Assignment 3 FIN402

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Assignment 3 FIN402

Course Name: Financial Institutions and MarketsStudent’s Name:
Course Code: FIN-402Student’s ID Number:
Semester: 1st  CRN:
Academic Year: 1443/1444 H, 1st Term

For Instructor’s Use only

Instructor’s Name:
Students’ Grade:   /10Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULLY

  • This assignment is an individual assignment.
  • Due date for Assignment 3 is (10/11/2022)
  • The Assignment must be submitted only in WORD format via allocated folder.
  • Assignments submitted through email will not be accepted.
  • Students are advised to make their work clear and well presented; marks may be reduced for poor presentation. This includes filling your information on the cover page.
  • Students must mention question number clearly in their answer.
  • Late submission will NOT be accepted.
  • 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 Purposes/Learning Outcomes:

After completion of Assignment 3, students will be able to:

LO1.Demonstrate an awareness of the variety of financial instruments.

LO2. Examine the role of the financial system in the economy and the rationale for financial intermediation.

LO3. Discuss implications of the efficient market hypothesis for the allocation of funds.

Assignment Questions:                                                   (10 Marks)    

Students must use proper references to justify their assignment work. 

  1. Why is stock valuation more difficult than bond valuation? (2.5 marks)
  • Explain why ethics is an appropriate topic in the study of corporate finance. (3 marks)
  • Identify the basic forms of business organization in the Saudi Arabia and their respective strengths and weaknesses. (3 marks)
  • If a Volkswagen Passat costs $26,350 in Baltimore and €21,675 in Frankfurt, what is the implied exchange rate between the U.S. dollar and the euro? (1.5 marks)