QUESTION BANKSECURITY ANALYSIS & PORTFOLIO MANAGEMENTThird SemesterMBA – Master of Business AdministrationUniversity of MadrasPrepared by: N Rakesh, Chennai Investment / Financial system
Define investment. What are its dimensions.
Describe the different objectives of financial investment
What are the characteristics of investment.
Explain briefly the expectations of individual investors
Discuss the problems faced by the Indian investors.
Explain the function of Financial system.
Differentiate between capital and money market securities.
Explain briefly the institutional arrangements for security investment in India.
Discuss the important weaknesses of the Indian capital market.
Discuss the recent developments in Indian Capital Markets.
Briefly explain the various regulations of SEBI concerning about the capitalmarkets.
What are the steps taken by SEBI in the primary market to protect the investors.
What are the objectives and functions of SEBI. Explain the organization of SEBI
What are the reforms in the secondary market introduced by SEBI. Stock Exchange / Primary Market
Discuss the most important economic functions of a stock exchange.
Explain the concept of ‘Stop Order’ with a suitable example
What is primary market
Describe the concept of ‘Average Up/Down’ in purchasing of equity shares in thesecondary market
How is IPO made through stock exchange on line system.
What is listing.
List out the various types of speculations at Stock exchange.
Explain the recent trends in NSE.
What are the main institutional agencies in the primary capital market.
What are the main features of Money market
Comment upon the role of Bombay Stock exchange in Indian stockmarket Time Value of Money
What is the aggregate present value of Rs.500 received as interest at the end of each of the next 3 years assuming a discount rate of 10%. Valuation of Bonds
What are fixed income securities. Explain their characteristics
What are the various types of debentures.
A bond having a face value of Rs.1000 has a coupon rate of 12.5%. The bond isredeemable on 31 st
December 2005. The selling price on 31
December 2002 isRs.806. Find out the return earned by X who purchases and keeps it upto maturity
Explain the strategies followed by passive bond investors and active bondinvestors.
Calculate the value of a bond having a par value of Rs.1000, coupon rate of 12%and maturity period of 8 years. The required yield is 10%.
What are the various types of corporate bonds.
What is meant by yield to maturity.
What do you mean by Bond immunization.
How are debt ratings useful. What role do they play in the securities market.
A debenture holder is to receive an annual interest of Rs.100 for perpetuity on hisdebentures of Rs.1000. Calculate the value of the debenture if the required rate of returns is (a) 10% (b) 15% and (c) 8%.
Explain the bond price theorem.
A bond has a par value of Rs.100 and carries a 9 percent per annum couponpayment. The yield to maturity is 7 percent and the maturity period is 5 years.Compute the duration and volatility of the bond.
Identify the major factors that serve as ingredients in setting ratings for bonds
A bond is available at a price of 102. The bond has a coupon of 15 percent andmatures in 20 years. The bond is callable in five years at 111 a.
What is the yield-to-maturity on this bondb.
What is the yield-to-call on the bond.c.
Which would you place more importance on if you were to take a decisionon buying the bond. Risk/Return
Define risk. What are the different kinds of risks in corporate investment.
How does the systematic risk affect the individual stock return.
What is standard deviation. What are its important features.
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