MF0010 & SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

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ASSIGNMENT

DRIVE	SPRING 2015
PROGRAM	MBADS – (SEM 3/SEM 5) / MBAN2 / MBAFLEX – (SEM 3) / PGDFMN – (SEM 1)
SUBJECT CODE & NAME	MF0010 & SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
SEMESTER	3
BK ID	B 1754
CREDITS	4
MARKS	60

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.

Q1. Describe the investment process.

Answer :  Every investor should have a process. This applies whether or not they are value investors. An investment process helps keep investors focussed and on track, and prevents the investor from going off the rails emotionally when making investment decisions. Emotional investment decisions are bad for returns and can really ruin a portfolio as you will more often than not find yourself buying and selling stocks at the worst possible time – buying when the price is high and selling when the price is low rather than vice versa. With a clear investment process that you consult at every buy/sell decision, you go through each

Q2.Write about the secondary markets? Explain the role of financial intermediaries.

Answer :  The secondary market, also called aftermarket, is the financial market in which previously issued financial instruments such as stock, bonds, options, and futures are bought and sold.[1] Another frequent usage of "secondary market" is to refer to loans which are sold by a mortgage bank to investors such as Fannie Mae and Freddie Mac.

The term "secondary market" is also used to refer to the market for any used goods or assets, or an alternative use for an existing product or asset where the customer base is the second market (for example, corn has been traditionally used primarily for food production and feedstock, but a "second" or "third" market has developed for use

Q3.Explain the meaning of risk. Describe what are the factors that affect risk

Answer : Risk is the potential that a chosen action or activity (including the choice of inaction) will lead to a loss (an undesirable outcome). The notion implies that a choice having an influence on the outcome sometimes exists (or existed). Potential losses themselves may also be called "risks". Any human endeavour carries some risk, but some are much more risky than others.

Q4.Briefly explain the variables that are analyzed in economy analysis.

Answer : Economic analysis

Real activity and financial conditions

The economic analysis assesses the short to medium-term determinants of price developments. The focus is on real activity and financial conditions in the economy. The economic analysis takes account of the fact that price developments over those horizons are influenced largely by the interplay of supply and demand in the goods, services and factor markets.

To do so, the ECB regularly reviews, inter alia,

·         developments in overall output,

Q5.Explain about technical indicators and How are they used?

Answer : The central idea behind technical analysis is that past price actions can help predict future price behaviour. This is why chart patterns, candlestick formations, and other technical indicators are used to determine whether an uptrend or downtrend is due. And since most traders play by these technical ideas, their price behaviour forecasts tend to be self-fulfilling.

This article is designed to introduce the concept of technical indicators and explain how to use them in your analysis. We will shed light on the difference between leading and lagging indicators, as well as look into the benefits and drawbacks. Many,

6 Explain the assumptions of Capital Asset Pricing Model (CAPM). Give a short note on Separation Theorem, Capital Market Line(CML) and Security Market Line (SML)

Answer : Meaning and definition of Capital Asset Pricing Model

The Capital Asset Pricing Model (CAPM) refers to a model that delineates the relationship between risk and expected return and what is used in the pricing of risky securities. The concept is used for pricing an individual portfolio or security. The basic idea underlying the concept is that investors are required to be compensated in two ways –

·         Time value of money

Dear students get fully solved assignments

Send your semester & Specialization name to our mail id :

  help.mbaassignments@gmail.com

or

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