College of Administrative and Financial Sciences
Assignment 1
Investment (FIN403)
Deadline: (8/10/2022 @ 23:59 PM)
Course Name: Investment Student’s Name:
Course Code: FIN403 Student’s ID Number:
Trimester: 1st CRN:
Academic Year: 1443/1444 H, 1st Trimester
For Instructor’s Use only:
Instructor’s Name: Dr Jyoti Agarwal
Students’ Grade: /10 Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
• This assignment is an individual assignment.
• The Assignment must be submitted only in WORD format via allocated folder on Blackboard.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented. This also includes filling your information on the cover page.
• Students must mention question number clearly in their answer.
• Late submitted assignments will NOT be entertained.
• 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 Questions
Q1: Give an example of three financial intermediaries and explain how they act as a bridge between small investors and large capital markets or corporations. [2 Marks]
Q2: What are some comparative advantages of investing in the following? [2 Marks]
a. Unit investment trusts.
b. Open-end mutual funds.
c. Individual stocks and bonds that you choose for yourself.
Q3: Q3: The composition of the Alhind Fund portfolio is as follows:
Stock Price
A 300000 $45
B 500000 50
C 600000 30
D 800000 35
The fund has not borrowed any funds, but its accrued management fee with the portfolio manager currently totals $60,000. There are 5 million shares outstanding.
What is the net asset value of the fund?
Q4: A U.S. Treasury bill with 90-day maturity sells at a bank discount yield of 9 percent. [4 Mark]
a. What is the price of the bill?
b. What is the 90-day holding period return of the bill?
c. What is the bond equivalent yield of the bill?
d. What is the effective annual yield of the bill?
Note: If using Excel, Students must provide the table of calculations.
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