W1-2-60-1-6
JOMO KENYATTA UNIVERSITY
OF
AGRICULTURE AND TECHNOLOGY
University Examinations 2014/2015
THIRD YEAR FIRST SEMESTER EXAMINATION FOR THE DEGREE
OF BACHELOR OF PURCHASING AND SUPPLIES MANAGEMENT
HPS 2307: INVESTMENT MANAGEMENT
DATE: AUGUST 2014 TIME: 2 HOURS
INSTRUCTIONS: ANSWER QUESTION ONE (COMPULSORY) AND ANY OTHER TWO QUESTIONS
Question One (30 Marks)
a) Discuss ways of improving logistical operations in view of management concepts of logistics. (10 Marks)
b) Explain the main objectives of logistics management. (10 Marks)
c) Define operational logistics and state some of its salient activities. (10 Marks)
Question Two (20 Marks)
a) Define the capital asset pricing model. (2 Marks)
b) Despite the fact that the capital market model (CAPM) has unrealistic assumptions and it is difficult to test empirically, the CAPM is widely applied in practice. Discuss for which purposes the CAPM is applied. (8 Marks)
c) Discuss the three most documented inconsistencies with the CAPM, also known as stock market anomalies, observed in capital markets. (10 Marks)
Question Three (20 Marks)
List and discuss the three forms of efficient market hypothesis (EMH) (20 Marks)
Question Four (20 Marks)
Consumables are inventories which cover a variety of support. Discuss by giving examples. (20 Marks)
