DISTANCE EDUCATION

M.B.A. (Banking and Finance) DEGREE EXAMINATION, MAY 2008.

Fourth Semester
INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT
(2005 onwards)
Time : Three hours Maximum : 100 marks
PART A (5 ? 8 = 40 marks)
Answer any FIVE questions.
Each answer should not exceed 2 pages.
1. What is the meaning of investment?
2. Discuss the different channels or alternatives available to an invertor for m
aking investments.
3. Describe briefly the wide array of investment avenues.
4. How do various investment avenues compare?
5. Explain the objectives of Investment analysis.
6. Explain Dow theory in Investment management.
7. What is financial risk? Is it possible to reduce it while planning an organis
ation?
8. In what way can the relationship of risk and return be established?
PART B (4 ? 15 = 60 marks)
Answer any THREE questions from Q. No. 9 to Q. No. 14.
Q. No. 15 is compulsory.
9. State the relationship between covariance and correlation.
10. Explain the single index model proposed by William Sharpe.
11. What are the inputs required for applying capital asset pricing model?
12. What factors influence market risk premium?
13. Explain the features of investment avenues.
14. Distinguish between Corporate investments and
Non corporate investments.
15. Elaborate Moving Average Analysis and its importance.

510. INVESTMENT AND PORTFOLIO MANAGEMENT

De c embe r ] [ Time : 3 Hour s
Maximum : 100 Marks
Turn Over
SECTION - A (5 × 8= 40)
Answe r any FIVE que s t ions .
Al l que s t ions car r y equal mar k s .
1. State the features of investment publications.
2. Describe the different kinds of business risks.
3 . Di s t ingui sh be twe en t e chni c a l ana lys i s and
fundamental analysis.
4. State the disadvantages of Charts.5 . Wha t a r e the r e a sons for f luc tu
a t ions in the
pr i c e s of sha r e s ?
6. Bring out the strategies of the bargain hunter.
7 . Wh a t d o y o u u n d e r s t a n d b y t r a d i t i o n a l
portfolio analysis ?
8. Narrate the assumptions of formula plan.
PART - B (3 ×20= 60)
Answe r any THREE que s t ions .
Al l que s t ions car r y equal mar k s .
9. Enumerate the various sources of investment
information.
10. D e s c r i b e t h e v a r i o u s c l a s s i f i c a t i o n s o f
industries.
11. Describe the advantages and disadvantages of
technical analysis.
12. W h a t a r e g r o w t h s h a r e s ? D e s c r i b e i t s
important characteristics.
2 3
13. Wr i t e shor t not e s on :
(a) Equity share indices.
(b) Industry life cycle.
(c) Fixed income securities.
(d) DCA.