Financial Institutions & Markets (FIN402)

College of Administrative and Financial Sciences

Assignment 1

Financial Institutions & Markets (FIN402)

Deadline: (01/06/2023 @ 23:59 PM)

Course Name: Financial Institutions & Markets	Student’s Name:
Course Code: FIN402	Student’s ID Number:
Trimester: 2^nd	CRN:
Academic Year: 1443/1444 H, 2^nd Trimester

For Instructor’s Use only:

Instructor’s Name: Dr. Asma Alhazmi
Students’ Grade: /10	Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULLY

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

(2 points) Assume Homoud purchased one thousand Tanmiah stocks at a price 110.2 SAR on December 04^th, 2022 (at the beginning of the semester). Then, he sold the stocks at a price 127.8 SAR on December 27^th. Calculate his Holding Period Return (HPR). There were no dividends payout during the period you hold the stocks.

(5 points) SAMA bills have the following information on December 2022 as it has been reported in the Saudi Central Bank:

(3 points) Inflation rate was rising worldwide for the last two years (since the beginning of the pandemic). Moreover, inflation rate on Saudi Arabia will still be rising according to the prediction for 2023 (expected inflation will increase). How would you interpret this into the Saudi bond market in general; supply and demand for bonds.