Title 2017 W.pdf ✅

Page 1 of 2 Seat No:______________ Enrollment No:_________________ PARUL UNIVERSITY FACULTY OF MANAGEMENT MBA., Winter 2017 - 18 Examination Semester: 3 Date: 02/01/2018 Subject Code: 06201202 Time: 02:00PM to 04:30PM Subject Name: Security Analysis & Portfolio Management Total Marks: 60 Instructions 1. All questions are compulsory. 2. Figures to the right indicate full marks. 3. Make suitable assumptions wherever necessary. 4. Start new question on new page. Q.1 Do as Directed. A).Multiple choice type questions/Fill in the blanks. (Each of 1 mark) (05) 1. Standard deviation determine a) systematic risk of a security c) total risk of security b) unsystematic risk of security d) premium of security 2. Suppose an investment provides the following periodic return over last four years as below: Year 1 2 3 4 Return (%) 10 12 -6 12 What is the holding period return? a) 5.72% c) 6.72% b) 7.62% d) 8.72% 3. ExxonMobil Corporation (NYSE: XOM) has a beta coefficient of 0.88. What is its cost of equity if the risk free rate is 4% and return on the broad market index is 8%? a) 5.72% c) 6.52% b) 7.52% d) 8.72% 4. Holding two securities will not decrease the risk occupied by an investor if those two securities are a) perfectively positive correlated c) no correlation b) perfectively negative correlated d) All of the above 5. Which of the following terms represents an upper price limit for a stock, based on the quantity of willing sellers? a) Resistance c) Trend line b) Support d) Channel B).Define the following. (Each of 1 mark) (05) 1. Systematic risk 2. Risk return trade-off 3. Bond Duration 4. Unsystematic Risk. 5. Stop loss order C).Direct questions. (Each of 1 mark) (05) 1. What is Dow Theory? 2. What is margin trading? 3. Enlist the steps of Portfolio management process. 4. What is the beta of market? 5. What is the base year for computing SENSEX? Q.2 Answer the following questions. A).Distinguish between Investment, Speculation and Gambling. (07) B).Explain Markowitz Theory of Optimal Portfolio Selection? (08)