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Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
المملكة العربية السعودية
الجامعة السعودية الإلكترونية
College of Administrative and Financial Sciences
Portfolio Management (FIN424)
Due Date: 26/03/2022 @ 23:59
Course Name: Portfolio Management
Course Code: FIN424
Student’s ID Number:
For Instructor’s Use only
Marks Obtained/Out of 10
Level of Marks: High/Middle/Low
General Instructions – PLEASE READ THEM CAREFULLY
· The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
· Assignments submitted through email will not be accepted.
· Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
· Students must mention question number clearly in their answer.
· Late submission will NOT be accepted.
· Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
· All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
· Submissions without this cover page will NOT be accepted.
CLO 1-Recognize the characteristics and risks of stocks, bonds, money market, and property investments.
CLO 4- Analyse and choose appropriate Alternative Investments Portfolio Management.
CLO 5- Evaluate portfolio performance and risk.
(Problem Solving & Critical Thinking Assignment Question(s) :
Q.1 (a).What is the relationship between Yield Curve and Fiscal and Monetary Policies ? (1.5 Marks)
Q.1 (b). Describe the relationship between Inflation and Business Cycle. (1.5 Marks)
Q.2.Explain about the different sources of excess return in international bond portfolios (3 Marks)
Q.3.Given the following information, calculate the short-term interest rate target. (2Marks)
Neutral rate 4%
Inflation target 3%
Expected inflation 7%
GDP long-term trend 2%
Expected GDP growth 0%
Q.4.Given the following information, calculate the Sharpe Ratio. (2 Marks)
Return of Portfolio 30
Risk-free Return 10
Standard –deviation of portfolio’s excess return 15