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Department of Finance
MBA ftln't'n,
Course Code: FIN-5101 Title: Modern Finance Theory
TotalTime: 1 Hour Total Mark: 10
(Ansler any four out of th. follo*ing qr.rtio.
nOicate the full marks.)
s Separation ncluding solution.
b) lllustrate lnvestorsl Reactions to Decisions.
State Fisher's Separation Theorem Formal Approach with gra
Explain State Preference Theory.
Consider two firms with the following data.
Firm A --> stock price = 62, lnvestment cost 10
=
Firm B => stock price = 56, lnvestment cost = g
States Payoffs Payoffs
on Stock on lnvestme
Firm A Firm B A
Firm Firm B
1. 100 40 10 1.2
23090 125
i) First find the pure securities prices as before.
ii) Use these to find the NpVs for each investment and ive decisions.
a) What is Mean-variance analysis?
b) Explain Assumptions necessary for mean-variance efficiency anarysis.
a)Youareexaminingthreeinternationalindices.wr,.tffi
standard deviation of a portfolio composed of 50% French equities, 25%
English
equities, and 25% German equities?
Correlation with:
Portto lto Expe.ret I Stddev. French English German
l-rench i7.028 i17.447 7
sh Is,gzo 0.2390 1
-o.o7t
"0.724 i0.2894 0.5830 1
"7.431
Midterm-2, 6th Batch, MBA
FIN-5101, Modern Finance Theory
Time: t hour, Fullmarks: 10
Answer the follow uestions
Differentiate call option from put option.
i What are the differencencs o ion contracts and future contracts?
i Define put<all pariW with formula.
: State Sales Enhancement and Ooerati Economies.
What About Earnings Per Share (EPS)?
What is tender offer? Discuss Two-tier Tender Offer.
Jagannath UnivensEty
Department of FEnanee
MBA Program 6th Batch
2nd semester First Mid-Term Examination-20L7
Subject: Finance Course Code: Fin-5215
Course: Research methodologY
Full Marks: 10 Time: 45 minutes
n.D
n
ercu
Amount of Blc
^f D-^la I Z
lruP- vr r wyrv
l6 10 r0
A
IO 9 d
I3
B ll 1
l0 8 t2
l0 tt2 l0
C
ll l3 l0
tt drugs act differentlY?
Do the eo
differentl-v--?
Are the different groups oipeople affected
ls the interaction term significant?
ificant level of 5ol0.
Ans*'er the above qlgsttg!:ta!
Department of Finance
Jagannath University, Dhaka
course Title: corporate Governance and Restructuring (course code: 5211.)
znd Mid-term Examination
Time:4O Minutes Marks:10
ii) Pruchasing a contract consisting of 100 Beximco April put options with a strike price of
$18.50.
[lnstructions: All questions contain equal marks. Answer any I (one) questions. Maintain the sequence of answer
for all parts of each question you answer.]
l. Kwhatis a short selling? How an arbitrager can gain over short selling and doing a forward
contract? Give an example. (4+6)
a 6month long forward contract on a stock when the stock price is Tk. 40. We
/ /Consider
1, assume that the risk free rate of interest compounded continuously is 7Yo per annum. We
also assume that dividends-qf_Tk"2.5J., share is expected after 3months, 6months and
gmonths. If the delivery price oI-tna'contract. is Tk. 30 then calculate the value of the
forn'ard contract.
1 C-Company
I
D-Company LI.I%
I
Now-, design a swap that will net a bark 50 basis points per annum. And also make the swap
equally attractive for both the company.