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
3M
b) 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.
b) Calculate 5 days RSI from the following data.
No of Days:
1
2
3
4
5
Closing Prices:
130
132
130
135
137
c) Briefly explain the concept of Technical Analysis?
3. What is CAPM? Explain its type

3M
7M
6
134

7
136

8
140

9
142
10M
10 M

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 the
problem 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
4
No. 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)