Paper/Subject Code: 46003/Finance: Investment Analysis & Portfolio Management
TYBMS SEM 5
Finance:
Investment Analysis &
Portfolio Management
(Most IMP Objective Questions with Solution)
Course: TYBMS (Finance)
Semester : VI
Subject : Investment Analysis & Portfolio Management
University : University of Mumbai
Exam : April Question Paper 2025 with Solution
Introduction
This article provides the TYBMS Semester 6 Investment Analysis & Portfolio Management question paper for the Most Imp Objective Question with Solutions examination along with detailed solutions. The solutions are explained step-by-step to help students understand the method used to solve each problem and prepare for their university examination.
November 2018
Q1. (A) Match the following columns. (Any 8) (8)
Column A | Column B |
1 PPF | A Liquidity ratio |
2 NIFTY | B Uncertain & high return |
3 Unsystematic Risk | C William sharpe |
4 Standard deviation | D Elliot wave theory |
5 Net Profit ratio | E Technical Analysis |
6 Study of Charts & pattern | F Profitability ratio |
7 Dow Theory | G Measure of Risk |
8 Capital Assets Pricing model | H Controllable |
9 Gambling | I NSE |
10 Current ratio | J Highly illiquid |
Ans:
Column A | Column B |
1 PPF | J Highly illiquid |
2 NIFTY | I NSE |
3 Unsystematic Risk | H Controllable |
4 Standard deviation | G Measure of Risk |
5 Net Profit ratio | F Profitability ratio |
6 Study of Charts & pattern | E Technical Analysis |
7 Dow Theory | D Elliot wave theory |
8 Capital Assets Pricing model | C William sharpe |
9 Gambling | B Uncertain & high return |
10 Current ratio | A Liquidity ratio |
1.(B) Give True or False: (Any 7) (07 Marks)
1) Investments are made with primary objective of deriving returns.
Ans: True
2) Capital gain refers to increase in value of investments over a period of time.
Ans: True
3) Non-Marketable financial assets can be sold in capital market.
Ans: False
4) Public Provident Fund is a savings cum tax saving instrument in India.
Ans: True
5) Treasury Bills are one of the riskiest Money market instruments issued by Central Government
Ans: False
6) Commercial Paper is a short term unsecured promissory note issued by Corporate and Financial Institutions,
Ans: True
7) Equity shareholders does not carry right of dividend.
Ans: False
8) Secondary Market is a market where existing securities are purchased and sold.
Ans: True
9) Merger and Acquisitions are major functions of Investment Bankers.
Ans: True
10) NSDL is the largest central security depository based in Mumbai.
Ans: True
April 2019
Q1. (A) Match the following columns. (Any 8) (8)
Column A | Column B |
(a) Equity share | (1) Debt Fund |
(b) Preference share | (2) Risky Capital |
(c) Bond | (3) Fixed Dividend |
(d) PPF | (4) Unsecured Deposit |
(e) Public Deposit | (5) Tax Saving Investment |
(f) Investment Bank | (6) Global electronic market place for buying and selling securities |
(g) Stock Market Index | (7) Initial public offering |
(h) Nasdaq | (8) Scripless trading system |
(i) Depository Settlement | (9) Shows the performance of the market |
(j) Market Capitalization | (10) Total market value of a company's outstanding shares |
Ans:
Column A | Column B |
(a) Equity share | (2) Risky Capital |
(b) Preference share | (3) Fixed Dividend |
(c) Bond | (1) Debt Fund |
(d) PPF | (5) Tax Saving Investment |
(e) Public Deposit | (4) Unsecured Deposit |
(f) Investment Bank | (7) Initial public offering |
(g) Stock Market Index | (9) Shows the performance of the market |
(h) Nasdaq | (6) Global electronic market place for buying and selling securities |
(i) Depository Settlement | (8) Scripless trading system |
(j) Market Capitalization | (10) Total market value of a company's outstanding shares |
1.(B) Give True or False: (Any 7) (7)
1) Small-cap stocks tend to offer more growth potential than large-cap-stocks.
Ans: True
2) Systematic risk arises due to the micro-economic factors.
Ans: False
3) Diversification helps to reduce unsystematic risk.
Ans: True
4) Fundamental analysis is a method of evaluating a security.
Ans: True
5) Examples of solvency ratio include current ratio and quick ratio.
Ans: False
6) Price level and inflation affect the economy of the country.
Ans: True
7) The efficient market hypothesis (EMH) states that the financial markets are inefficient.
Ans: False
8) Risk is measured by variability in returns.
Ans: True
9) A risky asset is one whose return is certain as a Government Security.
Ans: False
10) The higher the risk of a security, the lower would be the return expected from it.
Ans: False
November 2019
Q1. (A) Match the following columns. (Any 8) (8)
Column A | Column B |
1. Treynor's Measures | a) Based on an analysis of the fundament and technical factor |
2. Sharpe's Measures | b) CAPM |
3. Active revision Strategy | c) Standard Deviation |
4. Portfolio Evaluation | d) Last step in the process of Portfolio Management |
5. Jenson's Measure | e) Beta |
6. Equity share | f) Debt Fund |
7. Preference share | g) Risky Capital |
8. Bond | h) Fixed Dividend |
9 PPF | i) Unsecured Deposit |
10. Public Deposit | j) Tax Saving Investment |
Column A | Column B |
1. Treynor's Measures | e) Beta |
2. Sharpe's Measures | c) Standard Deviation |
3. Active revision Strategy | a) Based on an analysis of the fundament and technical factor |
4. Portfolio Evaluation | d) Last step in the process of Portfolio Management |
5. Jenson's Measure | b) CAPM |
6. Equity share | g) Risky Capital |
7. Preference share | h) Fixed Dividend |
8. Bond | f) Debt Fund |
9 PPF | j) Tax Saving Investment |
10. Public Deposit | i) Unsecured Deposit |
Q1. (B) Give True or False: (Any 7) (8)
1) Examples of solvency ratio include current ratio and quick ratio
Ans: False
2) Price level and inflation affect the economy of the country.
Ans: True
3) The efficient market hypothesis (EMH) states that the financial markets are inefficient
Ans: False
4) Risk is measured by variability in returns.
Ans: True
5) A risky asset is one whose return is certain as a Government Security
Ans: False
6) The higher the risk of a security, the lower would be the return expected.
Ans: False
7) Portfolio revision involves changing the existing mix of securities
Ans: True
8) Portfolio evaluation refers to the evaluation of the performance of the portfolio
Ans: True
9) The total return on a portfolio includes only risk free return
Ans: False
10) Investing in equity share is a tax saving investment.
Ans: False
November 2022
1. (A) Select the right option and rewrite the sentence. (Any 8) (8 Marks)
i. Markowitz approach has roots in __________
a. Analyzing risk and return related to stocks.
b. Estimation of stock return
c. Proper entry and exit in the market.
d. Good portfolio management
ii. __________ refers to the risk which emerges out of controlled and known variables that are industry or security specific
a. unsystematic risk
b. beta
c. standard deviation.
d. systematic risk
iii. __________ measures the amount of systematic risk a security has relative to the whole market.
a. Beta
b. Range
c. Variance
d. Standard Deviation
iv. under __________ portfolio manager has to assess the performance of portfolio over a period of time.
a. performance evaluation
b. portfolio revision
c. portfolio execution
d. portfolio diversification
v. Treynor measure consider __________
a. systematic risk and beta
b. unsystematic risk and beta
c. systematic risk
d. unsystematic risk
vi __________ is the last step in process of portfolio management.
a. portfolio evaluation
b. portfolio performance
c. investment objectives setting.
d. selection of stocks
vii. The _________ model is a model that describe the relationship between systematic risk and expected return for assets, particularly stocks.
a. Capital Asset Pricing
b. Capital Market Line
c. Security Market Line
d. Arbitrage Pricing Theory
viii. If an asset's expected return plots above the security market line, the asset is _________.
a. under-priced
b. overpriced
c. fairly priced
d. under-priced with unique risk
ix. Under ________ a portfolio manger monitor and review scripts according to market condition
a. portfolio revision
b. portfolio evaluation
c. portfolio execution
d. portfolio diversification
x. ________ applies to debt investment.
a. Interest rate risk.
b. currency, risk
c. market risk.
d. legal risk
1. (B) Give True or False: (Any 7) (7 Marks)
i. Market risk is the risk of investment declining in value of portfolio.
Ans: True
ii. Portfolio evaluation refers to the evaluation of the revision of the portfolio.
Ans: False
iii. According to Capital market line, the expected return of any efficient portfolio is a function of total risk.
Ans: True
iv. Credit risk is the risk of loss from reinvesting principal or income at a lower interest rate..
Ans: False
v. The minimum maturity of Treasury bill is 28 days.
Ans: True
vi. Central and state government can issue Gilt-edge Securities.
Ans: True
vii. Security Market Line graphs define efficient portfolio.
Ans: False
viii. An aggressive common stock would have a beta equal to zero.
Ans: False
ix. An over price-priced stock will plot on below the security market line.
Ans: True
x. Balance or hybrid scheme of mutual funds invest in both fixed income and equity.
Ans: True
April 2023
1. (A) Select the right option and rewrite the sentence. (Any 8)
i. ________ measures the systematic risk.
a. Beta
b. Range
c. Variance
d. Standard Deviation
ii. Shares are offered by company before commencement of the business is known as ________
a. Initial Public Offering (IPO)
b. Follow on Public Offer (FPO)
c. New Fund Offer (NFO)
d. Private Placement (PP)
iii. SEBI is formed in the year, by the Parliament of India.
a. 1990
b. 1992
c. 1980
d. 1988
iv. ________ securities are called as ownership capital.
a. Bonds
b. Equity shares
c. Debentures
d. Public deposits
V. ________ is the last step for Portfolio Management.
a. Identification of objectives
b. Develop and implement strategies
c. Review and Monitoring
d. Evaluation
vi. The Standard Current Ratio is _________
a. 2:1
b. 1:1
c. 3:1
d. 1:2
vii. Debentures are _________ fund.
a. Own
b. Debt
c. Risky
d. Dividend earning
viii. The analyst draws chart on graph or Logarithmic paper.
a. Candlestick
b. Line
c. Bar
d. Trend
ix. ________ is the father of Modern Technical Analysis.
a. Charles Dow
b. Adams Smith
c. Newton
d. Charlie Chaplin
x. Jensen's measure of portfolio performance is based on the _________
a. CAPM
b. Beta
c. Standard Deviation
d. Risk free return
1.(B) Give True or False: (Any 7) (07 Marks)
i. Speculators are short term Investors.
Ans: True
ii. Public Provident Funds are Tax Saving Investments.
Ans: True
iii. Nifty Index is having 50 stocks.
Ans: True
iv. Portfolio means combined holding of many kinds of financial securities.
Ans: True
V. Markowitz approach provides a systematic search for optimal portfolio.
Ans: True
vi. Gross Profit Margin Ratio is the difference between sales and purchase.
Ans: False
vii. Diversification is a technique of increasing the risk involved in a portfolio.
Ans: False
viii. The waves have reverse flow in Bull Market.
Ans: False
ix. CAPM is the theory developed by the W. Sharpe.
Ans: True
x. Technical analysis believes that the Investor's sentiments are depend on past movement.
Ans: True
November 2023
1. (A) Match the columns and rewrite the sentence. (Any 8) (08 Marks)
Group – I | Group - II |
i. Equity Share | a. Controllable |
ii. Mutual Fund valuation | b. Modern Portfolio Theory |
iii. Debenture | c. Reducing the risk of loss |
iv. Post Office Saving Scheme | d. Time factor |
v. Systematic Risk | e. Own Fund |
vi. Expected Return | f. NAV (Net Asset Value) |
vii. Unsystematic Risk | g. Debt Funds |
viii. Risk-return trade-off | h. Tax Saving Investment |
ix. Diversification- | i. Uncontrollable |
Χ. Portfolio revision | j. Probability |
Ans:
Group – I | Group - II |
i. Equity Share | e. Own Fund |
ii. Mutual Fund valuation | f. NAV (Net Asset Value) |
iii. Debenture | g. Debt Funds |
iv. Post Office Saving Scheme | h. Tax Saving Investment |
v. Systematic Risk | i. Uncontrollable |
vi. Expected Return | j. Probability |
vii. Unsystematic Risk | a. Controllable |
viii. Risk-return trade-off | d. Time factor |
ix. Diversification- | c. Reducing the risk of loss |
Χ. Portfolio revision | b. Modern Portfolio Theory |
1.(B) Give True or False: (Any 7). (07 Marks)
i. The maximum deduction which can be claimed under section 80C is Rs. 1,50,000.
Ans: True
ii. India is the highest consumer of gold in the world.
Ans: True
iii. The maximum maturity of Treasury bill is 3 years.
Ans: False
iv. Stock Market Index is the method of showing the overall performance of all the companies listed in Stock market with a single number.
Ans: True
v. NIFTY is the stock market Index of India's Bombay Stock Exchange.
Ans: False
vi. SML is a linear relationship between expected return and systematic risk.
Ans: True
vii. The Dow Theory consist of 3 types of market movement.
Ans: True
viii. An Oscillator is a technical analysis tool.
Ans: True
ix. The RSI was developed by J. Welles Wilder.
Ans: True
x. Charting helps to analyses and interpret the price trends of an underlying.
Ans: True
November 2024
1. (A) Select the right option and rewrite the sentence. (Any 8) (08)
i. ________ measures the systematic risk.
a. Beta
b. Range
c. Variance
d. Standard Deviation
ii. Shares are offered by company before commencement of the business is known as _______.
a. Initial Public Offering (IPO)
b. Follow on Public Offer (FPO)
c. New Fund Offer (NFO)
d. Private Placement (PP)
iii. SEBI is formed in the year ________ by the Parliament of India.
a: 1990
b. 1992
c. 1980
d. 1988
iv _________ securities are called as ownership capital.
a. Bonds
b. Equity shares
c. Debentures
d. Public deposits
v. ________ is the last step for Portfolio Management
a. Identification of objectives
b. Develop and implement strategies
c. Review and Monitoring
d. Evaluation
vi. The Standard Current Ratio is _______.
a. 12:1
b. 1:21
c. 3:1
d.1:2
vii. Debentures are ________ fund.
a Own
b. Debt
c. Risky
d. Dividend earning
viii. The analyst draws ________ chart on graph or Logarithmic paper.
a. Candlestick
b. Line
c. Bar
d. Trend
ix _______ is the father of Modern Technical Analysis.
a. Charles Dow
b. Adams Smith
c. Newton
d. Charlie Chaplin
d. Dividend earning
x. Jensen's measure of portfolio performance is based on the ________.
a. CAPM
b. Beta
c. Standard Deviation
d. Risk free return
(B) Give True or False: (Any 7) (07 Marks)
i. An over price-priced stock will plot on below the security market line.
Ans: True
ii. The maximum deduction which can be claimed under section 80 C is Rs.1,50,000
Ans: True
iii. India is the highest consumer of gold in the world.
Ans: True
iv. The Dow Theory consists of 3 types of market movement.
Ans: True
v. An Oscillator is a technical analysis tool.
Ans: True
vi. India is the highest consumer of gold in the world.
Ans: True
vii. The maximum deduction which can be claimed under section 80C is Rs. 1,50,000.
Ans: True
viii. The maximum maturity of Treasury bill is 3 years.
Ans: False
ix. Stock Market Index is the method of showing the overall performance of all the companies listed in Stock market with a single number.
Ans: False
x. NIFTY is the stock market Index of India's Bombay Stock Exchange.
Ans: False
April 2025
1. (A) Select the right option and rewrite the sentence. (Any 8) (08 Marks)
1_________ refers to an investment ready to convert into cash position.
a) Speculation
b) Risk
c) Liquidity
d) Profitability
ii. _________ do not need large amount of cash to start investing.
a) Large Cap
b) Mid Cap
c) Small Cap
d) Penny Stocks
iii) A measure of "risk per unit of expected return" is _________
a) standard deviation
b) beta
c) correlation coefficient
d) coefficient of variation
iv. Insurance is a ________ investment.
a) speculative
b) short term
c) protective
d) interest rate
V. Technical Analysis reflects the idea that stock prices _________
a) move upward over time
b) move inversely over time
c) move in trends
d) move randomly
VI. Market Risk is also called as ________
a) Unique risk and non-diversifiable
b) non-diversifiable and systematic risk
c) systematic risk and diversifiable risk
d) systematic risk and unique risk
VII. According to security market line, the expected return of any security is function of _________
a) Total risk
b) systematic risk
c) unsystematic risk
d) diversifiable risk
viii. As per capital asset pricing model, securities that lie on security market line are ____________ valued.
a) correctly
b) over
c) under
d) not
ix. ________ calculates a required return based on a risk management.
a) Capital Asset Pricing Model
b) Capital Market Line
c) Security Market Line
d) Arbitrage Pricing Theory
X. _________ is the measure of risk adjusted return of a financial portfolio.
a) Dow Theory
b) Sharpe Ratio
c) Treynor
d) Jensen
(B) Give True or False: (Any 7) (07 Marks)
i. Investing in equity shares is a tax saving investment.
Ans: False
ii. Examples of solvency ratio include current ratio and quick ratio.
Ans: False
iii. Portfolio Evaluation refers to the evaluation of the revision of the portfolio.
Ans: True
iv. The minimum maturity of treasury bills is 28 days.
Ans: True
v. Central & State Government can issue Gilt Edge Securities.
Ans: True
vi. Speculators are short term Investors.
Ans: True
vii. Public Provident Funds are Tax Saving Investments.
Ans: True
viii. Nifty Index is having 50 stocks.
Ans: True
ix. Portfolio means combined holding of many kinds of financial securities.
Ans: True
x. Markowitz approach provides a systematic search for optimal portfolio.
Ans: True
Q.P. | Link |
November 2018 | |
April 2019 | |
November 2019 | |
November 2022 | |
April 2023 | |
November 2023 | |
April 2025 | |
November 2025 |
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