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Code No: MA306 JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD MBA III Semester Examinations, February -2012 SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT Time: 3hours Max. Marks: 60 Answer any five questions All questions carry equal marks --1. Outline the functions of financial markets. How do you classify the Indian financial markets? 2. Bring out the significance of Markowitz portfolio theory in portfolio management. 3. Explain the various forms of efficient market hypothesis.

4. A bond of Rs.1000 bearing a coupon rate of 10% p.a. payable half-yearly is redeemable after five years at par. Find out value of the bond given that the required rate of return is 14%. 5. Excel India Ltd., pays a dividend of 50% on the equity share face value of Rs.100 each. Find out the value of the equity share given that the dividend rate is expected to remain the same and the required rate of return of the investor is 25%. 6. Discuss the advantages and disadvantages of technical analysis. 7. Consider the following figures: a) Amount to be invested Rs. 20 lakhs b) Current value of NIFTY = 1000 c) Futures value of near month NIFTY = 1020 d) Expected annualized dividend = 4% e) Annualized bond equivalent yield on T-bill = 8% f) Theoretical futures price = 1025 What can be the alternative investment strategies for an investor? Also evaluate the strategies by considering the fact that, if market increases by 10%, no change and market decreases by 10%.

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8. Describe the performance evaluation of mutual funds. ********

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