1.

An economy with favorable savings, investments, and stable prices, balance of payment and
infrastructure facilities provides a best environment for common stock investment. In the light of
above statement explain the Economic analysis in detail?
2. Changes that occurs in interest rate and purchasing power affect the bond return more than the
stock return. discuss? Also explain how systematic risk affects the individual stock returns?
3. Excel corp. has been in the business of distributing national brand of detergent for many years.
Recently the co-promoters have encouraged the owner to increase the business by 50 % by
diversifying production into of soap production. In what way the diversification alter the business
risk? How would you analyze the different risk for the Excel organization?
4.

5.

Industry life cycle exhibits the status of the industry and gives the clue to entry or exit for
investor. Elucidate? Discuss in detail the factors that should be considered while making
company analysis?