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SAMBHRAM INSTITUTE OF TECHNOLOGY, BANGALORE

Department of Management Studies and Research

MBA III Sem –III Internal Exams, November 2014

Subject : Investment Management Time : 1:15 mns

Subject Code : 12MBAFM322 Marks: 30

I Answer any one question from question no. 1 & 2. Question no.3 is compulsory

1. a) What is Dow Theory 3Mb) Consider the following information regarding the risk and return of the following stocks. 7M

Securities A B C D E Stock Index T-Bills

Return( %) 32 30 26 25 34 35 7.5

Beta 1.58 1.1 1.56 0.98 1.0 1.0 0

S.D 20 15 10 25 14 25 20

c) Briefly explain the concept of Fundamental Analysis? 10M

2. a) Define APT. 3 M

b) Calculate 5 days RSI from the following data. 7M

No of Days: 1 2 3 4 5 6 7 8 9

Closing Prices: 130 132 130 135 137 134 136 140 142c) Briefly explain the concept of Technical Analysis? 10M

3. What is CAPM? Explain its type 10 M

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SAMBHRAM INSTITUTE OF TECHNOLOGY, BANGALORE

Department of Management Studies and Research

MBA I Sem – II Internal Exams, November2014

Subject : Business Analytics Time : 1:15 mns

Subject Code : 14MBA14 Marks: 30

Part –

 A

(Answer any one question) 

a) Out of 1000 assembled components 10 have working defects and 20 have structural defect. There is a

good reason to assume that no components have both defects. What is the probability that randomly

selected components will have either defect. (3M)

 

b) A bag contains 4black and 8 red balls. Four balls are successively drawn at random and are not replaced.

What is the probability that they are alternately of different colours. (3M)

Part – B

(Answer any one question)

a) The odd against solving the problem by student-A are 5:4 and odds in favour of student-B solving theproblem is 4:8. Find the probability that.

i) The problem is not solved if they try independently.

ii) That the problem is solved atleast. (7M)

b) Suppose that a manufactured product has 2 defects per unit of product inspected. Using Poisson

distributions calculate the probabilities of finding a product without any defective, 3 defective and 4

defective. (7M)

Part – C

(Answer any one question)

a) The number of defects per unit in a sample of 330 units of manufactured product was found as follows

No. of Defects: 0 1 2 3 4No. of Units : 216 90 15 05 02

Fit a Poisson distribution and test for the goodness of fit. Given e-0.439

= 0.6447. (10M)

b) The probability of Binomial distribution is given below. Fit a Binomial distribution.

X : 0 1 2 3 4

F : 25 60 40 12 08 (10M)

Part – D (Compulsory Question)

a) Assume that a factory has two machines. Past records shows that machine-1 produces 45% of the items of

output and machine-2 produces 55% of the items of output. Further 8% of items produced by machine-1

where found to be defective and only 2% defective by machine-2 were defective. If the defective items is

drawn at random what is the probability that the defective item was produced by machine-1 and machine-2.

(10M)