Investment (FIN403)

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College of Administrative and Financial Sciences

Assignment 1

Investment (FIN403)

Course Name: InvestmentStudent’s Name:
Course Code: FIN403Student’s ID Number:
Trimester: 1stCRN:
Academic Year: 1443/1444 H, 1st Trimester

For Instructor’s Use only:

Instructor’s Name: Dr Jyoti Agarwal
Students’ Grade:   /10Level 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

Q1: Give an example of three financial intermediaries and explain how they act as a bridge between small investors and large capital markets or corporations.                          [2 Marks]

Q2: What are some comparative advantages of investing in the following?             [2 Marks]

a. Unit investment trusts.     

b. Open-end mutual funds.    

c. Individual stocks and bonds that you choose for yourself.                                                                                                                                              

Q3: Q3: The composition of the Alhind Fund portfolio is as follows:

Stock Price
A300000$45
B500000 50 
C60000030
D800000 35 

The fund has not borrowed any funds, but its accrued management fee with the portfolio manager currently totals $60,000. There are 5 million shares outstanding.

What is the net asset value of the fund?

Q4: A U.S. Treasury bill with 90-day maturity sells at a bank discount yield of 9 percent. [4 Mark]

  1. What is the price of the bill? 
  2. What is the 90-day holding period return of the bill?
  3. What is the bond equivalent yield of the bill?
  4. What is the effective annual yield of the bill?

Note: If using Excel, Students must provide the table of calculations.