A,b,c sec ques papers

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A,b,c sec ques papers

  1. 1. A SECTION SUBJECT - FINANCIAL MARKETS & INSTRUMENTSDURATION: 3 Hours MAX. MARKS: 70PART – A 5 x 3 Marks = 15 MarksANSWER ANY 5 OF THE FOLLOWING QUESTIONS: 1. What is the purpose of Initial Public Offer (IPO)? 2. Expand these acronyms: SEBI, NAV, AMC, FPO, AUM, ETF 3. What is the role of an Underwriter in a Public Issue? 4. Name at least seven important intermediaries of Capital Market 5. Explain “Price Band” of an IPO 6. What is Stop Loss? Explain with an example 7. Explain briefly Market Capitalization with examplesPART – BANSWER ANY 4 OF THE FOLLOWING QUESTIONS: 5 x 7 Marks = 35 Marks 1. Solve this Intraday situation: Stock Name Infosys Current Market Price Rs.2900 Expected Price (Intraday) Rs.2950 Action Buy Quantity 100 shares Margin Payable 15% Price of Infosys @ 3.25 p.m. same day Rs.2925 Calculate the Contract Value & Margin Payable and what options do you have with you before the market closes at 3.30 p.m. under the given situation? 2. Explain various categories of investors in a public issue and what are the minimum/ maximum reservation of shares in an IPO should be allocated to these investors as per the rule 3. Explain the role of Merchant Bankers in a Public Issue 4. What is a Long Position? Explain with an example 5. Calculate – Contract Value, Initial Margin, Value at Risk/Marked-to-market of the following situation: Stock - Cipla Lot Size - 1000 Purchase Price at 09.30 a.m. - Rs.325 Margin Payable - 12% Closing Price at 03.30 p.m. - Rs.315
  2. 2. PART – CCASE STUDY – COMPULSORY 1 X 20 Marks = 20 MarksThe Cash Portfolio of a customer is as below:Scrip Name Quantity Current Mkt. Price Current ValueACC 200 shares Rs.800 Rs.160000BHEL 100 shares Rs.1900 Rs.190000Cipla 500 shares Rs.300 Rs.150000HDFC Bank 300 shares Rs.1000 Rs.300000Infosys 100 shares Rs.2900 Rs.290000TCS 100 shares Rs.900 Rs.90000Wipro 300 shares Rs.400 Rs.120000 ---------------- Portfolio Value Rs. 1300000 ___________Assume that the NIFTY level is at 5600 & market is expected to fall by 10% in the near term & theweighted average Beta of the portfolio is 1.15. With these assumptions, answer the followingquestions: a. How will you protect the portfolio from devaluation due to the impending market fall (theoretical answer)? b. How many lots of Nifty should be considered to protect the fall in the portfolio value? c. Draw a flow of Hedging Process with the given data(Note: The answers for Part A & Part B may be written in Bullet Points method; neatness will beconsidered for better marks)
  3. 3. B SECTION SUBJECT - FINANCIAL MARKETS & INSTRUMENTSDURATION: 3 HOURS MAX. MARKS: 70PART – A 5 x 3 Marks = 10 MarksANSWER ANY 5 OF THE FOLLOWING QUESTIONS: 1. Safety, Liquidity & Returns – explain these terms 2. What is Escrow A/c? 3. Who are Venture Capital investors? 4. Who are the people involved in Pricing of an Issue in an IPO? 5. Explain the Exchange Settlement procedure. 6. What is the importance of collecting Margins? 7. Under what circumstances Call Option & Put Options are exercised in the Options Market?PART – BANSWER ANY 5 OF THE FOLLOWING QUESTIONS: 5 x 7 Marks = 35 Marks 6. What are Mutual Funds and what are the basic factors that are to be considered before investing any mutual fund scheme? 7. What is Marked-to-market margin & its importance of Value at Risk? 8. Explain various categories of investors in a public issue and what are the minimum/ maximum reservation of shares in an IPO should be allocated to these investors as per the rule 9. Explain the role of Merchant Bankers in a Public Issue 10. Explain the importance of Index 11. Calculate – Contract Value, Initial Margin, Value at Risk/Marked-to-market of the following situation: Stock - Reliance Inds. Lot Size - 300 Purchase Price at 09.30 a.m. - Rs.990 Margin Payable - 15% Closing Price at 03.30 p.m. - Rs.975
  4. 4. PART – CCASE STUDY – COMPULSORY 1 X 20 Marks = 20 MarksA customer has a single stock portfolio of ITC company shares. There is a bearish sentimentprevailing in the market and the index is expected to fall by about 10% over the next 1 week to 10days. How will you help the customer in hedging his portfolio from devaluating? The details aregiven below Stock Name ITC Ltd. Quantity 7500 shares Current Market Price Rs.175 Current Nifty Level 6000 Expected Fall 10% Nifty Lot Size 50 Beta of ITC 1.20 d. How will you protect the portfolio from devaluation due to the impending market fall (theoretical answer)? e. How many lots of Nifty should be considered to protect the fall in the portfolio value? f. Draw a flow of Hedging Process with the given data(Note: The answers for Part A & Part B may be written in Bullet Points method; neatness will beconsidered for better marks)
  5. 5. C SECTION SUBJECT - FINANCIAL MARKETS & INSTRUMENTSDURATION: 3 HOURS MAX. MARKS: 70PART – A 5 x 3 Marks = 15 MarksANSWER ANY 5 OF THE FOLLOWING QUESTIONS: 1. What is Oversubscription & Undersubscription in a public issue? Explain briefly with examples 2. What are the basic documents required for an individual to open a Trading A/c with a stock broker? 3. What is Free-float Market Capitalization? 4. What are the Short-term & Long-term Capital Gains tax slabs in India? 5. What are Balanced Funds in Mutual Funds? 6. Name at least 7 intermediaries of Primary Market 7. An investor gained Rs.25000 from equity stocks within one year of investing. He was told by his friend that he has to pay Rs.5000 as short-term capital gain tax. Is this amount correct or not? If the tax amount is not correct, then what is the amount he is actually liable to pay as short-term capital tax?PART – BANSWER ANY 5 OF THE FOLLOWING QUESTIONS: 5 x 7 Marks = 20 Marks 1. Explain the role of Venture Capital Investors & Private Equity Investors with respect to primary market. 2. Explain various categories of investors in a public issue and what are the minimum/ maximum reservation of shares in an IPO should be allocated to these investors as per the rule 3. What is a Long Position? Explain with an example 4. What is the importance of investing in Equities? 5. Explain Systematic Investment Plan (SIP) of Mutual Funds. 6. Calculate – Contract Value, Initial Margin, Value at Risk/Marked-to-market of the following situation: Stock - TCS Lot Size - 500 Purchase Price at 09.30 a.m. - Rs.750 Margin Payable - 15% Closing Price at 03.30 p.m. - Rs.725
  6. 6. PART – C:CASE STUDIES (COMPULSORY) 1 X 20 Marks = 20 MarksA customer has a single stock portfolio of Infosys company shares. There is a bearish sentimentprevailing in the market and the index is expected to fall by about 10% over the next 2 weeks. Howwill you help the customer in hedging his portfolio from devaluating? The details are given below Stock Name Infosys Ltd. Quantity 500 shares Current Market Price Rs.2850 Current Nifty Level 5500 Expected Fall 10% Nifty Lot Size 50 Beta of Infosys 1.10 a) How will you protect the portfolio from devaluation due to the impending market fall (theoretical answer)? b) How many lots of Nifty should be considered to protect the fall in the portfolio value? c) Draw a flow of Hedging Process with the given data(Note: The answers for Part A & Part B may be written in Bullet Points method; neatness will beconsidered for better marks) ___________________________________________________________________________

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