June, 2011
MS-44 : Security Analysis and Portfolio Management
1. What do you understand by 'investment ' ? Explain the various factors, which form the basis of the investment process.
2. (a) Discuss the main provisions of the Securities Contracts (Regulation) Act, 1956 governing the Stock Exchange in India.
(b) The company GVK’s next year dividend per share is expected to be Rs. 3.50. The dividend is expected to grow at a rate of 10 percent per year in subsequent years. If the required rate of return is 15 percent per year, what should be the price of its shares ? The prevailing market price is Rs. 75 per share.