Wealth Management — DU Bachelor of Management Studies Previous Year Question Papers

(b) Critically evaluate the strengths and weaknesses of Fundamental Analysis versus Technical Analysis when used for short-term trading. (10) 5. (a)Explain the importance of tax planning in wealth management. Discuss how tax-efficient investment options can impact wealth accumulation over time. (8) (b) Mr. Sanjay invested {2,00,000 in a mutual fund that provided an annual return of 12%. He falls under a tax bracket of 20% for income tax. The inflation rate during the' year was 5%. (i) Calculate the Post-Tax Return on Mr. Sanjay's investment. (ii) Calculate the Real Return on his investment after considering the inflation rate. 6. Write short notes on the following : (i) Investor Life cycle approach (ii) Active and Passive Investing (iii) Basic Tenets of Tee.hnical Analysis (Generic Elective) Studies (BMS) 1. (a) Differentiate between Direct and Indirect Investing with examples. (8) (b) Briefly describe the Efficient Market Hypothesis (EMH) and. discuss its implications for technical and fundamental analysis. (10) 2. (a.) Consider a portfolio consisting of two assets, Stock P and Stock Q. The following informati.on is provided : Stock P: Expected return = 18%, Standard deviation = 2o0/o Stock Q: Expected return = 120/o, Standard deviation = 14% The correlation coefficient between Stock P and Stock Q is 0.5 The portfolio consists of 600/o invested in Stock P and 40% in Stock Q. (i) Calculate the portfolio risk. (ii) .Explain the impact of the correlation coefficient on the portfolio risk and why diversification helps reduce risk in such a portfol.io. (8 ) (b) Discuss the three main approaches to security analysis: Economic Analysis, Industry Analysis, and Company Analysis. Explain how each approach contributes to making investment decisions. (10) 3. (a) Data given below corresponds to different states of economy, the probability of occurrence state and the expected return from Security A and Market in these states are given below : State Probability Sectrify A retun (%) Market retun (%) (i) Covariance between security A and (ii) Beta of Security A. (8) (b) A 35-year-old investor is planning for retirement and estate planning. He has a moderate risk appetite and is confused between active and passive investment strategies. Prepare a basic investment plan for him, suggesting a suitable asset allocation model and key estate planning steps he should undertake (10)