Mf0010 & security analysis and portfolio management (1)
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This document provides information about getting fully solved assignments from an assignment help service. It lists an email address and phone number to contact the service, and provides details of 6 sample assignments covering topics like investment process, financial derivatives, risk factors, intrinsic value analysis, technical analysis, and arbitrage pricing theory. Students are instructed to send their semester and specialization to the email address to get solved assignments.
Mf0010 & security analysis and portfolio management (1)
- 1. Dear students get fully solved assignments Send your semester & Specialization name to our mail id : “ help.mbaassignments@gmail.com ” or Call us at : 08263069601 (Prefer mailing. Call in emergency ) ASSIGNMENT 1 Investment operation is one which upon through analysis promises safety of principal and an adequate return.Explain the investment process and write down the common errors in investment management Answer:-Explanation of investment process 1. Setting investment policy This initial step determines the investor’s objectives and the investible amount. Since there is a definite relationship between risk and return, the objectives should be stated in terms of both risk and return. This step concludes with the asset allocation decision, which is identification of the potential categories of financial assets for consideration in the portfolio that the investor is going to construct. Asset allocationinvolves dividing an investment portfolio among different asset categories, such as stocks, bonds and cash. DRIVE SPRING 2014 PROGRAM MBADS (SEM 3/SEM 5) MBAFLEX/ MBAN2 (SEM 3) PGDFMN (SEM 1) SUBJECT CODE & NAME MF0010 & SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT BK ID B1754 CREDIT & MARKS 4 Credits, 60 marks
- 2. 2 Financial markets permit the businesses and governments to raise the funds needed by sale of securities. The economy requires a sound financial markets for its proper functioning.Explain in detail on financial derivatives and the financial intermediaries Answer:-Explanation on financial derivatives Derivatives are financial instruments that have no intrinsic value, but derive their value from something else. They hedge the risk of owning things that are subject to unexpected price fluctuations, for example foreign currencies, commodities (like wheat), stocks and bonds. The term ‘derivative’ indicates that it has no independent value, i.e. its value is entirely ‘derived’ from the value of the cash asset. For example, price of a stock option depends on the underlying stock price and the price of currency future depends 3 Risk is the likelihood that your investment will either earn money or lose money. There are some factors that affect the risk. Explain the factors that affect the risk and solve the below given problem Mr. A has purchased 100 shares of Rs.10 each of TVS Motors in 2005 at Rs.78 Per share. The company has declared a dividend @40% for the year 2006-07. The market price of a share as on 1- 4-2006 was Rs.104 and on 31-3-2007 was Rs.128. Calculate the annual return on the investment for the year 2006-07. Answer:-Explanation of factors affecting the risk The common risk factors are: Business risk: As a security holder you get dividends, interest or principal (on maturity in case of securities like bonds) from the firm. But there is a possibility that the firm may not be able to pay you due to poor financial performance. This possibility is termed as business risk. The poor financial performance could be due to economic 4 Elaborate on Intrinsic value of securities and issues with fundamental analysis.Explain on company analysis and its areas of focus. Answer:-Explanation on intrinsic value of securities Issues with fundamental analysis This exercise capitalises on the observed discrepancy in market price and intrinsic value of company shares. In other words, the valuation gap exposed by the fundamental analysis is used by the investors to reap capital gains till price corrections take place in the market. When the market is in equilibrium, the current market price reflects the average intrinsic value evaluations made by all investors. If this value differs for an investor, it effectively means differing from the market consensus onthe expected
- 3. 5 Technicalanalysis is a method used to evaluate the worth of a security byanalyzing statistics pertaining to its market activity.Explain on Dow theory and its assumptions.Write complete information on Technical indicators. Answer:-Explanation of Dow Theory and itsassumptions The Dow Theory was originated by Charles Dow, the founder of the Dow Jones Company and editor of the Wall Street Journal. The Dow Theory presumes that the market moves in persistent bull and bear trends. Dow Theory was originally used for market as a whole, but it is now used for individual securities as well. Dow Theory recognises that it is the 6 Modern portfolio theory helps an investor to identify his optimal portfolio fromumpteen number of security portfolios that can be constructed.Elaborate on Arbitrage Pricing Theory and principle of Arbitrage theory. Answer:-Explanation of Arbitrage pricing theory Capital Asset Pricing Model (CAPM), and Arbitrage Pricing Theory (APT) are two of the most commonly used models for pricing risky assets based on their relevant risks. CAPM calculates the required rate of return for any risky asset based on the security’s beta. Beta is a measure of the movement of the security’s return with the return on the market portfolio, which includes all available securitiesand where the proportion of each security in the portfolio is its market valueas a percentage of total market Dear students get fully solved assignments Send your semester & Specialization name to our mail id : “ help.mbaassignments@gmail.com ” or Call us at : 08263069601 (Prefer mailing. Call in emergency )