Description
For Nmims Assignments Contact
[email protected]
+91 95030-94040
Capital Market and Portfolio Management
1. Distinguish between systematic and unsystematic risk. Explain different mutual fund schemes for diversifying enlisted risks. (10 Marks)
2. Given below are likely returns in case of shares of Sun Ltd. and Moon Ltd. In the various economic conditions. Both shares are presently quoted at Rs. 100 per share.
Economic Condition Probability Returns of Sun Ltd.(%) Returns of Moon Ltd.(%)
High Growth 0.3 100 150
Low Growth 0.4 110 130
Stagnation 0.2 120 90
Recession 0.1 140 60
Compute – Expected Return and Standard Deviation for both stocks and provide your suggestion for suitable investment. (10 Marks)
3. Rajesh, 35-year-old salaried individual wishes to invest Rs. 15 lakhs in different investment avenues. He plans to invest for the education of his two children aged 5 and 8 years old, retirement and contingency. Assuming the role of a Portfolio Management Consultant design a suitable portfolio for Rajesh if –
a. He is willing to take moderate risk for his investments. (5 Marks)
b. He is a risk neutral investor. (5 Marks)
For Nmims Assignments Contact
[email protected]
+91 95030-94040
doc_276439283.doc
For Nmims Assignments Contact
[email protected]
+91 95030-94040
Capital Market and Portfolio Management
1. Distinguish between systematic and unsystematic risk. Explain different mutual fund schemes for diversifying enlisted risks. (10 Marks)
2. Given below are likely returns in case of shares of Sun Ltd. and Moon Ltd. In the various economic conditions. Both shares are presently quoted at Rs. 100 per share.
Economic Condition Probability Returns of Sun Ltd.(%) Returns of Moon Ltd.(%)
High Growth 0.3 100 150
Low Growth 0.4 110 130
Stagnation 0.2 120 90
Recession 0.1 140 60
Compute – Expected Return and Standard Deviation for both stocks and provide your suggestion for suitable investment. (10 Marks)
3. Rajesh, 35-year-old salaried individual wishes to invest Rs. 15 lakhs in different investment avenues. He plans to invest for the education of his two children aged 5 and 8 years old, retirement and contingency. Assuming the role of a Portfolio Management Consultant design a suitable portfolio for Rajesh if –
a. He is willing to take moderate risk for his investments. (5 Marks)
b. He is a risk neutral investor. (5 Marks)
For Nmims Assignments Contact
[email protected]
+91 95030-94040
doc_276439283.doc