Mgt201 Mid Term Current Paper (Dec 2010)
Friday, December 10, 2010 Posted In .Midterm Dec 2010 Edit ThisWhat is Bonds period tradeoff?
2. Numerical Given 1. Expected Return 2. Probability
Find Standard Deviation.
3. Write down the formula of NPV.
Q: Difference between expected return and required rate of return? 5
Q: two projects of different life spans how would you calculate there npv? Give an approach! 5
Q: different types of investment time horizons? 3
Q: differentiate between junk and floating rate bonds? 3
· Briefly explain advantages of assets having short life(3)
· How negatively coorelated investment behave in a market?(5)
· Why does diversification reduce risk(5)
Q.No. 02: How Diversification reduce risk? (03)
Q.No. 03: What is effecient Portfolio, How does an investors choose optimal portfolio profit(05)