1. As an individual investor, what aspects of public issues you should be familiar with? Discuss your views with relevant to the recent trends in primary market.
2. (a) If the market price per share is equal to the book value per share, the following are equal :Return on equity, Earnings price ratio, Total yield.Elucidate with few examples.
(b) A stock is currently selling for `.60. The call option on the stock exercisable a year from now at an exercise price of Rs.55 is currently selling for Rs.15.The risk free interest rate is 12 percent. The stock can either fall after a year.It can fall by 30 percent. By what percent it can rise?
3. Describe the procedure developed by Markowitz for choosing the optimal portfolio of risky assets with suitable examples.
4. How and when will you adopt