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.


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

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