Master of Business Administration- MBA Semester 3

MF0001 – Security Analysis and Portfolio Management - 2 Credits

(Book ID: B1035)
Assignment Set- 1 (30 Marks)
Note: Each question carries 10 Marks. Answer all the questions.
1. What is portfolio management style? Why this is necessary for an investor while setting his/her
investment policy?

2. Select any 5 investment avenues of your choice. Explain their risk, return, tax benefits,
marketability, liquidity, safety features.

3. Explain the following terms with diagrams:

a. Moving Average convergence Divergence (MACD)
b. Stochastic Oscillator
 Master of Business Administration- MBA Semester 3
MF0001 – Security Analysis and Portfolio Management - 2 Credits
(Book ID: B1035)
Assignment Set- 2 (30 Marks)
Note: Each question carries 10 Marks. Answer all the questions.

1(a) A 10-year bond of Rs.1000 has an annual rate of interest of 12 percent. The interest is paid half-
yearly. What is the value of the bond if the required rate of return is (i) 12 per cent (ii) 16 per cent?

(b) A company issues a pure discount bond of the Rs1,000 face value for Rs.520 for a period of 5 years.
What is the rate of interest?

2. If people believe the markets are inefficient they look for market anomalies. Substantiate this
statement.

3. Explain the criticism to Markowitz model.