VINAYAKA MISSIONS UNIVERSITY, SALEM.

V.M.K.V.ENGINEERING COLLEGE
Faculty of Management Studies
MBA – 2009 Regulation
IV Semester
Elective: Security Analysis and Portfolio Management
QUESTION BANK
UNIT - I
PART –A (1 mark)
1. What do you mean by the term investment?
2. List out the objectives of investment.
3. Mention the stages of investment process.
4. What do you mean by speculation?
5. What is the difference between investment and speculation?
6. What do you mean by risk?
7. What do you mean by return?
8. Mention any two types of risk.
9. Give two examples of unsystematic risk.
10. Mention three categories of investment.
11. What do you mean by security?
12. What is portfolio?
13. What do you mean by shares?
14. State the various types of shares.
15. Give two examples for systematic risk.
16. What are the various types of debenture?
17. What is a share certificate?
18. What are the gilt edged securities?
19. List out the difference between speculation and gambling
20. What do you mean by primary market?
21. List the intermediaries in the primary market
22. List the advantages of warrants.
23. What is the deep discount bond?
24. What do you mean by CCPS?
25. Explain ZCB’s
PART –B (8 Marks)
1. What are the types of investment? Discuss in detail.
2. Define investment risk. Discuss how systematic and unsystematic risk effects investment?
3. What do you mean by investment? Explain the characteristics of investment.
4. Why Investment is considered as important?
5. Explain the investment process in detail.
6. What do you mean by investment and speculation? Explain investment versus speculation.
7. Explain the various types of risk.
8. What are the causes of risk? Explain.
9. Differentiate between systematic and unsystematic risk.
10. What are the sources of investment?
UNIT- II
PART –A (1 mark)
1. Define capital market.
2. What is a new issue market?
3. What do you mean by debt market?
4. Expand SEBI.
5. Expand NSE
6. What do mean by BSE?
7. What do you mean by OTCEI?
8. Expand NSDL.
9. Expand CSDL.
10. Expand SCRA.
11. What do you mean by IPO?
12. What is secondary market?
13. List any two differences between primary and secondary market.
14. State the various instruments of the money market.
15. State the various instruments of capital market.
16. List the objectives of UTI
17. What is the composition of IFCI, ICICI?
18. What are the developmental services offered by SIDCIL?
19. Who is an underwriter?
20. What is mean by Electronic Trading?
21. List the problem faced by NIM
22. What are the methods of floatation?
23. Explain debt market
24. Who are the players in bond market?
25. What is book building?
PART- B (8 marks)
1. Discuss the recent trends in NSE.
2. Explain the surveillance system adopted in BSE.
3. Define capital market. State the various types of capital market instruments.
4. Define OTCEI. What are the objectives of OTCEI?
5. Explain in detail the features of NSE.
6. Explain the term NSDL. State its functions and how it is beneficial for the investors?
7. List the various initiatives taken by SEBI
8. List out the various institutions that define the capital structure of a firm
9. Explain in detail the problems faced in the NIM
10. Is debt market play an active role in the capital market- Discuss

UNIT- III
PART- A (1 mark)
1. What is mean by fundamental analysis?

2. What is GDP?

3. List the methods of economics forecasting.

4. What do you understand by EIC approach?

5. State the different classes of industry.

6. What is SWOT analysis?

7. What are the factors that you will consider under company analysis?

8. How is sales forecast done in fundamental analysis?

9. What is EPS?

10. What is P/E Ratio?

11. What is intrinsic value of a share.

12. Discuss the industry life cycle.

13. How decision tree is used in fundamental analysis?

14. What are defensive industries?

15. Why is industry analysis important?

16. Does the ratio analysis serve as a tool for financial analysis?

17. What are financial indicators under which fundamental analysis is performed?

18. List the non-financial indicators in fundamental analysis

19. List any 4 factors that are important for appraising the companies in different industries

20. Explain what is Dividend yield ratio

21. What is GNP model

22. List the factors that effect the EPS of the company

23. How industries are classified according to growth

24. How does ratio analysis effect the financial health of the company

25. What is diffusion index?

PART - B (8 marks)
1. Explain Markowitz model theory in detail.
2. Explain the CAPM theory with its basic assumptions.
3. Explain specialized bonds in detail.
4. Explain the concept of yield to maturity.
5. Explain the utility analysis and state the economic factor consider for this analysis
6. Industry life cycle exhibits the states of the industry and gives a clue to entry and exit for
investors-elucidate
7. What are the methods adopted to analyze the financial statements of a company.

Unit - IV
PART A (1 mark)
1. What do you mean by economic analysis?
2. What do you mean by industry analysis?
3. What do you understand by the term technical analysis?
4. List out the tools of technical analysis.
5. State two assumptions of technical analysis.
6. What is meant by fundamental analysis?
7. What do you mean by efficient market theory?
8. Give two differences between technical analysis and fundamental analysis.
9. Briefly explain Dow Theory.
10. What do you mean by Random Walk Theory?
11. Define technical analysis
12. What is a PFC chart?
13. State the difference between technical and fundamental analysis
14. List the assumption of T.A
15. What are the factors that are consider for T.A
16. What is trend reversal?
17. State the difference stages of trend reversal
18. What are indicators?
19. What do you mean by Breadth of the market?
20. How odd lot trading is carried out?
21. What is EMA?
22. How does MACD help in determining the averages?
23. How do Oscillators indicate the momentum of the market?
24. What is RSI?
25. Define Stochastic?
 PART - B (8 marks)
1. Explain the factors that have the most significant effect on the industry’s earnings.
2. Explain the Dow Theory in detail.
3. Explain the utility of the economic analysis and state the economic factors considered for this
analysis.
4. Explain the factors that affect present and future values in company analysis.
5. Give the theoretical framework of Random Walk Theory.
6. Explain the term fundamental and technical analysis and differentiate between them.
7. Why balance sheet data of the company should be analyzed first?
8. What are the various advantages of using charting methods in T.A?
9. State the difference between technical and fundamental analysis
10. List the various charting method available to T.A

UNIT V
PART - A (1 mark)
1. What do you mean by the term portfolio?
2. What is modern portfolio theory?
3. Give two elements of portfolio management.
4. What do you mean by Sharpe’s performance index?
5. What do you mean by Sharpe index model?
6. What are the objectives of investors?
7. What do you mean by capital appreciation?
8. What do you mean by passive management?
9. What do you mean by formula plan?
10. Mention two advantages of formula plan.
11. Explain the term portfolio
12 Differentiate between Traditional and modern approach of portfolio
13. How do you select a portfolio?
14. Define Markowitz diversification?
15. What is simple Diversification?
16. List the assumption of CAPM
17. What is SML?
18. Distinguish between CAPM and Arbitrage pricing
19. What is meant by mutual fund?
20. Explain what open end is and close end mutual fund
21. List the different types of mutual fund
22. What is the use of formula plans?
23. What is rupee cost averaging?
24. What are Swaps?
25. How is portfolio managed?

PART B (8 marks)
1. Explain the steps in traditional approach of portfolio management.
2. Explain the constraints in the formation of the objectives of portfolio.
3. What are the differences between the traditional approach and modern approach?
4. Explain the modern approach in the construction of portfolio.
5. Give the assumptions, advantages and disadvantages of formula plan.
6. Discuss the key factors that have a bearing on the value of a call option
7. What are the key factors that have a bearing on the value of a put option? Briefly Explain.
8. Distinguish between a put and call option with examples.
9. What do you mean by butterfly spread strategy in options?
10. What are the advantages of derivative markets?
 VINAYAKA MISSIONS UNIVERSITY, SALEM.
Faculty of Management Studies
IV Semester
Elective Subject: Security Analysis and Portfolio Management
MODEL QUESTION PAPER
Time: 3hrs Maximum marks:50
PART- A( 10X1=10)
1. List out the objectives of investment?
2. Mention the stages of investment process?
3. What do you mean by debit market?
4. Define SEBI.
5. What do you mean by bond?
6. What do you mean by equity share?
7. List out the tools of technical analysis?
8. State two assumptions of technical analysis?
9. What do you mean by the term portfolio?
10. What is modern portfolio theory?
PART- B (5X8=40 Marks)

11. a) What are the types of investment? Discuss in detail?

(OR)
b) What are the sources of investment?

12 (a) What do you mean by investment? Explain the characteristics of investment?

(OR)
(b) Explain the investment process in detail?

13. (a) Define OTCEI and what are the objectives of OTCEI?
(OR)
(b)What do you mean by NSE, explain its advantages?
14. (a) Explain specialized bonds in detail?
(OR)
(b) Stocks Y and Z have the following parameters
Stock Y Stock Z
Expected return 20 30
Expected variance 16 25
Covariance YZ 20
Is there any advantage of holding a combination of Y and Z?

15. (a)State the modern approach in the construction of portfolio?

(OR)
(b) Give the assumptions, advantages and disadvantages of formula plan?