Problem 1

Yr. Beginning Value Ending Value

1 100 115
2 115 138
3 138 110.4

Calculate HPR, HPY, AM and GM

Problem 2

Yr. Beginning Value Ending Value

1 50 100
2 100 50

Calculate HPR, HPY, AM and GM

Problem 3

Investment # of Shares Beginning Price Ending Price

A 100,000 10 12
B 200,000 20 21
C 500,000 30 33

Calculate HPR and HPY

Problem 4

Economic Conditions Probability Rate of Return

Strong 0.15 0.2
Weak 0.15 -0.2
No major change 0.7 0.1

Calculate Expected Return, Variance, Standard Deviation

Problem 5
Investment A Investment B
Expected Return 0.07 0.12
Standard Deviation 0.05 0.07

Which investment wil you go for?

Problem 6

Yr. Square Beximco

1 -0.04 0.07
2 0.06 -0.02
3 -0.07 -0.1
4 0.12 0.15
5 -0.02 -0.06
6 0.05 0.02

Calculate Expected Return, Standard Deviation, Covariance and Correlation Coefficient

Problem 7

Asset 1 Asset 2
Weight 0.4 0.6
Expected Return 0.1 0.2
Std. Deviation 0.07 0.1
Correlation Coefficent 0.6

Calculate Portfolio risk and return

An investor purchases 2500 shares of a mutual fund. Initial NAVS is Tk. 40. The
front-end load is 3%. During the ensuing year, the assets of the fund increase by
11% before accounting for mgt fees and other charges of 0.8%. Calculate the
rate of return earned by the investor.

An investor takes a long position in 1000 shares of Incepta shares at Tk. 100.
The initial margin is 50% and the maintenance margin is 30%. By what % should
the price fall to trigger a maintenance call?