Global Financial Management

Maximum Student Score

Question 2 (Zero coupon bonds) 15

Question 3 (Coupon bonds) 10

Question 4 (Stock valuation/CAPM) 25

Question 5 (Portfolio Analysis) 15

This is open book and you can use your lecture and class notes, the textbook and your computer while you are working on this.

The is designed to take 2 hours (if it were answered with paper and pencil). However, I'm giving you another 4 hours as you answer in a Word document. Therefore, you have a total of 6 hours.

Please submit one Microsoft Word document. Use only black color in your answers. Graders' comments will be in color.

Please place your answers inside the boxes provided. Partial credits are given for partial answers. You need to show your work below the boxes after "Your reasoning:" To put in equations, you can (a) use the equation editor, (b) cut and paste from the PDF files on the course CDs, or (c) carefully refer to an equation in the slide presentations (by the slide number/section number/unit number) or lecture notes (by the page number). Most equations can easily be typed in as normal text. Note that graders will not open any embedded Excel spread sheets in your Word document.

Generally, it is sufficient to round your final results to two decimal

. . .
1 $ 1,878.68 $ 987.65 $ 891.03 $178,682.38 106 $178,682.38 $ 1,878.68 $ 982.75 $ 895.93 $177,786.46 107 $177,786.46 $ 1,878.68 $ 977.83 $ 900.85 $176,885.60 108 $176,885.60 $ 1,878.68 $ 972.87 $ 905.81 $175,979.79 109 $175,979.79 $ 1,878.68 $ 967.89 $ 910.79 $175,069.00 110 $175,069.00 $ 1,878.68 $ 962.88 $ 915.80 $174,153.20 111 $174,153.20 $ 1,878.68 $ 957.84 $ 920.84 $173,232.36 112 $173,232.36 $ 1,878.68 $ 952.78 $ 925.90 $172,306.46 113 $172,306.46 $ 1,878.68 $ 947.69 $ 930.99 $171,375.47 114 $171,375.47 $ 1,878.68 $ 942.57 $ 936.11 $170,439.35 115 $170,439.35 $ 1,878.68 $ 937.42 $ 941.26 $169,498.09 116 $169,498.09 $ 1,878.68 $ 932.24 $ 946.44 $168,551.65 117 $168,551.65 $ 1,878.68 $ 927.03 $ 951.65 $167,600.00 118 $167,600.00 $ 1,87
. . .

Some common words found in the essay are:
Prin Bal, 187868 $, $ 187868, $ 187868 $, Maturity Price, Excel Sometimes, Standard Deviation, Portfolio II, Haytech Inc, Return SmallCap, APR Question, Expected Dividend/Price, Microsoft Word, price =, expected return, standard deviation, growth rate, return standard deviation, $ 010, cost equity, portfolio ii, 100 100, security expected return, expected return standard, 1 012 01,
Approximate Word count = 5209
Approximate Pages = 21 (250 words per page)

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