Fin630 Current Spring 2011 Final Term VU Paper [July 2011] Virtual University of Pakistan
Friday, July 15, 2011 Posted In .Final Term Exam Spring 2011 (July) Edit Thiswhat is difference b/w long and short futures positions?
Q#2
distinguish b/w ipo(initial public offering) and ofs(offered for sale)?
Q#3
how the risk is measured ? What is fundamental rule of risk measurement?
Q#4
calculate required rate of return (k) for a stock with beta of1.2 when risk free rate is 6% and market offering is 16%?
Q#5
what are the two components of required rate of return?
Q#6
bonds and stocks are both securities. What is difference b/w them?
Q#7
apt and camp multilevel or sh0rt level like this type of question not know complete?
Q#8
participating incident in forward and future market? Not known about
Question # 1: According to business analyist "Investing in Treasury notes is risk free investment, so investor should invest in them." is this statement correct or not? (3 Marks)
Question # 2: Explain two components of required rate of return. (3 Marks)
Question # 3: keeping in view the business cycle, describe which industries are least affected by the change in the economy? Give example of two industries. (3 Marks)
Question # 4: The correlation coefficient between the returns of the stock and the market is 0.85. The variance of stock‟s returns is 0.75 and variance of market returns is 0.22. Calculate the covariance of market and stock‟s (5 Marks)
Question # 5: What is Future Market? Describe the Mechanics of Trading in Future Market. (5 Marks)
Question # 6: What do you mean by the Optimal Porfolio? (5 Marks)
Question # 7: What do is meant by Speculation? (3 Marks)