College of Administrative and Financial Sciences
Assignment -2
                                Academic Year: 1441/1442 H

Course Name: Investments Student’s Name:
Course Code: FIN403 Student’s ID Number:
Semester: 2nd CRN: 21946

For Instructor’s Use only

Instructor’s Name:
Students’ Grade:  Marks Obtained/Out of Level of Marks: High/Middle/Low


  • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
  • Assignments submitted through email will not be accepted.
  • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
  • Students must mention question number clearly in their answer.
  • Late submission will NOT be accepted.
  • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks.
  • All answered must be typed using Times New Roman (size 12, double-spaced)
  • Submissions without cover page will NOT be accepted.

Assignment 2        
Submission Date by students:  3/4/2021
Place of Submission: Students Grade Centre via blackboard.
Weight: 05 Marks
Assignment Purposes/Learning Outcomes:
CLO-3. Demonstrate investment arrangements as part of the process for implementing an investment strategy. ( PLO-2.2)
CLO-4. Demonstrate the valuation methods used for valuation of the common forms of debt, equity, property and derivative securities.( PLO-2.3).
Assignment Question(s):                                                                                      (Marks 5)
Q.1. Why would a corporate investor consider preferred stock over a bond? What is meant by the cumulative feature of preferred stock issues? ( 2 Marks)
Q.2. What does the strong form of the efficient market hypothesis suggest? Are major test results generally supportive of the strong form?  ( 2 Marks )
Q.3. What might a high dividend-payout ratio suggest to an analyst about a company’s growth prospects?  ( 1 Mark)