M.Com. DEGREE EXAMINATION, NOVEMBER 2017
Third Semester
Commerce
Elective — PORTFOLIO MANAGEMENT
(CBCS 2014 onwards)
Time 3 Hours Maximum 75 Marks
Part A (10 x 2 20)
Answer all questions.
1. Why do investors prefer gold in their portfolio?
2. Define fresh issue market.
3. What is carry forward transaction?
4. Why do the companies get their shares listed on the stock
exchange?
5. State the objectives of IPO.
6. What is meant by fundamental analysis?
7. What is SWAT analysis?
8. What is point and figure chart?
9. What is random walk theory?
10. What factors necessitate portfolio revision?
Sub. Code
4MCO3E1
AFF-4811
2
Wk 6
Part B x 5 25)
Answer all questions.
11. A portfolio management is not a gambling- explain
Or
Discuss briefly about speculation.
12. Discuss the term "private placement".
Or
What is underwriting of shares? Explain
13. What is risk adjusted measure of performance?
Explain.
Or
What is hedging? Explain.
14. What is Market Model?
Or
Describe the term "Profit Maximization".
15. What is multifactor Model.
Or
What is APT? Explain.
Part C x 10 30)
Answer any three questions.
16. Detail various steps involved in trading of shares in
primary market.
17. Explain the following terms
UTI
LIC
GIC
AFF-4811
3
Wk 6
18. Discuss Sharpe's reward to volatility model.
19. Calculate the std deviation and correlation coefficient r12
from the following
Portfolio/year 1 2 3 4 5
A 10.0% 0.0% 10.0% 20.0% 10.0%
B 15.0% 2.5% 15% 2.5% 15.0%
20. Advise an investor whether to go with XYZ or not?
Economic condition Aggregate Market XYZ Probability
Optimistic 16% 20% 0.4
Most likely 12% 13% 0.4
Pessimistic 0.2
At present the risk free equal to would an invest in
XYZ be wise?
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