Arab Open University Palestine Branch FINAL-Take Home-exam Student Information Academic Year 2020-2021 Semester: Second Branch: Palestine Program: Risk Management and Insurance Course Title: Investment Management Course Code: RMI220 Student Name

Arab Open University
Palestine Branch
FINAL-Take Home-exam
Student Information
Academic Year 2020-2021
Semester: Second
Branch: Palestine
Program: Risk Management and Insurance
Course Title: Investment Management
Course Code: RMI220
Student Name:
Student ID:
Section Number:
Tutor Name: Nizar Dwaikat
Questions Details
Question number
Deserved marks
Earned marks
Question 1
10
Question 2
15
Question3
15
Question 4
10
Earned Grade out of 50
50
Notes on plagiarism:
According to the Arab Open University By-laws, “the following acts represent cases of cheating and
Plagiarism: -
Verbatim copying of printed material and submitting them as a full answer of the final take home exam
Verbatim copying of material from the Internet, including tables and graphics.
Copying other students’ notes or reports.
Using paid or unpaid material prepared for the student by individuals or firms.
Penalties for plagiarism ranges from failure in the final take home exam to expulsion from the university.
Declaration: I hereby declare that the submitted final take home exam is my own work and I have not copied any other person’s work or plagiarized in any other form as specified above.
Student Signature
Tutor’s Feedback
Tutor Name:
Tutor Signature:
Date returned:
Note; Do not do copy and paste from any sources a book, PowerPoint, internet, ect, or solving this paper by others. your answer must be in your own words, otherwise, you are liable to get zero.
Each must students answer all questions
Q1; as manager of portfolio your management asks to compute from following data in the table, beta for each individual assets, and return portfolio , then explain to management which better to invest in portfolio or in individual assets, show steps in calculation ? 10points
A
B
C
D
MARKET
Mean-return
2.00%
1.18%
0.01
2.29%
1.50%
Risk –standard deviation
8.21%
5.15%
4.44%
7.63%
4.81%
Weights
40%
30%
5%
25%
Covariance
0.30%
0.06%
0.10%
0.25%
correlation
A
B
C
D
MARKET
A
1
B
21.38%
1
C
31.65%
34.95%
1
D
51.34%
22.49%
35.97%
1
MARKET
75.48%
22.71%
47.98%
67.12%
1
Q2; explain the difference between Closed-End and Open-End Investment Companies? 15points
Q3; Explain Efficient Market Hypothesis? 15points
Q4; what are the global investment choices for investors, shortly explain? 10points
Questions’ end
Good luck