College of Administrative and Financial Sciences

Assignment 2
Principles of Finance (FIN101)
Deadline for students: (11/03/2022@ 23:59)

Course Name: Principles of Finance Student’s Name:

Course Code: FIN101 Student’s ID Number:
Semester: 2nd CRN: 24479
Academic Year: 1443/1444 H, Second Semester

For Instructor’s Use only

Instructor’s Name: Dr. Muath Alolayan
Students’ Grade: Level of Marks:

Instructions – PLEASE READ THEM CAREFULLY

 This assignment is an individual assignment.
 The Assignment must be submitted only in WORD format via the allocated
folder.
 Assignments submitted through email will not be accepted.
 Students are advised to make their work clear and well presented. This also
includes filling in your information on the cover page.
 Students must mention question numbers clearly in their answers.
 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: (Marks: 05)

Q1. Rami deposits $60,000 today in an account that pays 4.6% p.a. interest, compounding semi-
annually. How much can be withdrawn from his account in 10 years . (Show your calculations)
(1.5 Mark)
Q2. You invest $2000 at the end of every 6 months at a rate of 7% p.a. compounding semi-annually.
How much money would you have in your account after 8 years? (1.5 Mark)

Q3. A portfolio consists of $100,000 in share A that yield 5% and $150,000 in share B with an
expected return of 8%. Share A has a variance of 2% and share B has a variance of 3%. The
covariance between returns is 0.00782.

a) What is the expected return for this $250,000 portfolio? (1 Mark)

b) What is the variance of the portfolio? (1 Mark)