FIN630

SEMESTER FALL 2012 INVESTMENT ANALYSIS & PORTFOLIO MANAGEMENT (FIN630) ASSIGNMENT NO.02 DUE DATE: 31ST JANUARY 2013 MARKS: 25 Bond Valuation LEARNING’S OBJECTIVES – This assignment will enhance the understanding of the student regarding Bond Valuation. LEARNING OUTCOMES – After going through this activity, the students would be able to know about valuing different kinds of bonds available in the market. ASSIGNMENT Mr. Prudent …

Question No: 1 ( Marks: 1 ) – Please choose one The price at which a security dealer sells a security is known as: Bid price Market price Offer price Order price Question No: 2 ( Marks: 1 ) – Please choose one __________ is a temporary restriction on program trading in a particular security or market, usually to reduce …

Question No: 1 ( Marks: 1 ) – Please choose one A procedure for valuing the price of a stock by using predicted dividends and discounting them back to present value is known as. ► Dividend Discount Model ► The Residual Earning Model ► None of the given options ► Capital Asset Pricing Model Question No: 2 ( Marks: 1 …

Question No: 1 (Marks: 1) – Please choose one __________ are those stocks whose results are tied with the overall state of the national economy. ► Growth stocks ► Income stocks ► Cyclical stocks ► Blue chip stocks Question No: 2 (Marks: 1) – Please choose one Companies that have capitalization amounts between $500 million and $2billion are known as …

Question No: 1 ( Marks: 1 ) – Please choose one Which of the following is EXCLUDED from the reasons of investing? To obtain capital gain To supplement their money To gather market information To experience an excitement Question No: 2 ( Marks: 1 ) – Please choose one __________ believe that securities are priced according to fundamental economic data. …

  Question No: 1 ( Marks: 1 ) – Please choose one Shares of McDonald Corporation are an example of a (n): Standardized financial instrument Non-standardized financial instrument since their prices can differ over time Standardized financial liability instrument Open-end investment Question No: 2 ( Marks: 1 ) – Please choose one Which of the following includes fixed income securities? …

Questions of 3 Marks   Define nonsystematic risk. How it can be reduced? Answer:- Non-systematic (specific) Risk is sometimes referred to as “specific risk”. It’s risk that affects a very small number of assets • An example is news that affects a specific stock such as a sudden strike by employees. • Diversification is the only way to protect you …

Question No: 1 Which one of the following financial instruments represents an ownership share in a corporation? Common stock Bond Prefer red stock Term Finance certificates   Question No: 2 There are ____ broad categories of financial assets 2 3 4 5   Three broad categories of financial assets, viz stocks bonds and cash Stocks refer to equity and equity …