## Loyola College B.Com Corporate & Secretaryship April 2008 Portfolio Management Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – CORPORATE SECRETARYSHIP

# GF 18

SIXTH SEMESTER – APRIL 2008

# BC 6602 / CR 6602 – PORTFOLIO MANAGEMENT

Date : 23/04/2008                Dept. No.                                        Max. : 100 Marks

Time : 9:00 – 12:00

# PART – A

(10 x 2 = 20)

1. Define investment.
2. Who is a gambler?
3. What does Net Asset Value mean?
4. Write a note on Bonus Shares.
5. What is Security Market Line?
6. Define the term Beta.
7. A bond of Rs.5000 with a 10% coupon rate matures in 7 years and currently

sells at 97.5%. Calculate the YTM.

1. Output 100000 units. Selling Price Rs.4 per unit, Variable Cost Rs.2 per unit,

Fixed Cost Rs.40000. Its capital structure consists of 9% Bank Loan Rs.1 lakh

and Equity share Capital @ Rs.10, Rs.5 lakhs. Tax rate 40%. Calculate EPS.

1. Risk free rate is 7%. The market risk premium is 10.5% and the Beta of the

security is 1.5. Calculate the expected return of the security under CAPM.

10.The market price of an equity share is Rs.100. Following information is

available in respect of dividends, market price and the expected market

condition after one year.

 Market Condition Probability Market Price (Rs.) Dividend (Rs.) Good 0.25 115 9 Normal 0.5 107 5 Bad 0.25 97 3

Find out the expected return.

# PART – B

(5 x 8 = 40)

1. Briefly explain the secondary objectives of investment.
2. What are the economy-wide factors that affect the fundamental analysis?
3. Define Capital Asset Pricing Model. Bring out its basic assumptions.
4. Differentiate constant rupee plan from constant ratio plan.
5. “Investment in Mutual funds are better than equity shares” – Comment.
6. Two securities, X and Y have variance of 13 and 12 and the expected returns

of 15% and 12% respectively. The covariance between the returns is 3. Find

out the return and risk of the following portfolios:

 Security X Security Y (I) 0.2 0.8 (ii) 0.7 0.3 (iii) 0.5 0.5

1. Six Portfolios experienced the following results during a 7-year period:
 Portfolio Average Return Standard Deviation Correlation with market I 18.6 27 0.81 II 14.8 18 0.65 III 15.1 8 0.98 IV 22 21.2 0.75 V – 9 4 0.45 VI 26.5 19.3 0.63

The risk free rate of interest is 9% and the market risk is 12%. Rank these

portfolios using (a) Sharpe’s and (b) Treynor’s Ratio

1. Growth Fund, Trade bills and BSE Sensex had the following returns over the

past 5 years.

 Year Growth Fund Returns % Trade Bills Returns % BSE Sensex Returns % 2003 9 6 6 2004 – 6 10 – 5 2005 14 8 11 2006 12 7 10 2007 16 9 13

# PART – C

(2 x 20 = 40)

1. Explain the systematic and unsystematic risk with relevant examples.

20.What are the various forms of investment alternatives? Give a detailed

account of any eight.

1. The following information is available in respect of investment in A & B
 Conditions Probability Returns from A (%) Returns from B (%) DULL 0.2 10 6 STABLE 0.5 14 15 GROWTH 0.3 20 11

(i) Calculate:

• Expected return and standard deviation of the investments A & B
• Covariance
• Correlation

(ii) What will be return if total investment is divided one half in each?

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## Loyola College B.Com Corporate & Secretaryship April 2009 Portfolio Management Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – CORPORATE SECRETARYSHIP

 IR 18

SIXTH SEMESTER – April 2009

# BC 6602 – PORTFOLIO MANAGEMENT

Date & Time: 21/04/2009 / 9:00 – 12:00     Dept. No.                                                       Max. : 100 Marks

SECTION – A

1. Answer all the questions: 10 x 2 = 20 Marks

1. What are the different types of portfolios?
2. What do you mean by speculation?
1. What is a passive portfolio?
2. What is meant by systematic risk?
3. What is need for diversification in portfolio?
4. Define the term SML.
5. Define the term Bond.
6. What are preference shares?
7. What is Constant ratio plan?
8. An investor purchased a bond at a price of Rs.900 with Rs.100 as coupon payment and sold it at Rs.1,000. What is his holding period return?

SECTION – B

1. Answer any FIVE questions only: 5 x 8 = 40 Marks

1. Define Investment. Explain the process of investment.
2. Following information is available in respect of the rate of return of two securities

A and B in different economic conditions:

 Condition Probability Rate of return Rate of return Security A Security B Recession 0.20 – 0.15 0.20 Normal 0.50 0.20 0.30 Boom 0.30 0.60 0.40

Find out the expected returns and the standard deviations for these two securities.  Suppose, an investor has Rs.20,000 to invest.  He invests Rs.15,000 in Security A and balance in Security B, what will be the expected return of the portfolio?

1. What are the salient features of Constant rupee value plan?

1. Pearl and Diamond are the two mutual funds.  Pearl has a mean success of 0.15 and Diamond has 0.22.  The Diamond has double the beta of Pearl fund’s 1.5.  The standard deviations of Pearl and Diamond funds are 15% & 21.43%.  The mean return of market index is 12% and its standard deviation is 7.  The risk free rate is 8%.

Compute the Jensen Index for each fund

1. Explain in detail the various investment avenues.
2. Explain with examples the concept of systematic and unsystematic risks.
3. What is meant by Capital Asset Pricing Model?
4.  Explain the following:
• penny stocks (b) Demat (c) Dividend yield (d) Beta

SECTION – C

III. Answer any TWO questions only:                                            2 x 20 = 40 Marks

1. Stocks L and M have yielded the following returns for the past two years:

 Years Returns (%) L M 2007 12 14 2008 18 12

1. What is the expected return on the portfolio made up of 60% of L and 40% of M?
2. Find out the standard deviation of each stock.
3. What is the covariance and co-efficient of correlation between L and M?
4. What is the portfolio risk of a portfolio made up of 60% of L and 40% of M?

1. The following three portfolios provide the particulars given below:

 Portfolio Average Return Std. Deviation Correlation A 18 27 0.8 B 14 18 0.6 C 15 8 0.9 MARKET 13 12 —

Risk free rate of interest is 9. Rank these portfolios using Sharpe and Treynor methods.

1. Explain in detail the Economic, Industry and Company analysis.

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## Loyola College B.Com Corporate & Secretaryship April 2011 Portfolio Management Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – CORPORATE SEC.

SIXTH SEMESTER – APRIL 2011

# BC 6602 – PORTFOLIO MANAGEMENT

Date : 07-04-2011              Dept. No.                                        Max. : 100 Marks

Time : 9:00 – 12:00

PART –A

ANSWER ALL QUESTIONS                                                                                      (10 x 2 = 20marks)

1. Define the term ‘Portfolio’.
2. Differentiate between σ and β as a measure of risk.
3. State the components of Rate of return.
1. What is meant by Yield to Maturity?
2. Write short notes on Diversification.
3. What are the risks associated with investment in Bonds?
4. Give the meaning of ‘formula plans’
5. A 4 year bond with 7% coupon rate which matures at Rs.1000 is currently traded at Rs.905. Calculate YTM if the investor’s required rate is 10%.
6. A stock has a required rate of return of 11% as per CAPM. Market return = 10% and risk free return = 5%. Calculate Beta and state whether the stock is defensive or aggressive.
7. Evaluate the performance of the following portfolio as per Treynor’s Ratio:

Portfolio Return, RP = 50%            Market return, RM = 30%

σ P = 25%                                    σM = 20%

Risk free rate Rf  = 10%

PART – B

ANSWER ANT FIVE QUESTIONS                                                                         (5 x 8 = 40marks)

1. Bring out the objectives of an investment.
2. What are the stages in the Industry Life Cycle? Explain the significance of this concept to an investor.
3. What are the fixed income securities available to an investor?
4. Briefly explain the variables that affect the valuation of Bonds.
5. What are the assumptions of CAPM? Are there any limitations of this model?
6. Stocks R & S display the following return over the past three years.

Year                          R(%)                S(%)

2004                         10                    12

2005                         16                    18

2006                         12                     5

What is the expected risk and return of Portfolio made up of 40% of R and 60% of  S?

1. The return of two assets under four possible state of nature is given below.
 State of nature Probability Return on asset 1 Return on asset 2 1 0.10 5% 0% 2 0.30 10% 8% 3 0.50 15% 18% 4 0.10 20% 26%

a)What is the standard deviation of the return on asset 1 & asset 2?

1. b) What is the covariance between the return on asset1& asset 2?

1. The following information is available in respect of securities A and B:

Security    β         Expected return     Risk premium

A        0.50                 ?                          4%

B        1.75                20%                       ?

On the basis of the following information, find out whether the following

securities are over  – priced or under priced:

 security β Expected return(%) I 2.00 20 II 0.75 14 III 1.25 15 IV -0.25 5 V 3.25 31

PART – C

ANSWER ANY TWO QUESTIONS                                                                       (2 x 20 = 40 marks)

1. Systematic risk cannot be controlled while unsystematic risk can be reduced. Elucidate.
2. Explain the concept of Economic analysis for Investment decision.
3. After a thorough analysis of the aggregate stock market and the Stock of TMT company, you develop the following opinion:

Likely returns

 Economic conditions Aggregate market TMT Probability Good 16% 20% 0.4 Fair 12% 13% 0.4 Poor 3% – 5% 0.2

At present the risk free rate is equal to 7%. Would an investment in TMT be

wise?

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## Loyola College B.Com Corporate & Secretaryship April 2012 Portfolio Management Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – CORPORATE SEC.

SIXTH SEMESTER – APRIL 2012

# BC 6602 – PORTFOLIO MANAGEMENT

Date : 18-04-2012              Dept. No.                                        Max. : 100 Marks

Time : 1:00 – 4:00

PART – A

Answer All the Questions:                                                                                         (10×2 =20 marks)

1. Briefly explain the objectives of investment.
2. List the different types of risk.
3. What is Beta?
4. Explain Constant ratio plan.
5. What is meant by warrants?
6. Why is industry analysis important?
7. A bond of Rs.1000 face value, bearing a coupon rate of 12% will mature after 7 years. What is the value of the bond if the discount rate is 14 %?
8. S Ltd would pay Rs.2.50 as dividend per share for the next year and expected to grow indefinitely at 12 % what would be the equity value if the investor requires 20 % return?
9.  The expected return of the market is 15% and equity’s beta is 1.4. The risk free rate of interest is 7 %. Estimate the stock return using CAPM.
10.  Net profit after tax Rs.Two lakhs, Equity share capital (Rs.10 each) Rs.One lakh. 10 % Preference shares (Rs. 10 each) Rs. Two lakhs. Calculate EPS.

PART – B

Answer any FIVE Questions:                                                                                   (5×8 =40 marks)

1. Differentiate Investments and speculations.
2. What are the statistical tools used to measure the risk of the securities return? Explain.
3. Explain CAPM theory
4. Write short note on a) sweat equity b)  zero coupon bonds c) treasury bills
5. Discuss any four factors considered to be most important in appraising companies in different industries.

1. Given the data below on two companies A and B.  Calculate the expected return from the two companies and standard deviation as a risk measure of companies. Which one is better for return and risk estimates.

 Outcome Company A Company B Expected return Probability Expected return Probability 1 6 0.3 8 0.2 2 10 0.5 14 0.5 3 12 0.2 18 0.3

1. Stocks of M and N have the following parameters

 Stock M Stock N Expected return 20 30 Expected 16 25 Covariance MN 20

Is there any advantage of holding a combination of M and N?

1. A Rs.100 par value bond bearing a coupon rate of 11 % matures after 5 years. The expected yield to maturity is 15 %. The present market price is Rs.72. Can the investor buy it ?

PART – C

Answer any TWO Questions:                                                                                  (2×20 =40 marks)

1. Explain the steps involved in investment management process and the sources of investment information.

1. What is fundamental analysis? Elaborate.

1. The following three portfolios provide the particulars given below:

 Portfolio Average annual return Standard Deviation Correlation Coefficient A 18 27 0.8 B 14 18 0.6 C 15 8 0.9 Market 13 12 —

Risk free rate of interest is 9.

1. Rank these portfolios using Sharpe’s and Treynor’s methods.
2. Compare both the indices.

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## Loyola College B.Com Corporate & Secretaryship April 2015 Portfolio Management Question Paper PDF Download Go To Main Page

## Loyola College B.A. Economics April 2006 Portfolio Management Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.A. DEGREE EXAMINATION – ECONOMICS

SIXTH SEMESTER – APRIL 2006

# EC 6600 – PORTFOLIO MANAGEMENT

(Also equivalent to ECO600)

Date & Time : 19-04-2006/FORENOON     Dept. No.                                                       Max. : 100 Marks

PART – A

Answer any FIVE questions in about 75 words each.       (5 ´ 4 = 20 Marks)

1. Distinguish between securitised and non-securitised investments.
2. What is the shape of the total utility curve for a risk lovers?
3. What is the relationship between risk and return in portfolio management?
4. Distinguish between diversifiable risk and non-diversifiable risk.
5. What is price-earnings ratio effect?
6. What is meant by weak end effect in portfolio analysis?
7. Distinguish between LIFO and FIFO.

PART – B

Answer any FOUR questions in about 250 words each.   (4 ´ 10 = 40 Marks)

1. What are the advantages of fixed income securities?
2. Explain the main investment attributes.
3. State and explain Samuelson’s continuous equilibrium model.
4. Bring out Markowitz diversification and classification of risk.
5. Distinguish clearly characteristic line from SML and CML.
6. Explain the concept of efficient frontier using risk-return relationship.
7. Distinguish between risk averse and risk loving investors in terms of their total utility functions.

PART – C

Answer any TWO questions in about 900 words each.     (2 ´ 20 = 40 Marks)

1. Examine the research relating to efficient market theory with reference to different efficient market hypotheses.
2. Elucidate the sources of risk in terms of traditional, latest structure and MPT classifications.
3. Discuss the equilibrium of an investor using the efficient frontier.
4. Estimate total risk and systematic risk for the following data:
 Quarter 1 2 3 4 5 6 7 8 9 10 Company index 14 -22 47 7 42 30 14 32 30 2 Market index 12 1 -26 -8 22 16 12 -10 23 11

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## Loyola College B.A. Economics April 2007 Portfolio Management Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034      B.A. DEGREE EXAMINATION – ECONOMICS

SIXTH SEMESTER – APRIL 2007

# EC 6600 – PORTFOLIO MANAGEMENT

Date & Time : 16.04.2007/9.00-12.00          Dept. No.                                                        Max. : 100 Marks

PART A               (5 X 4 = 20 marks)

Answer any FIVE questions in 75 words each. Each question carries FOUR marks.

1. Explain the concepts of risk and return employed in portfolio management.
2. What is a mutual fund? Give suitable examples.
3. The current annual interest rate in India is 6% while its UK counterpart is 4%. The price of £1 in the spot market is Rs.85. Price a one-year forward contract for the Rupee-Pound exchange rate.
4. Define the concept of excess return used in efficient market hypothesis.
5. What are the three forms of market efficiency identified by Fama?
6. State Paul Cootner’s price-value interaction model.
7. Calculate expected return and the standard deviation of returns for a stock with the following probability distribution:

 Condition returns (%) -34 -18 0 20 24 26 30 Occurrence probability 0.05 0.15 0.2 0.2 0.15 0.15 0.1

PART B            (4 X 10 = 40 marks)

Answer any FOUR questions in 250 words each. Each question carries TEN marks.

1. Differentiate between forward/future contracts and options.
2. What are factor models? How are they relevant for Arbitrage Pricing Theory?
3. Present the various empirical evidences supporting market efficiency.
4. Stocks A and B have yielded the following returns for the past three years:

Returns (%)

 Stock 2004 2005 2006 A 26 20 14 B 30 24 16

1. a) What is the expected return on a portfolio made up of 60% of A and 40% of B?
2. b) Find out the standard deviation of each stock.
3. c) What is the covariance and coefficient of correlation between A and B?
4. d) What is the portfolio risk of the portfolio made up of A and B?

1. Using a numerical example show how an interest rate swap can result in a win-win solution for the two parties to the swap contract.

1. Consider the following single period binomial process for a given stock price.

The current stock price is \$18 and with probability 0.5 this price will rise to \$23.

With the complementary probability, the price will fall to \$11. Assuming that the

risk-free rate is 9% and the exercise price is \$15 determine the price of a one-

period European call option and a one-period European put option.

1. In the absence of arbitrage, derive the formula employed in the pricing of forward contracts.

PART C             (2 X 20 = 40 marks)

Answer any TWO questions in 900 words each. Each question carries TWENTY marks.

1.   Explain the importance of Arrow-Debreu securities, replicating portfolios and

arbitrage opportunities within the state preference model of asset pricing.

1.   What is portfolio management? Discuss the various functions of portfolio

management.

1.   a)  Within the context of mean-variance analysis, explain the importance of

correlation, the efficient set, the risk-free asset and the tangency portfolio.

(10 marks)

1. b) The following table presents the expected returns and standard deviations for

three stocks and the market index. The risk-free interest rate is 5% and the stock market is in CAPM equilibrium.                                      (10 marks)

Name

## Brown plc

7% 8%
Cornelius plc 12% 19%
Watkins plc 15% 26%
Market index 11% 15%

1. i)   What are the ‘beta’ values for each of the three stocks? Explain which

stock would be the best investment if the market was expected to rise?

1. ii) What are the covariances of the returns of each of these stocks with the

returns on the market?

iii) What is the numerical equation of the capital market line (CML) for this

market? Identify whether the stocks plot on the CML and explain what

you conclude from this.

1.  a)   The Black-Scholes formula for the price of a European call option is derived

in a continuous-time framework. How do Black-Scholes call option prices

depend on i) the exercise price, ii) the risk-free interest rate and iii) the

volatility of the underlying asset price?                                     (10 marks)

1. The current stock price of IOB is Rs.72. Both a call and a put option are

to be written on IOB’s equity with an expiry of 6 months and an exercise

price of Rs.70. Assume that volatility is 20% per annum and risk-free interest

rate is 10% per annum. Determine the price of the call and put options using

the Black-Scholes model.                                                           (10 marks)

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## Loyola College B.A. Economics April 2008 Portfolio Management Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.A. DEGREE EXAMINATION – ECONOMICS

# BC 26

SIXTH SEMESTER – APRIL 2008

# EC 6600 – PORTFOLIO MANAGEMENT

Date : 16/04/2008             Dept. No.                                        Max. : 100 Marks

Time : 9:00 – 12:00

PART-A

Answer any FIVE questions in about 75 words.                                 (5 x 4 = 20 Marks)

1. Define the concept portfolio management.
2. Explain the meaning and objectives of Investment.
3. Differentiate Risk and Return.
4. Explain the structure of the Capital Market.
5. Define the arbitrage pricing theory.
6. Explain the technique of moving averages analysis.
7. Define the concept Efficient Market Theory.

PART-B

Answer any FOUR questions in about 250 words.                         (4 x 10 = 40 Marks)

1. What are the factors determining risk?
2. What are the assumptions of Capital Market Theory?
3. What is security market line? Illustrate with an example.
4. Explain the significance of Portfolio Analysis.
5. What are the advantages of Mutual Funds?
6. What is called preference share? If a company has issued 14% preference shares and the investors expect 13% return from the shares, what is its values?
7. Write a short note on Futures and options.

PART-C

Answer any TWO questions in about 900 words.                               (2 x 20 = 40 Marks)

1. Explain the concepts Capital Market line and Security Market line with a suitable diagram.
2. Suppose there are two securities A and B with beta of 1.2 and 0.8 respectively. The return on the market portfolio is18 percent. The rate of return offered by government securities which are considered to be risk-free is 9 percent. Calculate the expected return on securities A and B.

1. Discuss Sharpe’s Single Index Model.
2. What are the macro factors determining economic analysis?

1. (a) ABC Ltd is considering a new five- year project. Its investment costs and annual profits are

projected as follows;

 Investment Profits Year Rs. 0 [2,50,000] 1 40,000 2 30,000 3 20,000 4 10,000 5 10,000

The residual value at the end of the project is expected to be Rs. 40,000 and depreciation of the original investment is on straight line basis. Using average profits and average capital calculate the ARR for the project and the pay back period.

1. Consider the following three securities and calculate the portfolio return and risk

 Stock I Stock II Stock III Expected return 10 12 8 Standard deviation 10 15 5

Correlation coefficients:

Stocks -> 1, 2 = 0.3

2, 3=0.4

1, 3 =0.5

The proportion of investments is;

Stock I = 0.2

Stock II = 0.4

Stock III = 0.4

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## Loyola College B.A. Economics April 2010 Portfolio Management Question Paper PDF Download Go To Main Page

## Loyola College B.A. Economics April 2011 Portfolio Management Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.A. DEGREE EXAMINATION – ECONOMICS

SIXTH SEMESTER – APRIL 2011

# EC 6600 – PORTFOLIO MANAGEMENT

Date : 05-04-2011              Dept. No.                                       Max. : 100 Marks

Time : 9:00 – 12:00

PART – A

1. What is risk?
2. Define portfolio management.
3. What is risk free asset?
4. Analyse singular optimal risky portfolio.
5. What is swap valuation?
6. Discuss hedging.
7. State the meaning of transaction cost.

PART – B

1. Bring out the types of managed portfolios.
2. Distinguish between systematic and unsystematic risks.
3. Explain capital asset pricing model.
4. Discuss Samuelson’s continuous equilibrium model.
5. Analyse the various types of derivative assets.
6. Discuss the put-call parity theorem.
7. Explain the binomial option pricing model.

PART – C

1. Analyse Markowitz diversification and classification of risks.
2. Examine the different forms of market efficiency
3. Explain Black-Scholes option pricing model.
4. Discuss the methods of managing foreign exchange risks.

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## Loyola College B.A. Economics April 2012 Portfolio Management Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.A. DEGREE EXAMINATION – ECONOMICS

SIXTH SEMESTER – APRIL 2012

# EC 6600 – PORTFOLIO MANAGEMENT

Date : 16-04-2012              Dept. No.                                        Max. : 100 Marks

Time : 1:00 – 4:00

PART –  A

1. What are the different types of managed portfolios?
2. Distinguish between risk and return.
3. State the meaning of Portfolio management.
4. Give the structure of the Capital Market.
5. Distinguish between investment and speculation.
6. What is swap valuation?
7. What is hedging?

PART – B

1. Discuss the methods of measuring risk.
2. Analyse the Arbitrage Pricing Theory.
1. Discus Cootner’s model.
2. Bring out the various types of derivative assets.
3. Explain the demerits of forward hedging.
4. Describe the Markowitz diversification and classification of risk.
5. Analyse the currency swaps.

PART – C

1. Explain the functions of portfolio management.
2. Discuss the capital asset pricing model.
3. Analyse Black-Scholes option pricing model.
4. Bring out the methods of managing foreign exchange risks.

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## Loyola College B.A. Economics Nov 2012 Portfolio Management Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.A. DEGREE EXAMINATION – ECONOMICS

SIXTH SEMESTER – NOVEMBER 2012

# EC 6600 – PORTFOLIO MANAGEMENT

Date : 05/11/2012             Dept. No.                                       Max. : 100 Marks

Time : 1:00 – 4:00

PART – A

1. Discuss briefly the wide array of investment avenues.
2. What are the key differences between an investor and a speculator?
3. How many inputs are needed for a portfolio analysis involving 75 securities if

covariances are computed using (a) Markowitz approach and (b) the Sharpe index model?

1. What is Diversification?
2. Explain Put Call Parity relationship.
3. Discuss the strategies of Hedging.
4. Explain the currency swaps.

PART-B

1. Discuss briefly the key steps involved in the Portfolio management process.
2. Explain the Types of Risk.
3. Briefly explain the APT Model.
4. Bring out the Factors that determine the Option price.
5. Analyse Cootners price value interaction model.
6. A portfolio consisting of five securities is listed below. Calculate each stock’s expected

return. Then using these individual security’s expected returns, compute the

portfolios expected returns.

 Stock Initial investment value Expected End of period investment value Proportion of portfolios initial market value A 5000 7000 20.0% B 2500 4000 10.0 C 4000 5000 16.0 D 10000 12000 40.0 E 3500 5000 12.0

1. If the risk-free return is 10% and the expected return on BSE index is 18% ( and risk measured by

standard deviation is 5%), how would you construct an efficient portfolio to produce a 16% expected

return and what would be its risk?

PART-C

1. Write a note on Single Index market theory.
2. Explain Markowitz Portfolio selection model.
3. Enumerate CAPM model.
4. Analyse the methods of managing foreign exchange risk.

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## Loyola College B.A. Economics April 2015 Portfolio Management Question Paper PDF Download Go To Main Page

## Loyola College B.A. Economics April 2016 Portfolio Management Question Paper PDF Download Go To Main Page

## Loyola College B.A. Economics Nov 2016 Portfolio Management Question Paper PDF Download Go To Main Page

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