Question 36

Section A (1 Mark)
All of the following are examples of excise taxes except:
  • Question 37

    Section A (1 Mark)
    A type of lease where there is no payment schedule and penalty for a set period of lines.
  • Question 38

    Section B (2 Mark)
    The tracking error of an optimized portfolio can be expressed in terms of the ____________ of the portfolio and thus reveal ____________.
  • Question 39

    Section C (4 Mark)
    An investor purchased on margin Alpha Computer for Rs. 30/- a share. The stock's price subsequently rose to Rs. 50/- a share at which time the investor sold the stock. If the margin requirement is 60 percent and the interest rate on borrowed funds was 7 percent, what would be the percentage earned on the investor's funds (excluding commissions)? What would have been the return if the investor had not bought the stock on margin?
  • Question 40

    Section B (2 Mark)
    Buyers of call options __________ required to post margin deposits and sellers of put options __________ required to post margin deposits.
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