Investment Analysis & Portfolio Management (IAPM)
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Question Bank
Dear Students, On Youtube for new Syllabus of IAPM we have uploaded the Lecture –
Scoring 75 Marks in IAPM is very easy TYBMS (Finance) Semester 5 , first go through that and after understanding of it go through following Very Important Questions .
Please Remember, in IAPM –
1. Case Study & Practical Questions are most IMP.
Practical Questions – Question Bank
UNIT 2 ( 15 Marks)|
Type 1 – Computation of Expected Return & Standard Deviation ( 7.5 Marks) Type 2- Computation of Beta ( 7.5 Marks) |
Computation of Expected Return & Standard Deviation ( 7.5 Marks)
1. Mr. Rajesh, a Fund Manager produced the following returns for the last five years. Rate of return on Sensex are also given for comparison:
Calculate the average return and standard deviation of Mr. Rajesh’s Mutual Fund. Did he do better or worse than sensex by these measures?2. Rahul recently forecasted three economic conditions which he believes are likely to occur with the given probabilities. Based on these conditions, an analyst made the following forecast of returns on stock P, Q, R.
Calculate the average return and standard deviation of stocks P, Q and R and advise which stock is preferable for investment.3. Following is information about shares of ABC Ltd. and XYZ Ltd., under different economic conditions. At present both shares are traded at Rs. 100.
Which company has more risk to invest?
(ii) Mr. Ram wants to invest Rs. 10,000
(1) Only in ABC Ltd.
(2) Only in XYZ Ltd.
Which is better option? Justify.
(iii)Will your decision change if probabilities are 0.4, 0.4, 0.1, 0.1 respectively?
Type 2
Computation of Beta ( 7.5 Marks)
1. From the following information, calculate Beta (β) of a security.
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UNIT 3 ( 7.5 Marks) Type 1 -Ratio Analysis ( 7.5 Marks) |
Ratio Analysis ( 7.5 Marks)
1. Triveni Industries Ltd. gives you the following information for the year ended 31st March 2016:
You are required to calculate:
(i) Earning Per Share.
(ii) Price Earning Ratio.
(iii) Dividend Payout Ratio.
(iv) Dividend Yield.
(v) Book Value per Share and state whether it is worth investing in the Equity Shares of the Company.
Additional Information:
(i) Cost of Goods sold Rs. 9,00,000
(ii) Administrative and other expenses Rs. 1,00,000
(iii) Sales Rs. 15,00,000
(iv) Net Profit After Tax Rs. 3,60,000
(v) Market price of the company's shares Rs. 600.
Calculate the following and state whether you would invest in the shares of the company:
(1) Return on Equity
(2) Dividend Yield
(3) Payout Ratio
(4) Net Profit Margin
(5) Long Term Debt to Equity
(6) EPS
(7) P/E Ratio.
Calculate the following risk adjusted return measures for the mutual fund:
(a) Sharpe ratio.
(b) Treynor’s ratio.
Type 2
Calculation of Expected Return as per CAPM ( 7. 5 Marks)
1. Returns on Ram Ltd. were 11 %, 13 %, 12 % and 10 % in the past four years. Returns on Shyam Ltd. were 12 %, 14 %, 9 % and 10 % in the last four years. While average market returns were 12 %, 14 %, 14 % and 13 % in the last four years. Return on Government securities is 8 %.
You are required to compute beta factors and expected returns of Ram Ltd. and Shyam Ltd. using CAPM and offer comments.
Case Study
Case 1You are a PMS (Portfolio Management Services) Consultant. A middle aged investor approaches you to seek your advice on deploying his surplus funds of Rs. 20 Lacs in various shares, schemes, bonds and Govt. Securities. Present to him any five investment schemes mentioning various merits and demerits of each scheme. You may assume that he is willing to take risk to the extent of 30% of his funds
Case 2
You are a Portfolio Management Consultant. A middle class investor with
investible funds of 15 Lacs approaches you. He wants to know the following:
a. What are the investment avenues available to him which will give stable returns with minimum risk?
b. What are the various types of risks?
Case 3
As a Portfolio Management Consultant you are approached by a investor
with investible funds of Rs. 25 lacs. He wants to know from you the following:
a. What are the investment avenues available to him which will give a stable return with minimum risk?
b. What are the various types of risks?
Case 4
You being a Portfolio Management Consultant, an investor with an
investible surplus of 45 Lakhs and Income before tax of 10 Lakhs has
approached you for advice. He wishes to know the following:-
(a) What are the various investment avenues available to him, which will give him stable return with minimum risk? (b) What are the various investment avenues available which will minimize his income tax outflow?
Theory Questions – Question Bank
1. Explain the term risk. What are various types of risk?2. What is meant by fundamental analysis approach of investment?
3. What is Portfolio Management? State the objectives of Portfolio Management.
4. Explain in brief the Investment avenues
5. Explain in brief the objectives of investment
6. Explain the charting techniques used in Technical analysis Or Explain various chart patterns. Or Given a brief on Technical Analysis OR What are charts? Explain the types of charts Or What are Charts? Explain any three Charting Patters Or What is Technical Analysis? Explain its assumptions in detail.( Answer is same for all the questions)
7. What are the factors involved in selection of investment alternatives? Or What are the factors affecting investment decision. Or What are the criteria for investment? Or What are the factors influencing selecting of investment alternative? ( Answer is same for all questions)
8. Explain the roles and functions of Investment Banks.
9. Explain benefits of depository system.
10. What is diversification? Explain reduction of risk through diversification.
11. Explain the two approaches to constructing portfolio of securities.
12. Explain the Non-marketable Financial Assets.
13. . Write a Short notes on
a) CAPM Model
b) Elloit Wave Theory
c) Hybrid Schemes
d) Secondary market
e) Sensex OR Stock Market Index
f) Solvency ratios.
g) Security Market Line
h) Efficient Market Hypothesis Or Efficient Market Theory
i) NSDL
j) Primary Market
k) Public Provident Fund
l) Random Walk Theory
m) Debt Fund Investment Or Money Market Securities
n) Bonds
o) Mutual Fund
p) Earnings Per Share
q) Rights Issue
14. Distinguish between –
a) Equity shares and Preference shares.
b) Investment, Speculation and Gambling OR Investment and Gambling
c) Fundamental Analysis and Technical Analysis
Wealth Management ( Finance)
TYBMS Semester 5
Question Bank
Theory Question
Unit 11. What is Wealth Management? Discuss in detail process of Wealth Management.
2. Elaborate the Code of Ethics for Wealth Manager.
3. Discuss the scope of Wealth Management. What are the needs and Expectation of Clients for Wealth Manager?
4. What is Financial Literacy? What are the initiatives taken by different authorities for Financial Literacy?
5. What is Financial Goals? , Discuss the process for Building Financial Plans.
6. What is Yield? What are the different types of Yield Curves?
7. Discuss the key economic indicators in detail.
Unit 2
1. What is Insurance Planning? What are the Basic Principles of Insurance?
2. What are the Functions and Characteristics of Insurance?
3. Discuss the Rights and Responsibilities of Insurer and Insured
4. What are different Types of life & General Insurance Policies?
5. What is Health Insurance? State the Importance and types of Health Insurance.
6. What is Risk? What are the different types of Investment Risks?
7. Discuss in detail Asset Allocation Strategies (Strategic, Tactical, Life-Cycle based).
8. What are Active & Passive Investment Strategies?
Unit 3
1. What is Estate Planning? State the meaning of Will. What are the different Types of Will?
Unit 4
1. What is Retirement Planning? State the Purpose & Need of Retirement Planning.
2. What is Salary? What are the different components of Salary?
3. What are the objectives of Retirement Planning?
4. What is Wealth Creation? Explain Principles & Factors affecting Wealth Creation.
5. Elaborate Pre & Post-Retirement Strategies.
6. What is Pension Scheme? What are the different types of Pension Schemes in India?
7. Write a Short note on National Pension Scheme.
8. What is Annuity? What are different types of Annuities?
Savita Shrikant Bodke
Author, Corporate Trainer, Entrepreneur, Finance Faculty, YouTuber
Educational Qualification - MMS ( Finance), M.Com ( Adv. Accountancy ) , M. Com ( Business Management), M. A. ( Economics), L.L.B ( General) , DFM, DBM, DTM, DBF, GDC&A, CPCM, NCFM, NISM.
My Dear Students,
The questions given in the question bank are the most important questions. The students are advised not to fully rely on these questions. Students should also refer the other questions to get the maximum marks.
Best of Luck for your Exams.