LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034 M.Sc. DEGREE EXAMINATION – STATISTICS
|
THIRD SEMESTER – NOV 2006
EC 3900 – INVESTMENT MANAGEMENT
Date & Time : 03-11-2006/9.00-12.00 Dept. No. Max. : 100 Marks
Part – A
Answer any FIVE questions in about 75 words each. (5 x 4 = 20 marks)
- Distinguish between security and non-security forms of investment.
- What is a turn around stock?
- Why is standard deviation of returns suggested as a measure of risk?
- What is the role of correlation in reducing portfolio risk?
- Briefly explain the benefits of diversification.
- What is opportunity-threat analysis?
- What is meant by week-end effect?
Part – B
Answer any FOUR questions in about 300 words each. (4 x 10 = 40 marks)
- Explain the advantages of investing in equity shares.
- Compute the risk and return from the following data of price and dividend of a scrip
Year : 1987 1988 1989 1990 1991
Price: 11.50 11.50 19 29.50 31.50
Dividend: – 1.20 1.50 1.50 1.50
- State and explain Samuelson’s continuous equilibrium model.
- Explain Markowitz diversification and classification of risk.
- Distinguish Simulation test, Serial correlation test and filter rules.
- Briefly explain the methods of forecasting.
- Explain equilibrium of a risk-averse and risk-loving investor diagrammatically.
Part – C
Answer any TWO questions in about 900 words each. (2 x 20 = 40 marks)
- Explain the significance of Macro Economic environment in security analysis.
- State and explain Random Walk theories.
- Explain the role of variance, covariance analysis in security analysis using appropriate illustrations.
- Discuss the approaches to measurement of portfolio risk.
