iExaminers’ commentaries 2011 Examiners’ commentaries 2011 23 Investment management Important note This commentary reflects the examination and assessment arrangements for this course in the academic year 2010–11. The format and structure of the examination may change in future years‚ and any such changes will be publicised on the virtual learning environment (VLE). Specific comments on questions – Zone A Candidates should answer FOUR of the following EIGHT questions. All questions carry equal
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his money at an annual interest rate of 6%‚ the rest at 9% annual rate. The return on these two investments over one year is $1‚440. How much does he invest at each rate? Solution Paul made two investments totaling $15‚000. The percentage return on the first investment was 7% annually‚ while the the percentage return on the second one was 10% annually. If the total return on the two investments over one year was $1‚350‚ how much was invested at each rate? Ben invested $30‚000‚ part
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Isabel Chen Shame on you I think shame is something that everyone carries on his or her back‚ even me. And it is definitely necessary. First of all having shame means to have the sense of restraint against offending others. If everyone in the world wanted to do whatever they want and think that‚ ‘it’s okay’ then wouldn’t the world be in chaos? It’s very clear that there are things in the world where it’s okay to do and there are some that is not okay to do‚ and if someone does something that
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Solution to Case 02 Risk and Return Flirting With Risk Questions: 1. Imagine you are Bill. How would you explain to Mary the relationship between risk and return of individual stocks? I would explain to Mary that risk and return are positively related‚ i.e. if one expects to earn higher returns‚ then one has to be willing to invest in stocks whose price can vary significantly from year to year or in different economic conditions. For example‚ in the table
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1. Suppose that you have $1 million and the following two opportunities from which to construct a portfolio: a. Risk-free asset earning 12% per year. b. Risky asset with expected return 30% per year and standard deviation of 40%. If you construct a portfolio with a standard deviation of 30%‚ what is its expected rate of return? Ans: P = 30 = yy y = 0.75 E(rP) = 12 + 0.75(30 12) = 25.5% 2. Suppose that there are many stocks in the security market and that the characteristics of Stocks
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1. What is the climate for doing business in India? Is it supportive of foreign investment? Doing business in India was very difficult in the past and took companies years to set up. In recent years‚ due to changes in the government‚ business has become easier and India has become more dependent on foreign investment. This change in foreign investment has positively impacted their economy and helped raise their GDP significantly. Although there are advantages to establishing relationships in this
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Changing Trend of Investment Pattern in India and Emergence of Mutual Fund Industry ABSTRACT: This project is about how the Investor’s Behavior is changing and they are now leaving behind the sacred investment options like the fixed deposits‚ company deposits‚ gold etc. Investors are now looking towards equity linked investment options. Like most developed and developing countries the mutual fund cult has been catching on in India. There are various reasons for this. Mutual Fund makes it easy and
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OUTLINE College Education as an Investment Topic Sentence: For most of us‚ college education is the irreplaceable and indispensable precious investment once in a lifetime. A A bridge connecting student role and social role which will take you to the future. 1. Social skill 2. Professional knowledge B Spiritual fulfillment 1. Social status 2. Academic accomplishment C Financial benefits 1. Longer career life 2. Higher return Concluding
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SG-INVESTMENTS At least 50 percent of exam-1 Will come from this study guide Chapters 1-4 Student: ___________________________________________________________________________ 1. The largest one-day percentage decline in the Dow-Jones Industrial Average during the period 1926-2006 occurred on: A. October 19‚ 1987. B. October 28‚ 1929. C. September 17‚ 2001. D. November 6‚ 1929. E. July 19‚ 2002. 2. Based on the period 1926-2006‚ the risk premium for U.S. Treasury bills was: A. 0.0
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SINGAPORE NUS BUSINESS SCHOOL FIN 3102 Investment Analysis and Portfolio Management Luis Goncalves-Pinto / Sem 1‚ AY 14/15 Practice Problems #1 1. You sell short 100 shares of Loser Co. at a market price of $45 per share. What is your maximum possible loss? Explain. 2. The investment bank you work for is writing its annual investments newsletter and you are in charge of the international markets outlook for next year. To prepare your section‚ you collect data on yearly returns of World Stocks
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