Solution Manual for International Financial Management 14th Edition by Jeff Madura
FIN4802 EXAM PACK 2024
FIN4802 EXAM PACK 2024
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University of South Africa (Unisa)
International Financial Management (FIN4802)
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FIN4802
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,UNIVERSITY EXAMINATIONS
January/February 2023
FIN4802
International Financial Management
Examiners
First: Prof K Tsaurai
Second: Prof P Makoni
External: Prof HP Wolmarans
Total marks: 100 Marks
Start date and time: 1 February 2023 at 8:00
End date and time: 1 February 2023 at 11:00
Duration: 3 Hours
INSTRUCTIONS ON THE DAY OF ASSESSMENT:
• Ensure you are connected to the internet in order to log into the Invigilator App and scan this
QR code.
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Access Code below the QR code to start the invigilation.
• Unless otherwise specified by your institution, note that you can only scan this QR code
once. If your assessment has multiple online sections, tests or attempts, you should NOT
finish the invigilation until your entire assessment has been completed.
• Only scan the QR code when the assessment formally commences.
• The QR code is only scannable for a limited time and it should therefore be scanned
as soon as possible to start the invigilation.
, CONFIDENTIAL FIN4802
Page 2 of 20 January/February 2023 (Non Venue Based)
• Once the QR code is scanned, ensure your media volume Is turned up and place your
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assessment. You are not allowed to minimise or leave the app.
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the end of the assessment. No internet connection is required during the assessment.
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institution as the time displayed in the Invigilator App could differ from the time allocated to
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This paper consists of 19 pages.
Instructions:
1. You can fill in your answers in the spaces provided in this question paper, print, scan and
upload it OR
2. You can work on your own papers, scan and upload them. This option applies to the
students who do not have access to printing facilities.
Please note:
1 Any silent, battery operated pocket calculator (e.g., HP10BII or Sharp EL733-A financial
calculator) may be used.
2 Pages for rough work have been provided (see pages 17 to 19). No rough work will be
marked.
3 Students must answer all the four questions.
4 Students must show all workings and calculations.
You must also include a declaration of honesty that the answers constitute your own work.
The Non-Venue Format is a Take-home Exam with submission on the Moodle platform
ABC (France) considers placing 40 percent of its excess funds in a one-year Singapore dollar deposit
and the remaining 60 percent of its funds in a one-year US dollar deposit. The Singapore one-year
interest rate is 15 percent, while the US one-year interest rate is 13 percent. The possible percentage
changes in the two currencies for the next year are forecasted as follows:
Currency Possible percentage change in Probability of that change
the spot rate over the in the spot rate occurring
investment horizon
Singapore dollar -2% 30%
Singapore dollar 1 30
Singapore dollar 3 40
US dollar 1 20
US dollar 4 50
US dollar 6 30
Given this information, determine the possible effective yields of the portfolio and the probability
associated with each possible portfolio yield. If the one-year euro interest rate is 8 percent, what is the
probability that the portfolio’s effective yield will be lower than the yield achieved from investing in the
United States? (Assume that the movements on the two currencies are not correlated). [25]
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