Security Analysis and Portfolio Management

__Is one of the popular methods used for equity valuation

•  Dividend Discount Model

• Price Earning Model

• CAPM Model

• Sharpe Model

__is one of the indicators of economy analysis

• Interest rates

• Inflation

•  GDP

• All of these

Company’s liability side of balance sheet represents

• Application of Funds

• Sources of Funds

• Investment Activities of company

• None of these

 Aggressive investors would like to invest in the

• Securities with beta value greater than one

• Securities with beta value less than one

• Small cap companies

• Venture Capital and private equity

Risk premium is

• Beta ratio minus cut off point

• Security return minus mean return

• Return for investing into government securities

• Market return minus risk free return

Is not a systematic risk

• Quality of product

• Management related problems

• . Employee related problems

• All of these

It is case of maximum portfolio risk

• Correlation coefficient is zero

• Correlation coefficient is plus one

• Correlation coefficient is minus one

• All of these

Is a measure of portfolio risk

• Variance

• Co-variance

• Standard Deviation

• Beta

When you are optimist for future of market you should invest in

• Securities with beta value greater than one

• Securities with beta value less than one

• . Large cap stocks

• Bond Market

These stocks are relatively unaffected by the market movements

• Growth Shares

• Income Shares

• Defensive Shares

• Speculative shares