IES’S Management College and Research Centre, Mumbai

(FINAL EXAMINATION)
Date : Day: Time : Duration: 2 ½ hrs.

Program: PGDM Sem.: IV

Subject : : Financial Markets & Institutions Max Marks: 60

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Instructions:
1) Attempt ALL questions.
2) All questions carry 10 marks. Answer any option A or B in every question
3) Course Objectives (CO) are given next to each question numberwise

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Q. No. (Questions) (Marks) COs
1 A) Describe a model to analyse a company based on its business model, promoter 10
holding , longevity of business and key financials to arrive at an investment
decision ? Describe in detail
CO3
1 B) Purnartha , a portfolio advisor, which has delivered over 40% CAGR on its 10
portfolio in last 12 years has an exhaustive quantitative model to select a company
for investment. Elaborate on the model with the pros and the cons of the same CO3

2 A) The Reserve Bank of India’s last policy In August had the following background : 10
Projection in real GDP growth in 2021 to be 9.5 percent
Revival in south west monsoon
Brent ( USD /bbl) around 70
Consumer price headline [CPI) inflation had moved above the comfort range for two
consecutive readings
GST collections above Rs. 1 lac crore

What are your comments on the RBI governor’s actions regarding above and the
accommodative stance taken
CO2
2 B) Considering the data points in 10
CPI
Brent oil
GST collections
Monsoon conditions
Expected US tapering from year end

What will be your suggestion as a MPC member in the next policy? CO2

3 A) Risk adjusted returns are vastly superior to point to point returns for evaluating 10
equity mutual funds. Explain in detail the logic and methodology for calculating the
risk adjusted returns CO1
B) Debt mutual funds are classified as per their average maturities and credit 10 CO1
profiles and thus give an avenue to invest in various maturities across the yield
curve. Explain the types of debt mutual funds and their associated risks.
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 Which of the following has maximum interest rate risk ? Data taken from actual fact
sheets of Aug 2021

Fund name modified duration

XYZ Gilt securities fund 7.8 years

ABc debt fund 4.5 years

PQR liquid fund 45 days

4 A) Post the NPA crisis in banks as well as the default crisis in the Indian mutual fund 10
industry , credit risk has become an area of concern for investors. In today’s
environment what will be your approach to managing the credit risk of a fixed
income portfolio?
CO1
B) In the light of RBIs easy money policy and global easing by central banks across 10
the globe in 2021 , explain the interest rate risks associated with a fixed income
instrument? How will you manage the interest rate risk of a fixed income portfolio CO1

5 A) The year2021, can be described as a recovery year from an extreme black 10

swan year. Explain the headwinds and tailwinds at present to Indian capital markets
CO2
B) in terms of the above headwinds and tailwinds give your expected scenarios on 10

Equity market range vis a vis NIfty50

Bond Market view vis a vis 10 year yield
CO2

6 A) Explain by means of a diagram the Behavioural Finance cycle in BSE Sensex / 10

NIFTY50 from Apathy to Greed. Also explain RBIs role during the same.
CO3
B) Explain by means of a table the PE ( Price Earning Ratio) cycle as well as Price 10
to book as well as market cap to GDPCycles in terms of the Nifty CO3

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