Hi all attached is last years past paper
I'm hoping someone, some investment banking genius can let me guide me on how to tacke the questiopns answers would be great but understanding/explanations are equally welcome aswell
thanks very much romski
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Can anyone help with my investment banking past paper watch
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- 15-01-2010 15:21
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- 15-01-2010 18:25
ection A
1. a) You are buying a share at £10 and for three years the company pays a dividend of £0.5 per year and the stock itself is valued at £12 three years later. What is the annualised rate of return of this share? (15 Marks)
b) Listed below are
estimated covariance matrix for three stocks:
A B C
A 625 -244 118
B -244 336 225
C 118 225 184
i) Find the correlation coefficient matrix of returns on the securities. (15 Marks)
ii) Find the risk of a portfolio consisting of 30% of A, 60% of B and 10% of C.
(15 Marks)
Thanks guys
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