Loyola College Security Analysis & Portfolio Management Question Papers

Loyola College M.Com Nov 2006 Security Analysis & Portfolio Management Question Paper PDF Download

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                           LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034          M.Com DEGREE EXAMINATION – COMMERCE

AT 24

THIRD SEMESTER – NOV 2006

       CO 3802 – SECURITY ANALYSIS & PORTFOLIO MANAGEMENT

 

 

Date & Time : 25-10-2006/9.00-12.00   Dept. No.                                                       Max. : 100 Marks

 

 

SECTION – A

Answer ALL questions:                                                                        ( 10 x 2 = 20 )

 

  1. What is stock split?

 

  1. What is Formula plan?

 

  1. Distinguish between systematic and unsystematic risk?

 

  1. What are the problems encountered in portfolio revision?

 

  1. What do you mean by portfolio diversification?

 

  1. Bring out the unique feature of strong form of Efficient Market theory?

 

  1. What is derivative?

 

  1. What do you mean by Listing of shares.

  2.      Give any two differences between investment and speculation.

 

  1. In what way investment in financial asset is superior to investment in physical asset?

 

SECTION – B

Answer any five questions:                                                                    ( 5 x 8 = 40 )

 

  1. Discuss the key macroeconomic variables and their impact on stock market.

 

  1. Give a brief account of various participants involved in securities market?

 

  1. What are the various policies of Portfolio management?

 

  1. What are the assumptions of Markowitz theory?

 

  1. There are two securities X and Y, which provide you the following returns and their
    probabilities.
Security X Security Y
Return Probability Return Probability
30% 0.10 -20% 0.05
20% 0.20 10% 0.25
10% 0.40 20% 0.30
5% 0.20 30% 0.30
-10% 0.10 40% 0.10

Calculate the expected rate of security X and security Y.

 

 

 

  1. The cost of capital and rate of return of a company is 10% and 15%. The company has one
    million equity shares of 10 each and its EPS is Rs.5 per share.  Calculate the value under
    Walter when (a) retention is 100% (b) retention is 50% and (c) no retention.

 

  1. An investor is seeking the price to pay for a security whose SD is 3%. The correlation
    coefficient of the security in the market is 0.8.  The market SD is 2.2%.  The return from
    Government securities is 5.2%.  The return from market portfolio is 9.8%.  Find the required
    rate of return using capital asset pricing model.

 

  1. Ram & Co. has at present outstanding 50000shares selling at Rs.100 each. The company is
    contemplating to declare a dividend of Rs.5 per share at the end of the current year.  The
    captialisation rate of company is 10%. The management expects to earn a net income of
    Rs.5,00,000 and decides to invest Rs.10,00,000 in a project.  Show the price of the share at
    the end of the year if (a) a dividend is declared and (b) a dividend is not declared.

 

SECTION – C

Answer any TWO questions:                                                                 ( 2 x 20 = 40 )

 

  1. Give an elaborate account of various factors involved in a company analysis?

 

  1. Describe the factors and the principles considered in the portfolio management.

 

  1. (a) What are criteria to be observed for the proper selection of portfolio?
  • Give a brief account of the factors responsible for causing internal risk in investment?

 

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Loyola College M.Com April 2007 Security Analysis & Portfolio Management Question Paper PDF Download

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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

TH 46

M.Com. DEGREE EXAMINATION – COMMERCE

THIRD SEMESTER – APRIL 2007

CO 3802 – SECURITY ANALYSIS & PORTFOLIO MANAGEMENT

 

 

 

Date & Time: 24/04/2007 / 9:00 – 12:00      Dept. No.                                       Max. : 100 Marks

 

 

SECTION – A

Answer ALL questions:                                                                                                         (10 x 2 = 20 )

 

  1. Enumerate various Investment attributes.

 

  1. What do you understand by gambling?

 

  1. What is unique risk?

 

  1. List out the assumptions of Random walk theory.

 

  1. Highlight the important feature of Filter Test.

 

  1. Under what situation the ‘Rupee cost average’ plan is applied?

 

  1. What is portfolio? What are its objectives?

 

  1. What are the problems encountered in Portfolio revision?

 

  1. R & Co. had a dividend payout ratio of 30%, earnings per share Rs.10. Its internal rate of return is 20% and the normal capitalization rate or cost of capital is 25%. What is the price of share under Walter Model?

 

  1. A Rs.1,000 bond matures in 20 years and offers a 9% coupon rate. The required rate of return is 11%. Compute the bond’s value.  (11%, 20 years = 7.963; 11%, 20 years = 0.124)

 

 

SECTION – B

Answer any FIVE questions:                                                                                                    (5 x 8 = 40 )

 

  1. Highlight the stages of investment process.

 

  1. What are the criticisms posed against the efficient market hypothesis?

 

  1. Lay out various steps involved in Portfolio construction.

 

  1. Explain three principles of Port Folio diversification.

 

  1. Give an account of various tests conducted under Semi-strong form.

 

 

 

 

 

  1. A company belongs to a risk-class for which the appropriate capitalization rate is 10%. It currently has outstanding 25,000 shares selling at Rs.100 each.  The firm is contemplating the declaration of dividend of Rs.5 per share at the end of the current financial year.  The company expects to have a net income of Rs.2,50,000 and a proposal for making new investment of Rs.5,00,000.  Show that under MM assumption, the payment of dividend does not affect the value of the firm.

 

  1. An investor is seeking the price to pay for a security, whose standard deviation is 3%. The correlation coefficient for the security with the market is 0.8 and the market standard deviatin is 2.2%. The return from government securities is 5.2% and from the market portfolio is 9.8%. The investor knows that, by calculating the required return, he can then determine the price to pay for the security.  What is the required return on the security?

 

  1. The following information is available in respect from security X under different economic conditions:

Economic condition                Return                         Probability

Good                                       20%                                   0.1

Average                                   16%                                   0.4

Bad                                         10%                                   0.3

Poor                                           3%                                   0.2

Find out the expected return of the security and the risk associated with that.

 

SECTION – C

Answer any TWO questions:                                                                 ( 2 x 20 = 40 )

 

  1. What is portfolio management? Explain the process involved and the factors contributing to Portfolio management?

 

  1. Give an elaborate account of various Investment alternatives available to the investors.

 

  1. Write note on
  • Capital Asset Pricing Model
  • Bond Valuation theorm
  • Markowitz Portfolio
  • Gordon’s Dividend Model

 

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Loyola College M.Com Nov 2008 Security Analysis & Portfolio Management Question Paper PDF Download

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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

QB 21

M.Com. DEGREE EXAMINATION – COMMERCE

THIRD SEMESTER – November 2008

    CO 3802 – SECURITY ANALYSIS & PORTFOLIO MANAGEMENT

 

 

 

Date : 03-11-08                 Dept. No.                                        Max. : 100 Marks

Time : 9:00 – 12:00

                                   SECTION – A                  Answer ALL questions:                      ( 10 x 2 = 20  )

 

  1. What do you understand by securities?
  2. What is private placement?
  3. State the special benefits available to the equity shareholders.
  4. Identify any two major factors that affect the investment decisions.
  5. Highlight some of the obstacles in the way of an analyst in the investment process.
  6. What is the Run Test? How it differs from other tests conducted under Efficient Market

    Theory?

  1. What is Capital Asset Pricing Model?
  2. What do you mean by ‘Filtering’ under Weak form market?
  3. Explain how diversification is different from revision of portfolio?
  4. Find the portfolio variance of a portfolio consisting of equities, bonds and real estate, if the portfolio

weights are 0.15, 0.10 and 0.05 respectively.  Following are also given:

The standard deviations are 20% for equity, 35% for bonds and 40% for real estate.

The correlations are 0.45 per equity and bonds, 0.35 for equities and real estate, and 0.20 for bonds

and real estate.

 

                                               SECTION – B     Answer any five questions                   ( 5 x 8 = 40 )

 

  1. Distinguish between real assets and financial assets.
  2. Bring out the features and advantages of investing in bonds
  3. a) What is arbitrage model? (3)
  4. b) Calculate the returns under the arbitrage model: (5)  
Factor Market price of  risk Sensitivity Index
Inflation 10% 1.5
Industrial production 7% 1
Risk premium 5% 1.2
Interest rate 4% -0.75

 

Other details:

  1. The risk free interest =10%
  2. The expected return = 20%

 

 

 

  1. Following is the information available in respect of rate of return of two securities A and B in different economic conditions:
Economic condition Probability Rate of Return
Security A (%) Secutrity B (%)
Recession .20 -15 20
Normal .50 20 30
Boom .30 60 40

Find  out the expected returns and the standard deviation for these securities . Assume

that an investor has Rs.20,000 to invest and he wants to invest Rs.15,000 in security A

and the balance in security B, what  will be expected return of the portfolio.?

 

  1. Give a brief account of three movements of share prices under Dow Theory.
  2. State and explain assumptions involved in the CAPM-Theory.
  3. Here are four Mutual Funds

            Fund               Return                        S.D                  Beta

            ABC                   16                  8                    1.50

            QWA                  14                  5                    1.40

            RDS                    18                 10                   0.75

            YTR                  15                   7                   1.25

If the risk free rate is 7%, rank the funds based on (i) Sharpe and (ii) Treynor Model

  1. Mr.Bhave is considering several investments. The risk-free rate of return is currently 6.5%,

      and the expected return for the market is 12%.  What should be the required rates of return for      

      each investment (using the CAPM)?

            Security          A                     B                     C                     D                     E

            Beta                1.20                 0.80                 1.50                 0.60                 1.25

Find out which security gives the best and least return?

SECTION – C

Answer any TWO questions:                                                                 ( 2 x 20 = 40 )

 

  1. Discuss in detail the functions and the various institutions involved in the primary

Market operations.

  1. Elaborate the various stages involved in the Portfolio management process.
  2. Write short notes on the following:
  • Unsystematic risk
  • Valuation multiples in company analysis
  • Relative strength under Technical analysis
  • Uniqueness of Mutual funds

(e) Monetary policy.

 

 

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Loyola College M.Com April 2009 Security Analysis & Portfolio Management Question Paper PDF Download

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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

M.Com. DEGREE EXAMINATION – COMMERCE

KP 48

THIRD SEMESTER – April 2009

CO 3802 – SECURITY ANALYSIS & PORTFOLIO MANAGEMENT

 

 

 

Date & Time: 16/04/2009 / 1:00 – 4:00         Dept. No.                                                       Max. : 100 Marks

 

 

SECTION – A

Answer ALL questions:                                                                        ( 10 x 2 = 20 )

 

  1. What is meant by portfolio management?
  2. Write a short note on “options and futures”.
  3. What do you understand by risk?
  4. How to measure a risk?
  5. Identify the factors on which the profit potential of an industry depends upon.
  6. Distinguish between Technical Analysis and Fundamental Analysis.
  7. What is Capital Asset Pricing Model?
  8. In what way stock split affect the share price movement?
  9. Why Strong form of market hypothesis is not popular as Weak form hypothesis?
  10. The investor is seeking an efficient portfolio in the correlation of 0.7 between the portfolio

and the market and the S.D is 2.5.  Market S.D is 1.4%.  Market rate of return is 16%.  The

risk free rate of return is 8%.  What is the required rate of return?

 

SECTION – B

Answer any five questions:                                                                    ( 5 x 8 = 40 )

 

  1. Compare and contrast between speculation and investment.
  2. Briefly explain the functions of a secondary market.
  3. List out and explain the classification of risks involved in the investment process.
  4. 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                              0.50                               107                                 5

Bad                                   0.25                                 97                                 3

Find out the expected return and variability of returns of the equity share.

  1. Discuss the basic concepts underlying Chart Analysis.
  2. Give a brief summary of tests conducted and their results under semi strong form of

efficient market hypothesis.

  1. What do you mean by Weak Form Market? Bring out its assumptions.
  2. Mittal owns a portfolio of two securities with the following expected returns, standard

deviation and weights:

Security Expected Return Standard Deviation  Weight
X 15% 18% 0.30
Y 20% 23% 0.70

What is maximum and minimum portfolio standard deviation for varying levels of correlation between two securities?

SECTION – C

Answer any TWO questions:                                                                 ( 2 x 20 = 40 )

 

  1. Discuss in detail the various alternative methods of investment available.
  2. Explain in detail the various segments of macro economic variables of fundamental analysis

of portfolio.

  1. Write note on
  • Fiscal policy
  • Systematic Risk
  • Risk exposure in company analysis
  • Support level and resistance level in Chart Techniques
  • Institutional investors

 

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Loyola College M.Com Nov 2010 Security Analysis & Portfolio Management Question Paper PDF Download

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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

M.Com. DEGREE EXAMINATION – COMMERCE

THIRD SEMESTER – NOVEMBER 2010

    CO 3802  – SECURITY ANALYSIS & PORTFOLIO MANAGEMENT

 

 

 

Date : 29-10-10                 Dept. No.                                        Max. : 100 Marks

Time : 9:00 – 12:00

 

SECTION – A            Answer ALL questions                                               ( 10 x 2 = 20 )

 

  • What do you mean by ‘return’?
  • What are the two basic investment avenues?
  • What are the precautions to be taken while investing in real estate?
  • What is diversification of portfolio?
  • What are the limitations of CAPM?
  • Highlight the important points of Markowitz model.
  • What is stock split? How the stock price is affected by it?
  • What are tools used for judging undervaluation or overvaluation of investment?
  • Security A and B have standard deviations of 5% and 8%

Mr.X is planning to invest 30% of his funds in security A and the balance in Security B.

Ascertain portfolio risk, if correlation is 1.

  • A company’s return was 20% and that of the stock market as a whole was 15%. The standard deviation of the portfolio was 10%, while that of the market is 5%.  The risk free rate is 6%.  What is the Sharpe measure of the company’s portfolio? Comment on its performance.

 

 

 

 

 

SECTION – B                Answer any five questions                                       ( 5 x 8 = 40 )

 

  • Who is an investor? Bring out his characteristics.
  • Highlight the features of Firm specific analysis under Fundamental factors.
  • What are the obstacles faced by an investment analyst?
  • On what basis efficient market theory is criticized?
  • What are the points to be considered in Portfolio evaluation?
  • Explain the constraints of the investors in formulating their investment objectives.
  • KK invested Rs.10,000 each in shares of X Ltd. and Y Ltd. which carry a risk of 10% and 12% respectively. He had computed the risk of his portfolio as 11% being the weighted average risk. Subsequently on learning about correlation he desires to re-compute the risk of his portfolio.  He finds that the correlation co-efficient between X Ltd. and Y Ltd. is 0.25.  what is the risk of his portfolio?
  • From the following information, calculate the expected rate of return of a portfolio:

Risk free rate of interest 12%; Expected return of market portfolio 18%; standard deviation of an asset 2.8%; market standard deviation 2.3%; correlation co-efficient of portfolio with market 0.8%.

 

 

 

 

 

 

SECTION – C              Answer any TWO questions                                       ( 2 x 20 = 40 )

 

  • How the risk is classified? Explain in brief.

 

  • Bring out the unique features of Technical analysis highlighting its various forms.

 

  • What do you mean by portfolio construction and revision? Identify and discuss the factors contributing to portfolio management.

 

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Loyola College M.Com April 2011 Security Analysis & Portfolio Management Question Paper PDF Download

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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

M.Com. DEGREE EXAMINATION – COMMERCE

THIRD SEMESTER – APRIL 2011

CO 3802 – SECURITY ANALYSIS & PORTFOLIO MANAGEMENT

 

 

Date : 08-04-2011             Dept. No.                                        Max. : 100 Marks

Time : 1:00 – 4:00

 

SECTION – A Answer ALL questions                                ( 10 x 2 = 20 )

 

  1. What do you mean by ‘return’?

2. Differentiate between Technical and Fundamental analysis.

  1. What should you bear in mind while monitoring the global macro economy?
  2. Identify the factors on which the profit potential of an industry depends upon.
  3. What is the Run Test?
  4. What are the problems encountered in Portfolio revision?
  5. What are the limitations of CAPM?
  6. How the constant ratio plan works under portfolio construction?
  7. Bring out any four advantages of foreign institutional investors
  8. Mr. S is the officer of a Mutual Fund. He found that his portfolio had earned a return of 20% and had a beta of 1.2. During the same period, the stock market as a whole went up by 15%. If the risk free rate of return is 6%, compute the Treynor measure for the purpose. Comment on the portfolio performance?

 

SECTION – B                    Answer any five questions      ( 5 x 8 = 40 )

 

  1. Who is an investor? Bring out his characteristics.
  2. What are the criticisms posed against the efficient market hypothesis?
  3. Enumerate the assumptions of Random walk theory.
  4. Give a brief summary of tests conducted and their results under semi strong form of

efficient market hypothesis.

  1. Give a brief account of three movements of share prices under Dow Theory.

 

 

 

  1. Why investment in financial investment is preferred compared to physical

investment?

  1. Discuss the various ways of minimizing risks.
  2. Novel owns a portfolio of two securities with the following expected returns, standard

deviations, and weights:

 

Security Expected Return Standard deviation weight
X 12% 15% .40
Y 15% 20% .60

 

What are the (i) Maximum and (ii) Minimum portfolio standard deviations for varying levels of correlation between two securities?

 

SECTION – C         Answer any TWO questions                                ( 2 x 20 = 40 )

 

  1. Explain in detail the various segments of macro economic variables of fundamental analysis of portfolio.
  2. What are the various investment alternatives? Explain in brief
  3. Elaborate various stages in the Portfolio management process.

 

 

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Loyola College M.Com April 2012 Security Analysis & Portfolio Management Question Paper PDF Download

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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

M.Com. DEGREE EXAMINATION – COMMERCE

THIRD SEMESTER – APRIL 2012

CO 3802 – SECURITY ANALYSIS & PORTFOLIO MANAGEMENT

 

 

 

Date : 21-04-2012             Dept. No.                                        Max. : 100 Marks

Time : 1:00 – 4:00

 

SECTION – A                  Answer ALL questions                              ( 10 x 2 = 20 )

 

  1. What is mean by investment?

 

  1. What are the two components of Indian capital market?

 

  1. What are the determinants of expected return?

 

  1. In what way the financial investment is different from general investment?

 

  1. On what basis strong form of efficient market hypothesis differ from the weak form?

 

  1. Explain any two key factors involved in firm specific analysis.

 

  1. What are the features of contingent investment?

 

  1. What do mean by portfolio?

 

  1. Information about return on an investment is as follows: (a) risk free rate 10%; (b) market return is 15%; (c) beta is 1.2. What should be the return from the investment?

 

  1. Security A and B have standard deviations of 5% and 8%. Mr. Shyam is planning to invest 30% of his funds in security A and the balance in Security B. Ascertain portfolio risk, if correlation is 1.

 

SECTION – B                                         Answer any five questions                                      ( 5 x 8 = 40 )

 

  1. What is charting technique? What are its underlying basic concepts?
  2. Enumerate the assumptions of Random walk theory.

 

  1. On what basis efficient market theory is criticized?

 

  1. What are the points to be considered in Portfolio evaluation?

 

  1. Give an account of various tests conducted under Semi-strong form.

 

  1. Distinguish between systematic and unsystematic risk.

 

  1. What are the assumptions of CAPM?

 

  1. Novel owns a portfolio of two securities with the following expected returns, standard deviations, and weights:
Security Expected Return Standard deviation weight
X 12% 15% .40
Y 15% 20% .60

What are the (i) Maximum and (ii) Minimum portfolio standard deviations for varying levels of correlation between two securities?

 

SECTION – C                                              Answer any TWO questions                           ( 2 x 20 = 40 )

 

  1. Give a brief of the economic wide factors involved the investment decision making process.

 

  1. What is portfolio construction and revision? Identify and discuss the factors contributing to portfolio management.

 

  1. Write short notes on:
  2. a) Titular investment
  3. b) Speculation
  4. c) Stock split
  5. d) Dow Theory
  6. e) Foreign institutional investors

 

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Loyola College M.Com Nov 2012 Security Analysis & Portfolio Management Question Paper PDF Download

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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

M.Com. DEGREE EXAMINATION – COMMERCE

THIRD SEMESTER – NOVEMBER 2012

CO 3802 – SECURITY ANALYSIS & PORTFOLIO MANAGEMENT

 

 

Date : 01/11/2012            Dept. No.                                        Max. : 100 Marks

Time : 9:00 – 12:00

SECTION – A                                   Answer ALL questions                                               ( 10 x 2 = 20 )

 

  • What do you mean by Investment Attributes?
  • Why public prefer physical investment for financial investment?
  • What is Arbitrage Pricing Theory Model?
  • Distinguish Technical Analysis from Fundamental Analysis.
  • What is stock split?
  • Give the meaning of the following:
  1. Price Earning Ratio
  2. External Commercial Borrowing
  3. Return on Investment
  4. Dividend Pay out Ratio
  • What is diversification of portfolio?
  • What is risk penalty?
  • Given Rf as 8%, Rm as 15%. The standard deviation of the market portfolio is 2%.  The investor has constructed a portfolio which has a standard deviation of 1.5% and a correlation with the market return of .85.  Calculate the expected return of the investor?
  • Find the portfolio variance of a portfolio consisting of equities, bonds and real estates, if the portfolio weights are 30%, 45% and 35%. The standard deviations are 0.1986, 0.615 and 0.945 respectively. The correlations are 0.40 per equity and bonds, 0.30 for equities and real estates and 0.25 for bonds and real estate.

 

SECTION – B                Answer any five questions                                       ( 5 x 8 = 40 )

 

  • Give a brief account of the various characteristic feature of an investor.

 

  • What do you understand by internal business risk? Explain.

 

  • Enumerate the assumptions of Capital Asset Pricing Model.

 

  • How the company’s present situation and prospects are appraised?

 

  • Explain the significance of beta in portfolio selection.

 

  • In what way strong form of efficient market theory is unique from other forms?

 

 

 

  • Following is the data regarding six securities –
Securities A B C D E F
Return (%) 8 8 12 4 9 8
Risk (%) (SD) 4 5 12 4 5 6

Which of the securities will be selected? Assuming the perfect correlation, whether it is preferable to invest 75% in sec.A and 25% in sec.C

 

  • M Fund invests in three different funds – Fund A, Fund B and Fund C –
Fund Value invested Return Standard Deviation
A Rs.2.5 crores 15.50% 3.20%
B Rs.6.0 crores 19.20% 4.50%
C Rs.1.5 crores 12.80% 1.50%

Correlation between the funds are: AB – 0.30, AC – 0.50 and BC – 0.20

If the risk free return is 5% and the return on Nifty is 17% with a standard deviation of market ( is 3% and the standard deviation of the portfolio ( is 3.11%, ascertain the Sharpe’s index for the fund and evaluate its performance.

 

SECTION – C              Answer any TWO questions                                       (2 x 20 = 40 )

 

  • What are the various investment alternatives? Explain in brief.

 

  • Explain various charting techniques used in identifying the daily fluctuations of secondary price movement.

 

  • Write short notes
  1. Speculation
  2. Time value of money
  3. Product life cycle in industry analysis
  4. Filtering Test under Weak form

 

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