Quiz 1

Security and Portfolio Management – MBA

Instructor: Muhammad Ali Taufiq

Date: 21, June 2014

Time: 30mins

Student Name:

Student Roll #:

Section 1 – Marks 10

1) Fill in the table below and determine in which portfolio should one invest?

Probability
25% 50% 25%
Expected Coeffi cient
Returns Bad Normal Good Variance
Return of Variation
Portfolio 1 0% 20% 30%
Portfolio 2 0% 30% 45%
Section 2 – Marks 10

1) A portfolio’s cashflows are given to you. Calculate ending portfolio values and HPR and HPY for
each time frame. Then find HPR and HPY (semi-annually)

Time (months)
0 3 9 12 24 30 36
Beginning Portfolio Value - 550,000 850,000 500,000 1,700,000 2,000,000 2,100,000
Cash Inflow 500,000 200,000 - 800,000 200,000 200,000 -
Cash Outflow - - 300,000 - - 300,000 1,800,000
500,000 750,000 550,000 1,300,000 1,900,000 1,900,000 300,000

0 - 3 mths 3 - 9 mths 9 - 12 mths 12 - 24 mths 24 - 30 mths 30 - 36 mths

HPR
HPY