ASSIGNMENT

DRIVE
PROGRAM

Fall 2015

SUBJECT CODE &

NAME
BK ID
CREDIT
MARKS

MF0010 & SECURITY ANALYSIS AND PORTFOLIO

MANAGEMENT
B1754
4
60

MBADS (SEM 3/SEM 5)

MBAFLEX/ MBA (SEM 3)
PGDFMN (SEM 1)

Marks
Total Marks
Criteria
Q.No
Financial markets bring the providers and users in direct contact without any intermediary.
1
Financial markets permits the businesses and governments to raise the funds needed by sale of
securities. Describe the money market/capital market features and its composition.
A
Money market- features and composition
Capital market-features and composition
2

5
5

10

Risk is the likelihood that your investment will either earn money or lose money. Explain the
factors that affect risk.
Mr. Rahul invests in equity shares of Wipro. Its anticipated returns and associated probabilities
are given below:
Return
-15
Probability 0.05

-10
0.10

5
0.15

10
0.25

15
0.30

20
0.10

30
0.05

You are required to calculate the expected ROR and risk in terms of standard deviation.
A

Explanation of all the 4 factors that affect risk

Calculation of expected ROR and risk in terms of
standard deviation

Explain the business cycle and leading coincidental & lagging indicators. Analyse the issues in
fundamental analysis.
Explanation of business cycle-leading coincidental
6
and lagging indicators
10
Analysis and explanation of the issues in
4
fundamental analysis all the four points

4
6

10

Discuss the implications of EMH for security analysis and portfolio management.

Implications for active and passive investment

Implications for investors and companies

6
A

5
5

10

Explain about the interest rate risk and the two components in it.
An investor is considering the purchase of a share of XYZ Ltd. If his required rate of return is
10%, the year-end expected dividend is Rs. 5 and year-end price is expected to be Rs. 24,
Compute the value of the share.
Introduction of interest rate risk
2
Explanation of two components of interest rate risk
4
10
Calculation of value of the share
4
Elucidate the risk and returns of foreign investing. Analyse international listing.
Explanation of all the points in risks and returns
from foreign investing
7
10
Introduction of international listing
3

*A-Answer
Note Answer all questions. Kindly note that answers for 10 marks questions should be approximately of
400 words. Each question is followed by evaluation scheme.