Question: a) Explain technical analysis. Discuss the differences between fundamental analysis and technical analysis. (12 marks) b) Explain industry analysis and discuss its importance in making

 a) Explain technical analysis. Discuss the differences between fundamental analysis and

a) Explain technical analysis. Discuss the differences between fundamental analysis and technical analysis. (12 marks) b) Explain industry analysis and discuss its importance in making the investment decision. Give TWO (2) examples to illustrate the influence of industry or sector performance in choosing the right stocks to invest. (8 marks) QUESTION FIVE (15 MARKS) a) Stanley, Inc. issues four-year USD1000 bonds that have a 7% coupon rate. What is the duration for this bond, if the current market yield is 6% per annum and the interest is paid semi-annually? (10 marks) b) What are the similarities and differences between options and forward contracts? Briefly explain THREE (3) similarities and TWO (2) differences of these derivatives

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