Sem: Dec-2024 Maximum Marks: 50 Examination: End Exam Date: 8/12/2024 Duration: 2.5hrs
Programme code: 18 Programme: MBA for Working Executive	Class: FY	Semester: III Batch- 2023-24
College: K. J. Somaiya Institute of Management	Name of the department/Section/Center: Finance & Law
Course Code:	Name of the Course: Security Analysis & Portfolio Management
Instructions: 1) Q.1 is Compulsory 2) Attempt Any 3 Questions from rest of the questions. 3) Numericals can be solved on Excel Sheet and can be submitted 4) If Charts are Attempted, kindly submit the word document of charts with main answer sheet

Question No.	Max. Marks
Q.1) A)	A portfolio manager has the following Information about several stocks. He has to build an optimum portfolio for his client. Security Expected Return (%) β Residual variance (%) σ2ei TCS 22 1 35 WIPRO 20 2.5 30 HCL 14 1.5 25 ACC 18 1 80 ZEE 16 0.8 20 ABB 12 1.2 10 BHEL 19 1.6 25 RIL 17 2 30 The market index variance is 12% and the risk-free rate of return is 7%	10
Q.1) B)	Explain what criteria you would use to identify companies for research using Bottom-up approach Method, Explain with examples.	10
Q.2)	Attempt (Any 2)	10
A)	Describe various characteristic of an industry that an analyst must consider while doing industry analysis? Explain with Examples.	5
B)	Discuss Recent RBI Policy and its impact on Indian Banking Sector.	5
C)	The following three portfolios provide the particulars given below Portfolio Average Annual Return Standard Deviation Correlation Co-Efficient market & Portfolio A 18 27 0.8 B 14 18 0.6 C 15 8 0.9 Market 13 12 Risk- free rate of interest is 9 Rank these portfolios using Sharpe’s and Trynor’s methods and give justification for the same.	5
Q,3)	Attempt (Any 2)	10
A)	The Daily prices of the TATA Motor auto stock and the index for the period 5 Sep 2022 to 16th Sep 2022. Calculate Beta for the stock Date Index Tata Motors Auto 5th Sep 904.95 597.8 6th Sep 845.75 570.8 7th Sep 874.25 582.95 8th Sep 847.95 559.85 9th Sep 849.1 554.6 12th Sep 835.8 545.1 13th Sep 816.75 519.15 14th Sep 843.55 560.7 15th Sep 835.55 560.95 16th Sep 839.5 597.4	5
B)	Explain Portfolio Designing Process.	5
C)	Explain Relative valuation method to arrive at target price of stock.	5
Q.4)	Attempt (Any 2)	10
A)	Consider a portfolio of six securities with the following characteristics: Security Weighting α Β Residual variance (%) σ2ei 1 0.1 -0.28 0.91 23 2 0.15 0.76 0.87 60 3 0.2 2.52 1.17 52 4 0.1 -0.16 0.97 86 5 0.25 1.55 1.07 67 6 0.2 0.47 0.86 82 Assuming the return on market index to be 14.5% and the standard deviation of return on market index to be 16%, calculate the portfolio return and risk under single index model.	5
B)	Explain key strategies adopted by fund managers for Portfolio Re-Balancing.	5
C)	Identify Support and Resistance and provide justification for the same with reference to Reliance Chart	5
Q.5)	Attempt (Any 2)	10
A)	Identify Buy and Sell Recommendation using Candle Stick Patten- (1 Candle Stick, 2 Candle Stick and 3 Candle Stick Pattern-1 each) and describe the Pattern. Refer to Chart Tata Steel	5
B)	Information about return on an investment is as follows: Risk free rate of return 10% Market Return is 15% Beta is 1.2 What would be the return from this investment? If the projected return is 18%, is this investment rightly valued? What is your strategy?	5
C)	Discuss the Concept of CAPM and its relevant Assumptions	5