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论文语种：英文
您的研究方向：金融
是否有数据处理要求：否
您的国家：英国
您的学校背景：英国排名50名左右
要求字数：详细的题目答案，字数不限
论文用途：本科考试题目
是否需要盲审（博士或硕士生有这个需要）：否
补充要求和说明：完成全部的6个题目，每个题目都需要详细的解答过程（公式-推导-结果-结果说明）需要一定的文字说明解释，字数不限.可以提供相关的电子书籍和课堂PPT

英国投资考试题目

Question 1 (25 marks in total)

1.a.
It is your intention to buy shares in ‘Pink Inc.’ and hold them for one year. You expect to receive a dividend of $0.90, and from the sale of the stock at the end of your https://www.51lunwen.org/jrfx/holding period $21.70. If you want to earn a rate of return of 12%, what is the price you would be willing to pay for the stock today?

你的意图是“粉色公司购买股票，他们持有的一年。你希望获得0.90美元的股息，并在你的持有期21.70美元的股票出售。如果你想获得12%的回报率，你会愿意支付的股票现在的价格是多少？

Solution
According to the subject, we have to make use of the known stock price and dividend at the end of the 1st year to get the stock price at the beginning of the 1st term.

We should use this formula:

V_0=(D_1+P_1)/((1+K))
V_0—present price
¬D_1—dividend at the end of the first year
P_1—stock price at the end of the first year
K—the expected rate of return

V_0=(D_1+P_1)/((1+K))
V_0=(21.7+0.9)/(1+0.12)≈20.18
This means you would earn a rate of return of 12% in a year if you pay for the stock today for $20.18.

2 marks

1.b.
The investment in ‘Pink Inc’ has an expected return of 8 percent per year with a standard deviation of 12 percent. Assuming the returns are normally distributed, how frequently do you expect to earn a return between -4 percent and 20 percent? How often do you expect to earn a return less than -4 percent?

4 marks

1.c.
With regard to your current investment choices, Pink Inc represents a part of a portfolio which is considered of medium risk. There are two other portfolio choices which you are considering which are of low risk and high risk respectively. Given the following information for each of the portfolios below and the fact that you have a risk aversion level of 5, what function would you use to arrive at a portfolio choice? Using this function, what would be your logical portfolio choice? For this question, you must provide the workings used to support your answer and hence portfolio choice.
10 marks

1.d.
In light of your portfolio choice for part 1.c. above and also the information provided in part 1.c., what would be the optimal proportion to invest in this risky portfolio and the proportion to invest in a risk free asset?

9 marks

Question 2 (25 marks in total)

2.a.
You have bought (gone long) ten copper futures contracts at 110 cents per pound, where the contract size is 25,000 pounds. At contract maturity, copper is selling for 112 cents per pound. What is your profit or loss on the transaction?

3 marks

2.b.
You have bought 90 call option contracts for ABC with a strike price of 85 at a quoted price of $1. At option expiration, ABC sells for $87. Your net profit or loss on the transaction would be what?
4 marks

2.c.
What are the six basic contract terms that an option contract must specify?

6 marks

2.d.
Suggest a suitable option strategy for each of the f本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。