Description
Please find attached 5 short answer questions
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Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted only in WORD format via allocated folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the cover
page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students
or other resources without proper referencing will result in ZERO marks. No
exceptions.
• All answered must be typed using Times New Roman (size 12, double-spaced)
font. No pictures containing text will be accepted and will be considered
plagiarism).
Submissions without this cover page will NOT be accepted.
Assignment Purposes/Learning Outcomes:
No.
Course Learning Outcomes (CLOs)
CLO3 Recognize investment opportunities.
CLO4 Explain the relationship between risk and return.
Assignment questions: Total grade – 10 points
1. Imagine you want to travel to US for your “graduation vacation” when you graduate
from college in two years. How much money do you need to put aside right now to
have $10,000 when you travel to US, assuming your bank’s savings account yields a 6
percent interest rate? (Show your calculations) (2 Marks)
2. Three cash flows of $3,125, $3,450, and $3,800 will be given to Ms. Marwa as a
result of her investment. What will the future value of her investment cash flows be at
the end of three years if she can earn 7.5 percent on any investment that she makes?
(Show your calculations) (2 Marks)
3. For computations of present or future values, the annual percentage rate (APR) is not
the proper rate. Justify this assertion. (2 Marks) maximum 5 lines
4. Faisal invested 40% of his portfolio into an investment with an anticipated return of
12% and 60% of his portfolio into an investment with an expected return of 20%.
What is the expected return on Faisal’s portfolio? (2 Marks) (Show your
calculations)
5. Discuss the different types of corporate bonds. (2 Marks) maximum 6 lines
Answer
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