1.Discuss some of the manifestations of the globalization in the capital market of Kingdom of Saudi Arabia
2a. What is a simple loan?
2b. If Ahmed borrows 100SAR from his father and next year his father wants 110SAR back from him ,what is the yield to maturity on this loan?
3. The more risk-averse people are, the more likely they are to diversify. Is this statement true, false, or uncertain? Explain your answer
4.Can you think of any financial innovation in the past ten years that has affected you personally? Has it made you better or worse off? In what way?
Sample solution
Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell.
In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.
God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.
Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.
To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.
References
Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.
Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies, 4(8), 487.
Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.
Sample Answer
Sample Answer
Questions and Answers
1. Manifestations of Globalization in the Capital Market of the Kingdom of Saudi Arabia (2 Marks)
Globalization has significantly influenced the capital market in the Kingdom of Saudi Arabia (KSA) in various ways:
1. Increased Foreign Investment: The KSA capital market has opened up to foreign investors, allowing them to participate in local equity and debt markets. Initiatives like the inclusion of Saudi stocks in global indices (e.g., MSCI Emerging Markets Index) have attracted substantial foreign capital, enhancing liquidity and market depth.
2. Development of Financial Instruments: Globalization has led to the introduction of diverse financial instruments in the Saudi capital market, such as Sukuk (Islamic bonds) and exchange-traded funds (ETFs). These innovations facilitate investment opportunities for both domestic and international investors, aligning with global investment trends.
2a. What is a Simple Loan? (1 Mark)
A simple loan is a type of loan where the borrower receives a specific amount of money and agrees to repay the principal amount along with a fixed interest rate over a defined period. The interest is typically calculated only on the principal amount, not on any accumulated interest.
2b. Yield to Maturity on Ahmed’s Loan (2 Marks)
To calculate the yield to maturity (YTM) on Ahmed’s loan, we can use the formula for YTM in a simple loan scenario, which is based on the return on investment:
1. Loan Amount (Principal): 100 SAR
2. Future Value (Amount to be Repaid): 110 SAR
3. Time Period: 1 year
The YTM can be calculated as follows:
[
YTM = \frac{(Future Value – Principal)}{Principal} \times 100
]
Substituting the values:
[
YTM = \frac{(110 SAR – 100 SAR)}{100 SAR} \times 100 = \frac{10 SAR}{100 SAR} \times 100 = 10%
]
Thus, the yield to maturity on Ahmed’s loan is 10%.
3. Risk Aversion and Diversification: True, False, or Uncertain? (2 Marks)
True. The statement is true; more risk-averse individuals are indeed more likely to diversify their investments.
Explanation:
Risk-averse investors prefer to minimize potential losses and are inclined to spread their investments across various asset classes or securities. Diversification reduces the overall risk of an investment portfolio by ensuring that poor performance in one asset can be offset by better performance in another. As such, risk-averse individuals seek to balance their desire for returns with their aversion to risk, making diversification a key strategy.
4. Personal Financial Innovation Impact (3 Marks)
One significant financial innovation that has affected me personally over the past ten years is the rise of mobile banking applications.
Impact:
– Better Off: Mobile banking apps have made managing finances more convenient and accessible. I can easily transfer funds, pay bills, and track my spending from my smartphone without needing to visit a bank branch.
– Budgeting Tools: Many apps offer budgeting features that help me understand my spending habits and set savings goals, leading to improved financial management.
– Increased Financial Literacy: The availability of financial education resources within these apps has helped me make more informed decisions regarding investments and savings.
Overall, mobile banking has enhanced my ability to manage finances efficiently, making me better off financially by promoting better financial habits and providing convenience.
