Investment and portfolio management
- Section I is compulsory
- Attempt any 3 questions from section II
- Your assumptions and working notes shall form part of your answer
Section I
Q.1) explain in brief the following                                                                                                                (15)
- Technical analysis
- Dividend discount model
- Initial public offer
- Investment and speculation
- Present value of annuity
Q.2) you are the portfolio management’s services. An investor approaches you to seek your advice on deploying hiss surplus funds of rs.30 lacs in various investments’. He is ready to bear the risk of 40% of his investments .he desires to get regular income as well as fair return at the end if he holds the investments for a period of 5 years. You are required to make an investment plan for him and construct a portfolio using various investments alternative                                                                                           (15)
Section II
Q.3) Discuss the role of SEBI I investors production                                                                              (10)
Q.4) what is technical analysis? How it is different from fundamental analysis.                              (10)
Q.5) a) Mr. Mehta plans for his daughter marriage after 6 years. He expects the cost of the marriage to be Rs. 10, 00,000. How much he saves annually to have a sum of Rs. 10, 00, 000 at the end of 6 years. If interest rate is 8% Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (5)
b) Mrs. Vaidehi purchased 400 shares of jai hind ltd. @Rs. 50 on each on 10 Feb 2008. She paid brokerage of Rs.200. she received dividend from the company as follows. Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (5)
June 2008Â Â Â Â Â Â Â Â Â Â Â Â Â 150
June 2009Â Â Â Â Â Â Â Â Â Â Â Â Â 300
June 2010Â Â Â Â Â Â Â Â Â Â Â Â Â 450
She sold all her holdings on 12th Feb. 2011 for Rs.34000- what is her holding period return?
Q.6) MNO’s ltd. Share is quoted @ Rs.20 on BSE currently. The company pays Rs. 1 per share as dividend and investor expects a growth rate of 5% per year compute                                              (10)
I.           Expected rate of return
II.           If the anticipated growth is 6% p.a., calculate the indicative market price.
III.           Advice on the basis of indicative market price computed above whether it is profitable to invest in the shares of MNO ltd. At its current price on BSE.
Evaluate and comment on the following securities with the help of Sharpe’s Treynor and Jenson measure;
|
YEAR |
RETURNS |
|||
| SECURITY N | SECURITY O | MARKET | ||
|
2003 2004 2005 2006 2007 |
17 19 12 18 22 |
20 17 07 19 24 |
15 18 20 22 19 |
17 19 08 15 18 |
|
BETA |
0.7358 |
1.2461 |
0.2409 |
1 |
Risk free rate of return is 7%.
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