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CS402 Assignment No. 4

Saturday, June 18, 2011 Posted In Edit This
Theory of Automata (CS402)
Assignment No.4


Deadline
Your assignment must be uploaded before or on 23rd June 2011.


Rules for Marking
It should be clear that your assignment will not get any credit if:
• The assignment is submitted after due date
• The assignment is copied
Objectives
Objective of this assignment is to make students able to understand the following
concepts,
• Pumping Lemma Version I and II
• Defining Context Free Grammars for Different Languages
• Null and Null-able Transitions and Regular Context Free Grammars


Question No.1 Pumping Lemma Version I and II
a. Suppose we have a language defined below,
anbm Where m = n! (n-factorial) and n = 1, 2, 3 …
Some strings belonging to this language are,
ab , aabb , aaabbbbbb , aaaabbbbbbbbbbbbbbbbbbbbbbbb , …
[a1b1 ,a2b2 ,a3b6 ,a4b24 , …]
Try to prove that this language is non-regular by Applying Pumping Lemma Version I
and II on this language separately [by taking some example strings]
b. Can we say using PUMPING LEMMA I AND II for sure that a given language is regular or NOT.
[Hint: Part b is somewhat tricky you need to be go through definition of pumping lemma
thoroughly to give answer of this part]


Question No.2 Defining Context Free Grammars
a. Consider the languages EVEN and ODD defined as language having strings of
even and odd lengths respectively, their RE’s are
Even Length Language:
((a+b)(a+b))* = (aa + ab + ba + bb)*
Odd Length Language:
((a+b)(a+b))* (a+b) = (aa + ab + ba + bb)* (a+b)
Give Context Free Grammars for these two languages separately.
b. Let us define a Language MULTIPLE OF THREE PALINDROME having all
those strings of PALINDROME which have length multiple of three, some
words belonging to this language are,
^ , aaa , aba , bab , bbb , aaaaaa , aabbaa , abaaba , abbbba , baaaaab ,
babbab , bbaabb
bbbbbb, ….
[Null string is included considering zero is also multiple of three as 0 x 3 = 0]
i. Give CFG for this language.
ii. Modify your CFG for MULTIPLE OF THREE PALINDROME for
two languages below,
• EVEN MULTIPLE OF THREE PALINDROME
• ODD MULTIPLE OF THREE PALINDROME
HINT: See appendix to see definition of palindrome, even palindrome and odd
palindrome


Question No.3 Null and Nullable Transitions, Regular
Context Free Grammars
Consider the two CFG’s given below,
S ---- > aAA | bBB | Є
A --- > bB | Є
B --- > aA | Є
S ---- > aAA | bBB | Є
A --- > bB | Z
B --- > aA | Є
Z--- > Є
[Here Є means null string, In CFG’s we generally use Є for indicating null string instead
of ^ sign]
a. Find null and null-able transitions (if any) separately in these two CFG’s
b. Remove null transitions from these CFG’s and give new CFG’s for both cases without
null transitions
Important Note:
While attempting any question always remember the following points:
o Where OR is used in the description of a language it means that expressions on
both sides of ‘OR’ are parts of the language.
o Where NOT is used in the description of the language it means that language
includes all strings except described in the ‘NOT’ condition, for example
language NOT starting with a, means all strings not having a in the start (you
have to evaluate yourself what kinds of strings are these).
Appendix
i. PALINDROME [already given in handouts]
S --------- > aSa | bSb | a | b | Є
ii. EVEN PALINDROME
S --------- > aSa | bSb | Є
iii. ODD PALINDROME
S --------- > aSa | bSb | a | b
Assignment Uploading Instructions:
Upload single word file in word 2003 format having solutions for all questions.

Fin630 Assignment No. 2 solution

Saturday, June 18, 2011 Posted In Edit This
“Financial Analysis & Portfolio Management (Fin 630)”
Assignment No. 02 Total Marks: 20
Question #01Regional textile issued a 10-year Rs. 500 par value bond at 12% coupon rate (assuming semiannual interest payments). Required rate of return for such investment is 10%.Pesco textile issued a 15-year Rs. 500 par value bond at 16% coupon rate (assuming semiannual interest payments). Required rate of return for such investment is 12%.
You are required to calculate:
• Coupon payment in each case
• No. of coupon payments in each case
• Value of each bond


Question #02Suppose you have following stocks in your portfolio:
1. Stock A which was purchased 11 months ago for Rs. 750, currently selling for Rs. 790and has paid Rs.20 dividend.
2. Stock B which was purchased 5 months ago for Rs. 900, currently selling for Rs. 910 and has paid Rs.15 dividend.
You are required to calculate:1. Holding period return of stock A
2. Holding period return of stock B
3. Annual return for both stocks

Note:
Show complete working (formula and calculations) for each part of questions.


::::::::::::::::::::::::::::::::::::::::::::

Solution:

Question #01
Regional textile issued a 10-year Rs. 500 par value bond at 12% coupon rate
(assuming semiannual interest payments). Required rate of return for such
investment is 10%.

Pesco textile issued a 15-year Rs. 500 par value bond at 16% coupon rate
(assuming semiannual interest payments). Required rate of return for such
investment is 12%.
You are required to calculate:
• Coupon payment in each case
• No. of coupon payments in each case
• Value of each bond

Coupon payment in each case:
Because the coupon payments are semi-annual, divide the coupon rate in half.
The coupon rate is the percentage off the bond's par value. As a result,
each semi-annual
Case#01
500*(12%/2) = 500*0.06 = 30
Case#02
500*(16% / 2) = 500*0.08 = 40

No. of coupon payments in each case:

Because two coupon payments will be made each year for ten years, we will
have
Coupon payments for
Case#01 = 10*2 =20
Case#02 = 15*02 = 30
Value of each bond

Like the coupon rate, the required yield of 12% must be divided by two
because the number of periods used in the calculation has doubled. If we
 12%, our bond price would be very low and inaccurate. Therefore, the required semiannual yield is 6% (0.12/2) for case#02 and 5% for case#01 left the required yield at
Case#01
=30*[1-{1/ (1+0.05) ^20}] / 0.05 + 500 / (1+0.05) ^20
=30* [1-{1/ (1.05) ^20} / 0.05 + 500/ (1.05) ^20
=562.3
Case#02
=40*[1-{1/ (1+0.06) ^30}] / 0.06 + 500 / (1+0.06) ^30
=40*[1-{1/ 5.74}] / 0.06 + 500 / 5.74
=40*13.76+ 87.05
=637.64

Question #02
Suppose you have following stocks in your portfolio:
1. Stock A which was purchased 11 months ago for Rs. 750, currently selling
for Rs. 790and has paid Rs.20 dividend.
2. Stock B which was purchased 5 months ago for Rs. 900, currently selling
for Rs. 910 and has paid Rs.15 dividend.
You are required to calculate:
1. Holding period return of stock A
2. Holding period return of stock B
3. Annual return for both stocks
Holding period return = Ending value – Beginning value + Income /
Beginning value
Stock A
Holding period return = 790 – 750 +20 / 750 = 0.08
Holding period of 11 months = 0.08 *12/11 = 8.72%
Stock B
Holding period return = 910 – 900+15 / 900 = 0.027
Holding period of 5 months = 0.027 *12/5 = 6.48%
Annualized Return Formula
APY = (principal + gain/principal) ^ (365/days) – 1
Stock A
APY = (750+ 40 / 750) ^ (12/11) – 1
=1.05^1.09 -1
=5.46%
Stock B
APY = (900+ 10/900) ^ (12/5) – 1
= 2.4%

::::::::::::::::::::::::::::::::::::::::::::::::::::::::
Solution
Answer 1:
Coupon payment in each case:
Bound A: 30
Bond B: 40
No. of coupon payments in each case:
Bound A: 20
Bond B: 30
Value of each bond
B0 =C/ (1+i/2) n*2 + Par/ (1+i) n*2
Bound A: 562
Bond B: 637
______________________________
Holding period return of stock A
If you purchase 1 shares of stock at Rs.750.00 per share, each paying a Rs.20.00 annual
dividend, and you sell your shares after 11 months for Rs.790.00 per share, then the
holding period return would be 8.49%.
Holding period return of stock B
If you purchase 1 shares of stock at Rs.900.00 per share, each paying a Rs.15.00 annual
dividend, and you sell your shares after 5 months for Rs.910.00 per share, then the
holding period return would be 2.89%
Annual return for both stocks
While using the equation of Geometric Mean the annual return of both stock can b
measured
Annual return of both stock 4.95%
::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::


Question #01
Regional textile issued a 10-year Rs. 500 par value bond at 12% coupon rate (assuming
semiannual interest payments). Required rate of return for such investment is 10%.
Pesco textile issued a 15-year Rs. 500 par value bond at 16% coupon rate (assuming semiannual
interest payments). Required rate of return for such investment is 12%.
You are required to calculate:
• Coupon payment in each case
• No. of coupon payments in each case 
• Value of each bond
Coupon payment in each case:
Because the coupon payments are semi-annual, divide the coupon rate in half. The
coupon rate is the percentage off the bond's par value. As a result, each semi-annual
Case#01
500*(12%/2) = 500*0.06 = 30
Case#02
500*(16% / 2) = 500*0.08 = 40
No. of coupon payments in each case:
Because two coupon payments will be made each year for ten years, we will have
Coupon payments for
Case#01 = 10*2 =20
Case#02 = 15*02 = 30
Value of each bond
Like the coupon rate, the required yield of 12% must be divided by two because the
number of periods used in the calculation has doubled. If we left the required yield at
12%, our bond price would be very low and inaccurate. Therefore, the required semiannual
yield is 6% (0.12/2) for case#02 and 5% for case#01 
Case#01
=30*[1-{1/ (1+0.05) ^20}] / 0.05 + 500 / (1+0.05) ^20

=30* [1-{1/(1.05)^20} / 0.05 + 500/(1.05)^20
=562.3
Case#02
=40*[1-{1/ (1+0.06) ^30}] / 0.06 + 500 / (1+0.06) ^30
=40*[1-{1/ 5.74}] / 0.06 + 500 / 5.74
=40*13.76+ 87.05
=637.64
Question #02
Suppose you have following stocks in your portfolio:
1. Stock A which was purchased 11 months ago for Rs. 750, currently selling for Rs. 790and has
paid Rs.20 dividend.
2. Stock B which was purchased 5 months ago for Rs. 900, currently selling for Rs. 910 and has
paid Rs.15 dividend.
You are required to calculate:
1. Holding period return of stock A
2. Holding period return of stock B
3. Annual return for both stocks 
Holding period return = Ending value – Beginning value + Income / Beginning value
Stock A
Holding period return = 790 – 750 +20 / 750 = 0.08
Holding period of 11 months = 0.08 *12/11 = 8.72%
Stock B
Holding period return = 910 – 900+15 / 900 = 0.027
Holding period of 5 months = 0.027 *12/5 = 6.48%
I think (not sure)
Annualized Return Formula
APY = (principal + gain/principal) ^ (365/days) – 1
Stock A
APY = (750+ 90/750) ^ (12/11) – 1
=1.12^1.09 -1 =13%
Stock B
APY = (900+ 10/900) ^ (12/5) – 1
=2.4%
:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::



“Financial Analysis & Portfolio Management (Fin 630)”
Assignment No. 02 Total Marks: 20

Question #01
Regional textile issued a 10-year Rs. 500 par value bond at 12% coupon rate (assuming semiannual interest payments). Required rate of return for such investment is 10%.
Pesco textile issued a 15-year Rs. 500 par value bond at 16% coupon rate (assuming semiannual interest payments). Required rate of return for such investment is 12%.
You are required to calculate:
• Coupon payment in each case
• No. of coupon payments in each case
• Value of each bond

Coupon payment in each case:
Because the coupon payments are semi-annual, divide the coupon rate in half. The coupon rate is the percentage off the bond's par value. As a result, each semi-annual
Case#01
500*(12%/2) = 500*0.06 = 30
Case#02
500*(16% / 2) = 500*0.08 = 40
No. of coupon payments in each case:
Because two coupon payments will be made each year for ten years, we will have
Coupon payments for
Case#01 = 10*2 =20
Case#02 = 15*02 = 30
Value of each bond
Like the coupon rate, the required yield of 12% must be divided by two because the number of periods used in the calculation has doubled. If we left the required yield at
12%, our bond price would be very low and inaccurate. Therefore, the required semiannual yield is 6% (0.12/2) for case#02 and 5% for case#01



Case#01

=30*[1-{1/ (1+0.05) ^20}] / 0.05 + 500 / (1+0.05) ^20

=30* [1-{1/ (1.05) ^20} / 0.05 + 500/ (1.05) ^20

=562.3

Case#02

=40*[1-{1/ (1+0.06) ^30}] / 0.06 + 500 / (1+0.06) ^30
=40*[1-{1/ 5.74}] / 0.06 + 500 / 5.74
=40*13.76+ 87.05
=637.64

Question #02
Suppose you have following stocks in your portfolio:
1. Stock A which was purchased 11 months ago for Rs. 750, currently selling for Rs. 790and has paid Rs.20 dividend.
2. Stock B which was purchased 5 months ago for Rs. 900, currently selling for Rs. 910 and has paid Rs.15 dividend.
You are required to calculate:
1. Holding period return of stock A
2. Holding period return of stock B
3. Annual return for both stocks

Stock holding period return:
stock A = (790-750+20)/750
= 60/750 = 0.08 = 8%
stock B = (910-900+15)/900
= 25/900 = 0.0277 = 2.78%

Annual holding return:
stock A = 12/11*0.08 = 0.087 = 8.7%
stock B = 12/5*0.0277 = .06648 = 6.67%

just check this net example:
1- The Holding Period Return is calculated as follows:[Income + (ending value - beginning value)]/beginning value Let’s look at an example. A stock that you have been holding in your portfolio for six months has paid dividends of $47 and is currently worth $693. You purchased the stock six months ago for $550. The Holding Period Return would be: [$47 + ($693 - $550)]/$550 or 34.5%you have had a 34.5% return on your investment over the length of time you have held it.

2-To annualize your Holding Period Return using simple interest, multiply your Holding Period Return by 12 divided by the number of months you have held the investment. For example, in our first stock example, the annualized return would be 34.5% X 12/6 or 69%. In the second bond example, the annualized return would be 1.6% X 12/1 or 19.2%.

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Saturday, June 18, 2011 Edit This
Its Latest News of the World (stories, politics, inventions, creations, discovery, jobs): A girl polishing Shoes on Road and keep in touch w...: "A girl polishing Shoes on Road and keep in touch with her study BUT not become a beggar میں دیکھ کر تصویر کو تھا سوچ میں پنہاں ایسی کوئ..."

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