Section A (1 Mark)
Mortgage loans:
Section C (4 Mark)
A Portfolio manager is holding the following portfolio:

The risk free rate of return is 6% and the portfolio's required rate of return is 12.5%. The manager would like to sell all of his holdings in stock A and use the proceeds to purchase more shares of stock D. What would be the portfolio's required rate of return following this change?
Section A (1 Mark)
The best way to maintain your credit rating is to:
Section B (2 Mark)
A bank is about to make a Rs50 million project loan to develop a new oil field and is worried that the petroleum engineer's estimates of the yield on the field are incorrect. The bank wants to protect itself in case the developer cannot repay the loan. Which type of credit derivative contract would you most recommend for this situation?
Section A (1 Mark)
The factors contributing to a Credit Score are :
