Q No. 5: a. What do we mean by the term Efficient Capital Market? Explain the different forms of market efficiency. What factors contribute to an efficient market? (3 marks)

b. What is exchange rate exposure? What are the various factors that influence exchange rate of a country? What are the factors that influence the Purchasing Power Parity Theory to hold in real world? (4 marks)

c. Define financial derivatives? Differentiate amongst forwards, futures, options and swaps. (3 marks)

(Subject is Corporate finance (Answer require immegiately)