PracticeTest#3

PracticeTest#3 - Finance 4329: Investment Analysis and...

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Finance 4329: Investment Analysis and Portfolio Management Practice Test #3 – Lecture Notes Parts 7 and 8 Name:__________________________________________________ ESSAY QUESTIONS 1. Discuss the assumptions of the capital asset pricing model, and how these assumptions relate to the “real world” investment decision process.
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2. What is an event study? It is a test of what form of market efficiency? Discuss the process of conducting an event study, including the best variable(s) to observe as tests of market efficiency.
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3. Although the expectations of increases in future interest rates can result in an upward sloping yield curve, an upward sloping yield curve does not in and of itself imply the expectations of higher future interest rates. Explain. 4. Discuss the relationships between interest rates (both real and nominal), expected inflation rates, and tax rates on investment returns.
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INVESTMENTS TEXTBOOK PROBLEMS Use the following information to answer question 5. Consider the multifactor APT. There are two independent economic factors, F
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This note was uploaded on 12/03/2009 for the course FINA 4326 taught by Professor Chiprusher during the Fall '08 term at SMU.

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PracticeTest#3 - Finance 4329: Investment Analysis and...

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