NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Capital Market and Portfolio Management
Internal Assignment Applicable for December 2020 Examination

1. Distinguish between systematic and unsystematic risk. Explain different mutual fund
schemes for diversifying enlisted risks. (10 Marks)

2. Given below are likely returns in case of shares of Sun Ltd. and Moon Ltd. In the
various economic conditions. Both shares are presently quoted at Rs. 100 per share.

Economic Condition Probability Returns of Sun Ltd.(%) Returns of Moon Ltd.(%)
High Growth 0.3 100 150
Low Growth 0.4 110 130
Stagnation 0.2 120 90
Recession 0.1 140 60

Compute – Expected Return and Standard Deviation for both stocks and provide your
suggestion for suitable investment. (10 Marks)

3. Rajesh, 35-year-old salaried individual wishes to invest Rs. 15 lakhs in different
investment avenues. He plans to invest for the education of his two children aged 5 and
8 years old, retirement and contingency. Assuming the role of a Portfolio Management
Consultant design a suitable portfolio for Rajesh if –

a. He is willing to take moderate risk for his investments. (5 Marks)

b. He is a risk neutral investor.