Reg. No. : .........................................

227 Q.P. Code : [15 BBA 25]

(For the candidates admitted from 2015 onwards)

B.B.A. DEGREE EXAMINATION, APRIL 2020.

Sixth Semester

Part III — Business Administration

INVESTMENT MANAGEMENT

Time : Three hours Maximum : 75 marks

SECTION A — (10  1 = 10 marks)

Answer ALL the questions

Choose the correct answer.

1. ––––––––––––––– is the allocation of funds to

assets and securities after considering their return
and risk features.

(a) Speculation (b) Gambling

(c) Investment (d) All the above

2. Which one of the following is a contigent
investment?
(a) Recurring deposit (b) Bonds
(c) Equity shares (d) LIC

3. The money market instrument is

(a) Bond (b) Debenture
(c) Stock certificate (d) Certificate of deposit

4. When the writer sells the option without stock it is

called
(a) Naked option (b) Call option
(c) Put option (d) Hedging

5. Stock exchange refers to

(a) Helps in the fixation of stock prices
(b) Ensures safe and fair dealing
(c) Induces good performance of the company
(d) Performs all the above function.

6. Identify the uncontrollable risk of a company

(a) Technological obsolescence
(b) Cut in subsidy
(c) Labour problem
(d) Increase in loan service charges

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7. ––––––––––––––– is the study of the market data
in terms of factors which affect demand and
supply forces.
(a) Economic analysis (b) Industry analysis
(c) Technical analysis (d) Company analysis

8. ––––––––––––––– is arrived at by dividing profit

after tax by the number of equity shares.
(a) Micro analysis of the company
(b) Macro analysis of the market
(c) Gross Domestic product
(d) Earning per share

9. In the weak form of the market stock prices reflect

(a) The past price and traded volumes
(b) The demand for the scrip
(c) The country’s economic conditions
(d) The past price of the scrip

10. Growth policy in portfolio gives priority to

(a) Current income of the portfolio
(b) Capital appreciation of the portfolio
(c) Balanced portfolio construction
(d) Tax savings.

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 SECTION B — (5  5 = 25 marks)

Answer ALL questions.

11. (a) Define the term investment. Mention the

objectives of investment.

Or
(b) Distinguish between investment, speculation
and gambling.

12. (a) What do you mean by money market? What

are the components of money market?

Or
(b) Define the term debenture. Explain the
different types of debentures.

13. (a) Explain the features of national stock

exchange.

Or
(b) In what way can be relationship of risk and
return be established.

14. (a) How is a fundamental analysis useful to a

prospective investor?

Or
(b) Discuss Dow theory.

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15. (a) Does the random walk theory suggest that
security price levels are random. Explain.

Or
(b) What do you understand by portfolio
management? Distinguish between security
analysis and portfolio analysis.

SECTION C — (5  8 = 40 marks)

Answer ALL questions.

16. (a) Describe the features of an investment

programme.

Or
(b) State the benefits of mutual fund from the
point of view of investor and promoter.

17. (a) What is option trading? Explain its benefits.

Or
(b) Discuss the methods of floating shares in
new issue market.

18. (a) Explain the various measures undertaken by

SEBI to protect the investors.

Or
(b) Explain the functions of stock exchanges in
India.
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19. (a) Discuss the factors involved in company
analysis.

Or
(b) Explain the role of charts in technical
analysis.

20. (a) Discuss Markowitz model of portfolio

management.

Or
(b) Explain the principles of portfolio
management.

——–––––––––

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