Two questions. Answer all question. Each question will carry 20 marks.

Question 1-Accounting part

Financial Ratio Topic

Calculation part

Interpretation part (based on your findings in the calculation part)

Example: Given the financial statements : Income statement and Balance Sheet

CA=2,000

CL=1,000

2020

Current ratio=CA/CL

2000/1000=2.00

2019

Current ratio=0.85

The performance in year 2020 is better compared to year 2019. This company manage to pay its short-term obligation more this year compared to the previous year.

Question 2_Finance part

Risk & Return Topic

Stand-alone basis

k^=expected rate of return

=standard deviation

Portfolio basis

k^p=expected rate of return on portfolio

p=standard deviation on portfolio

Calculation part

Decision making/interpretation part (based on your findings in the calculation part.