Section B (2 Mark)
Consider the single factor APT. Portfolio A has a beta of 0.2 and an expected return of 13%. Portfolio B has a beta of 0.4 and an expected return of 15%. The risk-free rate of return is 10%. If you wanted to take advantage of an arbitrage opportunity, you should take a short position in portfolio _________ and a long position in portfolio _________.
Section A (1 Mark)
Which of the following is not true about traditional defined benefit plans?
Section A (1 Mark)
Total current assets of a company are Rs.960 lakh while the current liabilities (other than bank borrowings) are Rs.300 lakh. If the company borrowed Rs.350 lakh, what will be the amounts of Maximum Permissible Bank Finance (MPBF) under the (method I) of the Tandon committee recommendations?
Section B (2 Mark)
One unit of trading for Guar Seed futures is 10 MT and delivery unit is 10 MT. A trader sells 1 unit of Guar Seed at Rs.2500/Quintal on the futures market. A week later Guar Seed futures trade at Rs.2550/Quintal. How much profit/loss has he made on his position?
Section B (2 Mark)
Vikash has following portfolio with related details given below:
Calculate the portfolio beta?
Section A (1 Mark)
Investments that are difficult to convert to cash are said to have _________
Section A (1 Mark)
----------- shifts the weights of securities in the portfolio to take advantage of areas that are expected to do relatively better than other areas.
Section A (1 Mark)
Which of the following types of Beta has come into existence because of the growth of ETF market?
Section A (1 Mark)
An arbitrage opportunity exists if an investor can construct a __________ investment portfolio that will yield a sure profit.
Section C (4 Mark)
Read the senario and answer to the question.
If Mr. Mehta is paying interest rate 12%p.a on his housing loan and 10% p.a. on car loans, in how many months would he pay off his housing loan and car loan?
Section A (1 Mark)
__________ is the most important investment decision because it determines the risk-return characteristics of the portfolio.
Section A (1 Mark)
During the past five years, the returns of a stock were as follows:
Calculate the expected rate of return
TESTED 31 Jan 2025
