December, 2009
MS-44 : Security Analysis And Portfolio Management
1. What are the objectives of security analysis ? How do you measure the risk of a security ?
2. (a) "Systematic risk cannot be controlled, but unsystematic risk can be reduced". Discuss.
(b) Mr. Ranga owns Rs. 1,000 face value bond with five years to maturity. The bond has an annual coupon of Rs. 75. The bond is currently priced at Rs. 970. Given an appropriate discount rate of 10%, should Ranga hold or sell the bond.