Capital Market & Portfolio Management

NMIMS Global Access

School for Continuing Education (NGA-SCE)

Course: Capital Market and Portfolio Management

Internal Assignment Applicable for April 2023 Examination

Assignment Marks: 30

Instructions:

All Questions carry equal marks. All Questions are compulsory

All answers to be explained in not more than 1000 words for question 1 and 2 and for question 3 in not more than 500 words for each subsection. Use relevant examples, illustrations as far as possible.

All answers to be written individually. Discussion and group work is not advisable.

Students are free to refer to any books/reference material/website/internet for attempting their assignments, but are not allowed to copy the matter as it is from the source of reference.

Students should write the assignment in their own words. Copying of assignments from other students is not allowed.

Students should follow the following parameter for answering the assignment questions.

 

For Theoretical Answer

Assessment Parameter	Weightage
Introduction	20%
Concepts and Application related to the question	60%
Conclusion	20%

For Numerical Answer

Assessment Parameter			Weightage
Understanding and usage of the formula			20%
Procedure / Steps			60%
Correct	Answer	&	20%
Interpretation

1. What distinguishes marketable financial instruments from the non-marketable financial instruments. Support the comparison with an illustration (10 Marks)

1. “Stock markets are more efficient and less predictable”. Comment on and justify your answer (10 Marks)

 

1. An analyst calculates the expected return of the two stocks in comparison to the particular market return, as

Market Return	Stock Z	Stock Y
5%	3%	10%
20%	25%	20%

a. Calculate the beta of the stocks (5 Marks)

b. What would be the expected return of the two stocks in case there is equal chance of market return to be 5% and 20% (5 Marks)

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