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
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
(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
The return (%) on securities X and Y under different situations are given below: 15
|State of the Market||Probability of Occurrence||Possible Returns|
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
(a) What is Beta? How does it impact the investing decisions of an investor? 9
(b) Calculate EPS and PE Ratio: 6
Net Profits After Taxes
Equity share capital divided into shares of Rs. 10 each
Current Market Price
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
(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
(a) Explain commodity derivatives. 9
(b) Calculate NAV using the following data on 01-01-2017: 6
|Equity and Bonds
Cash and Treasury Bills
Management Fee Payable
Number of units outstanding