Fill This Form To Receive Instant Help
Homework answers / question archive / Assignment- Financial Markets APC 313 Hong Kong MARCH 2020
Assignment- Financial Markets APC 313
Hong Kong MARCH 2020.
Learning Outcomes
Upon successful completion of this module, students will be able to:
Knowledge-based outcomes
Skill-based outcomes
4. To identify and collect appropriate financial data and indices including share prices to carry out analysis of operations and efficiency of financial markets.
Answer all questions and parts.
Q.1
a. Distinguish between different levels of market efficiency. Give examples to illustrate your answer.
(10 marks)
b. With a close reference to the efficient market hypothesis literature and by using relevant empirical evidence and financial data, critically assess the “efficiency” of a stock exchange market of your own choice.
(30 marks)
Q.2
Compare and contrast key role and functions of the capital markets with those of the money markets. Critically explain how money markets’ activities might influence asset prices in the capital markets. Give examples to illustrate your answer.
(20 marks)
Q.3
(a) Compare and critically evaluate the two methods in managing foreign exchange rate risks: forward contracts and option contracts.
(10 marks)
(b) In addition, critically evaluate the choices of using exchange traded derivatives and over-the-counter derivatives for risk management purposes.
(10 marks)
Q.4
Explain what you understand by each one of the following terms:
a. Asymmetric information
b. Moral hazard
c. Adverse selection
Give examples to illustrate your answer. (10 marks)
With a close reference to these terms, critically discuss why there is a need for regulating financial markets.
(10 marks)
Guidance and Preparation Note:
1. Overall word limit, excluding tables, charts, and graphs, is between 3000-4000 words.
1. Each question should be answered with a close reference to key published academic literature and relevant financial data and evidence.
2.For Q.1(b) you need to (1) review carefully key academic literature and relevant published empirical evidence on EMH relating to the selected stock exchange market, and (2) carry out your own financial data analysis based on a graphical analysis of the movements in a relevant daily share/stock price index ,over say a 90- days period, to arrive at a conclusion.
Assessment Criteria
1.Evidence of background reading and relevance of the material to the question posed.
2.Appropriate use of up-date Harvard referencing system
3. Depth of analysis based on relevant academic literature, empirical evidence, and financial data analysis.
4. Appropriate conclusion based on relevant analysis of data,
academic literature and empirical evidence.
Students are required to submit their coursework through JIRA. Only assessments submitted through JIRA will be marked. Any other submission including submission to your study centre in hard copy will be treated as a non-submission.
If your centre supports Turnitin©, a copy of your Turnitin© originality report must be submitted in conjunction with your assignment