NoSTEI/ST/KPS/06.02

Validation Date03/04/2010

Islamic Investment Management/MKJ-MK 08

Mid-Term ExaminationSecond Semester 2009/2010SUBJECT/CODE: Islamic Investment Management/MKJ-MK 08LECTURER

: Dr. Endri, SE., MADAY/DATE

: Thursday, April 08, 2010TIME DURATION: 2 HOURS (07.30-09.30) WIB

ROOM

: Ibnu Qoyyim 2INSTRUCTIONS TO CANDIDATES

1.CANDIDATES ARE REMINDED THAT THEY MUST NOT HAVE BOOKS, NOTES, PAPER OR OTHER MATERIAL IN THEIR POSSESSION UNLESS THEIR USE IS SPECIFICALLY PERMITTED BY "INSTRUCTIONS TO CANDIDATES" SET OUT BELOW.

2.This paper consists of 4 questions printed on 2 pages.

PLEASE CHECK BEFORE COMMENCING. This is a Mid-Term Examination.

3.Attempt all questions.

4.This paper is worth a total of 30 marks. 5. Candidate must not remove this paper from examination room.Soal 1 (20 poin)

a. Explain the definition of investment and the objective of someone in investing. b. Explain the main consideration in making investment decision by an investor.c. Explain two decision making processes in investment! (8%)Soal 2 (25 poin)

a. Explain the difference between direct investment and indirect investment. The difference must also include the definition and types of financial assets.b. What are the characteristic differences between investment instruments in a money market and capital market?c. What is the definition of security derivative? Explain the difference between option and future.Soal 3 (30 poin)

The following table shows the return probability of stock A and B on several Rupiah conditionCondition Rp

Probability Stock Return AStock Return B

Rp Strengthening

0,2

40%

20%

Rp Normal

0,3

30%

25%

Rp. Weakening

0,5

20%

35%

Based on the above information, answer the following questions:

1. Count the expected return of stock A = E(RA)

2. Count the expected return of stock B = E (RB)

3. Count the stock A risk.4. Count the stock B risk.5. Count the return stock covariance A & B

6. Count the stock return corelation A & B7. Based on answer 1 & 2, which stock has the best performance?8. Based on answer 3 & 4, which stock has the best performance? 9. Based on answer 1,2,3 and 4 which stock has the best performance10. If an investor invests 50% of his money in stock A and 50% of in stock B, complete the portfolio fron the table above. 11. Count the portofolio expected return.12. Count the portfolio risk. Soal 4 (25 poin)

a. Explain about efficient portfolio! Draw the curve!b. How do we get the risk preference score of an investor using an indifferent curve?

c. What are the steps that have to be taken to build an ideal portfolio?d. Explain what is meant by Markowitz model or Markowitz portfolio selection model!e. With this kind of portfolio arrangement, then what sort of risk should an investor focus on, should be the systematic risk or non systematic risk that should be avoided?Sekolah Tinggi Ekonomi Islam Tazkia

Page 1 of 2