0
SECURITY ANALYSIS AND INVESTMENT MANAGEMENT



ESSAY QUESTINS:



1. Briefly explain what is investment and the various investment opportunities available to people in India.

2   Explain the nature and functions of Stock Exchange in India.

3   What is systematic risk and unsystematic risk? Explain the components or features of both these risks.

4    Explain the following in Bond terminology

i)Face value  ii) Coupon rate  iii) Basis point

iv) YTM     v) Convertible bonds

5   Explain in detail the Dow theory and how it is used to determine the directions of stock market?

6  Explain Industry life cycle.

7  Explain some standard patterns that provide a clue to how the market or scrip is going to behave the near future.

8 Explain the utility of the economic analysis and state the economic factors considered for this analysis.

9 Explain the following

         a) Technical Indicators     b) Moving Average   c) Relative Strength Index(RSI)





10  Given below are the returns on two stocks X and Y during a period of five years.



Period              X(%)                Y(%)

 1                     -6                     4

 2                     3                      6

 3                     10                    11

 4                     13                    15

 5                     16                    19

 Calculate the i) Variance and Standard deviation for stocks X and Y

     ii) The  Co-variance  iii) The Correlation coefficient





11.Prem is considering the purchase of a bond selling at Rs 878.5. The bond has 4 years to maturity, face value of Rs 1000 and 8% coupon rate. The next annual interest payment is due after one year from today. The required rate of return is 10%.

a)      Calculate the intrinsic value(Present value) of the bond

Should Prem buy the bond?

b) Calculate the yield to maturity of the bond 

                 



12    or the first 4 years XYZ firm is assumed to grow at a rate of 10 percent. After 4  years, the growth rate of dividend is assumed to decline linearly to  6 percent. After 7 years, the firm is assumed to grow at a rate of 6 percent infinitely. The next year dividend is Rs. 2 and the required rate of return is 14 percent. Find out the value of the stock.



SHORT QUESTIONS:



1) Investment Constraint     2) Investment Objectives  3) Debentures 4) Deep discount bonds    5) Risk of security  6) Beta  7) Margin Trading

Post a Comment

 
Top