Professional Documents
Culture Documents
JagaNNA,TE{ Un{E\TERSETY
Departrnent of Finance
MBA 3'd Batch 2nd Semester Final Examilratio n _201,4
Title: corporate Governance & Restructuring course code: Fin-S211
Time: 3 hours Marlrc. AA
[Ans*,eranyfour(o<l)questionsincludingiiiequest'ionno,.6(@.Different
sectiois oI eac-l y.ue1_t!.91 have to be answered in sequential orderl
1' A- Enumeratc iiubris i{ypothesis'aird WfnriiiiCtirie Hypottresis of takeover. ,,Bad bidder, fra
'u"i*"
target'- Doyou agree? /ustiffyour opinion.
B. What is Net Acquisirion Value? Explain the process of realizing synergistic gain.
c lt'hat are the four economic motives of Merger & Acquisitioniexplain rhosl in brief. 5
4.A Ho'* does the green movement create pressure on corporate governance?
Does company
really bother for this pressure?
B. "The main activities of PIRC is to provide information to the
shareholders on governance
issue"-Explain
C. "Managements accountability is a major concern
for corporate
' governance
o- in a co-
operative society"-Do you agree? Why or rvhy not?
5. A. "It is possible for a company to be the lowest-cost producer in its industry and
iimrrltaneously have an outpui that is the most valued by custonrer.s,'-
Discuss this
statement.
B. why it is important to understand the drivers of profitability as measur.ed by the return on
invested capital?
C. which is more important in explaining the success and failure of companics:
strategies or
i,r.i:'
b. Reai the case aetentivel-v and answer the
folloting questions. 15
Under the leadership of Dennis Kozlowski, r+,ho b
expanded from $3.1 billion to almost $40 billion. M
that took Tyco into a diverse
business press as a great mana
imposing tight financial control
ad';anced at a healii.y clip durin
r'vLU r!rr'drr'cu Lritr dLquisttlutls D-v i'aking urr 5rgrrrirc.irrr. uruL
currrmitmens, rvnicn oy zuul exceeded
S23 billion. As rvco expanded, some questioi.'-1:1',:-1Y1y-:',t1Ty.,1":tint:.:T,::bk::1TT
Lii,i.l'l,il,,fi.'fi:',';'^;#n in, *,' .:liq': 9"'l:",1'::I::i:t^::':f,;:1J::,:T.:::::il,:jlif;:1,3
:"1"Jil'1il1",;':t"".',,i,ii;;" ry:1,":l::li:l:'::fT{"TiiT1;':i";:f;[ detected n"+
fl:i"::1.".:iJTi
and the out ide accountants had
i:T:ll"ilTlJ'i,iil;".;;iliiv',.iJ',.a everv vear,
problems. =;'i=-+- som,etime' Wei6 fiirirlly show n to have soine validiry in 2002
These criticisms, *t'itii#fignored.for with tax evasion by federal
;;J;";ty the board and subsequently charged
when Kozlowski was
zlowst<i ireated Tyco is his peisonal treasury, -
sive Manhattatt apai-tii-rent and a vroCd-class art
'i ,)
Ir.
term success or
or Edward Breen's taken initiatives to the long
v. fl;Hf::T.:[J:ffi[t]#;."
TYco?
JAGANNATH UNIVERSITY
DePartment of Finance
MBA 2nd Semester (4gh Batch) Final Examination 2014
Time: 3 hours
-// litle: Corporate Governance and Restructuring
Full Marks: 50
Code: FIN 5211
(N B.: Ansvter ony FOt)R questions. Ecch questlcn ccrries eluol morks' Figure5 in the ilght honC ncrgin lndicate full morks
Ports of eoch question should be answered consecutively')
consideration of the othermotives (lmproved management and the R & D process) of merger &
acquisition.
governance? Does company really
s. a) How does the green movement create pressure on corporate
bcther for this pressure?
-T:.:-a:r a.iiv;iiesof PlRCistopr,i,ideinformationtotheshareholdersongovernanceissue"-
Ex::--.
c.
-Ll=-:gen:e.-,3 accountab:,:iY is a major concei'n for corporate governance in a co-operative
soct€ty'- Do you agree? Why or why not?
.Japan and Bangladesh shows different corporate governance structures due to their differences in 15
5.
and external monitoring and the
market structure, institutional and regulatory enviionment, internal
interlocks minimize agency conflicts
state of development. ln Japan, stable shareholdings and share
mitigates incentive and
among different parties. Corporate grouping and main bank system
problems in the financial markets. shareholding and supply of board members by group
infor.rnation
banks (Main Bank) facilitate bank's monitoring of member firms,
thereby, reducing incentiv€ problems
firms; other incentive problems
of the participants. As the bank holds both debt and equity of the
Main bank also monitors ex-post
bebileen shareholder and debt holders are likely to be mitigated.
firms when they cannot meet
cerformance and intervenes in the management of firms to help the
ccnrractual oblrgatio;ts. Barks a,:t as rescues of fi;iancial distressec
firnrs lr Bangladesh, bank-firm
Bangladeshi financial
rela:lonship is not as intimate as Japan. Due ro the regulatory arrartBerileii[s,
allowed to participate in stock investment' Banks and financial institutions in
instituiions are not
Bangladesh do not the loan or investment and also do
not provide any support to ihe concertled firms'
However,theJapanese
wiiich is a common characteristicfeaiures of Japanese corporategovernance.
in the corporate governance-structure of
exoerience likely to play an important role
is more
|L^ f"t f h?t lh'tr^'n '^!rnt'riPq hclnng tn the A<ian f Pgion "
]. .' ' :" ' :: :^
logical? Justify your ans\Jver'
Dc vou ihink the above findings and ou:comes are
I
Departnnent of Finance
Jagannath University
n'J
S: r: est e r' { 51!,t -., t,j } Fi i: : i S.,.; rr-, i n ;iio +- 20 1 _c
i,.'i BA. 2 :
l [lnstruction: Answerany 4 (four) questions; figures in the right margin indicate full
sequc,'ice ci ansil.er <lf ali par.ts
marks; maintain the
of ea:lr qi.rssticn ircu anr-rve,,j . : , . .. \
I
r
I
1- a) "Gobd corporate governanieis good managembnt,- txpii'in wi-ti eiampre.
.b) chairman, Executives and Advisors can work as watch dog for
; ensuring better
corporate governa nce in any corporation_ discuss.
c) corporate governance is attaining increasing importance in Bangladesh.
Do you
agree? Provide your justification to support your answer.
2. a) Explain the five important rotes of the main board of directors in maintaining
corporate govemance in an organization.
b) What is green movement? How it can create pressure in ensuring corporate
governa nce?
c) Corporate sector pressure groups can also create pressure in developing
corporate
governance- Explain.
Page 1 of 2
:
s. a) Whatishostiletakeover?Distinguishbetweenmergerandhostiletakeover.
a firm can take'
different types of preventive anti-takeover measures that
5
b) Describe
5
c)
Group .an prr.hrr" Nameless Group for Tk.2.1hlll'lon.It-can iell the assets for Tk'1.6
Iagannath UniversitY
Department of Finance
2013: MBA 3'd Batch 2d
Semester
Final Examination
Course:FlN-5212(FinanciatEngineeringandDerivatives)
3'00 Hours
Total Marks: 60' Time:
Pleasereadthefollowinglnstructionscarefulty:
3! ecch suestion sequentiolly
a) {ou hove'o oiln" 'tt pat',rs
tlie lollowing 4lelions
b) ary n tJour! from
.i;:-:'-'.'.--
(3+3+5+4)
over-the-counter market?
c)whatisthediffere(kebetweentheover-the.countermarketandtheexchange-tradedmarket?What
uia ,"a q,ot., of a market maker in the
are the do you think is meant
by this?
"ri.i are rero-sum
What
d) "options and futures "*'" (3+6+6)
Quesdon$2
for an investment
Exprain
,"rr, of the following cost of carry moder
a)lncaseofaninvestmentasset,thefuturepriceisgreaterthanthespotpricebyanamountreflecting
the statemen,,n
the cost of carry.
asset'
Fo = soetT
b)er.yearlongforwardcontractonanon-dividendpayingstockisenteredintowhenthestockpriceis
with continuous compounding'
is 6% per annum
5250 and the risk-free
of the forward contract?
price and the initial value
(i) What are the fonrard
(ii)Sixmonth]ater,thepriceofthe-stockis526Tandtherisk.freeinterestrateisstilt6%.Whatare
contract?
t"' the value of the fonalard
the forward
'i" income. lt costs 52 per unit
on an investment asset.that provides no
future contract is
year' Assume the spot price $450
_p)/consider a l_year payment O"t^' rntd" at the end of the
./ to store the asse! with the the price of the future contract'
risk-free raleisT%our rnn"l for all maturitio' calculate
per unit and
(3+3+4.5+4'5)
stock is not
euastion*3 ^---i--^ .r,
- American call nnrio. on a non-dividend-paying
option on
the early exercise of an
a) Explain why
oPtimal'
b)teearlyexerciseofan'Americanp.utisatrade.offbetweenthetimevalueofmoneyandthe
insurancevalueofaput.'Explainthestatement'
c)A4.monthEuropeancalloptiononaoivide;rd-payingstockiscurrentlysellingforS5.Thestockprice
there for an arbitrageur?
isS64,thestrikepriceis$60,andaoiviciendof$0.80isexpec[edinlrnonth.Therisk.fr.eeinterest
what opportunities are
ior alr maturities.
rate is 6% per annum European put option
on a non-dividend-paying
rower bound for the price of a 1-month and the risk-free interest
rate
d) wrrat is the p'i"i 530' the strike price is s34'
when the ,ro.',
stock when the stock
is 6% Per annum?
-
, Jagannath University
Finance
DePartment of
a
2013: MBA 3'd
Batch 2nd Semester
Final Examination
neerin g and De rivatives)
N-5212 tf in'ntiti
e ngi
Course: Fi
Time: 3'00 Hours
Total Marks: 50'
(3+6+6)
QuestionF4 bci:9it
credit risk when it
rt enters inio
"'
t*' "i="1T.::11i"ll1lL
';r;;u*rat
'a:g.;,-..1.';,=-t
trx$<i*i i"'r :'- rnk is-s-ubiect
i[1'<i;:-.;,';'--'-- " ' t+i)-)' 'itk a.0)!9q-l+.e.:i]::T::::*Tl1lll,
U] o'J;tcrr-c,* e'lrrl)Y--: '. .. ,:..-.,:.....i:.".:.,.
a) qu'J"" '"-
i'n1.=",
?",n0=n, A, a manufacturei
British manufacturer' ;gd rate of interest.
They have been
Sterling
7.0%
Comoanv A Lt'vt
11.0%
6.7%
a L0.5%
"-.::,..
gn a swap *"'r n et
swa p that w, il;'ili
.:"J"1J;ll;'il:;;;r ilJ:'ffiil:'""
i""iTllli1'il *" each orthe
" Tl'J:: the :,
Design
Desi
produce a gain of
proar..
-a-ba pet
bas points
15 basis "".:;"
L-. . romA
. Under the terms
of tt
or ",
swaP, 6'
(c
,/ o-asloomillioninte,estrateswaphasarema.'i,r..n"averageofthebid.offer
nontn lffi'''''-'i""'"0
:::H v^-"-
LrBoR,r'.-tn"",".'*
month Lro.,n rJ T:1T:I'f
ror ti:":t::::1,[- -
in
.eL per annum
rr 6-month uBoR
' 'il
in
^6'
'''''t"'"ntry:.1:: illl',l;:
*^r'-
annum-
currentlv:.1::
illl'rl;:
what
s is
2 monthS ago'
is the
l;" il;;-changed "'i.ll It
:;";.;;;-changed 4.6% rare was
j:|'il';1.,1 fi : i:[:I;:;.,iv n"o:
per
ng nyed?
^-.,i^o
p.vi
the party paving
nxed?
: S:::: I
,"
:'"""..}.ffi,;",0""*,"' to'T:II'::::lj::U';;.;;"
conti nuo us .o,,n
p o, n o
",i,.
the partY paying
tloa
the swap
cunent value of
(3+6+5)
purt?
a protective
is equivalent to
-"
euestlonfiS ^,,]? wha
1.a) \\trat does duration tell you about the sensitivity of a bond portfolio to interest rates? What
,ry*#
the Iimitations of duration measure?
b) "Option and future are zero-sum gaqlp"- What do you think is meant by this statement? 05
Explain carefully the difference between'hedging speculation and arbitrage.
c) The current price of a stock is S 94, and 3-month European call options with a strike price
of $ 06
95 currently sell for S 4.70. An investor who feels thatthe price of the stock will increase is
trying to decide betrveen buying 100 shares and buying2000 call options (20 contracts). Both
strategies involve an investment of $ 9400. What advice would you-give? i{ow does the stock
price have to rise for the option stratery to be more profitable?
2-a) "The early exercise of an American put is a trade-offbetween the time value of money and the
2%
insurarce value of a put." - Explain this statemenl
b) Define interest rate. What are its components? How can you relate it with LIBOR? 2%
c) Suppose you are offered a 10 year, 15%couponbondof Tk. 100 at aprice of Tk. gSthatwill
05
mature at Tk 105. What rate of interest would you earn on your investment on maturity if
interest is compounded semi-annually?
-4 Company X and Y have been offered the fotlowing rates per annum on a Tk. 20 million S-year
lcan:
05
3.a) Explain why is an American call option on a dividend paying stock always worth as much as 04
iis intrinsic value? Is the same true of a European call option? Explain your answer.
b) Suppose that put options on a stock with strike prices of $ 30 and $ 35 cost $ 4 and $ 7 05
respectively. How can the options be used to create a bull spread and bear spread? Construct a
ta:!e that shows the profit and payofffor both spreads.
c) A 4-month European call option on a dividend paying stock is cui-rently selling for $ 5. The 05
stock price is S 64, strike price is $ 60 and a dividend of $0.80 is expected in I month. The
risk-free interest rate is lZ%o per annum for all maturities. What opportunities are there for an
abitrageur?
Page 01 of02
.-:\-f;.-.
a.'
An investor enters into a short forward contract to sell MYR 100,000 for USp at qq eI9!q499--q!--
rate of MRy 25.75 per USD. How inuch does t-h-einvistor gain or toii-if tfrJJxChange rate at
I
c) A90-dayslongforwardcon{ac!.on-ali.1-{iia94P1'y.1ng.s!:.:kj|-9nt9{9qi119.1vtt11.!Ie?bcI.T.
price is Tk. 250 and the risk-free is 6.5% pei rinnum with continutius compbunding.
: :.;r r" i.r}'hatisthEfo:*a,-.3-p?:ceg,:C-tJre-initizrivaiueof'flieforw6rd';rrforiftacflPr
r' : ' ' t'i:::''l
-
ii. Sixty{ays later, the price of the stock is Tk. 265 and the risk-free interest rate is 6Yo,
what is the forward price and the value of the forward contract?
6.a) How do the factors affect the value of options? Differentiate options from warrants. 04
b) Explain carefully why Black's approach to evaluating an American call option on a dividend - 04
paylng stock may give an appropriate answer even when only one dividend is anticipated. Does
th. ,*t given by Black's approach undencate or overstate the true option value? Explain
"r
arLSwSr.
)'our
c) bomia.r an Arnerica.l call option on a stock The current stock price is USD 50, time to 07
rarriqy is I year, the risk-free rare of interest is 10.5 per annum, the exercise price is USD 55,
aal d13:stck price volatiliq is 159/0. Cash dividends of USD 1.50 are expected. Shorv that it
c-n nerrr be optimal tc exercise the option on the dividend date. How would you calculate the
price of the opion?
Page 02 of02
Depa rtnaent of F'imamae
II F^,,*^.
Jagannath Universif_v
MBA Semester Final Exami nation 20 15
uuiiisii: D:----:^t r
r-m.iltciai tnslneennq and Derivatives Course Code: FIN - 5212..
Time'3 h,-.urs
I Marks:60
I [Arisuer any 4 (Four) questions; figures in the right margin indicare fi:ll rne:l:s; nlintak th:
r=qirencibf ariiwer of arlparts of each questioni.] -
1'a) "Option and future a.re zero-sum games"- What do you think is meant Marks
by this statement? 04
Explain u'hy a fonvard contract can be ued for either speculation or hedging.
b) rence between forw'ard and futurb contact. Suppose that you
enter 05
t to sell July silver for $10.20 per ounce. The siie ofthe contract
is
margin is $4,000, and the maintenance margin is $3,000,What
change in ilre furures price rvill lead to a margin call? What happeru
if y-ou do noimeet the
marg:n call?
c) i' Suppose that you *'rite a put contract with a strike price of $40 and an expiration date
in 3 06
months- The current stock price is $41 and the contract is on 100 shares.
What have you
committed yourself to? Horv much could you gain or lose?
price ofa certain stock. The current stock price
of $30 costs $2.90. you haye $5,900 to invest.
, one in the stock and the other in an option on
ses from each?
2.a) Erplain why'the futures price might reasonably be thought to equal the expected futures spot 05
pn€.
b) Explain hou' margins protect investors against the possibility of default.
03
A.Stock^is
)) _expected
to pay a dividend of $1 per share in 2 months and in 5 months. The stock
E:-:e L' S-sC, a::l tre risk-i'':e raie of interest is 8% per annum with continuous compounding
07
::: :l =a:-::-:es. -i.:- l:i-es:ci har -iust taken a short position in a 6_month forwlrd contract oi
-: - _----._.-.I_
-r-
-:
L irLa; a.= the rbru'ard price and the initial value of the forward contract?
ii- Th;ee monrhs later, the price of the stock is $4g and the risk-free rate of
interest is still 8% per annum. what are the forward price and the value of the
forw'ard contact?
3.a) Erplain why an American option is always worth at least as much as a European option on 05
the sarne asset with the same strike price and exercise date.
/ -b)
coinpanies X and Y h:r-e been offered the follorving rates per annum on a g5 miliion
lO-year 04
investnent:
Page 0l of02
-
O, 23
, -1- ,-Y\
- | ,i) lL J tl
(\,:
7r^^ --6,'l
lf ':,? )'L -L
:
. Jagannath University
'
MBA 2N (3tr Bat;h) Semester Examination-:2013
srrtic.i-ri;ai,e';l ':'=r;::: "'
Coursc Codc # Fti\i-5214 Course Tite # portfolio Management
Maft 60 Time # 3 hrs,
t:
l: Possession of mobi!e
TOSSCSSOn OI phooe !:l
llloDllc pncne t!:
i:: rl3 3x3mlnallon
-^,i^-
iia.iu.r L-ll iS
naii
rrsrr ;. striC-rii
rr .H'^.t,,
Ju ---L'L:.-
rvuy pior-riDii€d.
plutilulLgu.
r
2. .Answa any,l (four) of the following questions; figures in the right margin indicate full marks;
i. ir,fainiain oc sequence oianswer oi ali pars of each question you ansv/6r.
Mark
- lr) ldentior'.hqcoilponen's of an investor's of i'brdril on investment. 04
b)
) You bought 200 shares ofa stock for $34 per share and a year later you sold it for$37 pu
During the year, you received a cash dividend of $ l -20 per share,
share.
i. Srhat will be the total dollar rcturn? . ,,.\ r 02
ii. What will be the nominal rate of return? ll, \ 02
iii.Assuming that the rate of inflation during the year was 3 percent, compute the real
rates of return on this investment. 03
c) The required rate of return on corlmon stocks is 12 percent, the expected rat-of inflationEf ol
4 percent and the real risk free interest rate of the economy is 2.5 percent. What interest rate
I
would you expect 9n€94.T-bills? what is the risk premium )r common stocks? I
2-z) A portfolio manager has three portfolios: 06
Portfotio X with I 57o sarnple reu:rn, 0.85 bet4 nonsystemati c risk2%o and 5Yo standard deviation;
Portfolio Y wiEr L27o sample return, 1.00 bet4 nonsystematic risk ZYo utd 5.5% standard deviation and
Portblio Z wili l6Yo Sample return, 1.05 bct4 nonqstematic risk 2%o urd 7 .5Yo standard deviation. The market return is
l4% aod risk-&ec rcrurn is 6.57o.
C:lq:Iatc thc followings and make comment about 0rc performance of portfolios:
L Ja:scn Index ii. TreFor Index iii..Sharpc Index
b Dcfoc effici:nt ma/<et hlpothcsis. Explain dtc thrcc iorrns of efficicnt market hypothesis. 03
lrrrErEnEac caglrat marKet tmc (Ulvll-, qom s€cunty m3rtet ltne (SML). OJ
o ii rv s.qlntv Eka une [5]1L) ts ca.lled thc bass of capital assct pricing model (CAPM)? 03
1rl ot covanarcc lo tlre clrmrnaloo ot the nsk of a diveNitied lio 03
b) Ccidcr tbc foUo*'ine inforrnari on: 06
Stock A B
Std. dcv. (o,) t2% l0o/o
Expected rcturn E(n) 15% l2o/"
Weieht (w,) .40 60
Cahrlate the expected rate of retum and the standard deviations of the portfolios against the following conelation
cocffcirnts:
\
u= E(l -tl.005Ad
I
Ela;ed on he abcv: utiliry formul4 n'hicb investment would you select if'
i. you wcre risk averse wirh A: 4'
I
- ii. if vou were risk neub'al-
-: ' ::, .
c) t" qf caDital asset pricing model. :--- ,.::-j r 03
"ssrmoto"s
Consiier-i portfolio that offers ai-r expected rate of return of t2% and a.standard
U5
5.r)
deviation of l8%. T-bitls offer a risk-free 7o/o rale of return. What is the maximum level of
risk aversion for which the risky porttolio is still preferred to bills?
10
b)
Use the following data in answering the questions a & b.
r=s of rtugr tE(.Jl aod sr2nd.ad eriatims (or) of the fol.lowing porfolios assuming that correlation
^+5;f.-!r
&bao(rer-0) At$Phtt.a h egr.Ptr.
Portfolio-t: tlaving ltr[: l-5
Porfolio-2: Having Wr : 0.50
Pordolio-3: Having Wa : 0.75
Pordolio-(: Having W1 : - 0.25
Portfolio-5: Having W1 :0.95
Pordoliol: Havins W^ : - 1.25
b) 07
Pege2 ofl
l^fls
MBe(+nBa,"i;:r1ry_XT,'.1-'i',1 j_l_,,",ion.2u7{
COurse Cctle ,r lltrr N!.J!t{<" r , t:t*'' Fiuance
^
Mark 60 ao,,.r" r,r,. u Portfolio
. Managernent
Tiine # 3 hrs
inciicarefittiifi
l.a) Descritre the relationship
Murks
values.
between risk aversion and
b)
c)
Discuss capitar A,ocation
*""'!'"l,1Ti[:T';'il;il;rr;#eaut* --
utility
A..*; Rirky ,na nirt-pr.e pc
rtforiosr , .-",1r uu
' i, fr
J:99^0 0
'
Risk-frce , on"y
-I'v' market fund
Ntr' lunq 'rrql $90'oo
Equities
Bonds (long-term $ 1B'4ao '' 1r ' -' : L
)
Total risk assets $96,600 ''' ;
I3.,,.,*J311
(vj) Using Leverage_o 53,lo" ll ""j-#',n s.l,r,
"with Capital Xri*.:,trin".
3.a)
u.lation and garnbling.
b)
tion iheorem. 0{
c)
end-of-year cash flow derivec'r 0{
frorn trre portfolio wi, be either.
I probabilities of .5. The 07
atrernariul,.i.t_n in;.;#; l;,i
i' IrT#;:f "
" fi'\ n1-,um or E%o, how much rrilr you be rvilling to pay for the
t*o#;:,'i]jl,'J,fl::.3::,"T:L'^0.,.:H"^o_?_l
what witt p. the expe*ed rate tll,e an191nt rqund in Req.
Yli:1r,, be orr"trr;-r;;;;::.ili,9"r,r, vou
*t. &r",r, ]Yi
1?l I
i9uno
Req i)
;;i'r :ie u "rii*;;,.;;i;;"
""';:l:i;::-
bc tv ill;qc l;;i,::
to p,,;,^ 'i't pr.,,iuri .f ir',i, \\'irar is rhe price thar you rrili
ri,iri
'" comp,u'5r-liJ;"x1'j':;-lrl".ji.?:^1)
.al,ld
iii),.rrlrar do you conclude abour
lJ,lffi:-l,li:-;s'i"i'i}"o,.*#',,,'ll,,"ii"lJ.ffi :':H:.'.,:
;'J?:f ffthe po,tfolio rvillsell./
which
Plor'Ill ..irrr
Elucidate The Minirnutlt Variance Portfolio'
S tate Correlati on Effects.
ABC 3.69
I'rgc 02 of 02
Jagannath UniversitY
rv,"da
R.{n lnrl
!r^u Sem.Jter Fina! Exam.-20i5
iuulttt' Finance -'
Course Title # Porttolto Management
Cotrse Code # FDi-5214 iFull
ur\ Tiure:
4:grt' 3 hrs'
5 I'rvr
Marks
Interst from nominal rate of interst'
03
l.a) s/hat are interest rates? Differentiate real rate of year' The inflation 03
a bond offerec a nominal HPR of 80% per
b) During the period
"il*.*lin"tion, the real 1 x on tt bond over the year? B) compare this real r
rate *,as 70c/o peryear. A) \!hat was " ' ';,'1r.,'i
-"r'" r = R- investing
HPR to the approximation
t"'f:#,?ff :- ^ ^^-.,--+i^-at I offerir
c) 'noi"
bw
n
^n vear hank CD
:#1.1#,T,tlf.:3.:tT'{1f;# I
rate of ^
04
6c-: Oozi'
=TYoald-elffi , h t7 .^o/ :- -
le LLt L --r
investol t ^, ' -,
And the p t o p"rti o rs LnYGtra'
,r, ProPoruoils
".
:
lA 1n I T 1,
retum and StanCard deviation
!l-2'::\::
fo **pr.," portfolio if y .'7 5 , 1.0 and 0.
ii"a 05
"rtl*p"oe'J
ce Portfolio?
and risk with p
: '2'
\Yhat wili be minimum -variance retum n1
Page 01 of02
- t
4.a)
o_":r.d from the portforio wilr be either
ir"ffi'ofl:+f%f**i::;I: li1::i-I:,T.:*n.ly
rab,ooo with equar p,ou.uliu*, or;r0.il;;.ffi1,:';#:il::i:#ilH,:lT.-J[ rk
f3.rr?13: _'E--f--:-:?
*:j=:1.T
* |:f:.:lf
.,' k. p
vou give about the rerationship betweerr
X"g:j.!lll:lt::tS::,1:^ffi:=;ffi
1..'3fu oo i omo rio t ffirffi ;,Ti: f#
p?'i ui
b) "na " " "
Consider tlie fol ata. 06
Investrnent I 3 4
Expected return E(ri) in % l5 17 20 22
Std. Dev. in oZ 8 10 l3 t5
B ased on. the ab ove uti li ry fo rm ut *n,.n,
4
i. you were nsk averse with A= 4, "r1ri'"I?*;
3,','fi , ;
ii. if you were risk neutral.
c) State the :ssumptions of Fama decomposition
of portfolio retum.
03
5'a) Erplain the significance of covariance and correlation
coefficient in the elimination of the
diversified portfolio. risk of a 03
b) Coosider A and B having the followins i formatioh.
06
A B
E(r) t2l5
o (r) .08 06
Calculate expected rates of return
[E(rJ] stlaar! deviations (oo)
1t of the following portfolios
thal correlation coefficieni rero (hs: 0). Also olot them i
crcfFcient ics .o-
Portfolio I 2 3 4 5 6
w^ IJ 0.50 0.75 0.2s -.25 1.00
c)\ a-
git-ea tre foUorrins infor maoru
06
A B C D E
125 1.50 0.9s 0.75 1.11
Estimated retum ("/.) 25 20 l8 12 15
welgDrs (wJ .10 20 .25 .30 l5
Assume that m-k@ of return is 7 %.
Reqoirements:
i' In terms of the securiry market ling identifo the above mentioned
urder.oriced. What does the strictly pri,;ed stocks as overpriced and
stoci inai""teZ
ii' Calculate the expected ra:e of retum and risk of the portfolio
abor=. constituted ofthe stocks listed
6.e)
ut the Assumptions of CApM.
b) :1. Stock ABC has expected retum 05
of13% and 05
ck is a better buy?
lot the SML and each stock's risk --retum point
on
c) Is
_
th: CAPM practical?
one graph. Show graphically.
Fage 02 of02
E
Jaganmath universEty
Department of Finance
MBA 2nd Semester (3'd aatch) Final Examination 2014
Title: R.esearch Methodology Code: FIN- 52i5 -.,,
Time: 3 hours ,,
F llII
;IVji.AI__-
lt.S; UU
-
(N.8.: Answ'er an.v- IiOUR questions. Each quesiion carries equal marks. Figures in the right
1gn $ggtd bg 4nswered consecutivr
any question about the tjefinition ot 5.0
!a--, cut a signiicance test to determine whether this result indicates that the average
.----3e; of toothpicks in boxes of type A exceeds the average number in boxes of type B by
nc'e 5- Me;rtion the assumptions and draw the conclusion.
5. "han
a) '.',':zt is sampling? Why is it important in research? 5.0
rom probability sampling. 5.0
rom a hospitaladmitting 20,000 patients during a 5.0
derrt that our estirnate cf proportion of patients
n estimate of the proportion of paiienis having
ring hospital
I to be o.:s.
6 a) Write dor,vn about proposal development. 5.0
b) Expound the coniponents of a research proposal. 5.0
c) ::c,,v you evaluate a research proposal. 5.0
.XA.G.AT$NATI{ [JNTVERSITY
Department of Finance
Serirester Final Examination-20l 4
VrA'rrt
,/ Subject: Finanee
Course Corle: FIN 5215 Course Title: Research Methodotogy
Full Marks: 60
- Ti,nne: 3I{ours
fnstructions: [Ansrver any 4 (Four) quesiions; figures irr ^u\e right
rir! ii;qil-.^-=..1---::'::- if ^r! -^-'+1 af o.lh n,restion.sl
l. A- uResearch -
.: - -'.--"';*--.\.- Ularks
is a diligent search, stiuili'iiqfiiif iiiesiiflittiot ii'i*perimiggion
aimed al the dbcovery of newfacls andfin(ings"- Discuss.-
b. State the criteria ofa good research.
5
c- "Researcherc in BaryIadesh lace greot dilJiculties and challenges in doing their 5
researcher-operationl! - do you agee? Discuss your arguments.
2. z- Explain with an example the quality and cost based system of evaluation of research
7.5
proposals. (Iechnical: 90; Financial: l0)
b- Write in briefa research proposalon the tontribution ofthe RMG sector in the economy
7.5
of Bangladesh."
3. a. State the steps involved in developing the survey instruments.
5
b. Data on sales (in lakh Tk) and nrofir /in rhnrrcand
rofit (in Tk) nf
thousand T1r\ of ao comDanv are siven het
^^. 10
Sales l0 12 t4 t6 20
Profit l5 20 20 25 30
Requirements:
i. Find the equation of regression of profit on sales
ii. Estimate tire relationsliip between-sales and profrt in relative term
iii- Assess the explanatory power of the independent variable
iv. Determinate the standard error of estimate
v- Estimate the profit w.'ren the volume of sales is Tk. g0 lakh
Interprer the results-
5. e. r1'.,1
Define correla
serial
'; ''-5 : "
is multiva
n any '"
':'
-.prdsence
ecompan} en;A,B,C,ar
f ;{ summer, wi . The figure (i
'.-,,,ltl',
Season Salesmen Total
A i.tsCD
Summer 36 . ,26 21 35 t2g
Winter 28 29 31 32 120
Monsoon 26 28 29 29 trz
Total 90 93 81 96 360
Regrp<sion Anallsls
R2 0.648
Adjusted R': 0.616 tt 25
R 0.805 k2
Std. Enor 222.068 Dep. Var. Auction Price
ANO\/A
table
Total 3,080.400.0000 24
ion outout
variables coeficients std. eruor t (df:2? o-value
8.62E-
I;tert-ept _.1,0E0.0530 34i.3819 8.951 09
Bidders -54.18E5 12.2815 -4.412 .0002
Age t6.2891 3:1839 4.305 .0003
l. 3- \t'hat are the basic objectives of Business Research? "A good research is 4
empirical"- ExPlatn. 4
b. eriifly discuss the criteria of a good research report'analysis on stock rnarket in 7
s \\rrite u ..r.*.t proposal on investors' behavior
Bangladesh.
in hours 82
100
1'ou desire to take a risk of 5
percent?
umptions in ANOVA?
The accompan)'ing table gives the weight losses in kg. after a 4-week period on a
random saqple of persons on three different diet_s::Tg-s.-1.3t 5% level to see if there
=-
is a siguificant difference in the mean weight losses associated with the various
Crlcts.
1 liet al--uiefiDier--f
,t
1
7 g
.:
8 l0
11
Regression
Variab les Entered/ Removed(b)
Model \rariables Entered Variables Removed Method
I CGPA Enter
GR: Gender (0: Girls; 1: Bcys)
Dependent Va-'iabie: JP- Job performaace rating
Model Summary
0.5625 0.5324
ANOVA F sig.
365.34s 0.001
Coefficients (a)
t i f T-o+o-rla-Jizp.l I
cl tonrTo.rf i.rc11 --T---_l
I Model I coerncients I
(loefficienis
i e I std. iirror I Beta
; (Constant) | 3.56 L