Investing in Stock Markets 2018 Question Papers | Delhi University | B.Com 2nd Sem

Delhi University Question Papers

Unique Paper Code: 22415202

Name of Paper: Investing in Stock Markets 2018 Question Papers

Name of the Course: Generic Elective for Honours

SEM: II

Maximum Marks: 75

Duration: 3 Hours.

Attempt all questions.

All questions carry equal marks.

1. (a) What are the main features of equity shares? As an investor what factors should you consider while investing in equity shares? 10

(b) Explain market order with the help of an example.   5

Or

(a) Briefly describe various sources of financial information. What precautions an investor should take while using information?      9

(b) Differentiate between IPO and FPO.                               6

2. (a) Describe the steps involved for an investor to start trading in stock market. 10

(b) Write a note on Bombay Stock Exchange.      5

Or

The return (%) on securities X and Y under different situations are given below:                15

State of the Market Probability of Occurrence Possible Returns
X Y
Bear

Normal

Bull

. 2

. 3

. 5

10

15

35

15

18

20

Find return and risk associated with both the securities. Which security should an investor choose and why?

3. (a) Explain and illustrate how Profit & Loss A/c of a company can be used to analyze financials of a company and enable an investor to take investment decisions? 10

(b) What is NIFTY?           5

Or

(a) What is Beta? How does it impact the investing decisions of an investor?        9

(b) Calculate EPS and PE Ratio:                   6

Particulars Rs.
Sales Revenue

Net Profits After Taxes

Equity share capital divided into shares of Rs. 10 each

Current Market Price

1,20,00,000

30,00,000

60,00,000

90

4. (a) What are simple moving averages? Discuss their importance in stock selection process. What are the popular moving averages used in stock market? 9

(b) Explain the following with reference to technical analysis of a stock:

  • Double Top Formation.
  • Inverted Head and Shoulder Formation. 6

Or

(a) What is a Mutual Fund? Discuss the factors affecting choice of a mutual fund.   9

(b) Write notes on any two of the following:

  • Load and No Load Mutual Funds.
  • Equity and Debt Mutual Funds.

5. What are Futures and Options? Differentiate between the two. 15

Or

(a) Explain commodity derivatives.                          9

(b) Calculate NAV using the following data on 01-01-2017:            6

Particulars Rs.
Equity and Bonds

Cash and Treasury Bills

Management Fee Payable

Number of units outstanding

22,000

5,000

600

4,400

***

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