Answer all the questions
PART A (10x2 20 Marks)
[Short Answer Type]
1 Write short notes on the following:
Real Assets Vs Financial Assets
Sources of Risk
Features of Bonds
Macauly's duration
Price earnings ratio
Free cash flows
Security market line
Arbitrage pricing
Open ended funds
NAV
PART B (5x12 60 Marks)
[Essay Answer Type]
2 Discuss the procedure and limitations of fundamental analysis.
OR
Distinguish between three forms of market efficiency.
3 A bond pays a coupon rate of 12 percent per annum on a face value of Rs. 1500
and matures in 3 years. If it has a yield of 15 percent what is its price.
OR
A bond has a par value of Rs. 1000 with six years to maturity and a 12 percent
coupon payable semi-annually. If the YTM is find its duration.
4 Explain the significance of P/E ratio in equity valuation.
OR
AB Ltd recently paid an annual dividend of Rs. 4.00 per share. Earnings for the
same period were Rs. 7.00 per share. The required return on equity with similar risk
is 12%. Dividends are expected to grow at 10 percent per year indefinitely. Calculate
AB's price earnings ratio.
…2.
OU 2260 OU 2260
Code No. 9098
5 Compare and contrast capital asset pricing model and arbitrage pricing theory.
OR
The expected returns and betas of four stocks are given below:
Stock Expected
Return Beta
A 15 1.32
B 11 0.90
C 15 1.20
D 20 1.12
Assume the market return as 19% and risk free return as 12%. Determine which of
the stocks are overvalued and undervalued.
6 What is portfolio performance evaluation? What are the different perspectives that
can be adopted for evaluation of performance of investment activity?
OR
Consider the following information for three mutual funds B and C and the market.
Stock Mean
Return
Standard
Deviation Beta
A 15% 20% 0.90
B 17% 24% 1.10
C 19% 27% 1.20
Market index 16% 20% 1.00
The mean risk free rate is 10 percent. Calculate Sharpe's measure. Treynor's
measure and Jensen's measure for the three funds and for the market index.
MBA III Semester Examination, April 2017
Subject: Investment Management
Elective I Finance
Course No. 3.4.1
Time: 3 Hours Max. Marks: 80
Note: Answer all the questions
PART A (10x2 20 Marks)
[Short Answer Type]
1 Write short notes on the following:
Real Assets Vs Financial Assets
Sources of Risk
Features of Bonds
Macauly's duration
Price earnings ratio
Free cash flows
Security market line
Arbitrage pricing
Open ended funds
NAV
PART B (5x12 60 Marks)
[Essay Answer Type]
2 Discuss the procedure and limitations of fundamental analysis.
OR
Distinguish between three forms of market efficiency.
3 A bond pays a coupon rate of 12 percent per annum on a face value of Rs. 1500
and matures in 3 years. If it has a yield of 15 percent what is its price.
OR
A bond has a par value of Rs. 1000 with six years to maturity and a 12 percent
coupon payable semi-annually. If the YTM is find its duration.
4 Explain the significance of P/E ratio in equity valuation.
OR
AB Ltd recently paid an annual dividend of Rs. 4.00 per share. Earnings for the
same period were Rs. 7.00 per share. The required return on equity with similar risk
is 12%. Dividends are expected to grow at 10 percent per year indefinitely. Calculate
AB's price earnings ratio.
…2.
OU 2260 OU 2260
Code No. 9098
5 Compare and contrast capital asset pricing model and arbitrage pricing theory.
OR
The expected returns and betas of four stocks are given below:
Stock Expected
Return Beta
A 15 1.32
B 11 0.90
C 15 1.20
D 20 1.12
Assume the market return as 19% and risk free return as 12%. Determine which of
the stocks are overvalued and undervalued.
6 What is portfolio performance evaluation? What are the different perspectives that
can be adopted for evaluation of performance of investment activity?
OR
Consider the following information for three mutual funds B and C and the market.
Stock Mean
Return
Standard
Deviation Beta
A 15% 20% 0.90
B 17% 24% 1.10
C 19% 27% 1.20
Market index 16% 20% 1.00
The mean risk free rate is 10 percent. Calculate Sharpe's measure. Treynor's
measure and Jensen's measure for the three funds and for the market index.
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- accounting for management
- banking and insurance
- business analytics
- business communication
- business intelligence
- business law and environment
- business process reengineering
- business research methods
- compensation management (hr)
- compensation management (major)
- consumer behaviour (major)
- customer relationship management
- database management systems
- decision support systems
- e-business
- economic environment & policy
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- financial management
- financial risk management (f)
- financial risk management (major)
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- fundamentals of technology management
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- i.t. applications for management
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- innovation management
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- labour laws and employee relations
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