IAPM Prelims Question Paper 2015 – Vipin Saboo Tutorials


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Prelim: Investment analysis and portfolio management

Section 1

Q1. Solve any 2 (15 marks)

  1. What are advantages of investing in a mutual fund?
  2. How can one raise money from primary market?
  3. What is yield curve, Repo and reverse Repo, Margin Trading.

Q2.  You are a portfolio manager and are approached by a middle aged man with an investable surplus of Rs 50 lacs. However he requires a sum of Rs 10 lacs after 3 years for his son’s higher education and Rs 25 lacs after 5 years for his daughter`s marriage. He seems financially well off and can take a risk of around 20% of his portfolio. Help him design an appropriate portfolio to suit his immediate 2 needs. Also help him in tax planning.                                            (15 marks)

Q3.  Solve any 2 (15 marks)

  1. Who do you differentiate between technical and fundamental analysis
  2. What are the roles of SEBI in investor protection?
  3. What are the approaches in portfolio management?

Q4.  Solve any 2 (15 marks)

  1. Evaluate the following portfolios and give your suggestions

Market Return is 12% and risk free rate is 8%

Portfolio A Portfolio B Portfolio C
 Return 21% 25% 20%
Beta 0.9 1.6 1
SD 2 1.2 1

 

  1. Arun is contemplating to invest in any one of the two opportunities. Invest Rs 50,000 every year at 10% for 5 years or invest Rs 35,000 at 12% for 5 years. Which one is a better investment.
  2. Radha purchased 100 shares of Shyam Ltd on Jan 1, 2012 at Rs 230 per share. She paid a brokerage of 1%. Shyam gave a bonus of 1:2 on March 31st, 2012. There were 2 dividends received 10% each on June 1,2012 and June 1, 2013. Radha sold all the shares on June 30, 2013 at Rs 243 per share and paid 1% brokerage. What is her holding period return.

 

 

Q5. Solve any 2 (15 marks)

  1. The following information about Alpha Ltd is given
Particulars Amount
Equity(FV10) 5,00,000
5% Preference shares 2,00,000
12% Debentures 12,00,000
EBIT 8,00,000
Net sales 40,00,000

Tax rate-30% and MPS is Rs 22. Compute the following

  1. Net profit ratio
  2. Return on equity
  3. EPS
  4. Interest coverage ratio
  5. Book value.
  1. A GOI bond with coupon 10% of FV 1000 is available at a discount of 12%. The bond matures in 20 years. Find the YTM. A similar bond is available at a 10% premium however the coupon is 15%. Which is a better bond to invest.
  2. Information about 2 securities is available. Evaluate both the securities for risk and return.

Probability                          Return % of X                    Return % of Y

0.2                                          12                                           14

0.3                                          11                                           15

0.1                                          -2                                            -3

0.4                                          10                                           8

 

 

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Prof Vipin Saboo  9820779873                                                                                                                        


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Education Qualification: BMS- N M College (University Rank Holder) PGDBM- Sydenham College M Com- College topper Mr Vipin Saboo has been associated with the following institutes as a visiting faculty Lords college, Malad Patkar College, Goregoan Saraf college, Malad Dalmia college, Malad St Andrews College, Bandra Wilson College, Grant Road Thakur college, Kandivili L N College, Kandivili N K College, Malad Dhanukar College, Vile Parle St Xaviers College, Marine Lines Shroff College, Kandivili KES College, Khar Mr.Vipin Saboo also has more than 5 years of industry expertise with corporate like CRISIL, Motilal Oswal Investment Banking and Yes Bank. Mr. Saboo has also published a text book on Logistics and Supply Chain Management for TYBMS Students.