NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF MANAGEMENT SCIENCES
JANUARY 2021 EXAMINATION

COURSE CODE: BFN 721

CREDIT UNIT: 2

COURSE TITLE: INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT

TIME ALLOWED: 2Hours

INSTRUCTIONS: 1. Attempt Question Number FOUR (4) and any other two (2). 2. Question Number FOUR is compulsory and carries 30 marks, while the other questions carry 20 marks each 3. Present all your points in coherent and orderly manner

Question One a) Enumerate the composition if the Securities and Exchange Commission (SEC)

b) Briefly mention how Securities and Exchange Commission protects investing public (20 Marks)

Question Two Briefly explain the following terms:

i. Bankers Acceptance (7. 5 Marks)

ii. Commercial Paper (7.5 Marks)

iii. Treasury Bills (5 Marks)

Question Three Enumerate the operators and regulators in the Nigerian capital market (20 Marks)

Question Four Ilele is considering allocating his portfolio funds to the following securities

If the risk free rate is 15% and the return on the market portfolio is 20%, calculate the following:

i Portfolio Beta

ii Expected Return on Ilele’s portfolio

(30 Marks)