Description
For Nmims answersheets contact
[email protected]
+91 95030-94040
Capital Market and Portfolio Management
1. Explain how Capital Asset Pricing Model (CAPM) is effective in measuring risks to the returns expected by the investors. What is the relevance of Beta in the Capital Asset Pricing Model? (10 Marks)
2. Compare the following portfolios on performance using Sharpe, Treynor and Jensen’s measure and rank them.
Portfolio Avg. returns Std. deviation Beta
X 15% 0.25 1.25
Y 12% 0.30 0.75
Z 10% 0.20 1.20
Market Index 12% 0.20 1.00
Risk free rate – 7%.
(10 Marks)
3. Jassy plans to purchase equity shares of a pharma company named ‘Emerge Bio’ in an upcoming IPO with a price band of Rs. 150-175 per share. The company has been operating in India since 1998 has made a breakthrough with outstanding research in the field of virology. The company currently operates in Singapore, Australia, Europe and India with a total valuation of more than 3500 crores. As a financial planner you are required to advise Jassy on the following fronts:
a. What are the different aspects with respect to fundamental analysis of the company? (5 Marks)
b. What are the different technical indicators which should be evaluated by Jassy before purchasing the shares? (5 Marks)
For Nmims answersheets contact
[email protected]
+91 95030-94040
doc_526130636.docx
For Nmims answersheets contact
[email protected]
+91 95030-94040
Capital Market and Portfolio Management
1. Explain how Capital Asset Pricing Model (CAPM) is effective in measuring risks to the returns expected by the investors. What is the relevance of Beta in the Capital Asset Pricing Model? (10 Marks)
2. Compare the following portfolios on performance using Sharpe, Treynor and Jensen’s measure and rank them.
Portfolio Avg. returns Std. deviation Beta
X 15% 0.25 1.25
Y 12% 0.30 0.75
Z 10% 0.20 1.20
Market Index 12% 0.20 1.00
Risk free rate – 7%.
(10 Marks)
3. Jassy plans to purchase equity shares of a pharma company named ‘Emerge Bio’ in an upcoming IPO with a price band of Rs. 150-175 per share. The company has been operating in India since 1998 has made a breakthrough with outstanding research in the field of virology. The company currently operates in Singapore, Australia, Europe and India with a total valuation of more than 3500 crores. As a financial planner you are required to advise Jassy on the following fronts:
a. What are the different aspects with respect to fundamental analysis of the company? (5 Marks)
b. What are the different technical indicators which should be evaluated by Jassy before purchasing the shares? (5 Marks)
For Nmims answersheets contact
[email protected]
+91 95030-94040
doc_526130636.docx