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MANAGEMENT PROGRAMME Term-End Examination 0 June, 2015 oo MS-44 : SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT  1. Define 'Investment'. Explain the process and purposes of investment by the investors. 2. What are the objectives of listing of securities ?Discuss the requirements for listing of securities in stock exchange. 3. (a) Discuss the different approaches for valuation of Common Stock. (b) The book value per share of a company isZ. 145.50 and its rate of return on equity is10 percent. The company follows a dividendpolicy of 60% pay out. What is the price of its share if the capitalization rate is12 percent ? 4. How does technical analysis differ from fundamental analysis ? Discuss the various assumptions underlying in technical analysis. MS-44 1 P.T.O. 5. (a) What is Capital Asset Pricing Model ? What are the assumptions of the Capital Asset Pricing Model ? (b) From the following details, evaluate the performance of the portfolios of A and B by using Treynor's and Sharpe's Indexes and rank them. Portfolio Return Sd. Risldess return Beta (A) (B) 6.00 3.30 15.24 4.92 3.0 3.0 1.00 2.85

December, 2009

MS-44 : Security Analysis And Portfolio Management

1. What are the objectives of security analysis ? How do you measure the risk of a security ?

2. (a) "Systematic risk cannot be controlled, but unsystematic risk can be reduced". Discuss.

(b) Mr. Ranga owns Rs. 1,000 face value bond with five years to maturity. The bond has an annual coupon of Rs. 75. The bond is currently priced at Rs. 970. Given an appropriate discount rate of 10%, should Ranga hold or sell the bond.

June, 2010

Ms-44 : Security Analysis and Portfolio Management

1. What do you understand by 'Investment' ? Explain the steps involved in the investment process.

2. (a) Define risk. What are the statistical tools that are used to measure risk of securities return ?

(b) Mr. Vamsi is considering the purchase of a bond currently selling at Rs. 878.50. The bond has four years to maturity, face value of Rs. 1,000 and 8% coupon rate. The next annual interest payment is due after one year from today. The required rate of return is 10%.

June, 2011

MS-44 : Security Analysis and Portfolio Management

1.  What do you understand by 'investment ' ? Explain the various factors, which form the basis of the investment process.

2.  (a) Discuss the main provisions of the Securities Contracts (Regulation) Act, 1956 governing the Stock Exchange in India.

(b) The company GVK’s next year dividend per share is expected to be Rs. 3.50. The dividend is expected to grow at a  rate of 10 percent per year in subsequent years. If the required rate of return is 15 percent per year, what should be the price of its shares ? The prevailing market price is Rs. 75 per share.

December, 2011

Ms-44 : Security Analysis and Portfolio Management

1. 'The investment environment has undergone several changes in India since 1991'. Discuss this statement and explain the three elements of investment environment.

2. (a)  What are the objectives and functions of Securities Exchange Board of India ?

(b) A bond has a par value of Rs. 1,000. It has a coupon rate of 9%. It matures after 8 years. Its current market price is Rs. 800. What is the yield to maturity of the bond ?

December, 2012

Ms-44 : Security Analysis And Portfolio Management

1.  Explain the concept of investment. Discuss in detail the steps involved in the investment process.

2.  (a)  Critically evaluate the role of SEBI as stock market developer and regulator.

(b)  The common stock of GVK Ltd. is currently selling for Rs. 70 per share. Dividend per share has grown from Rs. 2 to the current level of Rs. 6 over the past ten years and this dividend growth is expected to continue in future also. What is the required rate of return of the GVK Ltd. ?

June, 2013

Ms-44 : Security Analysis And Portfolio Management

1. Define investment. Describe the steps involved in the investment process.

2. (a) How is the present value of a bond determined ? What effect does the use of semi annual discounting have on the value of a bond as compared to annual discounting ? How can an investor eliminate the re-investment rate risk inherent in bonds ?

(b) 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 rates are 14% and 12% (PVIFA 14%, 7 years 2.88, PVIFA 12%, 7 years 4.564, PVIF 14%, 7 years .400, PVIF 12%, 7 years .452)