Roll No.

Exam Code : M-23

Subject Code-12394
M.B.A. (Fourth Semester) (Batch 2020
Onwards)/M.B.A. (Fourth Semester)
(Batch 2021 Onwards) EXAMINATION
BUSINESS ANALYTICS
FM-401/MBAF403/BA-405
Portfolio Management

Time:3 Hours Maximum Marks : 60

Note : Attempt Five questions in all, selecting one

question from each Unit. Q. No. 1is
compulsory. Allquestions carry equal marks.
1. Briefly explain the following :
(a) Immunization strategy
(b) Market beta
(c) Optimal portfolio
(d) Benchmarking portfolio performance
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 (e) SML
() Aggressive stock.

Unit I

determined ?
2. How are portfolio risk and return
Discuss with the help of suitable examples.

3. Two securities P and Q are considered for

investment. Compute the risk and return of
the portfolio assuming the two securities, whose
correlation coefficient of returns is - 0.84. are
combined in the following proportions in the
portfolio:
(a) 10 :90
(b) 50: 50
(c) 80: 20
The risk and return of the two securities are
as follows :
Security Risk% Return%
P 20 15

30 20

J-12394 2
 Unit II
4. How an
investor chooses his/her optimal
portfoliousing Capital Asset Pricing Model ?
Discuss.
5. Explain the following :
(a) Construction of
efficient frontier
(b) Sharpe Single index
model.
Unit II
6. Discuss the characteristics of bond
portfolios.
What are the fundamentals behind bond
valuation ?

7. (a) A Rs. 1,000 par value bond

bearing a
coupon rate of 12% will mature after
five years at a premium of 15%. What is
the value of the bond today, if the
discount rate is 14% ? 8
(b) Abond of Rs. 1,000 carrying
interest
rate of 10% is selling in the market for
Rs.900. Compute current yield of the
bond. 4
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 Unit IV
8. Why portfolios need to be
revised ? Discuss
the constraints faced by
investors and fund
managers in portfolio revision.
9. Explain the following :
(a)
Constant ratio plan
(b)
Systematic investment plan