Equity Research and Portfolio Management

ADL-54-Equity Research & Portfolio Management-AM2

Assignment - A

Question 1.(i) Sweat equity is the best form of reward for those who contribute to the growth of a company. Discuss.

(ii) Why do investor add real estate in their portfolio?

(iii) What are the steps taken by SEBI in the primary market to protect investors?

Question 2. (i) Discuss the dematerialisation and rematerialisation processes in NSDL?

(ii) 'Stock market indices are the barometers of the stock market' - Discuss?

(iii) How can increasing short interest give a bullish interpretation Why?

Question 3. (i) Explain the utility of the economic analysis and state the economic factors considered for this analysis.

(ii) what is meant by fundamental analysis? How does fundamental analysis differ from technical analysis?

(iii) What "industry life cycle exhibits the statius of the industry and gives the clue to entry and exit for investors" Elucidate.

Question 4. Stocks L and M have yielded the following returns for the past two years.

Years Return %

L M

1995 12 14

1996 18 12

(i) What is the expected return on portfolio made up of 60 percent of L and 40 percent of M? Find out the standard deviation of each stock.

(ii) What is the covariance and co-efficient of correlation between stock L and M?

(iii) What is the portfolio risk of a portfolio made up of 60 percent of land 40 percent

Question 5. For the first four years XYZ firm is assumed to grow at a rate of 10 per cent. After four years the growth rate of dividend is assumed to decline linearly to 6 per cent. After 7 years, the firm is assumed to grow at a rate of 6 per cent infinitely. The next year dividend is Rs.2 and the required rate of return is 14 per cent. Find out the value of the Stock.

Assignment - B

Question 1. Mr. Rajan Tiwari is planning to invest in the equity stocks of Xerox India Limited. The current share price is Rs.150 per share. Xerox has declared a dividend of Rs.10 per share for...