Section B (2 Mark)
If an investor determines that next year's earnings estimate is Rs2.00 per share and the company subsequently falters, the investor may not readjust the Rs2.00 figure enough to reflect the change because he or she is
"anchored" to the Rs2.00 figure. This is not limited to downside adjustments-the same phenomenon occurs when companies have upside surprises Which of the following Biases have been exhibited by the investor?

Section B (2 Mark)
You purchase one ILM 70 call option for a premium of Rs6. Ignoring transaction costs, the break-even price of the position is

Section A (1 Mark)
A market timing approach that increases the proportion of funds in stocks when the stock market is expected to be rising, and increases cash when the stock market is expected to be falling is a:

Section C (4 Mark)
Read the senario and answer to the question.
What would be the taxable amount on gratuity received by Jogen, if he would retired from an organization where employees are not covered under Gratuity Act?

Section C (4 Mark)
Sunil has an investment portfolio of Rs.100000; the initial portfolio mix is Rs.50000 in stocks, Rs.30000 bonds and Rs.20000 in bank. If market goes up by 10% and the value of bonds decreases by 10%, what should Sunil do under the constant mix policy?