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IBA, University of DhakaEMBA
F- 608; Portfolio Manageent an! Investent AnalysisFinal
E"aination # $%ring &0'0
GROUP B
Id#.......................................
Marks : 30 Time: 110 Minutes(Group A & B)
3 x 4 = 12
1. a) Distinguis !et"een #a$ue% an gro"t managers' st$e o a*ti#e
e+uit management,!) Dis*uss a *ompan kno"n as a $o"%*ost prou*er in
its inustr an *onsier "at
makes it possi!$e or te irm to !e a *ost $eaer, Do te same or a
irm kno"n orierentiating,
2, a) Dis*uss " te t"o #a$uation approa*es (present #a$ue o *as
$o"s an re$ati#e#a$uation ratios) are *ompetiti#e or
*omp$ementar,
!) - as te pri*e.*as $o" (/.) ratio !e*ome a popu$ar measure o
re$ati#e #a$ueuring te re*ent past
1
Ans"er te o$$o"ing +uestions (an our)
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3, a) ou are to$ tat a *ompan retains per*ent o its earnings5 an
its earnings aregro"ing at a rate o a!out 6 per*ent a ear #ersus an
a#erage gro"t rate o 7 per*entor a$$ irms, Dis*uss "eter ou "ou$
*onsier tis a gro"t *ompan,
!) Distinguis !et"een gro"t sto*k an #a$ue sto*k,
4, 8o" te !reako"n o sto*k pri*e !et"een a irm9s assets tat are
a$rea in p$a*e anits present #a$ue o gro"t opportunities5 assuming:
next ear9s expe*te earnings e+ua$Tk,005 13 re+uire rate o return5 1
return on e+uit5 4 p$o"!a*k ratio,
2
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, Brie$ is*uss ama's e*omposition o se*urit.porto$io perorman*e,
/an it exp$ain teee*t o i#ersii*ation ;xp$ain,
7, -at are te ierent aspe*ts tat a porto$io manager or an
in#estor nees to *onsier attime o ana$
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(ro)% # *Marks : 18
1, De#e$op a *urrent sto*k #a$ue or a irm tat is expe*te to a#e
extraorinar gro"t o
2 or our ears5 ater "i* it "i$$ a*e more *ompetition an s$ip
into a *onstantgro"t rate o , ts re+uire return is 14 an next ear9s
i#ien is expe*te to !eTk ,00, (,0)
4
Analytical Questions: Answer all questions
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2, ou are *omparing 2 mutua$ uns an a sto*k on te !asis o teir
past perorman*e sotat ou *an pi*k one or our in#estment, A**oring$
ou a#e *o$$e*te te o$$o"inginormation: (6,0)
Mutua$ un.8to*k >!ser#e Annua$ uns .8to*k ?esiua$ #arian*es
?eturn Beta
2n Mutua$ un ,32 1,20 0,02t Mutua$ un ,22 1,0 0,07Bexim*o @arma
,40 1,36 0,0
Te appropriate risk ree rate ? = 0,0 ?M= 0,2 an 2M= 0,2,
8uggest "i* in#estment opportunit to pi*k i ) Censen nex ii)
Trenor nex an iii)8arp's nex is use, Te$$ "i* measure is more
appropriate an "
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