Question 1

What benefits does a company stand to gain for listing on the Ghana Stock Exchange? Explain why many companies are not listed in spite of the potential benefits stated above.

Question 2 You have been appointed the portfolio manager of a GHS 1.5 billion pension fund recently established. The fund is required to maintain 40% of its portfolio in Stock Exchange listed financial stocks. a) Select two financial sector stocks in your proposal to the funds board of trustees. Justify your selection using at least one-year market information. b) A member of the board of trustees has argued for the use of a stock index in the exercise. i. State and describe an index on the local bourse that you would use for this purpose. ii. Assess the use of market indices in portfolio management.