This document provides information about getting fully solved assignments from AEREN FOUNDATION. Students should send their semester, specialization name, and course details to help.mbaassignments@gmail.com or call 08263069601. Sample questions and answers are provided covering topics like stock options, risk and return, financial planning, and over-the-counter markets.

1. Dear students get fully solved assignments
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AEREN FOUNDATION’S Maharashtra Govt. Reg. No.: F-11724
Name : Veerthapa Marks : 80
Course : Masters in Business Administration (MBA 4 Sem)
Subject : Financial Management
Answer the following question.
Question. 1. What are Strike Price and Option Price? (10marks)
Answer:A stock optiongivesyouthe optionto buy shares of a given company at a certain price, the
strike price, at a later date.
If the stock price (say, $1) rises above the strike price (say, $0.75), you can exercise your option to
buysharesat the strike price,andthen turn around and sell those shares at the stock price, making
$0.25 a share.
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-
SCHOOL

2. Question. 2. How risk and expected return is compared in two
distributions? (10marks)
Answer:Expected return and standard deviation are two statistical measures that can be used to
analyze a portfolio. The expected return of a portfolio is the anticipated amount of returns that a
portfoliomaygenerate,whereasthe standarddeviationof aportfoliomeasuresthe amountthatthe
returns deviate from its mean.
Expected Return: Expected return measures the
Question. 3. Different types of investments time horizons.
(10marks)
Answer:A time horizon is the length of time over which an investment is made or held before it is
liquidated. Time horizons can range from seconds, in the case of a day trader, all the way up to
decades for a buy-and-hold investor or an individual who is investing in a retirement plan.
Investmenttime horizonsare determined more by an investor's goals for the funds rather than the
mechanism itself.
Question. 4. What is meant by Financial Planning? (10marks)
Answer:Financial planning is the task of determining how a business will afford to achieve its
strategic goals and objectives. Usually, a company creates a Financial Plan immediately after the
vision and objectives have been set. The Financial Plan describes each of the activities, resources,
equipment and materials that are needed to achieve these objectives, as well as the timeframes
involved.
The Financial Planning activity involves the following tasks;----
 Assess the business environment
Question. 5. Define current assets and Give four examples
(10marks)
Answer:Financial statements are a company's window to the world. They tell the story of how
successfully or unsuccessfully a company has performed for any given period. The three most
common financial statements are the income statement, balance sheet, and statement of cash
flows. Of the three statements, the balance sheet is the one that gives the clearest picture of the
financial position of a company. The balance sheet is made up of three different sections: assets,
liabilities, and stockholders equity. Each of these
Question. 6. To avoid the problem of shortage and surplus of funds,
what is required in Financial management? Name the conceptand
explain four points of importance.(10marks)

3. Answer:Financial Planning is required to avoid shortage or surplus of finance.
Importance of financial planning is:
1- by planningutilizationof finance,itreduceswaste,duplicationof effortsandgapsinthe planning.
2- it helpsincoordinatingthe variousbusinessactivitiessuchassales,purchases,production,finance
etc.
Question. 7. Every Manager has to take three major decisions while
performing the finance function’ briefly explain them. (10marks)
Answer:The three main financial decisions which are generally taken by a finance manager are as
under:
(i) Investment Decision: It refers to the selection of assets in which funds will be invested by the
business. Assets which are obtained by the business are of two types, i.e., long-term assets and
short-term assets. On this basis, investment decision is also divided into two parts:
Question. 8. How are financial trades made in an over the counter
market? Discuss the role of a dealer in the OTC market. (10marks)
Answer:A decentralizedmarket,withoutacentral physical location,where marketparticipantstrade
with one another through various communication modes such as the telephone, email and
proprietaryelectronictradingsystems. An over-the-counter (OTC) market and an exchange market
are the two basic ways of organizing financial markets. In an OTC market, dealers act as market
makers by quoting prices at which they will buy and sell a security or currency. A trade can be
executed between two participants in an OTC market
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )