FIN630 Current Spring 2011 Final Term Paper

1.What is default risk?
2.Define non-systematic risk.and how it can be reduce?
3.Define single index model?
4.Define call option?
5.Bonds are 100% risk free investment do u agree?


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No. of question 64.

MCQs Mostly from last 25 lectures and new.

Subjective Questions about,
1. Markowitz theory advantage.
2. Bar Chart and Point and figure chart.
3. SML
4. Definition of Call Option
5. Bonds are also risky, than why they are preferred on stock risk wise.


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Define covariance. What does covariance shows?
What is meant by Interest rate tradeoff"?
Describe why junk bonds are know as B grade bonds. 3 Mark
What is meant by a security market line? 3 Mark
What is meant by speculation? 3Mark
Why it is difficult to classify industries. 3Mark
Different between financial assets and real assets. 5 Mark
Describe the purpose of security market line. 5Mark
Describe why an investor might sell a put. 5Mark
How the risk is measured? What is fundamental rule of risk measurement?