BMMF5103/MAY16/A-NK

ASSIGNMENT SUBMISSION AND ASSESSMENT

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BMMF5103
MANAGERIAL FINANCE
MAY 2016
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INSTRUCTIONS TO STUDENTS
1. This assignment contains question that is set in English.
2. Answer in English.
3. Learners are to submit assignment only in MsWord (.docx) format unless
specified otherwise. Please refrain from converting text / phrases into
picture format such as .gif / .jpeg / print screen / etc.
4. Download the language version of the assignment template concerned
from the myINSPIRE for preparation and submission of your assignment.
Your assignment should be typed using 12 point Times New Roman font
and 1.5 line spacing.
5. Your assignment should be between 3,000 words to 5,000 words
excluding references. The number of words should be shown at the end of
your assignment. Do not copy the assignment question and instructions
to your answer.
6. Submission of assignment:

Face-to-face Class Student:

You MUST submit a softcopy of your assignment online through
myINSPIRE and a hardcopy to your facilitator.

Online student:
You MUST submit a softcopy of your assignment via myINSPIRE and
another softcopy to the facilitator via e-mail.

7. You can submit your assignment ONCE only in a SINGLE file.

8. Your assignment must be submitted between 1st July 2016 until 3rd July
2016.
9. Your assignment should be prepared individually. You should not copy
another persons assignment. You should also not plagiarise another
persons work as your own.
10.Please ensure that you keep the RECEIPT issued upon submisson of your
assignment as proof of submission. Your assignment is considered as NOT
1

BMMF5103/MAY16/A-NK

submitted if you fail to produce the submission receipt in any dispute

arises concerning assignment submission.

EVALUATION
This assignment accounts for 60% of the total marks for the course and shall
be assessed based on the Rubrics attached.
You would be given feedback on the assignment before the Final Semester
Examination commences.
PLAGIARISM: MARKS DEDUCTION
Warning: The submitted assignment will automatically undergo a similarity
check. If plagiarism is detected, marks would be deducted as follows:

No.

% Similarity Group

1
2
3
4

0 30
30.01 50
50.01 70
70.01 100

% of Mark
Deduction
0
5
10
100

BMMF5103/MAY16/A-NK

ASSIGNMENT QUESTION
PURPOSE
To analyse and evaluate the risk and return of projects and securities, based on
corporate finance theories.
REQUIREMENT
Answer the following questions by using the relevant information given and
corporate finance theories.
QUESTION
a) It's important to understand that risks aren't just defined to the project, they
also apply to the business, the suppliers, the people working on the project as
well as the system and people that have to support and use the project.
Discuss how firms develop and use project risk classes.
(25 marks)
b) The security market line (SML) is a line that graphs the systematic, or market,
risk versus return of the whole market at a certain time and shows all risky
marketable securities. Explain how financial managers can use the SML to
make accept-reject decisions for capital investments.
(25 marks)
c) Capital Asset Pricing Model (CAPM) is a model that describes the relationship
between risk and expected return and it is used in the pricing of risky
securities. Discuss how can financial managers estimate the risk-free rate, the
expected return on the market, and a project's beta using CAPM.
(25 marks)
d) Risk analysis is a technique used to identify and assess factors that may
jeopardize the success of a project or achieving a goal. Explain how sensitivity
analysis differs from scenario analysis.
(25 marks)
(TOTAL: 100 MARKS)
Assignment Format:
a. Each answer must contain 750-1250 words and must have introduction, body
and conclusion.
b. Provide reference using the American Psychological Association (APA) format.
c. References should be latest (year 2005 onwards).
Notes:
Assignments should be submitted according to the due date.
You are to submit a softcopy of your assignment online through myINSPIRE
and a hardcopy to your facilitator.

BMMF5103/MAY16/A-NK

Plagiarism is not acceptable. If you are not sure what is meant by plagiarism,
refer to the various websites which discuss this matter, e.g.
owl.english.purdue.edu/handouts.