4 Register Number :

SECTION - D (1 × 15 = 15) Name of the Candidate :

( Case Study ) 7 1 4 2
17. Mr. Sekar is shortly going to retire from his M.B.A. (Business Applications)
job. He wants to invest his gratuity and DEGREE EXAMINATION, 2009
provident fund money in the stock market.
( SECOND YEAR )
He is not a member of any sickness benefit
scheme. He is averse to the company’s specific ( PAPER - XVIII )
risk. In the market, it is assumed that the
271. CAPITAL MARKETING
short term treasury bills yield 6 % interest
rate. At the same time at grade crisil rated December ] [ Time : 3 Hours
bonds have 12·5 % return with the maturity Maximum : 75 Marks
period of 3 years. The Beta and R 2 values
for some common stocks are given below for SECTION - A (5 × 3 = 15)
the period 1 - July, 1998 to 30 - June, 1999. Answer any FIVE questions.
Company Beta R2 All questions carry equal marks.
BHEL 1·30 ·51 1. List down any three objectives of stock
L&T 1·40 ·63 exchange.
TELCO 1·47 ·47
2. List down any three objectives of NSE.
SBI 1·41 ·57
3. Define the term Dematerialization.
He wants to choose a portfolio of two
stocks and risk free asset. Frame the 4. List down any six objectives involved in the
investment objectives and build a portfolio for selection of portfolio from the point of view
him. of an investor.
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 2 3

5. List down any four objectives of a capital 13. Discuss the various advantages of mutual funds
issue. and write a note on open and close ended
mutual funds.
6. List down any five major players involved in
the new issue market. SECTION - C (1 × 15 = 15)

7. List down any four major differences between Answer any ONE question.
a lease and a hire purchase agreement.
14. Discuss the trading system involved in BSE,
8. Mortgages market. - Explain. the types of the security traded cum checks
and the protection in the BOLT terminals.
SECTION - B (3 × 10 = 30)
15. List down and explain on the types of order
Answer any THREE questions.
and their advantages in NSE.
All questions carry equal marks.
16. The following information is provided in terms
9. Define the term lease. Discuss the various
of the performance of the various mutual funds
types of lease along with their advantages.
namely Birla, Sundaram and Sun for a period
10. List down the various objectives and the role of six months ending August, 99. The risk
of SEBI in the primary market. free rate of interest is assumed as 9 % :

11. Briefly explain the various assumptions and Particulars /

RP σP β
the conceptual framework that revolves the Name of the MF
capital assets pricing model by incorporating Birla 25·38 4 0·23
the SML and CML along with a schematic Sundaram 25·11 9·01 0·56
sketch.
Sun F & C value 25·01 3·55 0·59
12. Write a brief note on the efficient market
Analyse their performances.
hypothesis along with schematic sketch.
Turn over