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FIN4802 EXAM PACK 2024

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This document contains FIN4802 Recent exam Questions and solutions. Perfect for 2024 EXAM preparation

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  • January 16, 2024
  • 228
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers
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FIN4802
EXAM PACK

This document includes:

• Exam questions and answers and guidelines for
better understanding,
• Summarised study notes
• Exam guidelines and tips




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,UNIVERSITY EXAMINATIONS




January/February 2023

FIN4802

International Financial Management

Examiners
First: Prof K Tsaurai
Second: Prof P Makoni
External: Prof HP Wolmarans


Total marks: 100 Marks

Start date and time: 1 February 2023 at 8:00

End date and time: 1 February 2023 at 11:00

Duration: 3 Hours




INSTRUCTIONS ON THE DAY OF ASSESSMENT:
• Ensure you are connected to the internet in order to log into the Invigilator App and scan this
QR code.
• If you encounter difficulty in scanning the QR code, you can alternatively enter the Exam
Access Code below the QR code to start the invigilation.
• Unless otherwise specified by your institution, note that you can only scan this QR code
once. If your assessment has multiple online sections, tests or attempts, you should NOT
finish the invigilation until your entire assessment has been completed.
• Only scan the QR code when the assessment formally commences.
• The QR code is only scannable for a limited time and it should therefore be scanned
as soon as possible to start the invigilation.

, CONFIDENTIAL FIN4802
Page 2 of 20 January/February 2023 (Non Venue Based)
• Once the QR code is scanned, ensure your media volume Is turned up and place your
smartphone next to you. The Invigilator App will notify you with a notification beep when you
are required to action a request, which you should then perform.
• We recommend that you keep your smartphone on charge for the duration of the
assessment.
• If you only have one device you may access your assessment in the application by pressing
the ‘Access Exam’ button in the top right corner of your app.
• Keep the Invigilator App open on your cell phone for the full duration of the
assessment. You are not allowed to minimise or leave the app.
• Ensure you are connected to the internet in order to commence the invigilation as well as at
the end of the assessment. No internet connection is required during the assessment.
• You have to adhere to the assessment time limit communicated to you by your
institution as the time displayed in the Invigilator App could differ from the time allocated to
complete your assessment.
• You can click the "Finish Assessment" button in the app if you finish your assessment early.
• If you are performing a written or Scan-and-Upload assessment:
• The Invigilator App may request you to take a picture of every page of your answer sheet at
the end of the assessment. Unless otherwise specified by your institution, this does
NOT replace the normal upload of your script to your institutions online portal.
• After completing invigilation and following all app instructions, you must upload your
Invigilation App data. If however there is a delay in the upload of the app data at the end of
the assessment, you should prioritise the upload of your script to your university portal and
you can temporarily minimise the app to do so. Uploading of app data is not time sensitive
and you can come back and do it after you have successfully uploaded your script to the
exam portal.
• Should you encounter any technical difficulty, please WhatsApp The Invigilator Helpdesk on
073 505 8273.


This paper consists of 19 pages.


Instructions:

1. You can fill in your answers in the spaces provided in this question paper, print, scan and
upload it OR
2. You can work on your own papers, scan and upload them. This option applies to the
students who do not have access to printing facilities.


Please note:

1 Any silent, battery operated pocket calculator (e.g., HP10BII or Sharp EL733-A financial
calculator) may be used.
2 Pages for rough work have been provided (see pages 17 to 19). No rough work will be
marked.
3 Students must answer all the four questions.
4 Students must show all workings and calculations.

You must also include a declaration of honesty that the answers constitute your own work.

The Non-Venue Format is a Take-home Exam with submission on the Moodle platform

, CONFIDENTIAL FIN4802
Page 3 of 20 January/February 2023 (Non Venue Based)

Question 1 [25 marks]


ABC (France) considers placing 40 percent of its excess funds in a one-year Singapore dollar deposit
and the remaining 60 percent of its funds in a one-year US dollar deposit. The Singapore one-year
interest rate is 15 percent, while the US one-year interest rate is 13 percent. The possible percentage
changes in the two currencies for the next year are forecasted as follows:

Currency Possible percentage change in Probability of that change
the spot rate over the in the spot rate occurring
investment horizon
Singapore dollar -2% 30%
Singapore dollar 1 30
Singapore dollar 3 40
US dollar 1 20
US dollar 4 50
US dollar 6 30

Given this information, determine the possible effective yields of the portfolio and the probability
associated with each possible portfolio yield. If the one-year euro interest rate is 8 percent, what is the
probability that the portfolio’s effective yield will be lower than the yield achieved from investing in the
United States? (Assume that the movements on the two currencies are not correlated). [25]



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