HRM627 GDB solution:
A student goes to the teacher and confesses that he did not do his home work. How would the teacher respond if the teacher responds in the following mentioned ego states?
a) A critical parent
b) A sympathetic parent
c) A natural child
d) An adaptive child
e) Adult ego state.
Critical Parent. When you behave and respond with evaluative responses that are critical, judgmental, opinionated, demanding, disapproving, disciplining, and so on, you are in critical parent ego state. People in the critical parent ego use a lot of do’s and don’ts. Managers using the autocratic style tend to be in critical parent ego state because they use high task/directive behavior.
Sympathetic Parent. On the other hand, you can also be a different type of parent. When you behave and respond with reassuring response that are protecting, permitting, consoling, caring, nurturing, and so on, you are in sympathetic parent ego state. Managers using the consultative and participative styles tend to be in sympathetic parent ego state because they are using high supportive/relationship behavior.
Natural Child. When you behave and respond with probing responses that shows curiosity, intimacy, fun, joyfulness, fantasy, impulsiveness, and so on, you are in natural child ego state. Successful managers do not tend to continuously operate from the natural child ego state.
Adapted Child. When you behave with confronting responses that express rebelliousness, pouting, anger, fear, anxiety, inadequacy, procrastination, blaming others, and so on, you are in adapted child ego state. Managers should avoid behaving from the adapted child ego state because this type of behavior often leads to the employee becoming emotional and behaving in a similar manner. When managers are transacting with an employee in this ego state, they should not react with similar behavior, but should be in the adult ego state.
Adult Ego State
When the adult ego is in control, people behave in a thinking, rational, calculating, factual, unemotional manner. The adult gathers information, reasons things out, estimates probabilities, and makes decision with cool and calm behavior. When communicating in the adult ego state, you avoid becoming the victim of the other person by controlling your response to the situation. Generally, the most effective behavior, human relations, and performance come from the adult ego state. When interacting with others, you should be aware of their ego state. Are they acting like a parent, child, or adult?
Identifying their ego state will help you understand why they are behaving the way they are and help you to determine which ego state you should use during the interaction. For example, if the person is acting like an adult, you most likely should, too. If the person is acting like a child, it may be appropriate way for you to act like a parent rather than an adult. And there are times when it is appropriate for you to act out of the child ego state and have a good time.
Tuesday, November 24, 2009
Thursday, November 19, 2009
CS615
CS615 Assignment Solution
Answer1:ActorsThere will be two types of actors who will be interacting with the system• Student• AdministrationStudentResponsibilities of student:1. Register for test2. Login in the system3. View profile4. Choose Sections for the test5. Start Test6. Move to next page of each section7. Move to next section8. End Test9. View result10. Give Feed back about the quizStudent’s roles are explained by the following diagram.AdministrationResponsibilities of Administration:1. Viewing student’s profile2. Login in the system3. Designing and Edit questions4. Finalization students who can take the test5. Preparing & displaying result of the quiz Following diagram displays the role of administration
Answer2:An evolutionary development approach is typically used to develop and implement software, except for any commercial off-the-shelf (COTS) components which, by definition, do not require software development. This approach has been described by software developer as the "best practice for software development and implementation". According to developers "evolutionary delivery is a lifecycle model that straddles the ground between evolutionary prototyping and staged delivery." Early versions of the system are presented to the customer and the system is refined and enhanced based on customer feedback. The cycle continues until development time runs out (schedule constraint) or funding for development runs out (resource constraint). There is a strong desire to use this approach since it is the most beneficial approach to use for prototype-to-operational development efforts typically used. Research and system development efforts that several national labs are performing for the FAA, NASA, and U.S. military also use this development methodology. Software systems are often developed and implemented based solely on detailed specifications and operational concept documents and only after the systems have been delivered do users realize that the systems are not what they envisioned. It is very difficult to determine the detailed preferences of customers and exactly how a system will be used before it is placed before the users, especially when potential users have a diverse set of tasks to perform. With this in mind, a development (prototyping) environment is usually established during the first year of a project. The development environment will continue to be used during subsequent years to support ongoing developments, enhancements, and demonstration activities. During the time that the development environment is in place, users will gain experience with the systems, displays, and products and be in a better position to determine how the system will be incorporated into their operational environment during subsequent phases of projects.Evolutionary models are considered to be the best approach to software development in a modern context because time lines for the development of modern software are getting shorter and shorter, customers are becoming more diverse (making the understanding of requirements even harder), and changes to requirements are becoming even more common (before delivery), we need a way to provide incremental or evolutionary delivery. The evolutionary process accommodates uncertainty better than most process models, allows the delivery of partial solutions in an orderly and planned manner, and most importantly, reflects what really happens when complex systems are built.
Answer1:ActorsThere will be two types of actors who will be interacting with the system• Student• AdministrationStudentResponsibilities of student:1. Register for test2. Login in the system3. View profile4. Choose Sections for the test5. Start Test6. Move to next page of each section7. Move to next section8. End Test9. View result10. Give Feed back about the quizStudent’s roles are explained by the following diagram.AdministrationResponsibilities of Administration:1. Viewing student’s profile2. Login in the system3. Designing and Edit questions4. Finalization students who can take the test5. Preparing & displaying result of the quiz Following diagram displays the role of administration
Answer2:An evolutionary development approach is typically used to develop and implement software, except for any commercial off-the-shelf (COTS) components which, by definition, do not require software development. This approach has been described by software developer as the "best practice for software development and implementation". According to developers "evolutionary delivery is a lifecycle model that straddles the ground between evolutionary prototyping and staged delivery." Early versions of the system are presented to the customer and the system is refined and enhanced based on customer feedback. The cycle continues until development time runs out (schedule constraint) or funding for development runs out (resource constraint). There is a strong desire to use this approach since it is the most beneficial approach to use for prototype-to-operational development efforts typically used. Research and system development efforts that several national labs are performing for the FAA, NASA, and U.S. military also use this development methodology. Software systems are often developed and implemented based solely on detailed specifications and operational concept documents and only after the systems have been delivered do users realize that the systems are not what they envisioned. It is very difficult to determine the detailed preferences of customers and exactly how a system will be used before it is placed before the users, especially when potential users have a diverse set of tasks to perform. With this in mind, a development (prototyping) environment is usually established during the first year of a project. The development environment will continue to be used during subsequent years to support ongoing developments, enhancements, and demonstration activities. During the time that the development environment is in place, users will gain experience with the systems, displays, and products and be in a better position to determine how the system will be incorporated into their operational environment during subsequent phases of projects.Evolutionary models are considered to be the best approach to software development in a modern context because time lines for the development of modern software are getting shorter and shorter, customers are becoming more diverse (making the understanding of requirements even harder), and changes to requirements are becoming even more common (before delivery), we need a way to provide incremental or evolutionary delivery. The evolutionary process accommodates uncertainty better than most process models, allows the delivery of partial solutions in an orderly and planned manner, and most importantly, reflects what really happens when complex systems are built.
STA301
STA301 3rd Assignment Solution
Q No. 1 (a): In how many ways can 4 boys and 5 girls sit in arow if every boy and girl has to sit side by side?
In order to fulfill the given condition, the seating arrangement must be asfollows.GIRL BOY GIRL BOY GIRL BOY GIRL BOY GIRL
5 girls can seat in 5 × 4 × 3 × 2 × 1 = 120 ways
4 boys can seat in 4 × 3 × 2 × 1 = 24 ways
Total number of ways in which 5 girls and 4 boys can sit fulfilling thegiven condition = 120 × 24 = 2880
Q No. 1 (b): Briefly explain the terms mutually exclusiveevents, exhaustive events and sample space.
Mutually Exclusive Events: Those events that cannot occur at the sametime.
Example: When we toss the coin, we get either Heads or Tails but not both.Exhaustive Events: Events are said to be collectively exhaustive, when the union of mutually exclusive events is the entire sample space.Example: When we toss a coin, then Heads and Tails are collectively known as Exhaustive Events.Sample Space: Sample Space is a set which consists of all possible outcomes resulting from a random experimentExample: Sample Space in case of a fair die is S = {1,2,3,4,5,6}Q No. 1 (c): A fair coin is tossed. Make a sample space and findthe probability of the followings:I. One head appearsII. One tail appearsIII. No head appearsThe sample space for a toss is S = {Heads, Tails}One head appears = . = 0.5One tail appears = . = 0.5No head appears = . = 0.5
Q No. 2 (a): In a simple linear regression yˆ = a + bx , interpret thecoefficients “a” and “b”.a is called the y-intercept, and b indicates the rate of change in y withrespect to x and is formally known as the slope of the line.
Q No. 2 (b): A computer while computing the correlationcoefficient between two variables x and y from 25 pairs ofobservations, obtained the following results:n = 25 , Σx = 125 , Σx2 = 650 , Σy = 100 , Σy2 = 460 , Σxy = 508It was, however discovered at the time of re-checking that ithad mistakenly copied down two pairs of observations asbelow:x y11 109 7While the correct values werex y14 812 9Now find out the correct value of correlation coefficientbetween x and y.Correct Σx = 125 – 11 – 9 + 14 + 12 = 131Correct Σy = 100 – 10 – 7 + 8 + 9 = 100Correct Σx2 = 650 – 112 – 92 + 142 + 122 = 788Correct Σy2 = 460 – 102 – 72 + 82 + 92 = 456Correct Σxy = 508 – (11 × 10) – (9 × 7) + (14 × 8) + (12 × 9) = 555= 0.41
Wednesday, November 18, 2009
CS504
Assignment No: 3Cs 504 Software Engineering
Write Abstract (Summary) of given research paper Titled “Reducing Coupling” by Martin Fowler”.
Reducing Coupling
If changing one module in a program requires changing another module, then there is a coupling presents. Duplication always implies coupling. Coupling is desirable, because it saves us to write a big program to put together all the modules. It is a controlled process.
Look at dependencies
To consider coupling everywhere is not a good approach.
Pattern of dependency relationship is important not the number of modules. Diagram defined in the Unified Modeling Language (UML) is very helpful to know about the dependencies.
The UI module usually depends on the domain module, but not the other way around. UML dependencies are also nontransitive. This nontransitivity is important because it lets us show that the domain model insulates the UI from changes in the database. Thus, if the database’s interface changes,we don’t immediately have to worry about a change in the UI. The UI will only change if the change in the database causes a big enough change in the domain that the domain’s interface also changes.
Layered architecture should be familiar to anyone who works in information systems.
A common piece of advice regarding dependency structures is to avoid cycles. Cycled systems are harder to understand because we have to go around the cycle many times.
A mapper package
A mapper is a package that provides insulation in both directions. The mapper package provides insulation in both directions, which lets the domain and database change independently of each other. Other kind of dependency is the relationship between an interface and its implementation. An implementation depends on its interface but not vice versa. Any caller of an interface depends only on the interface, even if a separate module implements it.
Defining an interface in a module that a separate module intends to implement is a fundamental way to break dependencies and reduce coupling.A common example in the Java world is a listener. Because listeners are classes, they are more explicit, which clarifies things. Direction of the dependencies and the way they flow is important not the lesser dependencies.
Write Abstract (Summary) of given research paper Titled “Reducing Coupling” by Martin Fowler”.
Reducing Coupling
If changing one module in a program requires changing another module, then there is a coupling presents. Duplication always implies coupling. Coupling is desirable, because it saves us to write a big program to put together all the modules. It is a controlled process.
Look at dependencies
To consider coupling everywhere is not a good approach.
Pattern of dependency relationship is important not the number of modules. Diagram defined in the Unified Modeling Language (UML) is very helpful to know about the dependencies.
The UI module usually depends on the domain module, but not the other way around. UML dependencies are also nontransitive. This nontransitivity is important because it lets us show that the domain model insulates the UI from changes in the database. Thus, if the database’s interface changes,we don’t immediately have to worry about a change in the UI. The UI will only change if the change in the database causes a big enough change in the domain that the domain’s interface also changes.
Layered architecture should be familiar to anyone who works in information systems.
A common piece of advice regarding dependency structures is to avoid cycles. Cycled systems are harder to understand because we have to go around the cycle many times.
A mapper package
A mapper is a package that provides insulation in both directions. The mapper package provides insulation in both directions, which lets the domain and database change independently of each other. Other kind of dependency is the relationship between an interface and its implementation. An implementation depends on its interface but not vice versa. Any caller of an interface depends only on the interface, even if a separate module implements it.
Defining an interface in a module that a separate module intends to implement is a fundamental way to break dependencies and reduce coupling.A common example in the Java world is a listener. Because listeners are classes, they are more explicit, which clarifies things. Direction of the dependencies and the way they flow is important not the lesser dependencies.
ENG301
ENG 3rd Assignment Solution
Question No.1Write an inquiry letter, as a business person to the regional manager of Lahore of Nokia Company, and ask him to provide you all information about their company’s rules and regulations for opening a new franchise.
To,
Question No.1Write an inquiry letter, as a business person to the regional manager of Lahore of Nokia Company, and ask him to provide you all information about their company’s rules and regulations for opening a new franchise.
To,
The Regional Manager,
Nokia Company,
Lahore.
18th November, 2009.
Subject: INFORMATION REGARDING TO OPEN NEW FRANCHISE.
Dear Sir,
I feel pleasure to hear from some reliable sources that you invited applications for new franchise setup in Punjab region.I belong to Bahawalpur city and also know the goodwill of Nokia Company in the market; therefore I want to take this opportunity to start new business relation with you.Kindly send me some basic information i.e. application form, building location, financial requirement, security deposit or so on.Along above also send me information regarding company’s rules and regulation i.e. what terms and condition are applicable, agreement rules or any other information which you consider helpful to me for the said purpose.I hope that you will cooperate with me in this regard and send above information as soon as possible.
Your prompt reply will be highly appreciated.
Kind regards,
Yours truly,
Question No.2Write a short note on necessary steps for preparing an effective business message.
The Process of Preparing Effective Business Message PLANNING STEPS FOR COMMUNICATION There are five planning steps: 1. Identify your purpose 2. Analyze your audience 3. Choose your ideas 4. Collect data to support your ideas 5. Organize your message 1. Identify your purpose : You must know why you should write and what should be written . The purpose may be sale , good will , request , inquiry or refusal etc. 2. Analyze your audience : It is better for the sender to understand the receiver. You should know his background , qualification , education , position , status in the company , desire , expectations , problems , circumstances and possible reactions to your request. Also he/she is superior , subordinate , laborer , professional or technical person , colleague , single or married , man or woman , young or old , new or long time customer . 3. Choose the ideas : It depends upon the type of message . Before working jot down the points to be covered in communication , and then bring them in order of importance and urgency 4. Collect data to support your ideas To explain facts and figures , visual aids may be utilized , augmenting the communication. 5. Organize ideas : Once the ideas have been jotted down , they should be properly arranged and organized . Failing to organize will fail the objectives of the message .
Tuesday, November 17, 2009
ENG301
ENG301 (Business Communication)
Fall 2009
Assignment # 1 Total Marks: 15
Question No.1 (5)
Which theory of communication do you prefer from three theories of communication present in your course and why?
Answer
Rhetorical theory is preferred to others because we can easily condition our message according to the feedback from the audience and its circular nature. Moreover, third set of theorists add more dimensions to our understanding of the communication process: communication is not linear, but circular; not just sending a message to be received, but producing a response; not static, but dynamic.
Rhetorical theorists provide an important addition to a communication model for business communicators
Many people in business get so much absorbed in the accuracy of their message and appropriateness of the situation that they forget the third crucial variable, producing the desired response form their audience. The importance of response in business communication is illustrated in the following figure—which incorporates the ideas of accuracy (from the collective theory) and situation (from the social environment theory).
Circular Model
Message
Message
Communicator Audience
Response
Response
In fact, perhaps the most important difference between business communication and other forms of communication is this circular quality: your business communication effectiveness depends on the result you achieve. How can you achieve the desired response? You will learn not only how to be more correct and accurate, and how to be more sensitive to the situation, but also how to identify your audience’s needs in order to become a better communicator.
Question No.2
(a)
Describe the traits of a good communicator. (5)
Answer
When you learn how to overcome more and more communication barriers, you become more and more successful as a business communicator. Think about the people you know. Which of them would you call successful communicators? What do these people have in common?
Most probably, the individual you list share fine traits.
Following are the traits of good communicators:
• Perception
• Precision
• Credibility
• Control
• Congeniality
Perception: They are able to predict how you will receive their message. They anticipate your reaction and shape the message accordingly. They read your response correctly and constantly adjust to correct any misunderstanding.
Precision: They create a ‘meeting of the minds’. When they finish expressing themselves, they share the same mental picture.
Credibility: They are believable. They have faith in the substance of their message. You trust their information and their intentions.
Control: They shape your response. Depending on their purpose, they can make you laugh or cry, calm down, change your mind or take action.
Congeniality: They maintain friendly, pleasant relations with you. Regardless of whether you agree with them. Good communicators command your respond and goodwill. You are willing to work with them again, despite their differences.
Effective communication overcomes the main barriers to communication by creating their message carefully, minimizing noise in the transmission process and facilitating feedback.
(b)
What is the role of proximity and artifacts in non verbal communication? (5)
Answer
Proximity means nearness, in terms of physical space. How people use their personal space and that of others to communicate a message. Proximity is communicated, for instance, through the use of space, distance, touching, eye contact, gestures, and body position.
This response to spatial relationships in formal, informal and intimate settings indicates how that person perceives and feels in that space. Space in nonverbal communication may be divided into four main categories: intimate, social, personal, and public space.(Scott Mclean, 1969) People also use their height and weight to convey a message. If you tower over other people in a way that intrudes on their personal space you may cause their discomfort and withdrawal.
Personal space varies according to:
Gender
Status
Roles
Culture
Research has shown that Australians speaking to acquaintances or work colleagues leave about an arm’s length of space between themselves and the other person. People speaking to friends and family leave about half an arm or an elbow’s length between themselves and others. People in intimate relationships allow direct and close contact when speaking to each other. The use of space reflects the way people feel about others. Americans keep a distance of 18 inch from other person during a formal during a formal conversation.
Artifacts
Artifacts are objects used to convey nonverbal messages about self-concept, image, mood, feeling or style. For example, perfume, clothes, lipstick, glasses and hairpieces project the style or mood of the wearer. Many artifacts are common to the group but we also use artifacts, particularly clothing, as an individual form of communication.
Appearance and cloth are important and highly visible parts of nonverbal communication. Consider the difference between the clothes you wear at home to the beach and the clothes you wear to a job interview. The choice of clothes reflects your mood and your attitude to the occasion. Other people note and place their own interpretation on your dress.
Even if you decide you will not bother about personal appearance or clothes, others will read this message as part of your nonverbal communication.
Fall 2009
Assignment # 1 Total Marks: 15
Question No.1 (5)
Which theory of communication do you prefer from three theories of communication present in your course and why?
Answer
Rhetorical theory is preferred to others because we can easily condition our message according to the feedback from the audience and its circular nature. Moreover, third set of theorists add more dimensions to our understanding of the communication process: communication is not linear, but circular; not just sending a message to be received, but producing a response; not static, but dynamic.
Rhetorical theorists provide an important addition to a communication model for business communicators
Many people in business get so much absorbed in the accuracy of their message and appropriateness of the situation that they forget the third crucial variable, producing the desired response form their audience. The importance of response in business communication is illustrated in the following figure—which incorporates the ideas of accuracy (from the collective theory) and situation (from the social environment theory).
Circular Model
Message
Message
Communicator Audience
Response
Response
In fact, perhaps the most important difference between business communication and other forms of communication is this circular quality: your business communication effectiveness depends on the result you achieve. How can you achieve the desired response? You will learn not only how to be more correct and accurate, and how to be more sensitive to the situation, but also how to identify your audience’s needs in order to become a better communicator.
Question No.2
(a)
Describe the traits of a good communicator. (5)
Answer
When you learn how to overcome more and more communication barriers, you become more and more successful as a business communicator. Think about the people you know. Which of them would you call successful communicators? What do these people have in common?
Most probably, the individual you list share fine traits.
Following are the traits of good communicators:
• Perception
• Precision
• Credibility
• Control
• Congeniality
Perception: They are able to predict how you will receive their message. They anticipate your reaction and shape the message accordingly. They read your response correctly and constantly adjust to correct any misunderstanding.
Precision: They create a ‘meeting of the minds’. When they finish expressing themselves, they share the same mental picture.
Credibility: They are believable. They have faith in the substance of their message. You trust their information and their intentions.
Control: They shape your response. Depending on their purpose, they can make you laugh or cry, calm down, change your mind or take action.
Congeniality: They maintain friendly, pleasant relations with you. Regardless of whether you agree with them. Good communicators command your respond and goodwill. You are willing to work with them again, despite their differences.
Effective communication overcomes the main barriers to communication by creating their message carefully, minimizing noise in the transmission process and facilitating feedback.
(b)
What is the role of proximity and artifacts in non verbal communication? (5)
Answer
Proximity means nearness, in terms of physical space. How people use their personal space and that of others to communicate a message. Proximity is communicated, for instance, through the use of space, distance, touching, eye contact, gestures, and body position.
This response to spatial relationships in formal, informal and intimate settings indicates how that person perceives and feels in that space. Space in nonverbal communication may be divided into four main categories: intimate, social, personal, and public space.(Scott Mclean, 1969) People also use their height and weight to convey a message. If you tower over other people in a way that intrudes on their personal space you may cause their discomfort and withdrawal.
Personal space varies according to:
Gender
Status
Roles
Culture
Research has shown that Australians speaking to acquaintances or work colleagues leave about an arm’s length of space between themselves and the other person. People speaking to friends and family leave about half an arm or an elbow’s length between themselves and others. People in intimate relationships allow direct and close contact when speaking to each other. The use of space reflects the way people feel about others. Americans keep a distance of 18 inch from other person during a formal during a formal conversation.
Artifacts
Artifacts are objects used to convey nonverbal messages about self-concept, image, mood, feeling or style. For example, perfume, clothes, lipstick, glasses and hairpieces project the style or mood of the wearer. Many artifacts are common to the group but we also use artifacts, particularly clothing, as an individual form of communication.
Appearance and cloth are important and highly visible parts of nonverbal communication. Consider the difference between the clothes you wear at home to the beach and the clothes you wear to a job interview. The choice of clothes reflects your mood and your attitude to the occasion. Other people note and place their own interpretation on your dress.
Even if you decide you will not bother about personal appearance or clothes, others will read this message as part of your nonverbal communication.
MGT411
Assignment 1
Fall 2009
Money and Banking (MGT411)
Last Date of Submission: November 10, 2009
Marks: 20
· Make sure that you upload the solution file before due date. No assignment
will be accepted through e-mail after the due date.
Formatting guidelines
· Use the font style “Times New Roman” and font size “12”.
· Compose your document in MS-Word 2003 or MS Excel l 2003. Any file
created in any other version will not be accepted and marked zero.
· Use black and blue font colors only.
Solution guidelines
· The student will work individually and has to write in the form of an
analytical assignment.
· Give the answer according to question. Formula should be provided along
with the solution.
Please note that your assignment will not be graded if:
· It is submitted after due date
· The file you uploaded does not open
· The file you uploaded is copied from some one else
· It is in some format other than .doc or exl.
· Cheating or copying of assignment is strictly prohibited. The cheated or
copied assignment will be marked as Zero.
Question #1 (Marks 6)
According to the data given below, calculate the GDP deflator and inflation rate.
Years Nominal GDP Real GDP GDP deflator Inflation rate
1997 Rs. 60,000 Rs. 60,000
1998 70,100 65,200
1999 81,200 74,600
Solution:
GDP Deflator = Nominal GDP/Real GDP * 100
Inflation Rate = CPIn – CPI0 / CPI0 * 100
In this question we will use GDP deflator instead of CPI.
Years Nominal GDP Real GDP GDP deflator Inflation rate
1997 Rs. 60,000 Rs. 60,000 100 n.a
1998 70,100 65,200 107.52 7.52
1999 81,200 74,600 108.85 1.23
Question #2 (Marks 4)
Determine the future value of an investment of Rs. 100 for 12 months at the following
interest rates:
a- 5%
b- 1%
Solution:
The FV of an investment of $100 at 5% interest rate in 12 months will be
FV = PV (1+i) n
= $100 (1+ 0.05)1
= $105
Similarly, at 1% interest rate, the FV of $100 in 12 months will be
FV = PV (1+i) n
= $100 (1+ 0.01)1
=$100 (1.01) 1
= $101
Question # 3 (Marks 10)
Assume that the economy can experience high growth, normal growth, or recession. You
expect the following stock-market returns for the coming year under these conditions:
State of the Economy Probability Return
High Growth 0.3 +30%
Normal Growth 0.4 +12%
Recession 0.2 -15%
a. Compute the expected value of a Rs. 1000 investment both in Rupees and as a
percentage over the coming year.
b. Compute the standard deviation of the return as a percentage over the coming
year.
c. If the risk-free return is 7 percent, what is the risk premium for a stock market
investment?
Solution:
a. Expected Value
= 0.3($1000)(1+30%) + 0.4($1000)(1+12%) +
0.2($1000)(1-15%)
= Rs. 390 + 448 + 170
= Rs. 1008
Expected Return
= 0.3(30%) + 0.4(12%) + 0.2(-15%)
= 10.8%
b. Standard Deviation =
% 64 . 15 %) 8 . 10 % 15 ( 2 . 0 %) 8 . 10 % 12 ( 4 . 0 %) 8 . 10 % 30 ( 3 . 0 2 2 2 = - - + - + -
c. Risk Premium
= 10.8% - 7%
= 3.8%
Fall 2009
Money and Banking (MGT411)
Last Date of Submission: November 10, 2009
Marks: 20
· Make sure that you upload the solution file before due date. No assignment
will be accepted through e-mail after the due date.
Formatting guidelines
· Use the font style “Times New Roman” and font size “12”.
· Compose your document in MS-Word 2003 or MS Excel l 2003. Any file
created in any other version will not be accepted and marked zero.
· Use black and blue font colors only.
Solution guidelines
· The student will work individually and has to write in the form of an
analytical assignment.
· Give the answer according to question. Formula should be provided along
with the solution.
Please note that your assignment will not be graded if:
· It is submitted after due date
· The file you uploaded does not open
· The file you uploaded is copied from some one else
· It is in some format other than .doc or exl.
· Cheating or copying of assignment is strictly prohibited. The cheated or
copied assignment will be marked as Zero.
Question #1 (Marks 6)
According to the data given below, calculate the GDP deflator and inflation rate.
Years Nominal GDP Real GDP GDP deflator Inflation rate
1997 Rs. 60,000 Rs. 60,000
1998 70,100 65,200
1999 81,200 74,600
Solution:
GDP Deflator = Nominal GDP/Real GDP * 100
Inflation Rate = CPIn – CPI0 / CPI0 * 100
In this question we will use GDP deflator instead of CPI.
Years Nominal GDP Real GDP GDP deflator Inflation rate
1997 Rs. 60,000 Rs. 60,000 100 n.a
1998 70,100 65,200 107.52 7.52
1999 81,200 74,600 108.85 1.23
Question #2 (Marks 4)
Determine the future value of an investment of Rs. 100 for 12 months at the following
interest rates:
a- 5%
b- 1%
Solution:
The FV of an investment of $100 at 5% interest rate in 12 months will be
FV = PV (1+i) n
= $100 (1+ 0.05)1
= $105
Similarly, at 1% interest rate, the FV of $100 in 12 months will be
FV = PV (1+i) n
= $100 (1+ 0.01)1
=$100 (1.01) 1
= $101
Question # 3 (Marks 10)
Assume that the economy can experience high growth, normal growth, or recession. You
expect the following stock-market returns for the coming year under these conditions:
State of the Economy Probability Return
High Growth 0.3 +30%
Normal Growth 0.4 +12%
Recession 0.2 -15%
a. Compute the expected value of a Rs. 1000 investment both in Rupees and as a
percentage over the coming year.
b. Compute the standard deviation of the return as a percentage over the coming
year.
c. If the risk-free return is 7 percent, what is the risk premium for a stock market
investment?
Solution:
a. Expected Value
= 0.3($1000)(1+30%) + 0.4($1000)(1+12%) +
0.2($1000)(1-15%)
= Rs. 390 + 448 + 170
= Rs. 1008
Expected Return
= 0.3(30%) + 0.4(12%) + 0.2(-15%)
= 10.8%
b. Standard Deviation =
% 64 . 15 %) 8 . 10 % 15 ( 2 . 0 %) 8 . 10 % 12 ( 4 . 0 %) 8 . 10 % 30 ( 3 . 0 2 2 2 = - - + - + -
c. Risk Premium
= 10.8% - 7%
= 3.8%
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