Investing in Stock Markets — DU B.Com. (Hons.) Previous Year Question Papers

4. I: (a) What are the different avenues of investment available to an investor? List the features and suitability of any two of these avenues. (9) (b) "Risk and return go hand in hand." Comment. Also discuss the nature of investment. (9) (a) What is Primary market? What role does it play in the financial system? How does the primary market differ from the secondary market? (9) Ltd. The return of this investment under different conditions are given as follows : Market Return of Condition Probability XYZ Ltd (%) (4) side di senTe Find out the expected value of return for one year period and risk of the return for Mr Singh. (9) 2. (a) What factors should be considered during an industry analysis? (9) (b) What are the key components of a company analysis? (9) (c) What are Filter Rules and how are they applied in trading? (9) (d) How is Market Breadth calculated and interpreted? 3. (a) What does EPS (Earnings Per Share) and DPS (Dividends Per Share) indicate about a company's financial health? (9) (b) How do you interpret the Price to Earnings (P/E) ratio and Price/Earnings to Growth (PEG) (c) How is a Simple Moving Average (SMA) calculated and used for trading decisions? (9) (d) What is the MACD (Moving Average Convergence Divergence) indicator and how is it interpreted? (9) 4. Write short notes on any 3 of the following: (a) Book Building (c) Stock exchanges (d) Demat trading (e) Types of orders 5. (a) Differentiate between : (6x3=18) (i) Systematic Investment Plan and Systematic Withdrawal Plan (ii) Entry load and Exit load (iii) Income scheme and growth scheme (b) "Mutual fund is an indirect investment." Comment. (c) What is NAV of a mutual fund? How it is calculated? (9) (9) Market Return of Condition Probability XYZ Ltd (%)