DCM7105 SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

Sale!

Original price was: ₹300.00.Current price is: ₹198.00.

Scroll down for Match your  questions with Sample

Note- Students need to make Changes before uploading for Avoid similarity issue in turnitin.

Another Option

UNIQUE ASSIGNMENT

0-20% Similarity in turnitin

Price is 700 per assignment

Unique assignment buy via WhatsApp   8755555879

Quick Checkout

Description

SESSION JUL – AUG 2024
PROGRAM MASTER OF COMMERCE (M.COM)
SEMESTER III
COURSE CODE & NAME DCM7105 SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT    

 

   
   
   

 

Assignment Set – 1

 

 

  1. Global Energy Corp. provides the following expected returns and probabilities for five states of the economy:
  • State P: Probability = 0.15, Return = 5%
  • State Q: Probability = 0.25, Return = 15%
  • State R: Probability = 0.3, Return = 10%
  • State S: Probability = 0.2, Return = 8%
  • State T: Probability = 0.1, Return = 20% Calculate the average expected return and risk.

Ans 1.

Expected Return and Risk Calculation for Global Energy Corp.

Security analysis and portfolio management involve evaluating risk and return for different investment opportunities. One of the key methods used to determine the performance of a stock or portfolio is by calculating the expected return and risk (standard deviation) based on different possible economic condition

 

Its Half solved only

Buy Complete from our online store

 

https://smuassignment.in/online-store/

 

MUJ Fully solved assignment available for session July-Aug 2024.

 

Lowest price guarantee with quality.

Charges INR 198 only per assignment. For more information you can get via mail or Whats app also

Mail id is aapkieducation@gmail.com

 

Our website www.smuassignment.in

After mail, we will reply you instant or maximum

1 hour.

Otherwise you can also contact on our

whatsapp no 8791490301.

 

 

 

 

 

  1. a) Consider a bond with a face value of €500, a 9% annual coupon rate, and 8 years to maturity. If the annual interest rate is 8%, calculate the bond’s current value.
  2. b) Discuss the concept of Moving Average Convergence Divergence (MACD)

Ans 2.

(a) Bond Valuation Calculation

A bond’s value is determined by the present value of its future cash flows, which include periodic coupon payments and the face value at maturity. Since the bondholder receives these payments over time, they must be discounted to their present value using the market interest rate.

The formula for bond

 

  1. a) Assuming a risk-free rate of 6% and an expected market risk premium of 9%, what is the expected return on a stock with a beta of 1.0?
  2. b) Discuss the  principles  and  implications  of  the  Efficient  Market Hypothesis.     5+5     

Ans 3.

 (a) Expected Return Using CAPM

The Capital Asset Pricing Model (CAPM) determines the expected return on a stock based on its systematic risk (beta).

The formula is:

Where:

  • = Expected

 

Assignment Set – 2

 

 

  1. a) Analyze the role of Global Depository Receipts (GDRs) as a global investment avenue.
  2. b) Nancy invested 60% of her portfolio in Stock X, which has a return of 15%, and the remaining 40% in Stock Y, which has a return of 10%. Calculate the expected return of Nancy’s portfolio.

Ans 4.

 (a) Role of Global Depository Receipts (GDRs) as a Global Investment Avenue

Global Depository Receipts (GDRs) play a crucial role in the international financial market by allowing companies to raise capital from foreign investors without directly listing on foreign stock exchanges. A GDR is a financial instrument issued by a depository bank and represents shares in a foreign company. These receipts are traded on international stock exchanges such as the London Stock Exchange (LSE), Luxembourg Stock Exchange, and Singapore Exchange (SGX), providing investors with

 

 

  1. a) Describe the meaning and benefits of mutual funds.
  2. b) Discuss the role of arbitrage in the Arbitrage Pricing Theory (APT).

Ans 5.

 (a) Meaning and Benefits of Mutual Funds

A mutual fund is a pooled investment vehicle where money from multiple investors is collected and invested in a diversified portfolio of stocks, bonds, or other assets. These funds are managed by professional fund managers who allocate capital strategically to generate returns while minimizing risks. Mutual funds are categorized based on their investment objectives, such as equity funds, debt funds, hybrid funds, and index funds. Investors purchase units of the mutual fund, and the fund’s Net Asset Value (NAV) determines the value of their investment. Since mutual funds offer diversification and professional

 

  1. a) Distinguish between fundamental analysis and technical analysis.
  2. b) What are the common mistakes made in investment management?

Ans 6.

(a) Distinction Between Fundamental Analysis and Technical Analysis

Investors use two primary approaches to evaluate stocks and make investment decisions: fundamental analysis and technical analysis. While both methods aim to predict price movements, they differ significantly in their approach, tools, and assumptions about market behavior.

Fundamental Analysis: Assessing Intrinsic Value

Fundamental analysis focuses on evaluating a company’s financial health, earnings potential, and economic position to determine its intrinsic value. Analysts examine factors such as revenue, profit margins, earnings growth, financial ratios (P/E ratio, debt-to-equity ratio), and industry trends. They also consider macroeconomic indicators like GDP growth, inflation, and interest rates to assess the broader economic impact on stock performance. The goal is to identify undervalued