Fundamentals of Investment Question Paper 2023 [Gauhati University BCOM 6th SEM CBCS Pattern]

Fundamentals of Investment Question Paper 2023
Gauhati University BCOM 6^th SEM CBCS Pattern

COMMERCE (Honours Elective)

Paper: COM-HE-6016

(Fundamentals of Investment)

Full Marks: 80

Time: 3 hours

The figures in the margin indicate full marks for the questions.

1. Answer the following as directed: 1x10=10

(a) What is the full form of CARE.

(b) Which of the following is an example of financial derivative? (Choose the correct alternative)

(1) Share.

(2) Debenture.

(3) Forward Contract.

(4) GDR.

(c) Who is the pro-pounder of dividend capitalisation model? (Choose the correct alternative)

(1) Myron J. Gordon.

(2) David Ricardo.

(3) Adam Smith.

(4) John Stuart Mill.

(d) On which date SEBI introduced compulsory trading of shares of listed companies in ‘DEMAT” form? (Choose the correct alternative)

(1) 1^st January, 2016.

(2) 1^st April, 2017.

(3) 1^st January, 2018.

(4) 1^st April, 2019

(e) Who is the regulatory authority of Indian securities market?

(f) NAV is a fund per share market value. (The statement is True / False)

(g) “Securities market is a market for equity, debts and derivatives.” (The statement is True / False)

(h) Bond is a risk-free security. (The statement is True / False)

(i) SBI mutual fund is the first public sector mutual fund in India. (The statement is True / False)

(j) Investment in equity is safer than bank fixed deposit. (The statement is True / False)

2. Answer questions of the following in about 50 words each: 2x5=10

(a) Give the meaning of equity share.

(b) State any two risks associated with bonds.

(c) Explain any two types of financial derivatives.

(d) Write two functions of SEBI.

(e) Explain any two assumptions of technical analysis.

3. Answer any four questions of the following in about 150 words each: 5x4=20

(a) Explain the structure of Indian securities market.

(b) Write a note on price earnings ratio.

(c) Describe the factors affecting the choice of mutual fund.

(d) What do you mean by fundamental analysis? What are its objectives?

(e) Write any five functions of stock exchange.

(f) State any five features of bond.

4. Answer any four questions of the following in about 600 words each: 10x4=40

(a) Explain briefly about different types of investment stating their advantages and disadvantages.

(b) Do you think that credit rating is an important service for the investor? Justify your answer.

(c) What do you mean by mutual fund? Discuss the different types of mutual fund. 2+8=10

(d) Discuss the role played by SEBI in the protection of interest of the investors in Indian securities market.

(e) What are the basic features of financial derivatives? Also state briefly about the major participants in financial derivative market. 5+5=10

(f) What is efficient market hypothesis? Discuss about the different forms of efficient market hypothesis.

(g) What do you mean by bond? Mr. X purchased a 10% coupon rate bond. The bond have a face value of Rs. 10,000 and maturity of 4 years. If the current market interest rate is 8%, find the value of the bond using present value method.

If the current market price of the bond is Rs. 9,000; state whether X should sell it or hold it till its maturity, along with the reason.

(Present value of Re. 1 at 8% discount rate is as follows:

1 year = 0.926, 2 years = 0.857

3 years = 0.794, 4 years = 0.735

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