June, 2010
Ms-44 : Security Analysis and Portfolio Management
1. What do you understand by 'Investment' ? Explain the steps involved in the investment process.
2. (a) Define risk. What are the statistical tools that are used to measure risk of securities return ?
(b) Mr. Vamsi is considering the purchase of a bond currently selling at Rs. 878.50. The bond has four years to maturity, face value of Rs. 1,000 and 8% coupon rate. The next annual interest payment is due after one year from today. The required rate of return is 10%.