REVISED SYLLABUS 2008
REVALIDATION
TEST PAPER
Final
Group III
THE INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA
DIRECTORATE OF STUDIES
PAPER-11
CAPITAL MARKET ANALYSIS & CORPORATE LAWS
REVALIDATION TEST PAPER-RV/11/CMC/2010
SECTION I-CAPITAL MARKET ANALYSIS
(Answer Question 1 and any TWO from the remaining)
1(a) Define i) Systematic Risk
ii) Expected Return
iii) Capital Market Line
iv) Future Contract
v) Option
vi)Secondary Market
vii) Buy back of Shares 2*7
(b)Fill up the blanks with appropriate answers:
i) The expected Return as per CAPM is ------------------------- ,when Rm=22%,Rf=9%, =0.6%
ii) The Security Market Line shows the linear relationship between the expected returns and
---------------------
iii)---------------------- (Economic; Fundamental; Technical)analysis is based on past
performance of Prices and trading volume of Stocks
iv) The Fixed Price at which the Option Holder can buy/sell the underlying asset is called the---
--------
v) Mr X agrees to exchange 100kgm Basmati rice three months later at Rs80 perKgm.This is an
example of ------------------(Forward Contract/Future Contract)
vi) SEBI stands for ------------------------- 1*6
2(a) Explain Briefly the operation of Indian Stock Market.What are principal weaknesses of
Indian Stock MARKET? 10
(b) Distinguish
i) Forward Contract and Future Contract
ii) Primary Market and Secondary Market 2*5
3a) The rate of Return of equity shares of Wipro Ltd for past 6 years are given below:
YEAR 2003 2004 2005 2006 2007 2008
RATE OF
RETURN(%)
12 18 -6 20 22 24
Calculate the average rate of return, standard deviation and variance. 10
(b)Write in brief on i)Bought Out Deal
ii)Book Building 5*2
4(a) Explain in detail the role of Foreign Institutional Institutions in Indian Capital
markets? Are they creating imbalance in the market by providing excess liquidity into the
system? 10
(b) . Suppose you invest in four securities. Company ABC has on expected return of 20
percent, Company BCD has on expected return of 10 percent, Company CDE has on
expected return of 12 percent, and Company DEF has an expected return of 9 percent.
You have invested Rs. 40,000. What is the expected rate of return on your portfolio?
(Assumption Invested Equally) 10
SECTION II-CORPORATE LAWS
(Answer Question 1 and any TWO from the remaining)
1.Define the following under the RTI Act 2004
i) Competent Authority under the RTI Act 2004
ii) Record under the RTI Act 2004
iii)Appropriate Government under the RTI Act 2004
iv) Cartel under the Competition Act 2002
v) Consumer under the Competition Act 2002 2*5
5(a) Can a company buy its own shares?If so,under what circumstances.
(b)”No Dividend can be paid by a company except out of Profits”-Comments 10+5
6(a).State in brief the salient Features of Corporate Governance .
(b) “A Good Corporate Governance should have certain basic principles”-Enumerate them.
5+10
7(a) Distinction between
(i) Memorandum & Articles of Association
(ii) Public Co & Private Co
(iii) Fixed Charge & Floating Charge 5*3
Comments (0)
Post a Comment