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CHECK LIST
1. Text Book
2. Course Outline
3. Assignment No.1, 2.
4. Assignment Forms (two sets)
In this packet, if you find anything missing out of the above mentioned material,
please contact at the address given below:
Course Coordinator
ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD
(Department of Business Administration)
WARNING
1. PLAGIARISM OR HIRING OF GHOST WRITER(S) FOR SOLVING
THE ASSIGNMENT(S) WILL DEBAR THE STUDENT FROM AWARD
OF DEGREE/CERTIFICATE, IF FOUND AT ANY STAGE.
2. SUBMITTING ASSIGNMENTS BORROWED OR STOLEN FROM
OTHER(S) AS ONE’S OWN WILL BE PENALIZED AS DEFINED IN
“AIOU PLAGIARISM POLICY”.
Q. 3 (a) Critically discuss the various component of total returns. Can any of these
components be Negative? Explain your view with arguments. (10)
(b) Calculate the future value of Rs.250 at the end of 5, 10, 20 and 30 years
given an interest rate of 10 percent. Also calculate the present value of Re.1
to be received at the end of these same periods given the same interest rate?
Write your comments in detail. (10)
Q. 4 (a) Explain Active and passive bond management strategies with examples. (10)
(b) Do Active and passive bond management strategies have any relationship or
not. Explain your idea with examples. (10)
Q. 5 Explain the following terms and their importance with examples: (20)
(i) Primary markets
(ii) Islamic bonds
(iii) Stock market
(iv) Mutual funds.
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knowledge to the teacher:
Your level of understanding of the subject;
How clearly you think?
How well you can reflect on your knowledge & experience?
How well you can use your knowledge in solving problems, explaining situations,
and describing organizations and management?
How professional you are, and how much care and attention you give to what you do?
To answer a question effectively, address the question directly, bring important related
issues into the discussion, refer to sources, and indicate how principles from the course
materials apply. You must also be able to identify important problems and implications
arising from the answer.
For citing references, writing bibliographies, and formatting the assignment, APA format
should be followed.
ASSIGNMENT No. 2
Total Marks: 100
This assignment is a research activity. You are required to obtain information from
a business/commercial organization and prepare a report of about 1000 words on the
issue allotted to you to be submitted to your teacher for evaluation.
You are required to select one of the following issues according to the last digit of
your roll number. For example, if your roll number is P-3427180 then you will select
issue # 0 (the last digit):-
ISSUES:
0. External factors affecting the investment decision process with reference to
Pakistan.
1. Money market securities and its availability in business sector of Pakistan.
2. Globalization of securities market
3. Estimating returns and risks tools available for analyzing investment
4. Arbitrage pricing theory and its importance for the investment markets in Pakistan
5. Comparative study of present value approach and P/E ratio approach with
reference to Pakistan
6. Options and its importance in investment
7. Convertible bonds and its applicability in Pakistan
8. Fundamentals analysis and its importance for investment
9. Capital market expectation and its review of Pakistani stock market.
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6. Practical study of the organization (with respect to the issue)
7. Data collection methods
8. SWOT analysis (strengths, weaknesses, opportunities & threats) relevant to the
issue assigned
9. Conclusion (one page brief covering important aspects of your report)
10. Recommendations (specific recommendations relevant to issue assigned)
11. References (as per APA format)
12. Annexes (if any)
GUIDELINES FOR ASSIGNMENT # 2
1.5 line spacing
Use headers and subheads throughout all sections
Organization of ideas
Writing skills (spelling, grammar, punctuation)
Professionalism (readability and general appearance)
Do more than repeat the text
Express a point of view and defend it.
Workshops:
The workshop presentations provide you an opportunity to express their communication
skills, knowledge & understanding of concepts learned during practical study assigned in
assignment # 2.
You should use transparencies and any other material for effective presentation. The
transparencies are not the presentation, but only a tool; the presentation is the
combination of the transparencies and your speech. Workshop presentation
transparencies should only be in typed format.
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WEIGHTAGE OF THEORY & PRACTICAL ASPECTS IN ASSIGNMENT # 2
AND WORKSHOP PRESENTATIONS:
Assignment # 2 & workshop presentations are evaluated on the basis of theory & its
applicability. The weightage of each aspect would be:
Theory: 60%
Applicability (practical study of the organization): 40%
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• Measuring Returns and Risk
• Estimating Returns and Risk
• The Return-Risk Relationship
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• Payoffs and Profits from Basic Option Position
• Some Basic Option Strategies
• Option Valuation
• An Investors Perspective on Puts and Calls
• Stock Index Options and Interest Rate Options
Futures
• Understanding Futures Market
• The Structure of Future Markets
• The Mechanics of Trading
• Using Future Contracts
• Financial Futures
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• The P/E Ratio
• Syntax's P/E Ratio
• Additional Company Analysis
Technical Analysis
• What is Technical Analysis?
• Aggregate Market Analysis
• Individual Stock Analysis
• Testing Technical Analysis Strategies
• Conclusions about Technical Analysis
Recommended Books:
1. Investment Analysis and Management by Charles P. Jones (9th edition).
2. Security Analysis and Portfolio Management by Donald E. Fischer, Ronald J.
Jordan (6th edition).
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