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Question Paper Professional Ethics and Case Studies (CFA660) : October 2008

Section A: Professional Ethics (20 Marks)

• This section consists of questions with serial number 1 - 2. • Answer all questions. • Marks are indicated against each question. • Do not spend more than 25 - 30 minutes on Section A. 1. Every individual has his/her own moral standards. Laws are formed on the basis of group consensus regarding moral standards. Even though they are based on consensus, they may not be acceptable to everyone. Discuss the problems that may arise in the transformation of moral standards to legal requirements.

( 10 marks)

2.

An ethical organization treats its human capital, which is an important resource, with justice and fairness. However, sometimes organizations may be forced to retrench the employees in response to an increase in competitive pressures. In this regard, explain the ethics related to retrenchment of employees. ( 10 marks)

END OF SECTION A

Section B: Case Study (80 Marks)

*0This section consists of questions with serial number 3 – 7. *1Answer all questions. *2Marks are indicated against each question. *3Do not spend more than 140 - 150 minutes on Section B.

Case Study*

3.

In Fast Moving Consumer Goods (FMCG) sector, the success of a product depends heavily on brand building, positioning and brand extension. With this respect, discuss the role of brand building and distribution network in FMCG sector. ( 12 marks)

4.

a. b.

Perform SWOT analysis of FMCG sector. Discuss the key points that have to be kept in mind while investing in a stock of FMCG company in India.

( 12 marks) ( 14 marks)

5.

Considering the data from January 2007 to December 2007 of Annexure IV, calculate beta, systematic risk and unsystematic risk associated with the returns of the stock of the company. ( 14 marks)

6.

Mr. Dakshin, an employee of a private company wants to invest in the stock of Hindustan Unilever Ltd. (HUL). You as a...