Gupta College

Internal Assessment – May 2018

Security Analysis and Portfolio Management – II Semester MFA (Bangalore University)

Max Time: 1 hour Max Marks: 30

Note: Answer all questions. Marks are indicated in the brackets

1. What is portfolio management (5)

2. Distinguish between fundamental and technical analysis (5)
3. From the following data calculate
(a) portfolio return (b) Co – variance (c) portfolio standard deviation (15)

Year Return on T (%) Return on R (%)

2013 10 12
2014 7 7
2015 9 9
2016 11 6
2017 12 8

4. From the following information calculate sharpe and treynor ratio and rank them (5)

Funds Rp SD Beta
P 29 8 0.57
Q 27 5 0.77
R 28 0.7 0.85

Gupta College

Internal Assessment – May 2018

Security Analysis and Portfolio Management – II Semester MFA (Bangalore University)

Max Time: 1 hour Max Marks: 30

Note: Answer all questions. Marks are indicated in the brackets

1. What is portfolio management (5)

2. Distinguish between fundamental and technical analysis (5)
3. From the following data calculate
(a) portfolio return (b) Co – variance (c) portfolio standard deviation (15)

Year Return on T (%) Return on R (%)

2013 11 11
2014 7 8
2015 10 6
2016 9 7
2017 12 13

4. From the following information calculate sharpe and treynor ratio and rank them (5)

Funds Rp SD Beta
P 27 7 0.67
Q 26 6 0.79
R 28 0.6 0.83
 Gupta College

Internal Assessment – May 2018

Security Analysis and Portfolio Management – II Semester MFA (Bangalore University)

Max Time: 1 hour Max Marks: 30

Note: Answer all questions. Marks are indicated in the brackets

1. What is portfolio management (5)

2. Distinguish between fundamental and technical analysis (5)
3. From the following data calculate
(a) portfolio return (b) Co – variance (c) portfolio standard deviation (15)

Year Return on T (%) Return on R (%)

2013 11 12
2014 9 8
2015 8 9
2016 12 7
2017 13 6

4. From the following information calculate sharpe and treynor ratio and rank them (5)

Funds Rp SD Beta
P 27 9 0.77
Q 28 7 0.63
R 29 0.7 0.86

Gupta College

Internal Assessment – May 2018

Security Analysis and Portfolio Management – II Semester MFA (Bangalore University)

Max Time: 1 hour Max Marks: 30

Note: Answer all questions. Marks are indicated in the brackets

1. What is portfolio management (5)

2. Distinguish between fundamental and technical analysis (5)
3. From the following data calculate
(a) portfolio return (b) Co – variance (c) portfolio standard deviation (15)

Year Return on T (%) Return on R (%)

2013 12 11
2014 11 9
2015 10 8
2016 9 7
2017 8 12

4. From the following information calculate sharpe and treynor ratio and rank them (5)

Funds Rp SD Beta
P 27 8 0.68
 Q 26 6 0.72
R 28 0.7 0.87

Gupta College

Internal Assessment – May 2018

Security Analysis and Portfolio Management – II Semester MFA (Bangalore University)

Max Time: 1 hour Max Marks: 30

Note: Answer all questions. Marks are indicated in the brackets

1. What is portfolio management (5)

2. Distinguish between fundamental and technical analysis (5)
3. From the following data calculate
(a) portfolio return (b) Co – variance (c) portfolio standard deviation (15)

Year Return on T (%) Return on R (%)

2013 11 11
2014 12 10
2015 10 8
2016 9 7
2017 8 12

4. From the following information calculate sharpe and treynor ratio and rank them (5)

Funds Rp SD Beta
P 28 8 0.78
Q 26 6 0.87
R 27 0.9 0.92
 Gupta College

Internal Assessment – November 2018

Managerial Finance – I Semester MFA (Bangalore University)

Max Time: 1 hour Max Marks: 30

1.Delta Ltd. currently has an equity share capital of Rs. 10,00,000 consisting of 1,00,000 Equity share of Rs. 10 each. The company is going through
a major expansion plan requiring to raise funds to the tune of Rs. 6,00,000. To finance the expansion the management has following plans:

Plan-I : Issue 60,000 Equity shares of Rs. 10 each.

Plan-II : Issue 40,000 Equity shares of Rs. 10 each and the balance through long- term borrowing at 12% interest p.a.

Plan-III : Issue 30,000 Equity shares of Rs.10 each and 3,000 Rs.100, 9% Debentures.

Plan-IV : Issue 30,000 Equity shares of Rs. 10 each and the balance through 6% preference shares.

The EBIT of the company is expected to be Rs. 4,00,000 p.a. assume corporate tax rate of 40%.

Required:

(i) Calculate EPS in each of the above plans.(ii) Suggest which plan is most suitable for the company

2.Calculate all 3 leverages for the following firms

Particulars P Q R
Output [Units] 3,00,000 75,000 5,00,000
Fixed cost Rs.3,50,000 Rs.7,00,000 Rs.75,000
Unit Variable cost Re.1.00 Rs.7.50 Re.0.10
Interest Expenses Rs.25,000 Rs.40,000 NIL
Unit selling price Rs.3 Rs.25 Re.0.50

3. Calculate NPV of the 2 projects and suggest which of the 2 projects should be accepted assuming a discount rate of 10%
Project A Project B
Initial Investment Rs.40000 Rs.60000
Estimated life 5 years 5 years
Scrap value 2000 4000
Profit before depreciation & after taxes
1 12000 35000
2 18000 25000
3 7000 12000
4 5000 4000
5 4000 4000

The present value of Rupee 1 at 10% for the 1st year = 0.909
2nd year = 0.826
3rd year = 0.751
4th year = 0.683
5th year = 0.621

***************
 Gupta College

Internal Assessment – November 2018

Managerial Finance – I Semester MFA (Bangalore University)

Max Time: 1 hour Max Marks: 30

1.Delta Ltd. currently has an equity share capital of Rs. 12,00,000 consisting of 1,00,000 Equity share of Rs. 10 each. The company is going through
a major expansion plan requiring to raise funds to the tune of Rs. 6,00,000. To finance the expansion the management has following plans:

Plan-I : Issue 60,000 Equity shares of Rs. 10 each.

Plan-II : Issue 40,000 Equity shares of Rs. 10 each and the balance through long- term borrowing at 12% interest p.a.

Plan-III : Issue 30,000 Equity shares of Rs.10 each and 3,000 Rs.100, 9% Debentures.

Plan-IV : Issue 30,000 Equity shares of Rs. 10 each and the balance through 6% preference shares.

The EBIT of the company is expected to be Rs. 4,00,000 p.a. assume corporate tax rate of 40%.

Required:

(i) Calculate EPS in each of the above plans.(ii) Suggest which plan is most suitable for the company

2.Calculate all 3 leverages for the following firms

Particulars P Q R
Output [Units] 3,00,000 75,000 6,00,000
Fixed cost Rs.3,00,000 Rs.7,50,000 Rs.75,000
Unit Variable cost Re.1.00 Rs.7.50 Re.0.10
Interest Expenses Rs.25,000 Rs.40,000 NIL
Unit selling price Rs.3 Rs.25 Re.0.50

3. Calculate NPV of the 2 projects and suggest which of the 2 projects should be accepted assuming a discount rate of 10%
Project A Project B
Initial Investment Rs.50000 Rs.70000
Estimated life 5 years 5 years
Scrap value 2000 4000
Profit before depreciation & after taxes
1 12000 35000
2 18000 25000
3 7000 12000
4 5000 4000
5 4000 4000

The present value of Rupee 1 at 10% for the 1st year = 0.909
2nd year = 0.826
3rd year = 0.751
4th year = 0.683
5th year = 0.621

***************
 Gupta College

Internal Assessment – November 2018

Managerial Finance – I Semester MFA (Bangalore University)

Max Time: 1 hour Max Marks: 30

1.Delta Ltd. currently has an equity share capital of Rs. 14,00,000 consisting of 1,00,000 Equity share of Rs. 10 each. The company is going through
a major expansion plan requiring to raise funds to the tune of Rs. 6,00,000. To finance the expansion the management has following plans:

Plan-I : Issue 60,000 Equity shares of Rs. 10 each.

Plan-II : Issue 40,000 Equity shares of Rs. 10 each and the balance through long- term borrowing at 12% interest p.a.

Plan-III : Issue 30,000 Equity shares of Rs.10 each and 3,000 Rs.100, 9% Debentures.

Plan-IV : Issue 30,000 Equity shares of Rs. 10 each and the balance through 6% preference shares.

The EBIT of the company is expected to be Rs. 4,00,000 p.a. assume corporate tax rate of 40%.

Required:

(i) Calculate EPS in each of the above plans.(ii) Suggest which plan is most suitable for the company

2.Calculate all 3 leverages for the following firms

Particulars P Q R
Output [Units] 3,00,000 85,000 8,00,000
Fixed cost Rs.3,50,000 Rs.7,00,000 Rs.75,000
Unit Variable cost Re.1.00 Rs.7.50 Re.0.10
Interest Expenses Rs.25,000 Rs.40,000 NIL
Unit selling price Rs.3 Rs.25 Re.0.50

3. Calculate NPV of the 2 projects and suggest which of the 2 projects should be accepted assuming a discount rate of 10%
Project A Project B
Initial Investment Rs74000 Rs.65000
Estimated life 5 years 5 years
Scrap value 2000 4000
Profit before depreciation & after taxes
1 12000 35000
2 18000 25000
3 7000 12000
4 5000 4000
5 4000 4000

The present value of Rupee 1 at 10% for the 1st year = 0.909
2nd year = 0.826
3rd year = 0.751
4th year = 0.683
5th year = 0.621

***************
 Gupta College

Internal Assessment – November 2018

Managerial Finance – I Semester MFA (Bangalore University)

Max Time: 1 hour Max Marks: 30

1.Delta Ltd. currently has an equity share capital of Rs. 15,00,000 consisting of 1,00,000 Equity share of Rs. 10 each. The company is going through
a major expansion plan requiring to raise funds to the tune of Rs. 6,00,000. To finance the expansion the management has following plans:

Plan-I : Issue 60,000 Equity shares of Rs. 10 each.

Plan-II : Issue 40,000 Equity shares of Rs. 10 each and the balance through long- term borrowing at 12% interest p.a.

Plan-III : Issue 30,000 Equity shares of Rs.10 each and 3,000 Rs.100, 9% Debentures.

Plan-IV : Issue 30,000 Equity shares of Rs. 10 each and the balance through 6% preference shares.

The EBIT of the company is expected to be Rs. 4,00,000 p.a. assume corporate tax rate of 40%.

Required:

(i) Calculate EPS in each of the above plans.(ii) Suggest which plan is most suitable for the company

2.Calculate all 3 leverages for the following firms

Particulars P Q R
Output [Units] 4,00,000 75,000 5,00,000
Fixed cost Rs.3,50,000 Rs.7,00,000 Rs.75,000
Unit Variable cost Re.1.00 Rs.7.50 Re.0.10
Interest Expenses Rs.25,000 Rs.40,000 NIL
Unit selling price Rs.3 Rs.25 Re.0.50

3. Calculate NPV of the 2 projects and suggest which of the 2 projects should be accepted assuming a discount rate of 10%
Project A Project B
Initial Investment Rs84000 Rs.68000
Estimated life 5 years 5 years
Scrap value 2000 4000
Profit before depreciation & after taxes
1 12000 35000
2 18000 25000
3 7000 12000
4 5000 4000
5 4000 4000

The present value of Rupee 1 at 10% for the 1st year = 0.909
2nd year = 0.826
3rd year = 0.751
4th year = 0.683
5th year = 0.621

***************
 Gupta College

Internal Assessment – November 2018

Managerial Finance – I Semester MFA (Bangalore University)

Max Time: 1 hour Max Marks: 30

1.Delta Ltd. currently has an equity share capital of Rs. 11,00,000 consisting of 1,00,000 Equity share of Rs. 10 each. The company is going through
a major expansion plan requiring to raise funds to the tune of Rs. 6,00,000. To finance the expansion the management has following plans:

Plan-I : Issue 60,000 Equity shares of Rs. 10 each.

Plan-II : Issue 40,000 Equity shares of Rs. 10 each and the balance through long- term borrowing at 12% interest p.a.

Plan-III : Issue 30,000 Equity shares of Rs.10 each and 3,000 Rs.100, 9% Debentures.

Plan-IV : Issue 30,000 Equity shares of Rs. 10 each and the balance through 6% preference shares.

The EBIT of the company is expected to be Rs. 4,00,000 p.a. assume corporate tax rate of 40%.

Required:

(i) Calculate EPS in each of the above plans.(ii) Suggest which plan is most suitable for the company

2.Calculate all 3 leverages for the following firms

Particulars P Q R
Output [Units] 4,50,000 70,000 5,50,000
Fixed cost Rs.3,50,000 Rs.7,00,000 Rs.75,000
Unit Variable cost Re.1.00 Rs.7.50 Re.0.10
Interest Expenses Rs.25,000 Rs.40,000 NIL
Unit selling price Rs.3 Rs.25 Re.0.50

3. Calculate NPV of the 2 projects and suggest which of the 2 projects should be accepted assuming a discount rate of 10%
Project A Project B
Initial Investment Rs85000 Rs.69000
Estimated life 5 years 5 years
Scrap value 2000 4000
Profit before depreciation & after taxes
1 12000 35000
2 18000 25000
3 7000 12000
4 5000 4000
5 4000 4000

The present value of Rupee 1 at 10% for the 1st year = 0.909
2nd year = 0.826
3rd year = 0.751
4th year = 0.683
5th year = 0.621

***************
 Gupta College

Internal Assessment – November 2018

Managerial Finance – I Semester MFA (Bangalore University)

Max Time: 1 hour Max Marks: 30

1.Delta Ltd. currently has an equity share capital of Rs.15,00,000 consisting of 1,00,000 Equity share of Rs. 10 each. The company is going through
a major expansion plan requiring to raise funds to the tune of Rs. 6,00,000. To finance the expansion the management has following plans:

Plan-I : Issue 60,000 Equity shares of Rs. 10 each.

Plan-II : Issue 40,000 Equity shares of Rs. 10 each and the balance through long- term borrowing at 12% interest p.a.

Plan-III : Issue 30,000 Equity shares of Rs.10 each and 3,000 Rs.100, 9% Debentures.

Plan-IV : Issue 30,000 Equity shares of Rs. 10 each and the balance through 6% preference shares.

The EBIT of the company is expected to be Rs. 4,00,000 p.a. assume corporate tax rate of 40%.

Required:

(i) Calculate EPS in each of the above plans.(ii) Suggest which plan is most suitable for the company

2.Calculate all 3 leverages for the following firms

Particulars P Q R
Output [Units] 4,70,000 70,000 5,70,000
Fixed cost Rs.3,50,000 Rs.7,00,000 Rs.75,000
Unit Variable cost Re.1.00 Rs.7.50 Re.0.10
Interest Expenses Rs.25,000 Rs.40,000 NIL
Unit selling price Rs.3 Rs.25 Re.0.50

3. Calculate NPV of the 2 projects and suggest which of the 2 projects should be accepted assuming a discount rate of 10%
Project A Project B
Initial Investment Rs75000 Rs.60000
Estimated life 5 years 5 years
Scrap value 2000 4000
Profit before depreciation & after taxes
1 12000 35000
2 18000 25000
3 7000 12000
4 5000 4000
5 4000 4000

The present value of Rupee 1 at 10% for the 1st year = 0.909
2nd year = 0.826
3rd year = 0.751
4th year = 0.683
5th year = 0.621

***************
 Gupta College

Internal Assessment – November 2018

Managerial Finance – I Semester MFA (Bangalore University)

Max Time: 1 hour Max Marks: 30

1.Delta Ltd. currently has an equity share capital of Rs.15,00,000 consisting of 1,00,000 Equity share of Rs. 10 each. The company is going through
a major expansion plan requiring to raise funds to the tune of Rs. 6,00,000. To finance the expansion the management has following plans:

Plan-I : Issue 60,000 Equity shares of Rs. 10 each.

Plan-II : Issue 40,000 Equity shares of Rs. 10 each and the balance through long- term borrowing at 12% interest p.a.

Plan-III : Issue 30,000 Equity shares of Rs.10 each and 3,000 Rs.100, 9% Debentures.

Plan-IV : Issue 30,000 Equity shares of Rs. 10 each and the balance through 6% preference shares.

The EBIT of the company is expected to be Rs. 4,00,000 p.a. assume corporate tax rate of 40%.

Required:

(i) Calculate EPS in each of the above plans.(ii) Suggest which plan is most suitable for the company

2.Calculate all 3 leverages for the following firms

Particulars P Q R
Output [Units] 4,70,000 70,000 5,70,000
Fixed cost Rs.3,50,000 Rs.7,00,000 Rs.75,000
Unit Variable cost Re.1.00 Rs.7.50 Re.0.10
Interest Expenses Rs.25,000 Rs.40,000 NIL
Unit selling price Rs.3 Rs.25 Re.0.50

3. Calculate NPV of the 2 projects and suggest which of the 2 projects should be accepted assuming a discount rate of 10%
Project A Project B
Initial Investment Rs75000 Rs.60000
Estimated life 5 years 5 years
Scrap value 2000 4000
Profit before depreciation & after taxes
1 12000 35000
2 18000 25000
3 7000 12000
4 5000 4000
5 4000 4000

The present value of Rupee 1 at 10% for the 1st year = 0.909
2nd year = 0.826
3rd year = 0.751
4th year = 0.683
5th year = 0.621

***************
 Gupta College

Internal Assessment – November 2018

Managerial Finance – I Semester MFA (Bangalore University)

Max Time: 1 hour Max Marks: 30

1.Delta Ltd. currently has an equity share capital of Rs.13,00,000 consisting of 1,00,000 Equity share of Rs. 10 each. The company is going through
a major expansion plan requiring to raise funds to the tune of Rs. 6,00,000. To finance the expansion the management has following plans:

Plan-I : Issue 60,000 Equity shares of Rs. 10 each.

Plan-II : Issue 40,000 Equity shares of Rs. 10 each and the balance through long- term borrowing at 12% interest p.a.

Plan-III : Issue 30,000 Equity shares of Rs.10 each and 3,000 Rs.100, 9% Debentures.

Plan-IV : Issue 30,000 Equity shares of Rs. 10 each and the balance through 6% preference shares.

The EBIT of the company is expected to be Rs. 4,00,000 p.a. assume corporate tax rate of 40%.

Required:

(i) Calculate EPS in each of the above plans.(ii) Suggest which plan is most suitable for the company

2.Calculate all 3 leverages for the following firms

Particulars P Q R
Output [Units] 4,75,000 75,000 5,75,000
Fixed cost Rs.3,50,000 Rs.7,00,000 Rs.75,000
Unit Variable cost Re.1.00 Rs.7.50 Re.0.10
Interest Expenses Rs.25,000 Rs.40,000 NIL
Unit selling price Rs.3 Rs.25 Re.0.50

3. Calculate NPV of the 2 projects and suggest which of the 2 projects should be accepted assuming a discount rate of 10%
Project A Project B
Initial Investment Rs65000 Rs.70000
Estimated life 5 years 5 years
Scrap value 2000 4000
Profit before depreciation & after taxes
1 12000 35000
2 18000 25000
3 7000 12000
4 5000 4000
5 4000 4000

The present value of Rupee 1 at 10% for the 1st year = 0.909
2nd year = 0.826
3rd year = 0.751
4th year = 0.683
5th year = 0.621

***************
 Gupta College

Internal Assessment – November 2018

Managerial Finance – I Semester MFA (Bangalore University)

Max Time: 1 hour Max Marks: 30

1.Delta Ltd. currently has an equity share capital of Rs.16,00,000 consisting of 1,00,000 Equity share of Rs. 10 each. The company is going through
a major expansion plan requiring to raise funds to the tune of Rs. 6,00,000. To finance the expansion the management has following plans:

Plan-I : Issue 60,000 Equity shares of Rs. 10 each.

Plan-II : Issue 40,000 Equity shares of Rs. 10 each and the balance through long- term borrowing at 12% interest p.a.

Plan-III : Issue 30,000 Equity shares of Rs.10 each and 3,000 Rs.100, 9% Debentures.

Plan-IV : Issue 30,000 Equity shares of Rs. 10 each and the balance through 6% preference shares.

The EBIT of the company is expected to be Rs. 4,00,000 p.a. assume corporate tax rate of 40%.

Required:

(i) Calculate EPS in each of the above plans.(ii) Suggest which plan is most suitable for the company

2.Calculate all 3 leverages for the following firms

Particulars P Q R
Output [Units] 4,90 ,000 70,000 5,78,000
Fixed cost Rs.3,50,000 Rs.7,00,000 Rs.75,000
Unit Variable cost Re.1.00 Rs.7.50 Re.0.10
Interest Expenses Rs.25,000 Rs.40,000 NIL
Unit selling price Rs.3 Rs.25 Re.0.50

3. Calculate NPV of the 2 projects and suggest which of the 2 projects should be accepted assuming a discount rate of 10%
Project A Project B
Initial Investment Rs85000 Rs.75000
Estimated life 5 years 5 years
Scrap value 2000 4000
Profit before depreciation & after taxes
1 12000 35000
2 18000 25000
3 7000 12000
4 5000 4000
5 4000 4000

The present value of Rupee 1 at 10% for the 1st year = 0.909
2nd year = 0.826
3rd year = 0.751
4th year = 0.683
5th year = 0.621

***************