ASSIGNMENT

DRIVE SPRING 2018

PROGRAM MBA
SEMESTER 3
SUBJECT CODE & FIN301- SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
NAME
BK ID B1754
CREDIT 4
MARKS 30
Note –The Assignment is divided into 2 sets. You have to answer all questions in both sets. Average
score of both assignments scored by you will be considered as your IA score. Kindly note that answers
for 10 marks questions should be approximately of 400 words.

Q.No Questions Marks Total

Marks
SET I
1. Explain the business cycle and leading coincidental & lagging indicators. Analyse the issues
in fundamental analysis.
A Explanation of business cycle-leading 6
coincidental and lagging indicator 10
Analysis and explanation of the issues in 4
fundamental analysis all the four points
2. Explain the Meaning and Benefits of Mutual Fund

A Explain the Meaning of Mutual Fund 5 10

Elucidate the various Benefits of Mutual 5
Funds
3. 1. Briefly explain Financial Derivatives.
2. Differentiate between Stocks and Bonds
1. Meaning and composition 5 10
A 2. Differences between Stocks and Bonds 5
SET II
1. Returns (%)
Probability P M
0.45 30 40
0.20 10 -10
0.35 20 30
This distribution of returns for share P and the market portfolio M is given above.
Calculate the Expected Return of Security P and the market portfolio, the
covariance between the market portfolio and security P and beta for the security.
A 1. Expected Return of Security P and the 5 10
market portfolio,
2. Covariance between the market portfolio 3
and security P
 3. Beta for the security. 2
2. Explain the four crucial criteria of Financial Ratio while judging financial
performance.
A Four Crucial Criteria of Financial Ratio 4*2.5=10 10
3. 1. Distinguish between Business Risk and Financial Risk
2. Discuss the Factors affecting Industry analysis
A 1. Describe Business Risk and 2*2.5=5 10
Financial Risk Separately
2. Factors affecting 5
Industry Analysis

# A- ANSWER