MGT411 Assignment 2 idea Solution due date 02-06-2011 Spring 2011

[Xpert]

Question # 1 (Marks 8)
A portfolio of Rs. 1,000 entitles the investor to receive dividend of Rs. 150 at the end of year 2011. Expected future sale price at the end of year is Rs. 998. If the investor plans to sell the stock in the market after holding it for one year, what will be the holding period return for one year on this portfolio(in terms of percentage)?

Question # 2 (Marks 8)
Find the variance and standard deviation for the stock of a newly listed public limited company purchased at Rs. 1,000. While making this investment there are 50% chances that the price of investment will fall to Rs. 900 and 50% chances are that it will rise to Rs. 1200 after six months.

Question # 3 (Marks 4)
In stock market XYZ company is offering 16% annual return on bonds, however,Treasury Bills are providing 7% annual return. Calculate the risk premium if an investor invest in XYZ company.

[mohsan]

solution required of mgt411

[Vuhelper]

solution are in attachment

[saraatiff]

Can some one help us here? is there any one in the 2nd sem of MBA?

[Vuhelper]

yapppppppppppppppp

[mareebutt88]

thanks for ur help

[Xpert]

you are welcome g....