Find Solved Questions for Different Malaysian Universities

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 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 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 1 Syarikat Layang uses the First-in, First-out costing method for its perpetual inventory system. It had inventory on 1 July 2022 consisting of 400 articles bought at RM4 each. Its purchase during the month of July consisted of 800 at RM4.20 each purchased on 8 July, and 2,000 at…

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 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…

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 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 1  The table below depicts the expected return for CCC Berhad and XXX Berhad for April and May: a) Calculate the betas for both stocks. b) Discuss the problems encounters when testing the CAPM empirically. c) In light of the problems in CAPM, the APT model was proposed as…

In April 1992, EuroDisney first opened in Paris, France. It later changed its name to Disneyland Paris. They expected to achieve the same tremendous success that they had achieved in Tokyo Disneyland. However, EuroDisney in Paris failed in its first few years. Financial losses were so heavy that the president…