NMIMS – Capital Market and Portfolio Management
Capital Market and Portfolio Management
Q1. There are different users of financial statements like supplier, customer, investors etc. It is very necessary to check all financial statements & to do proper analysis before taking any business decision. Fundamental analysis is very helpful to understand company’s financial status. Elaborate different types of fundamental analysis which are necessary while taking any kind of business decision. (10 Marks)
Q2. An efficient market is one that rapidly and completely possesses all the information related to the prices of the assets. In this market, stock prices cannot be change with rumors’ that are not verified by investors. Efficient market theory is classified in to four categories elaborate it. (10 Marks)
Q3.
a.) Suppose the expected return from the market is 15%. The risk free rate is 5% & beta for the stock is 1.5. Find the expected return for the stock. (5 Marks)
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b.) Capital Asset Pricing Model is a financial model used to rate risky securities, which examine the link between risk & return. CAPM helps to calculate the expected rate of return for an asset or investment. But CAPM have some disadvantages explain those limitations. (5 Marks)