$($Question $1)$

$($a$)$ Alya invest in two types of securities which is bond and common shares. The bond issued has a coupon payment of $8$ percent paid annually, with a maturity of $20$ years, and RM$1,000$ par value. The company had just announced will pay a dividend of RM$2\mathrm{.}50$ for the share and expected to grow at $20$ percent for $4$ years and $5$ percent indefinitely. Shareholders require $12$ percent rate of return while bondholders require $5$ percent rate of return. The market price for bond is RM$1,300$ and RM$65\mathrm{.}80$ for shares. Calculate the intrinsic value for both securities and justify whether worth it to sell or not. $(15$ marks$)$

$($b$)$ A lot of academic research suggests that price movements are close to a random walk. Many analysts support the thesis that prices are formed by the balance of supply and demand and are driven only by fundamental and economic data. As prices move only in response to the latest available information or news release and it is impossible to predict their move only by looking at a chart. Discuss FIVE $(5)$ differences between technical and fundamental analysis. $(10$ marks$)$

$($Question $2)$

$(25$ marks$)$

$($a$)$ Given the Holding Period Return $($HPR$)$ are $5$ percent, $15$ percent, $30$ percent, $20$ percent and $-30$ percent for $5$ years respectively, calculate the standard deviation for ABC shares.

$(7$ marks$)$

$($b$)$ Amir invest RM$30,000$ in share A with a beta of $1\mathrm{.}2$ and another RM$70,000$ invest in share B with a beta of $1\mathrm{.}4.$ If these are the only two investments in his portfolio, compute:

i$.$ Beta Portfolio

$(3$ marks$)$

ii$.$ Required rate of return if the risk$-$free rate is $7$ percent and expected return on the market is $12$ percent using Capital Asset Pricing Model $($CAPM$)$ and Arbitrage Pricing Theory $($APT$).$

$(5$ marks$)$

$($c$)$ The Malaysian money market comprises Conventional and Islamic markets. The central bank conducts daily monetary operations, to achieve the desired liquidity in the investment. Explain FIVE $(5)$ types of investment risk in money market.

$(10$ marks$)$

$($Question $3)$

$(25$ marks$)$

$($a$)$ Aminah as an investor, she supposed has a share at a price of RM$60$ and she need to call an option with a strike price of RM$50$ which matured in $4$ months. The share is not expected to pay any dividends. The continuously compounded risk$-$free rate is $3$ percent, the mean return is $7$ percent, and the standard deviation of the share is $40$ percent. Calculate the value of call and put.

$(15$ marks$)$

$($b$)$ Technical analysis is the study of price action for the purpose of forecasting future price trends.

Explain THREE $(2)$ important premises under technical analysis.

$(6$ marks$)$

$($c$)$ An investmemt can be refer to any mechanism used for generating future income. The investment term can be referring in general into TWO $(2)$ types of assets. Identify and give example each one.

$(4$ marks$)$

$(25$ marks$)$