Please answer all the Topic

(please give me some examples)

1.

• Evaluation of funds to be included in an existing portfolio;
• should meet investment criteria such as maintaining or enhancing the expected return from the portfolio, maintaining or reducing the volatility (risk)

2.

• You will be given expected returns and standard deviation figures for both the existing portfolio and the new funds.

3.

• Option payoff table and diagram;
• calculation of profit/loss from the options trading strategy; break-even points for the strategy;
• aims of the strategies; You may consider this strategy: write a call with a higher exercise price and write a put with a lower exercise price.

4.

• Calculations of the intrinsic value of a stock;
• expected dividend yield, the price of a stock in any year, e.g. after 1 year; you need to calculate the value based on two dividend growth rates.

5.

• Benefits of making mutual fund investments, compared with other direct investments;
• what factors you should consider if you have two choices of funds, one being a front-end load and the other being a back-end load fund;
• calculation of NAV at the beginning and the end of the investment, then calculate the investment return;
• When you calculate NAV, make sure you should consider the expense ratios. And when you calculate the return, make sure you should include capital gain and dividend received.

6.

• What happens to the efficient frontier if we allow borrowing and lending opportunities at a risk-free rate ?;
• relationship between CML and SML;
• How can we locate under-valued or over-valued securities from the SML?

7.

• Calculation of NAV;
• Price of put based on put-call parity;
• Various performance evaluation measures including Jensen alpha, sharpe and treynor;
• meaning of basis;
• understanding about DDM;
• Difference between conventional theory and prospect theory in terms of utility functions;
• major hedge fund strategies;
• why do we need margin in futures trading; differences and similarities between forwards and futures contracts; what is CDO ?;
• What is covered call option strategy; what is security analysis;
• What are the special features about convertible bonds;
• what's the relationship between risk and diversification? Difference between American and European options;
• Key assumptions of CAPM