SAPM Important Questions 2025 [Dibrugarh University BCom 6th Sem. CBCS]

Are you a BCom 6th Semester Student at Dibrugarh University preparing for your Security Analysis and Portfolio Management Exam in 2025? This blog post is all about Financial Statement Analysis ! We’ve put together a simple, easy list of Security Analysis and Portfolio Management important questions for Dibrugarh University BCom 6th Sem. These Security Analysis and Portfolio Management important questions 2025 in PDF cover Previous year question papers (2013–2024) and the full Solution of Security Analysis and Portfolio Management CBCS syllabus. Get ready for Auditing success with  Dibrugarh University BCom (Honours) 6th Semester Security Analysis and Portfolio Management (SAPM) Important Questions in PDF 2025!

 Security Analysis and Portfolio Management Important Questions

Dibrugarh University B.Com 6th Sem Honours CBCS Pattern

UNIT-I: Investments: Meaning, Process, and Alternatives; Measurement of Risk and Return; Systematic and Unsystematic Risk; Sources and Measurement; Fundamental and Technical Analysis

True or False Questions

1. Investment made on house property is a non-negotiable financial investment. (Dibrugarh University 2022)

2. Diversification reduces inflation risk. (Dibrugarh University 2022)

3. Treasury bill is a money market security. (Dibrugarh University 2023)

4. Unsystematic risks arise due to inflation. (Dibrugarh University 2023)

5. The government securities have a maturity period between 3 and 20 years. (Dibrugarh University 2024)

6. The basic principles of technical analysis originate from Dow theory. (Dibrugarh University 2024)

Fill in the Blanks Questions

1. Leading indicator is ______ (Sensex / GNP / Consumer Price Index). (Dibrugarh University 2022)

2. ______ is the highly liquid security. (Share / Debenture / Treasury Bill). (Dibrugarh University 2022)

3. ______ is a combination of securities. (Dibrugarh University 2023)

4. Systematic risk can be managed by the use of ______ of different companies. (Dibrugarh University 2023)

5. Capital index bonds are linked with ______ (BSE-100 / Consumer Price Index / BSE-Sensex). (Dibrugarh University 2024)

6. The ______ of the stock is called the resistance area. (market price / low price / peak price). (Dibrugarh University 2024)

Write Short Notes Questions

1. Systematic risk and unsystematic risk. (Dibrugarh University 2022)

2. Systematic risk. (Dibrugarh University 2019, 2017)

3. Fundamental analysis. (Dibrugarh University 2019, 2014, 2013)

4. Investment philosophy. (Dibrugarh University 2023)

5. Intrinsic value. (Dibrugarh University 2023)

6. Risk and return measurement. (Dibrugarh University 2023)

7. Money market security. (Dibrugarh University 2024)

8. Charting analysis. (Dibrugarh University 2024)

9. Risk of buying and selling options. (Dibrugarh University 2019)

10. Distinguish between technical and fundamental analysis     (Dibrugarh University 2018)

11. Process of Investments (Dibrugarh University 2019)

12. Fixed, variable and Convertible securities  (Dibrugarh University 2013, 2014, 2015)

13. Efficient market hypothesis

14 Marks Questions (and Similar High-Mark Questions Adjusted to 14 Marks)

1. Define the term 'Investment'. Discuss the investment process involved in a series of activities starting from the policy formulation. (Dibrugarh University 2019)

2. What do you mean by unsystematic risk? What are its sources? How can it be managed? Detail out with examples. (Dibrugarh University 2019, 2015)

3. "Without adequate information, the investor cannot carry out his investment programme." Explain. (Dibrugarh University 2022)

4. What do you mean by fundamental analysis and technical analysis? Bring out clearly the points of distinction between the two. (Dibrugarh University 2018)

5. What is economic forecasting? How are economic forecasting techniques helpful for investors? (Dibrugarh University 2022)

6. State the economic and financial meaning of investment. Discuss the factors that differentiate the investor from speculator and gambler. (Dibrugarh University 2023)

7. What do you understand by company analysis? Explain the tools available for company analysis. (Dibrugarh University 2023)

8. Define security. What are the investor’s objectives in investing their funds in the stock market? (Dibrugarh University 2024)

9. Explain in detail the Dow theory and how it is used to determine the direction of the stock market. (Dibrugarh University 2024)

10. What do you mean by Investment? What are the different alternatives of investment? What are the factors that you would consider before making any investment decisions? (Dibrugarh University 2016)

11.  Define the term “Investment”. Discuss the different avenues available to an investor for making investments. Explain its objectives. (Dibrugarh University 2014, 2016, 2018, 2024)

12.  State the economic and financial meaning of investment. Discuss the factors that differentiate the investor from speculator and gambler. (Dibrugarh University 2023)

13. . Write a brief note on Fundamental analysis along with its types (Dibrugarh University 2014, 2018). Also State their tools and techniques with examples (Dibrugarh University 2015, 2013, 2023)

14.  Write a brief note on Technical analysis (2014, 2018). Also State their tools and techniques with examples (Dibrugarh University 2015, 2013, 2017)

15. What is Risk? What are its various sources (2017, 2018)? How can risk on an asset be calculated? Distinguish between systematic and unsystematic risk. (Dibrugarh University 2015, 2016, 2019, 2022)

16. “Investment is nothing but Risk taking.” Justify this statement with example. How such risk can be avoided? (Dibrugarh University 2016, 2019)

UNIT-II: Portfolio Analysis & Management: Traditional Portfolio Analysis; Effects of Combining Securities; Diversification; Markowitz Model; Location of the Efficiency Frontier

True or False Questions

1. Diversification reduces inflation risk. (Dibrugarh University 2022)

2. Formula plans do not help in deciding the timing of investment. (Dibrugarh University 2024)

Fill in the Blanks Questions

1. ______ is a combination of securities. (Dibrugarh University 2023)

2. Opportunistic building model is also known as ______. (Dibrugarh University 2023)

Write Short Notes Questions

1. Portfolio management. (Dibrugarh University 2019)

2. Effects of combining securities. (Dibrugarh University 2019)

3. Markowitz model. (Dibrugarh University 2019, 2017, 2014)

4. Traditional portfolio analysis. (Dibrugarh University 2018, 2016)

5. Portfolio analysis. (Dibrugarh University 2016, 2019)

6. Portfolio Management Scheme. (Dibrugarh University 2022, 2023)

7. Fixed securities. (Dibrugarh University 2019)

8. Location of the efficiency frontier. (Dibrugarh University 2017)

9. Valuation of assets. (Dibrugarh University 2016, 2015)

10. Convertible securities. (Dibrugarh University 2019, 2015, 2014)

11. Time Value of Money             (Dibrugarh University  2014)               

12. Fraudulent portfolio analysis     (Dibrugarh University 2015)

14 Marks Questions

1. Discuss the effects of combining securities with examples. (Dibrugarh University 2017, 2016, 2013)

2. Discuss the need and significance of diversification in portfolio construction. (Dibrugarh University 2018)

3. Simron holds a portfolio of two companies P and Q with the following details: Security return (P: 10, Q: 5), Security variance (P: 0.0064, Q: 0.0016), Investment proportion (P: 0.5, Q: 0.5), Correlation: 0.5. Under the Markowitz model, what are the portfolio return and portfolio risk? (Dibrugarh University 2019, 2013)

4. Discuss the basic assumptions of the Markowitz model. In what way is this model better than other models? Discuss. (Dibrugarh University 2017, 2016)

5. Write a detailed note on traditional portfolio analysis. (Dibrugarh University 2019, 2016)

6. Discuss the various steps involved in the traditional approach to portfolio construction. (Dibrugarh University 2022)

7. Do you think that the effect of combining securities can bring about a balanced portfolio? Discuss. (Dibrugarh University 2023)

8. Define Markowitz diversification theory. Explain the statistical method used by Markowitz to reduce risk. (Dibrugarh University 2023)

9. Explain the nature of portfolio risk if two securities: (i) are perfectly positively correlated, (ii) are perfectly negatively correlated, and (iii) have zero correlation. Illustrate with diagrams. (Dibrugarh University 2024)

10. Discuss in detail Markowitz efficient frontier. Differentiate between efficient portfolio and feasible portfolio. (Dibrugarh University 2024)

11. Write a detailed note on fraudulent portfolio analyses. (Dibrugarh University 2015)

12. Discuss some of the disadvantages of Markowitz models. In what way is this model better than other models? Explain with examples. (Dibrugarh University 2016)

13. Write a detailed note on Markowitz model. (Dibrugarh University 2017, 2016, 2015, 2014)

14. Discuss the process of valuation of fixed and variable securities. (Dibrugarh University 2017)

15. What is portfolio analysis? Write a brief note on traditional and modern portfolio analysis and also distinguish between them.     (Dibrugarh University 2015, 2016, 2018, 2019)

16.  Write a brief note on “Markowitz Model”. What are its assumptions (Dibrugarh University 2013,2015, 2016, 2017, 2018, 2023, 2024)

17.  What is portfolio management (Dibrugarh University2014)? Mention the effects of combining securities. Why is diversification of securities preferred in portfolio construction?  (Dibrugarh University 2013, 2016, 2017, 2023)

18.  What is diversification? Discuss the methods of diversification of securities. Explain its importance in portfolio management. (Dibrugarh University 2014, 2018)

UNIT-III: Capital Asset Pricing: Capital Asset Pricing Model – Assumptions, Capital Market Line, Security Market Line, Market Model; Arbitrage Pricing Theory and Factor Models – Factor Models and Return Generating Process, One and Two Factor Model

True or False Questions

1. Market imperfection may lead to a band of SML. (Dibrugarh University 2022)

2. Personal income tax is assumed to be nil in the Capital Asset Pricing Model. (Dibrugarh University 2023)

3. Jensen’s model is based on the Capital Asset Pricing Model. (Dibrugarh University 2023)

4. APM is a single-factor model. (Dibrugarh University 2024)

Fill in the Blanks Questions

1. As per CAPM, the relevant measure of risk is ______ (standard deviation / beta / variance). (Dibrugarh University 2022)

2. The stock above the security market line is a(n) ______ security. (of high risk / overpriced / under-priced). (Dibrugarh University 2024)

3. The beta coefficient is treated as a measure of ______ (systematic risk / unsystematic risk / average return). (Dibrugarh University 2024)

Write Short Notes Questions

1. Security market line. (Dibrugarh University 2019, 2017, 2013)

2. Capital market line. (Dibrugarh University 2018, 2016, 2014)

3. Arbitrage pricing theory. (Dibrugarh University 2019)

4. Factor models. (Dibrugarh University 2014, 2015, 2017)

5. Factor sensitivity. (Dibrugarh University 2022)

6. Practical application of Arbitrage. (Dibrugarh University 2023)

7. Empirical test of the CAPM. (Dibrugarh University 2024)

8. Valuation of bond. (Dibrugarh University 2019)               

9. CAPM Vs. APT  (Dibrugarh University 2018, 2023)

14 Marks Questions

1. Discuss the advantages of the Capital Asset Pricing Model (CAPM). In what way is CAPM better than factor models? Discuss. (Dibrugarh University 2022)

2. Explain the arbitrage pricing theory (APT). What are its limitations? (Dibrugarh University 2019, 2013)

3. What are the basic assumptions of the Capital Asset Pricing Model? How would you evaluate a security with the help of CAPM? (Dibrugarh University 2023)

4. Discuss in detail the Capital Asset Pricing Model. Distinguish between Capital Market Line (CML) and Security Market Line (SML). (Dibrugarh University 2024, 2018)

5. Discuss the basic Arbitrage Pricing Model of single and multiple factors. Mention the assumptions of Arbitrage Pricing Model. (Dibrugarh University 2024)

6. Discuss the limitations of factor models. In what way is the two-factor model better than the one-factor model? Justify your answer. (Dibrugarh University 2019, 2015)

7. What do you mean by the term 'arbitrage'? Describe the basic multiple factor model of APT. (Dibrugarh University 2022)

8. What are the basic assumptions of CAPM? Write down the difference between Calculate the equilibrium rate of return for the following three securities: A (Bi1: 1.2, Bi2: 1.0), B (Bi1: -0.5, Bi2: 0.75), C (Bi1: 0.75, Bi2: 1.30). (Dibrugarh University 2019, 2013)

9. Discuss the assumption of the CAPM model. Do you think that it is acceptable in the Indian context? Justify your argument with examples. (Dibrugarh University 2019, 2015)

10. Explain and illustrate the concept of Capital Asset Pricing Model (CAPM) with the help of Suitable diagram. 2014, 2017, 2023, 2024

11. What the assumptions of CAPM (2018)? Briefly state the advantages and limitations of adopting CAMP in portfolio management. (Dibrugarh University 2015, 2016, 2022)

12.  What is Arbitradge Pricing Theory? What are its assumptions? Briefly state the advantages and limitations of adopting APT in portfolio management.    (Dibrugarh University 2013, 2019, 2023, 2024)

13. What do you mean Capital Market Line (CML 2016, 2018) and Security Market Line (Dibrugarh University SML 2013, 2017)? Distinguish between CML and SML. In what way these are valuable indicators for a better portfolio formulation? (Dibrugarh University 2014, 2016, 2024)

14.  What are factor models? Mention its limitations. How two factor model is better than one factor model? (Dibrugarh University 2019, 2022)

UNIT-IV: Performance Evaluation of Portfolio – Risk-Adjusted Performance Evaluation Measures – Sharpe's Measure, Treynor's Measure, Jensen's Alpha; Fama's Decomposition

True or False Questions

1. Fama's decomposition is based on the CAPM. (Dibrugarh University 2022)

2. Treynor’s performance index is used to measure return per unit of risk. (Dibrugarh University 2023)

3. In Jensen's measure, a higher value of alpha represents better performance of the portfolio. (Dibrugarh University 2024)

Fill in the Blanks Questions

1. ______ is an indicator of the average return earned in excess of the risk-free rate per unit of total risk. (Dibrugarh University 2022)

2. The performance of a portfolio with the help of the Jensen model is evaluated on the basis of ______. (Dibrugarh University 2023)

3. The ______ is an indicator of the average return earned in excess of the risk-free rate per unit of risk. (Sharpe / Treynor / Jensen). (Dibrugarh University 2024)

Write Short Notes Questions

1. Portfolio performance evaluation. (Dibrugarh University 2019, 2016)

2. Sharpe’s measure. (Dibrugarh University 2013, 2018, 2019, 2024)

3. Treynor’s performance measure. (Dibrugarh University 2013, 2014, 2018, 2019)

4. Jensen’s alpha. (Dibrugarh University 2017, 2014)

5. Fama’s decomposition of total return. (Dibrugarh University 2022, 2014)

6. Evaluation of mutual fund. (Dibrugarh University 2023)

7. Differential return. (Dibrugarh University 2022)

14 Marks Questions

1. Discuss various methods of evaluating the performance of a portfolio. Highlight the significance of risk in evaluating portfolio performance. (Dibrugarh University 2023, 2016, 2013)

2. Explain the various risk-adjusted performance evaluation measures in detail. How is portfolio performance measured using these tools? (Dibrugarh University 2024, 2022, 2017, 2016)

3. Discuss the uses and limitations of Sharpe’s, Treynor’s, and Jensen’s measures of performance evaluation. (Dibrugarh University 2024)

4. Discuss the Fama's decomposition theory of total return. What are the major strengths and weaknesses of this approach? (Dibrugarh University 2022, 2015)

5. What do you understand by performance evaluation? Discuss the risk-adjusted returns and their importance. (Dibrugarh University 2019, 2015)

6. Write a detailed note on differential return and Fama's decomposition model. (Dibrugarh University 2022)

7. What is Jensen’s differential return? What are its assumptions? What does the Jensen’s Alpha indicate about the portfolio? (Dibrugarh University 2023)

8. Explain in detail the Treynor's and Jensen’s performance measures and their applications in mutual fund evaluation. (Dibrugarh University 2023)

9. Discuss in detail Sharpe’s and Treynor’s measure of portfolio performance with the help of diagram. What are the differences between Sharpe’s and Treynor’s indexes of portfolio performance?    (Dibrugarh University 2014, 2015, 2016, 2019, 2024)

10. Discuss Jensen’s Differential return model in detail.    (Dibrugarh University 2013, 2015, 2016, 2018, 2023)

11. Explain different methods of Measurement and Evaluation of portfolio performance with the help of diagram. (Sharpe, Treynor and Jensen)    (Dibrugarh University 2013, 2017, 2018, 2022, 2024)

12.  Discuss in detail methods and components of portfolio investment performance. (Dibrugarh University 2022, 2023)

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