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1. What do you understand by financial planning goals? Give examples

2. Enumerate the steps of the financial planning process?
3. What are the various components of financial planning?
4. What are the different styles of investing?
5. List the various types of investment risk? Explain the various risk diversification strategies ?
6. What are the salient features of debt funds? What are the various types of debt mutual fund
7. What is a mutual fund? Explain the organizational structure of mutual funds in India?
8. What do you understand by risk adjusted returns? Explain Sharpe ratio, Treynor ratio and Alpha?
9. Explain strategic asset allocation and tactical asset allocation?
10. Explain the difference between fixed asset allocation and flexible asset allocation with the help of
an example.
11. What are balanced funds? What are the advantages of investment in balanced funds?
12. What is the difference between gold ETFs and e-gold?
13. What are real estate funds? What are the disadvantages of investing in real estate?
14. Why is risk profiling important before undertaking financial planning? Explain the impact of risk
profiling in asset allocation in investment planning?
15. What is Systematic investment planning? What are the various SIP plans?
16. What are index funds? What do you mean by tracking error?
17. What is insurance? Explain the various types of insurance plans.
18. What are the factors to be kept in mind while choosing an insurance policy?
19. Explain the various components of estate planning?
20. Explain the five important relationships with respect to bond valuation.
21. Write short notes on:
a. Venture Capital funds
b. Hedge funds
c. Exchange traded funds
d. Liquid funds
e. Debt funds
f. Balanced funds
g. Index funds
h. Equity funds
i. Sectoral funds

22. Problems:
1. The risk free return of Security A is 8%. The expected market return is 14%. What is the expected
return of Security A with beta of 0.70? (17.8%)
2. Company A’s most recent dividend was Rs. 2.35. The dividends are expected to grow at 4%
indefinitely. If you expect a 12% return What is the price that you are willing to pay for the share.
(ans: 30.55)
3. A fund’s investments at market value totals Rs.500 crores. Total liabilities are Rs. 25 lakhs and
the number of units outstanding is 10 crores. What is the NAV?
4. A investor buys one unit of a fund at NAV Rs. 15. He receives a dividend of Rs. 3 when the NAV
is Rs. 18. The unit is redeemed at an NAV of Rs. 22. Calculate the total return earned by the
5. If the NAV of an open ended fund was Rs. 14 at the beginning of the year and Rs. 25 after 14
months , what is the annualized return on the NAV?
6. A stock of face value of Rs. 10 is currently priced at Rs. 175. The company has paid a dividend of
125% in the previous fiscal year and the absolute amount of dividend is expected to grow by an
average of 5% year on year. It has a beta of 0.8. You expect the market to give a return of 12%
whereas the risk free return is 5%. Find out the extent of undervaluation or overvaluation of the
stock by dividend discount model
7. Mr. X’s portfolio consists of two stocks A and B in which he has invested Rs. 45,000 and Rs.
55,000 respectively. Stock A has a beta of 1.4 and Stock B has a beta of 0.80. The return expected
from the market in current scenario is 12% while the return on the treasury bonds is 7%. What is
the expected return on the portfolio?
8. The average inflation over the last 2 years is 9% p.a. You invested Rs. 2 lakhs in a security 2
years ago which you have redeemed for Rs. 2.15 lakh. What real return have you obtained from
the investment?
9. An investor invested a total of Rs. 2500 in two mutual funds. One fund earned a 8% profit while
the other earned a 3% profit. If the investors total profit was Rs.110, how much was invested in
each mutual fund?
10. The risk-free return is 10% and the market return is 15%. Stock A has a beta of 1.2 and is
currently selling for Rs.30. If the expected dividend on the stock is Rs.4 , then calculate the
growth rate of the company.