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
