Subjective questions MGT 201 on 18 May 11
1. Suppose there are 2 stocks in your investment portfolio,
Value of investment Expected IRR
Calculate the expected portfolio return
2. You want to start your business so you approach a bank. The bank offers you to lend you Rs. 10000 and you sign a bond paper. The bank asks you to issue a bond in their favor on the following requirement by bank.
Par value = Rs, 100000
Maturity = 2 years
Coupon rate = 12% Mark up paid at the end of each year
For the bank
What is the value of investing in a bond with that bank has opportunity cost of 10%.
3. Why does diversification reduce risk ?
4. What are the effects of changes in macro interest rates on the portfolios of the bonds?
All the mcqs were known as they were from previous papersDOWNLOAD SOLUTION HERE