Mortgage Insurance and Finance PDF
Added on 2020-05-16
13 Pages1832 Words86 Views
Political Science
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Running head: FINANCEFinanceName of the Student:Name of the University:Authors Note:Table of Content
FINANCE1Question 1:.................................................................................................................................2a. Depicting whether Jason must pay mortgage insurance in 5 years:.......................................2b. Depicting the monthly mortgage instalment of Jason if he intends to pay off in 25 years:...2c. Depicting how long will Jason take to pay off the mortgagee:..............................................3Question 2:.................................................................................................................................3a. Briefly explaining the CVBA’s scandal and indicating how the investors responded to thescandal:.......................................................................................................................................3b. Depicting corporate governance and stating whether CBA’s board of directors, seniormanagement or both should be responsible for the incident:.....................................................4c. Depicting money laundering and indicating its effect on financial system:..........................4Question 3:.................................................................................................................................5a. Depicting the securities that should be purchased by James:.................................................5b. Depicting the annualised return assuming compounding interest rate:.................................7Question 4:.................................................................................................................................7a. Calculating the expected return and standard deviation for portfolio and four shares:.........7b. Stating the business of four companies and calculating the correlation between twocompanies:..................................................................................................................................8c. Identifying the most viable choice based on risk-return profile:............................................9d. Drafting the calculation for expected return and standard deviation of Janson’s portfolio:10Reference:................................................................................................................................12
FINANCE2Question 1:a. Depicting whether Jason must pay mortgage insurance in 5 years:Jason needs to pay the mortgage insurance in 5 years, as the overall instalment moneyhas been deposited in the bank account. The instalment amount mainly amounts to 129,953,while the total deposits in the bank account is 192,643.b. Depicting the monthly mortgage instalment of Jason if he intends to pay off in 25years:
FINANCE3c. Depicting how long will Jason take to pay off the mortgagee:Question 2:a. Briefly explaining the CVBA’s scandal and indicating how the investors responded tothe scandal:Commonwealth bank is mainly accused of anti-laundering law breaches, whichdirectly depicts the unethical measures conducted in its operations. In addition, the companyhas been assessed for 53,800 counts of breaches, which has been conducted byCommonwealth Bank. Moreover, CBA also failed to detect terrorism financing, which wasconducted from their accounts on 38 different instances (ABC News 2017). This series ofmanipulation and money laundering conducted by the company initiated the relation fromboth investors, board and authorities. The Australian authorities mainly acted against thecompany by insisting different level of penalties with court case. In response to which themanagement is fighting with the Australian authorities. However, the management also cameup with relevant announcement regarding the detection problems within the organisation.Moreover, the management also acknowledged the lawsuit and made relevant announcementwith a short statement. The investors did not take this combined news lightly, where around$7.8 billion in share value of Commonwealth Bank declined in the next day of trading. Thisloss was mainly due to the fall of $3.25 a share of commonwealth bank, where its prices fellfrom $84.69 to $80.11.
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