Determination of Interest Rates
Loanable Funds Theory
Household Demand for Loanable Funds
Business Demand for Loanable Funds
Government Demand for Loanable Funds
Foreign Demand for Loanable Funds
Aggregate Demand for Loanable Funds
Bank of Singapore Ltd., which recently bought the wealthmanagement units of Ba
Portfolio Management: Tutorial 3
Suppose ABC Mutual Fund had no liabilities and owned only four stocks as
The fund began by selling $50,000 of stock at $8.00 per share. What is its NAV?
Suppose you are considering investing $1,000 in a load
Portfolio Management: Tutorial 1
1. Assume that you invest $1250 at the end of each of the next 15 years in a mutual fund. You
currently have $10,000 in the mutual fund. The annual rate of interest that you expect to earn in
this account is 4.35%. The amo
THE CASE FOR
resource consulting group
301 East Pine Street, Suite 300
Orlando, FL 32801-2727
The Case for Passive Portfolio Management
TABLE OF CONTENTS
Tutorial share swapping on M&A
a. In stock-for-stock exchange, there is no initial dilution if the
acquiring company offers to pay the same price-earnings
multiple for the
acquired shares as presently exists for its own shares.
In this problem,
1. The constant-growth dividend discount model can be used both for the valuation of companies
and for the estimation of the long term total return of a stock.
Assume: $20 price of stock today
8% - expected growth rate of dividends
$0.60 annual dividend o
Tutorial: Stock Valuation
1. The constant-growth dividend discount model can be used both for the valuation of companies and
for the estimation of the long term total return of a stock.
$20 price of stock today
8% - expected growth rate of dividen
Tutorial: NPV of stock valuation
Consider the flowing premerger information about a bidding firm (firm B) and a target firm (firm
T). Assume that both firms have no debt outstanding.
Price per share
FACULTY OF BUSINESS AND INFORMATION SCINECE (FoBIS)
Unit Code &
Year of Study:
BF1302 Risk Management & Insurance
Credit Hour &
Portfolio Management: Tutorial Session 5 Chapter 7
The following are monthly percentage price changes for four market indexes.
Compute the following.
a. Average monthly rate of return for each index
b. Standard deviation for each index
c. Covariance betwe
Portfolio Management: Tutorial Session 9 Chapter 18
Assume that you purchased an 8 percent, 20-year, $1,000 par, semiannual payment
bond priced at $1,012.50 when it has 12 years remaining Compute:
a. Its promised yield to maturity
b. Its yield to call
1. Suppose that the three-month interest rates in Norway and the US are, respectively, 8% and 4%.
Suppose that the spot price of the Norwegian Kroner is $0.155.
(a) Calculate the forward price for delivery in three months.
(b) If the actual forward price
BFI303 Treasury Management
Jan16 Group Assignment
Teck Machines continues its operational push in South America and Asia. Its initial foray in these regions
is in Brazil and India. Terry Lim, Tecks CEO, is pleased with progress to date. With expertise in
Online banking is one of the services that the financial institution can offer us. More people
are relying on Internet-only banking as their only way of doing business. Before agreeing to
online account access or before starting an account with
Assume that you invest $1250 at the end of each of the next 15 years in a
mutual fund. You currently have $10,000 in the mutual fund. The annual
rate of interest that you expect to earn in this account is 4.35%. The
amount in the account at t
Portfolio Management: Tutorial Session 8 Chapter 16
As the chief investment officer for a money management firm specializing in
taxable individual investors, you are trying to establish a strategic asset allocation for
two different clients. You have e
Portfolio Management: Tutorial Session 7 Chapter 11
1. You have been reading about the Madison Computer Company (MCC), which
currently retains 90 percent of its earnings ($5 a share this year). It earns an ROE of
almost 30 percent.
a. Assuming a required
Portfolio Management: Tutorial Session 6 Chapter 9
Q1. Jeffrey Bruner, CFA, uses the capital asset pricing model (CAPM) to help identify mispriced
securities. A consultant suggests Bruner use the arbitrage pricing theory (APT) instead. In comparing
Portfolio Management: Tutorial Session 4 Chapter 6 Tutorial
1. Briefly explain the concept of the efficient market hypothesis (EMH) and each of its three forms
weak, semistrong, and strongand briefly discuss the degree to which existing empirical
Portfolio Management: Tutorial 2
Qn 1 Why is policy statement important?
A policy statement is important for both the investor and the investment advisor. A policy statement
assists the investor in establishing realistic investment goals, as well as provi
BB309 Strategic Management
January April 2017
Organizational Culture Creates Strategic Competitiveness (Zappos.com)
Opening with a bald and blue day where employees, even the boss, can either shave their
head or dye it blue is j
LECTURE 6 CONTINUE
Classification of funds .
1) Open ended and close ended funds .
OPEN ENDED unit trust an investor purchases units in
an open ended fund directly from the unit trust
company , or through authorised agents .
Tutorial 7 - Cash Flow Analysis
6. Contrast the purpose of the income statement with that of cash flow from operations.
- The function of the income statement is to measure the profitability of the enterprise for a given period.
This is done by matching e
Analyzing Financing Activities
44. Explain why analysis must be alert to the accounting for future loss reserves.
Reserves for future losses represent a category of accounts that require particular scrutiny. While
conservatism in accounting call
Analyzing Operating Activities
2. Define income. Distinguish income from cash flow.
The percentage- of-completion method is preferred when estimates of costs to complete along with
estimates of progress toward completion of the contract can be m
Overview of Financial Statement Analysis
26. Ratio analysis is an important tool in financial analysis. Identify at least for ratios using:
a. Balance sheet data exclusively
Current ratio; Acid-test (quick) ratio; Cash ratio; Total debt ratio; T
Problem 3-3 (30 minutes)
On January 1, Borman Company, a lessee, entered into three noncancellable leases for new
equip- ment identified as: Lease J, Lease K, and Lease L. None of the three leases transfers
ownership of the equipment to Borman at the end
Chapter 08 - Return On Invested Capital and Profitability Analysis
9. What is the purpose of measuring asset turnover for different asset categories?
The sales to total assets (asset turnover) component of the return on invested capital measure