Find Solved Questions for Different Malaysian Universities

QUESTION 2  Suppose there are an infinite number of assets with an expected return of 12% p.a. and a standard deviation of 40%. Further, assume investors from equally-weighted portfolios. (a) If the correlation between any two assets is zero, calculate the expected return and standard deviation of a randomly selected…

QUESTION 3  (a) Explain the differences in how modern and traditional theories of a portfolio management approach the issue of diversification. (b) As an investor you have a required rate of return of 14 percent for investments in risky stocks. You have analyzed three risky firms and must decide which…

QUESTION 4  Merry Karthik is a bank executive who has just inherited a large sum of money. Having spent several years in the bank’s investments department, he is well aware of the concept of duration - convexity and decides to apply it to his bond portfolio. In particular, Merry intends…

You are currently working as an analyst at Financial Consulting Bhd. Your boss has instructed you to form an equity fund portfolio which consists of TWO SERVICE COMPANIES. The portfolios have total fund size of RM10 million. Before you can start with your analysis, you have to collect the monthly…

Question 1 The next payment is due 6 months from now. Given the current economic environment in the US and globally, Alphabet Inc. fears that it will be adversely affected and wishes to hedge to reduce its risk related to interest rate changes. Based on this scenario, please answer the…

Question Industrial commodities in China mostly rose as the number of Covid-19 cases fell and the government began to loosen the restrictions that were choking the economy. The virus is now deemed under control in Beijing, while Shanghai’s outbreak appears to be heading that way as officials outlined their plan…

Question 3  Russia’s failure to pay a slice of interest on one of its bonds will trigger $2.5bn of insurance-like contracts used to protect against debt defaults, according to a panel of derivatives dealers and investors. The ruling by the Credit Derivatives Determinations Committee that a “failure to pay” event…

QUESTION 1 Limau Manis Sdn Bhd is a medium-sized company that manufactures a variety of pickles in the northern region of Malaysia. In order to complete the production, the pickles must go through Cutting Department and Finishing Department. Cutting Department is machine-oriented, whilst The finishing Department is labor intensive. There…

QUESTION 2 A. Identify the cost driver for each of the activity cost pools below: i. Machine cost ii. Purchase cost iii. Maintenance cost iv. Set-up cost v. Quality control cost vi. Assembling cost B. Bee Sweets Enterprise supplies pure honey throughout Desa Halban, Perlis. For the last five years,…