Bmsu science university MID-SEMESTER EXAMINATION (FEBRUARY 2016 SESSION) INVESTMENT ANALYSIS AFN20303/F1V20103 LECTURER MATRIC NO PROGRAMME : VENUE MAY 2016 DURATION : 2 HOURS INSTRUCTIONS: 1, Candidates must read all questions carefully. 2. The examination script consists of the followings: Part Types of Instruction swer Sheets to Questions be Used ONE | 4 Extended Answer ALL Answer sheets | Structure questions TWO 4Extended | Answer THREE(3) | Answer sheets Structures questions ONLY fi THIS EXAMINATION SCRIPT CONTAINS 5 PAGES INCLUDING THE FRONT COVER DO NOT OPEN THE EXAMINATION SCRIPT UNTIL FURTHER INSTRUCTIONCONFIDENTIAL PART ONE (25 marks) Time: 30 minutes INSTRUCTION This part consists of ONE (1) question. Answer ALL question in the answer sheets provided. 1 Sunrise Xventure Berhad is considering an investment in one of two common shares. Given the information that follows: SHARE A SHARE B Rate of Return (%) | Probability | Rate of Return (%) | Probability _ 10 020 | 9 030 | 13 0.40 17 0.40 15 0.40 15 030 Calculate risk and return of the common share below: (a) Expected rate of return (8 marks) (b) Standard Deviation (8 marks) (c) Coefficient of Variation (6 marks) (d) | Decide which common share will be choosing? Sate the reason. (3 marks) INVESTMENT ANALYSIS 215CONFIDENTIAL PART TWO (75 marks) Time : 1 hour 30 minutes INSTRUCTION This part consists of FOUR (4) questions. Answer THREE (3) questions only in the answer sheets provided. 1. Melly has slowly built a diversified portfolio of common share. She investigates the outcome for Dae Bak Group (5175.KL) yearly share price and suggests this share tend to behave in the future as below: Date [__Close ‘Adj close 2010 [0.850 0.864 2011 a [4.440 1.200 2012 1.250 1.650 | 2013 1.030 1.045 2014 2.090 2.015 2015 l 2.190 2.356 Calculate: (a) Holding Period Return (HPR) (5 marks) (b) Holding Period Yield (HPY) (5 marks) (c) Arithmetic Mean (AM) (2 marks) (d) | Geometric Mean (GM) (3 marks) (e) Variance (6 marks) (f) Standard Deviation (2 marks) (g) Coefficient of Variation (CV) (2 marks) INVESTMENT ANALYSIS 35CONFIDENTIAL (b) (c) (b) List and describe THREE (3) indexes basic under FTSE Bursa Malaysia. (9 marks) Illustrate the listing process structure for main market. (10 marks) Discuss THREE (3) types of income that been classified in investment. (6 marks) Describe the FIVE (5) Stage Model under Industry Life Cycle. (10 marks) All investment decisions are made within the economic environment. These stages are often referred to as the business cycle. The term business cycle refers to a pattern of changing economic output and growth. State and explain the FOUR (4) stages of the business cycle in detail. (12 marks) Explain THREE (3) economic variables form industries perspective due to its experience periods of expansion and contraction (3 marks) INVESTMENT ANALYSIS ASCONFIDENTIAL 4. (a) Discuss FIVE (5) differences between fundamental analysis and technical analysis. (20 marks) (0) Farahin want to create a portfolio equally as risky as the market and she has RM1,000,000 to invest. The following data about the securities of three assets: Investment Asset RM) A 180,000 B 290,000 c 530,000 Market portfolio Risk free rate Return (%| 10 14 17 12 5 Beta 075 1.30 1.45 1.00 Based on the information given, calculate the expected return on portfolio. END OF QUESTION PAPER INVESTMENT ANALYSIS (© marks) 5/5