MECE-004 FINANCIAL INSTITUTIONS AND MARKETS in English SOLVED ASSIGNMENT 2022-2023

MECE-004 FINANCIAL INSTITUTIONS AND MARKETS in English SOLVED ASSIGNMENT 2022-2023

Tutor Marked Assignment (TMA)
Course Code: MECE-004
Assignment Code: MECE-004/AST/2022-23
Total Marks: 100

Note: Answer all the questions.
SECTION A
Answer the following questions in about 700 words each. . The word limits do not apply in case of
numerical questions. Each question carries 20 marks.
1. Describe the nature of the financial system in modern economy giving the important types of
constituent institutions, markets and instruments. Explain the concept of flow- of-funds in the
financial markets.
2. Discuss the Markowitz theory of efficient portfolio selection. How does the CAPM theory build on
it?
SECTION B
Answer the following questions in about 400 words each. Each question carries 12 marks.
3. Critically examine the major theories that have been put forward to explain the term structure of
interest rates.
4. Explain the need for, and role of depository systems in secondary markets. Explain the concept
of custodial services.
5. Discuss the Black-Scholes formula on derivative pricing.
6. Compare the impact of monetary policy under fixed exchange rates with those under flexible
exchange rates.
7. Discuss the concept of leverage for a firm. Discuss the important financial and leverage ratios used.
Explain the Merton-Miller theorem.

MECE-004, MECE004, MECE-04, MECE-4, MECE 004, MECE 4, MECE-004