MF0010 Security Analysis and Portfolio Management
SUMMER-2015
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Master of Business Administration- MBA Semester 3
MF0010–Security Analysis and Portfolio Management-4 Credits
(Book ID: B1754)
Assignment (60 Marks)
Note: Answer all questions must be written within 300 to 400 words each. Each Question carries 10 marks 6 X 10=60
Q1. Financial markets bring the providers and users in direct contact without any intermediary. Financial markets permits the businesses and governments to raise the funds needed by sale of securities. Describe the money market/capital market – features and its composition.
Answer. Money Market – Features and Composition
The money market exists as a result of the interaction between the suppliers and demanders of short-term funds (those having a maturity of a year or less). Most money market transactions are made in marketable securities which are short-term debt instruments such as T-bills and commercial paper. Money (currency) is not actually traded in the money markets. These crudities traded in the money market are short-term with high liquidity and low-risk; therefore they are close to being money. Money market provides investors a place for parking
Q2. Risk is the likelihood that your investment will either earn money or lose money. Explain the factors that affect risk. Mr. Rahul invests in equity shares of Wipro. Its anticipated returns and associated probabilities are given below:
Return
-15
-10
5
10
15
20
30
Probability
0.05
0.10
0.15
0.25
0.30
0.10
0.05
You are required to calculate the expected ROR and risk in terms of standard deviation.
(Explanation of all the 4 factors that affect risk, Calculation of expected ROR and risk in terms of standard deviation)
Answer. Factors that affect risk
Business risk: This is the possibility that the company holding your money will not pay the interest or dividend due, or the principal amount, when your bond matures.
Get solved assignments at nominal price of Rs.120 each.
Mail us at: subjects4u@gmail.com or contact at
09882243490
Master of Business Administration- MBA Semester 3
MF0010–Security Analysis and Portfolio Management-4 Credits
(Book ID: B1754)
Assignment (60 Marks)
Note: Answer all questions must be written within 300 to 400 words each. Each Question carries 10 marks 6 X 10=60
Q1. Financial markets bring the providers and users in direct contact without any intermediary. Financial markets permits the businesses and governments to raise the funds needed by sale of securities. Describe the money market/capital market – features and its composition.
Answer. Money Market – Features and Composition
The money market exists as a result of the interaction between the suppliers and demanders of short-term funds (those having a maturity of a year or less). Most money market transactions are made in marketable securities which are short-term debt instruments such as T-bills and commercial paper. Money (currency) is not actually traded in the money markets. These crudities traded in the money market are short-term with high liquidity and low-risk; therefore they are close to being money. Money market provides investors a place for parking
Q2. Risk is the likelihood that your investment will either earn money or lose money. Explain the factors that affect risk. Mr. Rahul invests in equity shares of Wipro. Its anticipated returns and associated probabilities are given below:
Return
-15
-10
5
10
15
20
30
Probability
0.05
0.10
0.15
0.25
0.30
0.10
0.05
You are required to calculate the expected ROR and risk in terms of standard deviation.
(Explanation of all the 4 factors that affect risk, Calculation of expected ROR and risk in terms of standard deviation)
Answer. Factors that affect risk
Business risk: This is the possibility that the company holding your money will not pay the interest or dividend due, or the principal amount, when your bond matures.