Prelim: Investment analysis and portfolio management
Solve both the sections. Solve any 3 in section 2
Q1. Explain the following concepts (3X5=15)
- Efficient market hypothesis
- Yield curve
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 daughters 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. A Who do you differentiate between technical and fundamental analysis
- What are the roles of SEBI in investor protection
Q4. Evaluate the following portfolios and give your suggestions
Market Return is 12% and risk free rate is 8%
|Portfolio A||Portfolio B||Portfolio C|
Q5. A. 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.
Q5 B. 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.
Q6. The following information about Alpha Ltd is given
|5% Preference shares||
Tax rate-30% and MPS is Rs 22. Compute the following
- Net profit ratio
- Return on equity
- Interest coverage ratio
- Book value.
Is the share worth investing.
Prof Vipin Saboo can be contacted on 9820779873 for any further clarifications.
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