FIN622 current paper (may 2010)
Friday, May 28, 2010 Posted In .Midterm May 2010 , Fin Edit ThisTotal questions were 32
28 MCQs and 4 Subjective Questions; of 3,3,5 and 5 marks respectively
MCQs were mostly from the attached file
Subjective Questions were:
1) Interest tax shields are valuable, why don't all tax paying firms borrow as much as possible. Marks 5
2) Following table shows the returns on ABC stock 2003-2007. ( Rate of returns were given for all years and we had to calculate variance). Marks 5
3) In ques no. 3 following data was given: Marks 3
Expected rate of return on market portfolio 14%
T-bills yield 6%
Expected return (investor) 10%
Calculate Beta of stock=?
4) Differentiate b/w systematic and unsystematic risk. Marks 3
