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Fin630 Current Spring 2011 Final Term VU Paper 21 July 2011Virtual University
#1
1. What is the main purpose of diversification? 3
2. Define call option 3
3. How can risk measures? What is fundamental rule of risk measurement? 3
4. Write down source of information at library 3
5. Bonds are not risk free. But why bonds are considered to be less risky than stock? 5
6. How can an investor sell securities that are not invested by him/her? 5
7. The key to maximize profit is diversification. Do you agree with this statement? 5
8. Describe the mechanism traded in the future market. ?

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