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
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
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
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
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
FACULTY OF BUSINESS AND INFORMATION SCINECE (FoBIS)
Unit Code &
Year of Study:
BF1302 Risk Management & Insurance
Credit Hour &
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 .
Shariah contracts relating to
TYPES OF SHARIAH CONTRACTS
1) Sale based contracts Murabahah , Tawaruq , Bay Bi
Thaman Ajil , Salam , Istisna , Bay al-Wafa
2) Lease based contracts - Ijarah
3) Partnership based contracts Mudarabah , Mu
FRAMEWORK FOR THE
Focuses primarily on regulating activities , on the
borand presumption of an investor investee or
investor- investment manager relationship between the
players and the participating public
What is a Derivative?
The term Derivative stands for a contract whose price is derived from or
is dependent upon an underlying asset.
The underlying asset could be a financial asset such as currency, stock
Context of money and capital market certificate or securities
Representing financial rights arising from underlying trade and
other commercial activities .
Under IFSB-7 certificates with each sakk representing a
ISLAMIC CAPITAL MARKET
MS Nur Aqilah
Lecturer Ms Nur Aqilah Zainordin
Classes 80% attendance; class
NO marking of attendance on behalf of
Absent provide Medical Chit
Securities are financial assets that are traded in the capital markets. Since the
fluctuations in securities prices can be very volatile it is very attractive for people
with surplus funds to buy and sell t
Those investment activities wherein a group of investors
invest their savings or money in a fund that has a diversified
portfolio in order to achieve set financial goals .
Pooling of funds collected from a group of investors (
Thailand is famous with food tourism. One of the famous food location in Thailand is Bangkoks
street food. Bangkoks street food has several of delicious food, such as Egg noodle soup with
chicken, tom yum soup, Pad Thai and so on. The foods also delivered
Investment Appraisal Methods
Basic Terminology: Independent versus
Mutually Exclusive Projects
The acceptance of an investment does not preclude the
acceptance of other investments.
Do not compete with the firms resou