(C)   Bank Muscat shares were up by 2.11 per cent, and the share price is 90 OMR. After one year, expected share prices will be 110 OMR with 12% of risk-adjusted rate from the financial market. Dividend after one year is 5 OMR. You are required to:  
i) Discuss fundamental analysis of financial investment (5 marks). ii) Calculate holding period of return of Bank Muscat .    

iii) Calculate Value of stock of Bank Muscat.
iv) Critically advise investor whether it is worthwhile to invest in the Bank Muscat shares or not, why?
(D)Al Anwar Holding share price is 65 OMR per share. The price of the share is now trading at 75 OMR per share. The interest rate is 11% interest and initial margin is 60%. An investor now considers investing 200 shares

You are required to:
i)   Briefly discuss marginal account and actual margin of the financial investment
ii)   Calculate margin return of the 200 shares
iii)   Calculate new margin return of the share when the price is increased to 70 OMR per share
iv)   Critically advise investor whether it is worthwhile to invest in the Al Anwar Holding share
(E)An investor is now holding shares from Sohar International and NBO. Both shares have the same standard deviation of market index, 10%. The shares from Sohar International have 20% of risk in term of deviation and the shares from NBO have 24%. An expected return of the shares from Sohar International is 25% and An expected return of the shares from NBO is 22%. 

You are required to:
i) Briefly discuss capital asset pricing model for effective investment decision 

ii) Calculate expected return of the shares from Sohar International and NBO 

iii) Draw the market line of the shares from Sohar International and NBO
iv) Critically advise an investor whether to hold or sell the shares

Answer rating: 100% (QA)

Answer Answer to all the above subparts i Fundamental Analysis of financial investment We usually ma... View the full answer