FIN630 VU Current Final Paper Spring July 2012

Subjective were as following which i remember:
1. Purpose of Income Statement.?
2. Advantages and Disadvantages of Stop Order?
3. Expected rate of return does not give guarantee of success than why investors calculate expected rate of return?
4. Define the primary objective of investment portfolio?
5. Explain the daily settlement of future market.
6. How Risk can be measure. define the fundamental rule of risk measurement?
7. Describe the rule of Clearing House in Future Market?
8. Many analysts refer convexity as more precise version of duration. Do you agree with this statement?

Fin630 Fall 2011 Final Term 16 Feb 2012

WHAT R DERIVATEVS AND HOW USE THESE TO REDCE THE RISK.

HOW SECURITES ARE RELATED NAGATIVLY, POSITIVELY AND NO RELATION?

YOU HAVE A FUTURE CONTRACT IN KSE TO PURCHASE 200 SHARES AFTER ONE MONTH AND TO SELL 100 SHARES IN LSE. WHAT TYPE OF FUTURE CONTRACT THIS ?

ABC COMPANY yarn ka busness ker rhy ha,,,ap batain ye risk systmetic hn gay ya non systmetic,,,and compny can diversify these or not,,,justify..
-increase interest rate due to inflation
-sellab ki wja se kappa ski fasal barbad hue ha
-new regulation bnain han new government ne yarn busness k export par rvol calculate kerna tha aur btana tha k kon sa better ha aur kiu..

Portfolio Average rate of return Beta
A 15% 0.5
B 13% 0.6
C 12% 0.6

Figures are nearly same as above.
Return on treasury bill is 10 % ,,,,calculate ravol,,, and tell which protofolio is better and why?

Current rate of a security is RS.50,,, required intial margin is RS.25 AND MAINTENANCE COST IS RS.15. YOU HAVE A FIVE FUTURE CONTRACT ,,,FILL THIS TABLE

PRICE DAILY GAIN/LOSS AVERAGE BALNCE YOU WILL CALL OR NOT

50
1 48
2 43
3 38
4 47
5 39