IFSB-12
GUIDING PRINCIPLES ON LIQUIDITY RISK
MANAGEMENT FOR INSTITUTIONS
OFFERING ISLAMIC FINANCIAL SERVICES
[EXCLUDING ISLAMIC INSURANCE
(TAKFUL) INSTITUTIONS AND ISLAMIC
COLLECTIVE INVESTMENT SCHEMES]
March 2012
COUNCIL MEMBERS*
H.E. Rasheed Mohammed Al
Website: http:/www.bangladesh-bank.org
Department of Off-site Supervision
Bangladesh Bank
Head Office
Dhaka-1000
DOS Circular No.-02
Date:
15 February 2012
03 Falgun 1418
Chief Executives
All Scheduled Banks in Bangladesh
Dear Sir,
Risk Management Guideli
Points of Parity and Points of Difference
Once a marketer has defined the target market and the type of competition,
its imperative for the marketer to define the basis of this positioning. This
can be done by the defining the Points of Parity and Points
Debt Ratio
The debt ratio measures the proportion of total assets financed
by the firms creditors.
The higher this ratio, the greater the amount of other peoples
money being
used to generate profits
Gross Profit Margin
The gross profit margin measures the
ACT 202
Group Project
Topic: Determining Manufacturing cost of a product and performing CVP analysis
Submitted to:
Bushra Ferdous Khan (BFK)
Lecturer
Accounting & Finance Department
North South University
Submitted By
Name
Md. Eastekar Alam Shohag
Junayet
North South University
School of Business and Economics
MBA Program
FIN637 Investment Theory
Section 1
Semester: Summer 2017
Arifur Rahman, PhD
Associate Professor, Department of Accounting and Finance
Class Schedule: 7.00pm-10.15pm, Wednesday
Consultatio
CHAPTER FIVE
Risk, Return, and the
Historical Record
1
is even more difficult than forecasting the
past.) Moreover, in learning from a historical
record we face what has become known as
the black swan problem.1 No matter how
long a historical record, ther
2
CHAPTER TWO
Asset Classes and
Financial Instruments
PART I
YOU LEARNED IN Chapter 1 that the process of building an investment portfolio usually begins by deciding how much money to
allocate to broad classes of assets, such as safe
money market securiti
Chapter 5
1. Answer it yourself.
4.
For the money market fund, your holding period return for the next year depends on the
level of 30-day interest rates each month when the fund rolls over maturing securities.
The one-year savings deposit offers a 7.5% h
CHAPTER 10
Arbitrage Pricing Theory and
Multifactor Models of Risk and Return
INVESTMENTS | BODIE, KANE, MARCUS
7-2
Arbitrage
Exploiting mispricing to make risk-free profits with
zero net investment. Typically it involves the
simultaneous purchase and sa
Chapter 8
Problem sets
1.
Find answer in the chapter.
4.
The total risk premium equals: + ( market risk premium). We call alpha a
nonmarket return premium because it is the portion of the return premium that
is independent of market performance.
Alpha, a
Chapter 2
2. Do it yourself
3. Do it yourself
4. Do it yourself
7. Do it yourself
8.
P = $10,000/1.02 = $9,803.92
11.
(a) 4.17%
(b) 2.34
12.
(a) 3.85%
(b) 1.85%
16.
(a) The higher coupon bond.
(c) 0%
(b) The call with the lower exercise price.
(c) The put
CHAPTER 8
Index Models
INVESTMENTS | BODIE, KANE, MARCUS
8-2
Index Models
The Markowitz model requires a long list of
estimates of expected security returns and the
covariance matrix. (p. 257)
INVESTMENTS | BODIE, KANE, MARCUS
8-3
Index Models (Contd.)
CHAPTER 7
Optimal Risky Portfolios
INVESTMENTS | BODIE, KANE, MARCUS
7-2
The Investment Decision
Top-down process with 3 steps:
1. Capital allocation between the risky portfolio
and risk-free asset
2. Asset allocation across broad asset classes
of risky a
Chapter 9
Problem sets
1.
Do it yourself.
2.
If the securitys correlation coefficient with the market portfolio doubles (with
all other variables such as variances unchanged), then beta, and therefore the risk
premium, will also double. The current risk p
CHAPTER 9
The Capital Asset Pricing Model
INVESTMENTS | BODIE, KANE, MARCUS
9-2
Capital Asset Pricing Model (CAPM)
A set of predictions (mutually consistent)
concerning equilibrium expected returns on risky
assets.
Derived using principles of diversific
CHAPTER 5
Introduction to Risk, Return, and
the Historical Record
INVESTMENTS | BODIE, KANE, MARCUS
5-2
Broad learning goals:
Appreciating the fact that although there are
theories on the relationship between risk and
expected returns on assets, neither
CHAPTER 6
Capital Allocation to Risky Assets
INVESTMENTS | BODIE, KANE, MARCUS
6-2
Allocation to Risky Assets
Most investors will avoid risk unless there is
a reward.
The utility model gives the optimal allocation
between a risky portfolio and a risk-fr
Chapter 1
4.
Financial assets make it easy for large firms to raise the capital needed to finance their
investments in real assets. If a firm could not issue stocks or bonds to the general
public, it would have a far more difficult time raising capital. C
Useful Investment Formulas:
R i
R i
1i
Relationship between real (r) and nominal (R) rates of interest: r
After-tax real rate of return (t is the tax rate): R (1 t ) i (r i )(1 t ) i r (1 t ) it
Total risk-free return, rf (T ) , on a T -year treasury bon
CHAPTER ONE
The Investment
Environment
Broadly speaking, this chapter addresses
three topics that will provide a useful perspective for the material that is to come later. First,
before delving into the topic of investments,
we consider the role of financ
Chapter 7
Problem Sets
1.
(a) and (e).
2.
(a) and (c) (remember the variance-covariance matrix?)
3.
(a)
4.
The parameters of the opportunity set are:
E(rS) = 20%, E(rB) = 12%, S = 30%, B = 15%, = 0.10
From the standard deviations and the correlation coeff
Chapter 6
Problem Sets
1.
(e) (but do you know why?)
2.
(b)
3.
The proportion invested in the risky portfolio will decrease. (Make sure you know the
reason why.)
4.
a.
The expected cash flow is: (0.5 $75,000) + (0.5 200,000) = $137,500
With RP 8% and RF 6
Chapter 10
Problem sets
1.
The revised estimate of the expected rate of return on the stock would be the old
estimate plus the sum of the products of the unexpected change in each factor
times the respective sensitivity coefficient:
revised estimate = 12%
Peer Evaluation Form for Team Assignment
Your name and ID _
Write the name of each of your group members in a separate column. For each person, indicate the extent to which you agree with the
statement on the left, using a scale of 1-4 (1=strongly disagre
12/1/2016
Mohammad Arman, PhD
Assistant Professor, NSU
Courtesy: Kaplan Inc.
Courtesy: Kaplan Inc.
1
12/1/2016
Call Option: Long has the right to purchase the
underlying asset at the exercise (strike) price;
short has the obligation to sell/deliver the
un
Mohammad Arman, PhD
Assistant Professor, NSU
Courtesy: Kaplan Inc.
If A loans money to B for a fixed rate of interest
and B loans the same amount to A for a floating
rate of interest, its an interest rate swap
If one of the returns streams is based on a