Delhi University Question Papers
Unique Paper Code: 22415202
Name of Paper: Investing in Stock Markets 2019 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 do you understand by the term investment? What objectives should be kept in mind while investing in securities market? 3, 7
(b) Explain market order with the help of an example. 3, 2
(a) What is an IPO? Explain the process of Book Building. 2, 8
(b) Illustrate the process of matching of orders in online trading. 5
2. (a) Describe the procedure of placing an order and execution of a transaction. 10
(b) Write a note on Bombay Stock Exchange. 5
The return in percentage on securities P and Q under different situations are given below:
|State of the Market||Probability of Occurrence||Possible Returns (%)|
Find out the expected return and risk associated with both the securities and which security should an investor choose and why? 4+8+3
3. (a) Explain and illustrate how Profit & Loss A/c can be used to analyze the financials of a company. 10
(b) What is NIFTY? 5
(a) What are various factors which affect the choice of mutual funds? 9
(b) Calculate EPS and PE Ratio: 6
|Net Profits After Paying Taxes
Equity share capital divided into shares of Rs. 10 each.
Current Market Price
4. (a) What is support and resistance level in technical analysis? Explain its importance in stock selection process. 9
(b) Briefly explain some of the basic and advanced interactive charts in stock analysis. 6
(a) What is mutual fund? What are the benefits of investing in mutual funds for a small investor? 3, 6
(b) A Mutual Fund accumulated Rs. 30, 00,000 by issuing 50,000 units in the beginning of a financial year. It invested Rs. 28, 00,000 in the corporate securities. The present price of these securities and the price at which the Mutual Fund invested in these securities are given below:
|Investment||Value at the Beginning||Value at the End||Income|
The mutual fund incurred an expense of Rs. 50,000 during the year. Find the NAV of the mutual fund at the end of the year. 6
5. Distinguish between call option and put option contract. Explain with examples as to how an investor should use them to minimize the risk and maximize returns. 15
(a) Explain currency derivatives. 6
(b) Write notes on any three from the following: 9
- P/E Ratio.
- PEG Ratio.
- Price Revenue Ratio.