Question 4 (20 marks)
(a) The Hong Kong government became an active market participant which bought about US$15 billion shares of companies trading on the Hang Seng Index in August 1998 in the face of the Asian economic crisis. Discuss the pros and cons of its actions. (10 marks)

(b) Discuss the major risks of buying Exchange Traded Funds (ETF). (5 marks)

(c) What are the major challenges in developing ETF products in Hong Kong?
(5 marks)

Kumar consulting operates several stock investment portfolios that are used by firms for investment of pension plan assets. last year, one portfolio had a realized return of 12.6 percent and a beta coefficient of 1.15. the average t-bond rate was 7 percent and the realized rate of return on the s& p 500 was 12 percent. what was the portfolio's alpha?

Roberto and reagan are both 25 percent owner/managers for bright light inc. roberto runs the retail store in sacramento, ca, and reagan runs the retail store in san francisco, ca. bright light inc. generated a $125,000 profit companywide made up of a $75,000 profit from the sacramento store, a ($25,000) loss from the san francisco store, and a combined $75,000 profit from the remaining stores. if bright light inc. is an s corporation, how much income will be allocated to roberto?

Even sole proprietors should have at least how many computers? 1 2 3 4