Nmims Unique Assignments contact
[email protected]
+91- 9503094040

Capital Market and Portfolio Management

1. What distinguishes marketable financial instruments from the non-marketable financial instruments? Support the comparison with an illustration (10 Marks)

2. “Stock markets are more efficient and less predictable”. Comment on and justify your answer (10 Marks)

3. An analyst calculates the expected return of the two stocks in comparison to the particular market return, as

Market Return Stock Z Stock Y
5% 3% 10%
20% 25% 20%

a. Calculate the beta of the stocks (5 Marks)

b. What would be the expected return of the two stocks in case there is equal chance of market return to be 5% and 20% (5 Marks?)
Nmims Unique Assignments contact
[email protected]
+91- 9503094040