SAPM Question bank

Q.1 Details about Bond X and Y are shown in the below table

Particulars Bond X Bond Y

Face Value 1000 1000
Annual Coupon Rate 6% 5.5%
Time to Maturity 10 years 12 years
Current Market Value 900 940
Annual Coupon 60 55

Calculate Yield Till Maturity (YTM) and suggest in which bond an investor should invest. Justify your
answer.

Q.2 Explain Efficient Market Hypothesis and how it impacts investor behavior.

Q.3 A stock trades on NSE and is expected to outperform Nifty however beta of the stock is 1.5. (Risk
free) Rate of interest on government bonds is 3%. (Market return)Nifty returns have been 11.5%.
Calculate expected return from the stock using Capital Asset Pricing Method (CAPM).

Q.4 A) Explain different types of bonds

B) Explain important terminologies in the bond

Q.5 A) Explain different types of risks along with examples.

B) Explain different categories of equity shares.

Q.6 Define ‘fundamental analysis’. Bring out its relevance for equity investment

Q.7 What are the various factors that are to be considered in Company Analysis

Q.8 Discuss clearly the factors that affect dividend decision.

Q.9 Technical Analysis is useful to predicting individual share price as well as the direction of the
market as a whole’. Elaborate and illustrate.

Q. 10 What are the tools of Technical Analysis?