For office use only
UNIVERSITY OF THE WESTERN CAPE
FINAL ASSESSMENT:
MAY / JUNE 2022
MODULE NAME : FINANCIAL AND ANALYTICAL TECHNIQUES
MODULE CODE : MAN 305
DURATION : 3 HOURS
TOTAL MARKS : 100 MARKS
Examiner/s : Mr Mark Buwembo & Ms. Fikile Dube
Internal moderator : Mr Xolisa Mtiki
External moderator : Dr P. Simbanegavi
Departmental chairperson : Prof Zivanayi Nyandoro
EXAMINER’S INSTRUCTIONS:
Answer all questions.
Calculators may be
used.
GENERAL INSTRUCTIONS:
This examination paper consists of 10 printed pages (including cover sheet); please ensure that you
have all of them.
Please ensure that your Student Number is clearly printed on the examination answer booklet/s and
that you have completed the attendance form (control form). Also ensure that your student number
is correctly captured on the multiple choice answer sheet should you be required to complete one.
You may not have any books, writing paper, notes, manuscripts, electronic media (cellphones,
smart devices, laptops, etc.) in your possession, unless otherwise stipulated in this examination
question paper.
Please ensure that your answer booklet and question paper are collected by an invigilator at the end
of the examination session. Examination answer booklets must be intact when collected by the
invigilator. No stapled, paper clipped or glued booklets will be accepted.
Please answer all questions (unless indicated otherwise). It is in your interest to write in a legible
manner.
, Question 1 /6/
A South African study on the number of student study hours reported that on average,
engineering honors students study 25 hours per week. You want to test whether this norm
also applies to finance honors students in South Africa. Using a random sample of 100
finance honors students from various South African universities, you conducted a survey and
found that on average, students set aside 27.5 hours per week. You also found the population
standard deviation to be 6.8 hours.
Do finance honors students study more than engineering students per week on average? Test
this claim at the 5% level of significance.
Question 2 /6/
a) Describe the major distinction between regression and classification problems under
Supervised machine learning. (1)
b) Explain what overfitting is and how it affects a machine learning model. (2)
c) When using big data, a number of prior tasks such as data preparation and wrangling
as well as exploration are required to improve the ML model building and training.
Outline the 3 tasks of ML model training when using Big data projects. (3)
Question 3 /15/
An Investec analyst is looking to invest R180,000 in hopes of getting the highest return
possible. There are four investment options available: bonds, mutual funds, stocks, or a
savings account yielding interest. The bonds give a 4% annual return, mutual funds give an
9% return, stocks give a 12% return, and the savings account gives a 3% return with all
investments being subject to risk. To control for risk, the following constraints are put into
place:
a) No more than 12% of the total investment can be put into stocks.
b) At most 30% must be invested in mutual funds and/or the savings account.
c) The amount put in the bonds must be no more than the amount put into the other
investments combined.
d) The ratio of money invested in mutual funds to the amount invested in stocks and the
savings account should be at least 2 to 1.
e) All the R180,000 must be invested and no shorting is allowed.
Formulate a linear programming model for this problem to get the highest return (i.e., Define
your decision variables, objective function and constraints). How much of the budget should
be invested into each investment option? (Show your workings in Microsoft Excel)
2
UNIVERSITY OF THE WESTERN CAPE
FINAL ASSESSMENT:
MAY / JUNE 2022
MODULE NAME : FINANCIAL AND ANALYTICAL TECHNIQUES
MODULE CODE : MAN 305
DURATION : 3 HOURS
TOTAL MARKS : 100 MARKS
Examiner/s : Mr Mark Buwembo & Ms. Fikile Dube
Internal moderator : Mr Xolisa Mtiki
External moderator : Dr P. Simbanegavi
Departmental chairperson : Prof Zivanayi Nyandoro
EXAMINER’S INSTRUCTIONS:
Answer all questions.
Calculators may be
used.
GENERAL INSTRUCTIONS:
This examination paper consists of 10 printed pages (including cover sheet); please ensure that you
have all of them.
Please ensure that your Student Number is clearly printed on the examination answer booklet/s and
that you have completed the attendance form (control form). Also ensure that your student number
is correctly captured on the multiple choice answer sheet should you be required to complete one.
You may not have any books, writing paper, notes, manuscripts, electronic media (cellphones,
smart devices, laptops, etc.) in your possession, unless otherwise stipulated in this examination
question paper.
Please ensure that your answer booklet and question paper are collected by an invigilator at the end
of the examination session. Examination answer booklets must be intact when collected by the
invigilator. No stapled, paper clipped or glued booklets will be accepted.
Please answer all questions (unless indicated otherwise). It is in your interest to write in a legible
manner.
, Question 1 /6/
A South African study on the number of student study hours reported that on average,
engineering honors students study 25 hours per week. You want to test whether this norm
also applies to finance honors students in South Africa. Using a random sample of 100
finance honors students from various South African universities, you conducted a survey and
found that on average, students set aside 27.5 hours per week. You also found the population
standard deviation to be 6.8 hours.
Do finance honors students study more than engineering students per week on average? Test
this claim at the 5% level of significance.
Question 2 /6/
a) Describe the major distinction between regression and classification problems under
Supervised machine learning. (1)
b) Explain what overfitting is and how it affects a machine learning model. (2)
c) When using big data, a number of prior tasks such as data preparation and wrangling
as well as exploration are required to improve the ML model building and training.
Outline the 3 tasks of ML model training when using Big data projects. (3)
Question 3 /15/
An Investec analyst is looking to invest R180,000 in hopes of getting the highest return
possible. There are four investment options available: bonds, mutual funds, stocks, or a
savings account yielding interest. The bonds give a 4% annual return, mutual funds give an
9% return, stocks give a 12% return, and the savings account gives a 3% return with all
investments being subject to risk. To control for risk, the following constraints are put into
place:
a) No more than 12% of the total investment can be put into stocks.
b) At most 30% must be invested in mutual funds and/or the savings account.
c) The amount put in the bonds must be no more than the amount put into the other
investments combined.
d) The ratio of money invested in mutual funds to the amount invested in stocks and the
savings account should be at least 2 to 1.
e) All the R180,000 must be invested and no shorting is allowed.
Formulate a linear programming model for this problem to get the highest return (i.e., Define
your decision variables, objective function and constraints). How much of the budget should
be invested into each investment option? (Show your workings in Microsoft Excel)
2
