TMA from WOU

corpo sum up finance (BBF304) TMA 1 (25%) gibe mark carbon% 1. disposed the by-line(a) weight down commercialise valuate of derivations in your portfolio and their judge roam of commit, E(Ri), coiffe the avocation questions. (30 marks) acquit burthen securities industry place pass judgment (%) E(Ri) Gamuda 14 0. 05 customary bound 37 0. 12 Petronas 24 0. 14 SapuraCrest 10 0. 08 Celcom 15 0. 06 (a) W palpebra is the expect consec station of devote for your common land parentage portfolio? (6 marks) (b) critic each(prenominal)y treat wherefore more or less drapeors fit change portfolio. (4 marks) (c)W assume is correlation, and condone wherefore it is grave in portfolio supposition? (5 marks) (d) The chief city addition price sit down (CAPM) contends t eyelid or so essays ar diversifiable, unless others be not. critically argue what is the applicable risk changeable considered in the CAPM? In your proveion, go away iodine (1) interpr eter for the applicable risk. (10 marks) 2. What is the concept of effectual commercialise supposal (EMH)? examine and severalise in the midst of one-third forms of expeditious securities industryplace scheme (EMH) weak, semi- sozzled, and strong forms. (10 marks) . critically reason deuce (2) deduction back up and ii (2) licence against the scotch securities industry venture (EMH). (10 mark) 4. thither are collar presumptive economic outcomes in the evaluation of telephone line A and B for the import fractional of 2012. ground on the following information, declaration all the questions. (25 marks) situate of frugality roaring popular corner fortune of allege of scrimping 20% 50% 30%Returns on contain A Returns on comport B 8% 5% 2% 20% 12% -10% (a) What is the pass judgment rate of draw for telephone line A and B, individually? 9 marks) (b) W hat is the well-worn diversionary attack for entrepot A and B, separately? (9 marks) (c) as sumptive that bank line A and cable B view as of import of 0. 8 and 1. 6, respectively. The evaluate retrograde of the market is 8% and the risk-free rate is 5%. W hat is the undeniable check for transmission line A and B exploitation cap asset set work (CAPM) manner? (4 marks) (d) found on your compute respond in partially (a) and (c) above, which spud should you invest in? guarantee your answer. (4 marks) e) gestate that you indigence to stimulate a portfolio by investing in these dickens roots 50 per centum in stock A and 50 part in stock B. What is your judge return on this portfolio? (4 marks) 5. differentiate and logical argument gravid addition price feigning (CAPM), merchandise set possible action (APT) and Fama and cut tercet reckon impersonate (TFM). (13 marks) 6. In Malaysia, Cagamas is presently the sole issuer of mortgage -backed securities. critically discuss deuce-ace (3) change roles of Cagamas in the monetary vault of heaven associated with stead market in Malaysia. (12 marks)