Posted: August 27th, 2022

BFA607 – Investment Planning

Pages: three
Questions: four Pupil ID No..…………………………………….
Pupil Full title: …………………………………

UNIVERSITY OF TASMANIA
TASMANIAN SCHOOL OF ECONOMIC AND BUSINESS

Mid Semester Check

BFA607 – Investment Planning

Directions:

• Write your scholar quantity clearly on the prime of your check reply.
• This check paper is price 30% of your whole semester Assessment and can be marked out of 40.
• Reply ALL 4 (four) questions.
• Present all supporting calculations. Marks can be deducted if supporting calculations usually are not proven.
• It’s important that you just observe the College’s tutorial integrity values. The results of plagiarism, collusion, examination dishonest, contract dishonest, fraud, misrepresentation and different breaches of educational integrity may be extreme.
• College students partaking in any type of tutorial misconduct could also be handled below the Ordinance of Pupil Self-discipline, and this will embrace imposition of penalties that vary from a deduction/cancellation of marks to exclusion from a unit or the College. Particulars of penalties that may be imposed can be found within the Pupil Educational Integrity Ordinance.
• Your solutions should be typed within the check paper (a scanned copy of handwritten work won’t be accepted). You should submit your solutions to the “Mid-semester check” Dropbox below “Assessments / Assignments” on MyLO earlier than 2:00 pm on Saturday, 27 August.

Question Assignment 1 [10 marks]
a) You’re contemplating the acquisition of AMDEX Firm shares. You anticipate that the corporate can pay dividends of $2.00 per share subsequent yr and $2.25 per share the next yr. You imagine which you can promote shares for $17.50 every two years from now ex-dividend. In case your required charge of return is 12 %, what’s the most worth that you’d pay for a share?
[6 marks]

b) Describe and distinction the next extraordinary share dividend valuation fashions: (i) zero progress, (ii) fixed progress and (iii) combined progress.
[4 marks]

Question Assignment 2 [9 marks]
a) You have got included the next securities in your portfolio:

Safety Investment Return Beta
A $four,00zero 6.2% zero.95
B $7,500 four.eight% 1.48
C $eight,200 7.1% 1.11
D $5,300 5.9% zero.68

Required:
i. Calculate the anticipated returns of the portfolio.
ii. Calculate the beta of the portfolio.
[6 marks]
b) Clarify the idea of diversification and its advantages.
[3 marks]

Question Assignment three [9 marks]

You’re contemplating buying shares in Tomato Excursions Ltd. You have got noticed the next returns on this share over the past 4 years:

Yr 1 2 three four
Return – eight% three% 16% 5%

Required
What’s the common return and normal deviation of the return on Tomato Excursions shares?

Question Assignment four [12 marks]
Please evaluate the enclosed IPO for Readability Prescribed drugs Ltd –

Radiopharmaceutical therapies and imaging

Required (750 phrases)
Talk about the next factors.
• What do they do?
• Historical past?
• Administration high quality and observe document?
• Supply particulars?
• Future earnings valuation?
• Dangers?
• Mental property?
• How did they carry out submit itemizing?
• Are they price investing in?
• Abstract

Order | Check Discount

Tags: BFA607 - Investment Planning