SN-192 ‘Seat ‘Total No. of Pages : 3 No. M.B.A, (Part - If) (Semester - TV) (CBCS) Examination, May - 2017 FINANCIAL MANAGEMEN’ Investment Management (Paper - IV) Sub. Code : 57164 Day and Date : Wednesday, 03-05-2017 ‘Total Marks : 80 ‘Time : 11.00 a.m. to 2.00 pan. Instructions: 1) Q.No. Land Q.No.$ are Compulsory. 2) Attempt any two questions from Q. No.2, 3 & 4. 3) Figures to the right indicate marks. QL) Amol Bajaj age 25 years employed in multinational company. Amol is MBA, and assigned responsibility as marketing officer, drawing monthly salary of Rs. 55,000 with 15% increment in the salary every year. He lives with his parent in a rented house and pays Rs. 6,000 rent per month, Amol can manage his monthly expenditure within Rs. 17,000. However an increase of 18% in his monthly expenditure are expected every yeat in future. The monthly rent amount will remain constant for next 4 years. Amol has accumulated savings of Rs, 1,25,000. Amol plans to marry after 3 years and plans to buy the following: Furniture upto Rs. 80,000 in the current year. Motorcycle upto Rs. 65,000 in the second year. Residential flat upto Rs. 23,00,000 in the third year. For the flat, Amol has to make down payment of Rs. 3,00,000. He has decided to raise housing Loan of Rs. 20,00,000, for which he has to make arrangement of EMI of Rs. 19,000 for 18 years. PIO.SN-192 Income tax rates to he considered are as under: Income slab (Rs.) Tax rate Upio Rs. 2,00,000 Nil Rs. 2,00,000 to Rs. 5,00,000 10% Rs. 5,00,000 to Rs. 10,00,000 | 20% Above Rs. 10,00,000 30% Define investment objectives of Mr. Amol. What are the investment constraints for Mr. Amol. Prepare an investment plan for Mr. Amol. [20] oR a) Mr, Sandip has purchased 100 shares of a company at the beginning of b) Q2) a) b) the year at a market price of Rs. 250 per share. The par value of each share is Rs. 10. During the year company declared and paid dividend at 25%. Further at the end of the year price of the tumed out at Rs. 275. You are asked to find out total return on investment to Mr. Sandip, if he wish fo sell shares at the end of the year at market price of Rs. 275.[10] ‘The following information is provided to you: Economic conditions | Retum on security “A°] Probability Good 20% a Average 16% A Bad 10% 3 Poor 3% 2 Calculate expected return of the security ‘A’, and the risk associated with that, [10] What do you mean by “Investment”, and “Speculation”? Give an illustration of ‘Investment’ and “Speculation”. [19] State and explain the features of investment avenues. [10]SN-192 Q3) a) Whatis industry analysis? Write its importance. [19] b) State and explain any four factors to be considered in industry analysis. [10] Q4) a) Whatis Efficient market theory? Write its assumptions. [19] b) Explain the weak, semi-strong; and strong form of Efficient market hypothesis. [19] QS) Write short notes (any four): [20] a) Financial analysis. b) Systematic and unsystematic tisk. ©) Non-marketable investment avenues. 4) Concept of Bond valuation. ¢) “Mutual fund schemes.